markting finale Flashcards
Product
is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Service
is a product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.
Product and Service Classifications
Consumer products
Industrial products
“Products also include other marketable entities such as experiences, organizations, persons, places, and ideas.
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Consumer products
are products and services bought by final consumers for personal consumption.
Consumer products
differ in the ways consumers buy them and, therefore, in how they are marketed
Convenience products
are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.
Shopping products
are less frequently purchased consumer products and services that the customer compares carefully on suitability, quality, price, and style.
Furniture
Cars
Appliances
Specialty products
are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Medical services
Designer clothes
High-end electronics
Unsought products
are consumer products that the consumer does not know about or knows about but does not normally think of buying
Industrial products
are those products purchased for further processing or for use in conducting a business.
Materials and parts
Capital items
Supplies and services
Materials and parts
Raw materials consist of farm products and natural products. Manufactured materials and parts consist of component materials and component parts. Most manufactured materials and parts are sold directly to industrial users. Price and service are the major marketing factors; branding and advertising tend to be less important.
Capital items
are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. Installations consist of major purchases such as buildings and fixed equipment. Accessory equipment includes portable factory equipment and tools and office equipment. They have a shorter life than installations and simply aid in the production process.
Supplies and services
include operating supplies and repair and maintenance items. Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include maintenance and repair services and business advisory services usually supplied under contract.
Product line
is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
Product line length
is the number of items in the product line.
A company can expand its product line in two ways:
: by line filling or line stretching.
. Line filling
involves adding more items within the present range of the line for earning extra profits, satisfying dealers. using excess capacity, being the leading full-line company, and plugging holes to keep out competitors. However, line filling is overdone if it results in cannibalization and customer confusion. The company should ensure that new items are noticeably different from existing ones.
. Line stretching
occurs when a company lengthens its product line beyond its current range − downward, upward, or both ways.
Companies located at the upper end of the market can stretch their lines downward. A company may stretch downward to plug a market hole that otherwise would attract a new competitor or respond to a competitor’s attack on the upper end. Or it may add low-end products because it finds faster growth taking place in the low-end segments.
Companies can also stretch their product lines upward. Sometimes, companies stretch upward to add prestige to their current products. Or they may be attracted by a faster growth rate or higher margins at the higher end.
Product mix
consists of all the product lines and items that a particular seller offers for sale.
Width
number of different product lines
Length
total number of items the company carries within its product line
Depth
number of versions offered of each product in the line.
Consistency:
how closely the various product lines are in end use, production requirements, or distribution channels.
Types of Service Industries:
Government: offer services through courts, employment services, hospitals, military services, police and fire departments, the postal service, and schools.
Private not-for-profit organizations: offer services through museums, charities, churches, colleges, foundations, and hospitals.
Business organizations: offer services such as airlines, banks, hotels, insurance companies, consulting firms, medical and legal practices, entertainment and telecommunications companies, real estate firms, retailers, and others.
Brand equity
is the differential effect that knowing the brand name has on customer response to the product or its marketing.
Brand value
is the total financial value of a brand
High brand equity provides a company with many competitive advantages:
high level of consumer brand awareness and loyalty
more leverage in bargaining with resellers
easier launch of line and brand extensions
defense against fierce price competition
Brand Positioning
Marketers need to position their brands clearly in target customers’ minds. They can position brands at any of three levels.
Attributes
Benefits
Beliefs and values
Attributes
At the lowest level, they can position the brand on product attributes
Benefits:
A brand can be better positioned by associating its name with a desirable benefit
Beliefs and values:
The strongest brands are positioned on strong beliefs and values, engaging customers on a deep, emotional level.
Brand Name Selection:
Suggests benefits and qualities
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Translatable for the global economy
Capable of registration and legal protection
