Product Flashcards
What is a product?
- 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.
What is a product based off?
- Different Product Layers – The Total Product Concept
Based on Philip Kotler conceptualisation:
- Core product fulfils the basic benefit or need. e.g Reaching a destination.
- Generic products provide the actual product with tangible qualities. e.g Seat
- Expected product offers the generic product plus other attributes consumers want. e.g Unlimited refreshments, comfortable seats.
- Augmented products give consumers more than the physical product. It sets the product apart from competitors. e.g WIFI, friendly service.
- Potential product. This includes all the augmentations and transformations a product might undergo in the future. To ensure future customer loyalty, a business must aim to surprise and delight customers in the future by continuing to augment products. e.g Extra fly miles, gifts.
What is the core product?
Consists of the real core benefit or service. This may be a functional benefit in terms of what the product will enable you to do, or it may be an emotional benefit in terms of how the product or service will make you feel.
What is the embodied product?
Consists of the physical good or delivered service that provides the expected benefit. It consists of many factors, for example the features and capabilities, its durability, design, packaging and brand name.
What is the augmented product?
Consists of the embodied product plus all those other factors that are necessary to support the purchase and any post-purchase activities. For example, credit and finance, training, delivery, installation, guarantees and the overall perception of customer service.
Communicate and deliver benefits by product and service attributes:
(1) Quality,
(2) Features,
(3) Style and design Product Features
What are the product features?
- Style - Describes the appearance of the product.
- Design - Contributes to a product’s usefulness as well as to its looks.
- Brand - Is the name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service.
- Packaging involves designing and producing the container or wrapper for a product.
- Labels identify the product or brand, describe attributes, and provide promotion.
What are the ways of classifying products?
- Product based classification
- User based classification
- Classifying your product helps with developing an effective marketing strategy that will meet your consumers needs. It also helps you decide on a realistic marketing budget.
What is product based classification?
Categorisation is based on durability. Group products together that have similar characteristics although they serve very different purposes.
What are the 3 main categories of product based classification?
1) DURABLE product: Last for many years and then need replacing. Infrequently
purchased, relatively expensive. Selective distribution through specialist channels.
(2) NON-DURABLE product: Only be used once of a few times before they need
replacing. Food and other FMCG goods. Frequently
purchased, relatively low-priced item.
Mass distribution
(3) SERVICE product: Intangible goods.
What are the 4 main categories of user based classification?
(1) CONVIENIENCE products:
Customer usually buys frequently, immediately, and with a minimum comparison and buying effort, relatively inexpensive, convenience takes priority over loyalty – routine response buying situation E.g., Newspapers, sweets, fast food, cereal, grocery items.
(2) SHOPPING GOODS:
These are less frequently purchased , more of a risk and adventure; consumer products and services that the customer shops around for and compares carefully on suitability, quality, price, and style – linked with limited problem solving Building brand loyalty is vital for this product classification. E.g., Furniture, cars, appliances.
(3) SPECIALTY products:
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, high risk, expensive, infrequent – equate with the consumer’s extensive problem-solving situation E.g., Medical services, designer clothes, high-end electronics.
4) Unsought products:
Consumer products that the consumer does not know about or knows about but does not normally think of buying or want to buy! E.g., Life insurance, funeral services.
What is branding?
The process by which companies distinguish their products offerings from competition.
What is a product line?
- A product line is a group of brands that are closely related in terms of their functions and the benefits they provide. Product Lines 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, are produced the same way, or fall within given price ranges.
- E.g., Dells’ range of personal computers, Samsung’s range of smartphones or TV.
The depth of the product line depends upon the pattern of customer requirement (e.g., number of segments), the product depth being offered by competitors, and company resources.
What is product line length?
What is product line depth?
- Product Line Length – the total number of items within the product line.
- Product Line Depth – the no of variants within each product line.
What is the product item?
- A product line consists of several product items.
- These are the individual products or brands with their
own features, benefits, price etc. - E.g., Heinz Product Line would be table sauces: and the product items within that
product line would be tomato ketchup, mayo, mustard, BBQ etc.
