MT1 - Chapter 8 Vocab Flashcards
product
anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want
service
an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
3 levels of products and services
core customer value (what is the customer really buying) actual product ( brand name, quality level, packaging, design, features) augmented product (delivery and credit, product support, warranty, after-sale service)
consumer products
a product bought by final consumers for personal consumption
types of consumer products (4)
convenience
shopping
specialty
unsought
convenience product
consumer product customers usually buy frequently, immediately, and with minimal comparison and buying effort
shopping product
consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
specialty product
consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
unsought product
consumer product that the consumer either does not know about or knows about but does normally not consider buying
industrial product
product bought by individuals and organizations for further processing or for use in conducting a business
distinction from consumer product based on purpose for which product is purchased
3 types of industrial products
materials and parts
capital items
supplies and services
materials and parts
raw materials and manufactured materials and parts
capital items
industrial products that aid in the buyer’s production or operations
supplies and services
operating supplies, maintenance and repair services
organization marketing
activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization
person marketing
activities undertaken to create, maintain, or change the attitudes and behaviors toward particular people
place marketing
activities undertaken to create, maintain or change attitudes or behavior toward particular places
social marketing
use of commercial marketing concepts and tools in programs designed to influence individual’s behavior to improve their well-being and that of society
important individual product and service decisions (5)
product attributes branding packaging labeling product support services
product quality
characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
consistency and level
total quality management
an approach in which all of the company’s people are involved in constantly improving the quality of products, services, and business processes
return on quality approach
quality is an investment, hold quality efforts accountable for bottom line results
performance quality
product’s ability to perform its functions
product and service attributes (3)
product quality
product features
product style and design
conformance quality
freedom from defects and consistency in delivering a targeted level of performance
style
describes appearance of a product
design
contributes to product’s usefulness in addition to looks
brand
name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
packaging
activities of designing and producing the container or wrapper for a product
label
identifies the product or brand, describes several things about the product, helps to promote the brand
unit pricing
stating the price per unit of a standard measure
open dating
stating the expected shelf life of the product
nutritional labeling
stating the nutritional values in a product
product line
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
number of items in the product line
product line filling
adding more items within the present range of the line
product line stretching
adding items beyond the line’s present range
product mix/portfolio
set of all product lines and items that a particular seller offers for sale
product mix width, length, depth, consistency
width: number of different product lines
length: total number of items within product lines
depth: number of versions offered for each product in the line
consistency: how closely related product lines are in end use, production requirements, distribution channels, or some other way
4 special service characteristics
intangibility
inseparability
variability
perishability
service intangibility
services cannot be seen, tasted, felt, heard, or smelled before they are bought
service inseparability
services are produced and consumed at the same time and cannot be separated from their providers
service variability
quality of services may depend upon who provides them and when, where and how they are produced
service perishability
services cannot be stored for later use
service profit chain
chain that links service firm profits with employee and customer satisfaction
5 links of service profit chain
internal service quality satisfied and productive service employees greater service value satisfied and loyal customers healthy service profits and growth
3 types of service marketing
internal marketing
interactive marketing
external marketing
internal marketing
orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction
interactive marketing
training service employees in the fine art of interacting with customers to satisfy their needs
3 major service marketing tasks
service differentiation (offer, delivery, image) service quality (recovery) service productivity (don't take it too far)
brand equity
differential effect that knowing the brand name has on customer response to the product or its marketing
customer equity
value of customer relationships that the brand creates
4 major brand strategy decisions
brand positioning (attributes, benefits, beliefs & values) brand name selection (selection, protection) brand sponsorship (manufacturer's, private, licensing, co-branding) brand development (line extensions, brand extensions, multibrands, new brands)
store brand (private brand)
brand created and owned by a reseller of a product/service)
co-branding
practice of using established brand names of two different companies on the same product
line extension
extending an existing brand name to new forms, colors, sizes, ingredients or flavors of an existing product category
brand extension
extending an existing brand name to new product categories
4 consumer perception dimensions of brand
differentiation (what makes it stand out)
relevance (how consumers feel it meets their needs)
knowledge (how much consumers know about it)
esteem ( how highly consumers regard and respect it)
megabrand strategies
weeding out weaker or slower-growing brands and focusing their marketing dollars on brands that can achieve the number one or number two market share positions with good growth prospects in their categories
