Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

COMM 204- Marketing > Module 7 > Flashcards

Module 7 Flashcards

1
Q

WHAT CAN WE MARKET?

A
  1. Goods
  2. Services
  3. Ideas
  4. People
  5. Places
  6. Experiences
  7. All of the above
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define a product in marketing.

A

A product is a good, service, or idea consisting of tangible and intangible attributes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are tangible attributes of a product?

A

Tangible attributes are physical characteristics such as colour, size, or material.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are intangible attributes of a product?

A

Intangible attributes are non-physical characteristics such as quality, style, or reliability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the three main categories of products?

A
  1. Non-durable goods (consumed quickly)
    -such as fast food or gasoline
  2. Durable goods (last for an extended period)
    -cars and appliances
  3. Services (intangible activities, benefits, or satisfactions offered for sale)
    -such as banking, visits to a doctor, taking a vacation, or going to a movie.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the service continuum?

A

Most product offerings are neither pure goods nor pure services and range from the tangible (good-dominated offerings) to the intangible (service-dominated offerings) on the service continuum.

Most product offerings are neither pure goods nor pure services and range from the tangible (good-dominated offerings) to the intangible (service-dominated offerings) on the service continuum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

SPECIAL CHARACTERISTICS OF SERVICES

A

Intangibility: services cannot be seen, tasted, felt, heard, or smelled before purchase

Inseparability: Services cannot be separated from their providers

Inconsistency or Variability: Quality of services depends on who provides them and when, where, and how

Inventory or Perishability: Services cannot be stored for later use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How are services different than goods?

A

Qualities - the primary basis on which we can compare between goods and/or services

  • Search qualities - physical characteristics that help us to compare, very high on tangible, easiest to evaluate
  • Experience qualities - need to experience them to assess them, usually include combination of tangible and intangible attributes
  • Credence qualities - need to trust in the supplier, very high on intangible, most difficult to evaluate

NOTE - services are higher on experience and credence qualities, this is part of what makes them more intangible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

PRODUCT ELEMENTS

A

Total Product Concept
* Core product: benefit a consumer derives from having the product

  • Actual product: physical good or service and includes the product’s branding, design and features
  • Augmented product: includes the additional features and attributes that accompany a product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Core benefit

A
  • Imaging we have a railroad – what might be the core benefit here? What does the railroad really provide?
  • Answer – transportation
  • We need to be accurate in determining what our core benefit is, because this helps to determine the competition – railroads compete not just with other railroads, but also with air travel, cars, and boats
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Actual product

A
  • Includes what we will be studying today – brand names, quality level, packaging, design, and features
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Augmented product

A

-The bells and whistles – deliver and credit, installation, warranty, and after sale service

The augmented product includes the additional features and attributes that accompany a product such as warranty, service contract, delivery options, installation assistance or an accompanying app that you can download.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the key elements of a bike brand?

A

Quality
Comfort
Speed
Durability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are some considerations for choosing a bike brand?

A

What are some considerations for choosing a bike brand?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is Trek?

A

Trek is a popular bike brand with a rich heritage, based in Waterloo, Wisconsin, first produced in the 1970s. It includes several brands such as Electra, LeMond Racing, and Diamanté Bikes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What types of bikes does Trek produce?

A

Trek makes bikes for all ages and needs, from children to adults, from beginner to professional bike riders. They offer a combination of value, reliability, and performance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the significance of Trek’s FX line?

A

The FX line is a lightweight and versatile range of bikes popular worldwide, reflecting Trek’s focus on value, reliability, and performance.

Trek is based in the USA, specifically in Waterloo, Wisconsin, but most of its production has shifted outside the USA.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How can the total product concept be applied to Trek?

A

The total product concept considers not only the physical product but also additional features such as customer service, warranties, and brand reputation, all of which contribute to Trek’s overall value proposition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the significance of packaging for Trek?

A

Packaging plays a role in protecting the product during transit, communicating brand values, and enhancing the overall customer experience.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How does Trek make connections through brand identity and values?

A

Trek builds connections with customers by aligning its brand identity and values with those of the biking community, emphasizing quality, innovation, and a commitment to excellence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

PRODUCT ELEMENTS

A

Packaging and Labelling
* Integral part of the product
* Provide functionality, communication and reinforcement of brand image

For many products, packaging and labelling are an integral part of the product, providing functionality, communication and reinforcement of a brand image. They provide a function, in terms of ease of use, storage and transport. Important details about the product and directions can be communicated, and packaging and labelling also reflect a product’s brand image and positioning against competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

PRODUCT LINES & MIXES

A

Marketers often manage products in groups based on their similarities.

A product line: is a group of similar products that are closely related because they satisfy a similar need and are marketed to the same general target market

The product mix: includes all of the product lines marketed by a company

In small companies, the mix might be very simple, and in larger organizations, it might be more complex.
Marketers often manage products in groups based on their similarities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

CONSUMER & BUSINESS PRODUCTS

A

Products are classified based on usage

Business products are purchased to help run a business or used as a component in another product or service

Consumer products are purchased by end consumers for personal use
* Specialty
* Unsought
* Shopping
* Convenience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Products are classified as either consumer or business products depending on their usage.

A

Consumer products are purchased by end consumers for their own personal use.

Business products, introduced in the B2B Marketing module, are purchased to help run a business or to be used as a component in another product or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Specialty Products

A

products that require considerable time and effort to purchase. They tend to be expensive products from specialty brands that require high purchase satisfaction. Examples include Rolex watches, Persian rugs and exotic sports cars

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Unsought Products

A

products that the consumer does not know about, or is not interested in purchasing. Examples of unsought products include insurance, funeral services, fire extinguishers and insulin.

27
Q

Shopping Products

A

products for which the consumer comparison shops, assessing the attributes and prices of different products and brands. These products are more expensive than convenience products, require greater shopping time, and require a greater assurance of purchase satisfaction. Examples include jeans, airline tickets, laptops and mattresses.

28
Q

Convenience Products

A

inexpensive items that are purchased frequently with minimal shopping effort and risk. Examples include shampoo, chocolate bars, toilet paper and gasoline.

29
Q

What is a brand?

A

A brand is more than just a logo.
* A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
* “The sum total of all the customer impressions of your product or service. [A] brand consists of conscious and subconscious perceptions and it exists only in your customers’ minds, but it drives their behaviour in a very real way”

30
Q

A brand

A

Facilitates consumer decision because if you decide on a brand once and are happy with it, then you can easily make your decision the next time by simply purchasing the same product … brand loyalty.

The level of quality of the product will not necessarily high (remember that quality does not immediately mean high quality), but at least it will be consistent from one time you purchase that brand to the next … we hope!

If a consumer does not want to support a specific company, say because they were involved in pollution or child labour or some other unethical practice that the consumer does not support, then a brand name allows the consumer to identify this.

31
Q

Branding

A

“Successful branding programs are based on the concept of singularity. The objective is to create in the mind of the prospect, the perception that there is no other product on the market quite like your product.” (Ries and Ries, 2002)

Which one tastes better?
A study at Stanford University found that 77% of children thought the McDonalds branded French fries tasted better even though they were all the same.

32
Q

Product strategy

A

Product strategy involves managing and developing products and brands, and is a fundamental component of the marketing mix.

33
Q

How are products defined in marketing?

A

A product is defined as a good, a service, or an idea consisting of tangible and intangible attributes.

Tangible attributes are physical characteristics such as colour, size or material

intangible attributes are non-physical characteristics such as quality, style or reliability.

34
Q

What are the unique elements of services?

A

Intangibility means that services cannot be held, touched or seen before purchase.

Inconsistency (or variability) means that services can vary based on the service provider and are harder to standardize.

Inseparability means that services cannot be separated from the service provider; the consumer is involved in the production of the service if they provide guidance or feedback.

Inventory (or perishability) means that there is fluctuating demand for services and they cannot be stored for times when demand exceeds capacity

35
Q

What are the different elements of products?

A

The total product concept:

Packaging and labelling:

Product lines and mixes

36
Q

The total product concept

A

views products as having three layers:
-the core product (is the benefit a consumer derives from having the product),

-the actual product (the physical good or service and includes the product’s branding, design, and features) ,

-the augmented product (includes additional features and attributes that accompany a product, such as warranty, service contract, delivery options, or an accompanying app)

37
Q

Why are packaging and labelling important?

A

Packaging and labelling provide functionality, communication, and reinforcement of a brand image. They reflect a product’s brand image and positioning against competitors

38
Q

What is a product line?

A

A product line is a group of similar products that are closely related because they satisfy a similar need and are marketed to the same general target market.

39
Q

What is a product mix?

A

The product mix includes all the product lines marketed by a company. It can be simple in small companies and more complex in larger organizations.

40
Q

Products are classified as either consumer or business products depending on their usage.

A

Consumer products are purchased by end consumers for their own personal use.

Business products, introduced in the B2B Marketing module, are purchased to help run a business or to be used as a component in another product or service.

41
Q

Consumer products are categorized

A
  • Convenience Products – inexpensive items that are purchased frequently with minimal shopping effort and risk. Examples include shampoo, chocolate bars, toilet paper and gasoline.
  • Shopping Products – products for which the consumer comparison shops, assessing the attributes and prices of different products and brands. These products are more expensive than convenience products, require greater shopping time, and require a greater assurance of purchase satisfaction. Examples include jeans, airline tickets, laptops and mattresses.
  • Specialty Products – products that require considerable time and effort to purchase. They tend to be expensive products from specialty brands that require high purchase satisfaction. Examples include Rolex watches, Persian rugs and exotic sports cars.
  • Unsought Products – products that the consumer does not know about, or is not interested in purchasing. Examples of unsought products include insurance, funeral services, fire extinguishers and insulin.
42
Q

Business products

A

are classified based on their:
use, and include production goods used in the manufacturing process,

support goods and services used to assist in production, installations such as buildings and equipment, accessory equipment purchased by buyers, supplies used in the business and services such as transportation and maintenance

43
Q

A brand

A

is a name or phrase uniquely given by a company to a product to identify and distinguish it in the market.

Brands can be legally protected using patents (for technologies, processes, formulations), copyrights (for written material, music and performance) or trademarks (for brand names and logos

44
Q

Brand equity

A

is the term used to describe the value of a brand that results from the favourable exposure, interactions, associations, and experiences that consumers have with a brand over time.

45
Q

Brand loyalty

A

refers to the degree consumers insist on purchasing a specific brand. Marketers try to create connections between brands and consumers so that their brand loyalty remains high.

Marketers work to associate brands with specific personality traits that the consumer finds appealing. The association of human characteristics with a brand is referred to as brand personality.

46
Q

Brand Names

A

A good brand name should be memorable, distinctive and positive, fit the company or product image, suggest the product benefits, have the ability to be legally protected and translated and be simple to spell and remember

47
Q

Types of Brands

A

Individual brands refer to only one product or product line

Family brand includes a product mix with a variety of product lines.

Manufacturer’s brands (also called national brands) are owned and produced by the manufacturer and are distributed through various marketing channels

Private label brands (also called store brands) are owned by retailers who contract their manufacturing and sell the products under their own label, exclusively in their own stores

Generic brands are essentially unbranded products, produced as a cheaper alternative to manufacturer’s or private label brands. They are most commonly found in the pharmaceutical industry

48
Q

The product life cycle

A

describes the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline. The shape of the product life cycle is influenced by consumer demand, competition, and economic, legislative and technological factors

The length and shape of a product life cycle varies according to the industry, the competition, technological innovation, and marketing approaches. There is no set timeframe for a product to move through its life cycle

49
Q

Introduction Stage

A

The introduction stage of the product life cycle occurs when a product is first introduced to its intended target market.

During this period, sales grow slowly and profit is minimal.

The marketing objective is to create consumer awareness and get customers to try the product for the first time.

Companies often spend heavily on marketing to build awareness.

Distribution and pricing can be challenging because the product is not well known and building relationships with stakeholders takes time

50
Q

Growth Stage

A

The second stage of the product life cycle, growth, is characterized by increased competition and a rapid increase in sales.

Profits peak during the growth stage as a result of economies of scale and increased demand.

Product and promotional efforts focus on brand and product differentiation.

51
Q

Maturity Stage

A

The maturity stage is characterized by a slow-down in the growth rate and an increased focus on price competition to differentiate products in the market.

Promotional efforts focus on price and distribution levels tend to be saturated.

Weaker competitors begin to leave the market.

52
Q

Decline Stage

A

During the decline stage, category sales begin to decline and many competitors fall out of the market.

There is very little promotional support other than price discounts

53
Q

Product Life Cycle Strategies

A

Product life cycles can be extended in a number of ways: modifying the product, modifying the market, repositioning a product or introducing a new product

54
Q

Modifying the Product

A

Product improvements or product line extensions are often used by marketers to ensure products remain competitive, to appeal to evolving needs, and to address new trends in the market.

55
Q

Modifying the Market

A

Marketers may decide that their current product is under represented with certain consumer groups and they see an opportunity to target these consumers using new marketing approaches

They can also target current users to increase their usage, by encouraging purchases more often or increased volume at time of purchase.

This approach is used by marketers for products with strong brand equity and a loyal consumer base.

In rare cases, marketers may also try to find new uses for an existing product, but that is not a simple task.

56
Q

Repositioning a Product

A

Once a product has reached the maturity stage it often needs an injection of newness.

This can be achieved through new product development initiatives and/or a repositioning of the product to more readily meet changing consumer needs.

57
Q

Introducing a New Product

A

Adding a new product can provide the focus a mature product needs, bringing it back in the product life cycle to either the growth or early maturity stage.

58
Q

Types of New Products: Minor innovations

A

are product modifications that require no adjustments by the consumer. Marketers work to build awareness of the innovation and market along current lines.

59
Q

Continuous innovations

A

are new products that include a minor product improvement but do not require radical changes by consumers. Continuous innovations require extensive product development by the company.

60
Q

Radical innovations

A

involve the introduction of products that are entirely new to the market. Extensive advertising and public relations efforts are often needed for these products

61
Q

New Product Development Process

A

Step 1: New Product Development Strategy - setting the new product strategy for the project.

Step 2: Idea Generation - brainstorming sessions to prompt new ideas.

Step 3: Screening and Evaluation - screening ideas down to a list of promising concepts.

Step 4: Business Analysis - creating financial projections on commercializing the product.

Step 5: Development - creating prototypes for consumer research and manufacturing tests.

Step 6: Test Marketing - selling the product on a limited basis to determine potential success.

Step 7: Commercialization - launching the product with full sales and marketing support.

62
Q

The Adoption Curve

A

The adoption curve explains the acceptance of a new product in the market, stating that approximately:

2.5% are innovators (risk takers)
-venturesome, highly educated, use multiple information sources

13.5% are early adopters
-leaders in social settings, slightly above average education

34% are early majority
-deliberate, many informal social contracts

34% are late majority
-skeptical, below average social status

16% are laggards
-fear of debt, neighbours and friends are information sources

63
Q

What are the common approaches to product innovation?

A

Market penetration (focusing on current consumers with promotional tactics)

Product development (developing a new product for current consumers)

Market development (targeting new markets with current products)

Diversification (moving into new arenas with totally new products)

64
Q

How can companies encourage innovation?

A

Assigning new product development to the current marketing group

Investing in new staff focused on product development (hiring a manager, team, or creating a department)

COMM 204- Marketing (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions