Product

Question 1

What is a Product?

Answer 1

Anything that can satisfy a need or want. Provides value. Utilitarian/Hedonic.

Question 2

What are goods?

Answer 2

A physical tangible offering, that can often be experienced before purchased.

Question 3

What is a service?

Answer 3

Intangible offering that doesn’t involve ownership.

Question 4

What are Industrial products?

Answer 4

Raw materials. e.g. steel, timber.

Question 5

what is a Product of expereince?

Answer 5

Events, shows and such

Question 6

What is an idea as a product?

Answer 6

Concept, issue, philosphy. e.g. slip,slop,wrap.

Question 7

Three Levels of Product?

Answer 7

Core Customer Value:
The core need the market is seeking. e.g. phone is communication device.

Actual product:
Features, Design, Packaging, Quality, Brand.
Durability.

Augmented Product:
Support repair, After-sale service, Warranty, Delivery. One of the main differences between competitors. All of this costs money, ensure that these are desired by customers.

Question 8

4 Product Classifications.
Convenience products?

Answer 8

Convenience Products
Minimal time and effort. Inexpensive, frequently purchased, widely available. Packaging can be important to attract customers, as well as availability. e.g. milk
Widespread distribution, convenient locations.
Mass promotion from the producer. Low price.

Question 9

Extra Product classification?

Answer 9

Business Products.
Classified according to how organisational customers use them.
Processed material, parts, equipment, specialised services.

Question 10

4 Product Classifications.
Speciality products?

Answer 10

Speciality Products:
Willing to spend special effort to obtain them.
Brand loyalty. Low price sensitivity
Possess one or more unique characteristics. E.g. BMW, apple laptop, original artwork
High price. Exclusive distribution in few places per market area. more carefully targeted promotion from both producer and reseller.

Question 11

4 Product Classifications.
Shopping products?

Answer 11

Shopping Products
Relatively infrequent purchase, Customers are willing to spend more time. E.g. Clothes.Higher price. selective distribution in fewer locations.
advertising and personal selling from producer and resellers.

Question 12

4 Product Classifications
Unsought Products?

Answer 12

Unsought Products:
Unaware of needing the product, situations arise when they need it. e.g. Mechanics and health insurance. Marketers need to make people aware of the needs.

Question 13

What is a Product Line?

Answer 13

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.

Question 14

Product Line filling and stretching?

Answer 14

Filling: Adding more products within the present line. Should ensure products are different to ensure they don’t eat up sales of other products.

Stretching: Lengthening the product line outside the product line. Downward e.g. making a cheaper series of cars for young people. Upward e.g attempting to add prestige, making an upscale car.

Question 15

What is a brand?

Answer 15

A collection of symbols such as a name, logo, slogan and design intended to create an image in the customer’s mind that differentiates a product from competitors’ products.

Question 16

What is brand image?

Answer 16

The set of beliefs that a consumer has regarding a particular brand. Consumer’s perception

Question 17

Brand name/ brandmark/ trademark?

Answer 17

Brand name
Part of a brand that can be spoken, including words, letters and numbers.
(distinctive, recognisable, relevant, suggest, can be protected, extendable)

Brand mark
* The part of a brand not made up of words — it often consists of symbols or designs.

Trade mark
* A brand name or brand mark that has been legally registered so as to secure exclusive use

Question 18

Benefits of brands to organisation?

Answer 18

Linking it to unique experiences and feelings.
Barriers to competitions, customers demand certain brands.
Easiest to extend products once brands are established. The customers trust.

Question 19

Benefits of brands to consumers?

Answer 19

! Can communicate features and benefits (e.g. Sunkist)

! Reduces the risk in purchasing

! Simplifies the purchase decision

! Symbolic value

! Assure quality and reliability (promise to customer)

Question 20

Importance of Branding?

Answer 20

Brand equity = the value of the brand to the company.
Strong brands build emotional connection with the consumer
Strong brand equity creates loyalty, communicates quality, and establishes clear positioning.

Question 21

What makes a brand successful?

Answer 21

it excels at delivering the benefits to customers that they truly desire

It stays relevant

It is consistent

It is given ongoing support

It is properly positioned

It has a logical brand portfolio

It uses a variety of marketing activities to build equity

Question 22

Individual branding?

Answer 22

A branding approach in which each product
is branded separately.

Question 23

Family branding?

Answer 23

A branding approach that uses the same brand for several of the organisation’s products.

Question 24

Manufacturer brands?

Answer 24

Brands owned by producers and identified with the product at the
point of sale.

Question 25

Private label brands (store brand)?

Answer 25

Brands owned by resellers, such as wholesalers or retailers, and not
identified with the manufacturer.

Question 26

Co-brand?

Answer 26

where two established brand names of different companies are used
on the same product.

Question 27

Licensed brand?

Answer 27

where a company licenses names or symbols previously created by other manufacturers, or names of well-known celebrities

Question 28

Packaging?

Answer 28

Ensuring the company keeps its promise of quality by protecting the product.
Attracting attention. Promote benefits. Brand recognition. Functional benefits.

Question 29

Product life cycle?

Answer 29

The sales and profits over its lifetime.

Introduction. Slow growth, non-existent profits.

Growth - Increasing sales, profitability. As it gains acceptance. Competitors arise.

Maturity - A period of slowdown in sales growth, consumers are finding other options.

Decline - A period of sales decline.

Question 30

ways to Extend the PLC

Answer 30

Market modifications:
Current customers consume more (market penetration)
Find new domestic customers (market development)
Find new foreign customers

Product Modifications:
* Feature modification
* Quality modification
* Style modification