Product Flashcards
What are the three levels of a product?
Core, Actual, Augmented
What are the characteristics of services?
Intangibility, perishability, heterogeneity, inseperability
Under service based products, what is intangibility?
As services are intangible, the service provider has to follow certain things to increase the chance of someone purchasing a service based product (which they cannot see the effects of using)
What can a service provider do to improve the confidence of a client?
Try to increase the tangibility of services such as displaying a model of the person after a surgery
Emphasis the benefits of the service rather than describing the features
Under service based products, what is inseparability?
As services are typically produced and consumed simultaneously, the service and the service provided are combined e.g. a taxi driver who drives the taxi. This means that service marketers not only need to develop task-related competence of a service person but also the quality of the service
Under service based products, what is perishability?
Services perish after the time they are provided to the consumer. This means that service quality can deteriorate during peak hours in restaurants, banks, transport. Therefore a marketer should effectively utilise the capacity without deteriorating the quality to meet the demand
Under service based products, what is heterogeneity?
Services are highly variable, as they depend on the service provider, and where and when they are provided. Service marketers face a problem in standardising their service, as it varies with experienced hand, customer, time and firm.
What are the three additional p’s?
People, process and physical evidence
Who developed the three additional p’s?
Booms and Bitner 1981
What are the three categories of service?
People processing, possession processing and information based services
How can the product life cycle be used in international marketing?
All products go through introduction, growth, maturity and decline. BUT extension may be made by introducing the product into other markets. Not all markets are in the same stage of the life cycling therefore what may be an old product in one market, may be new in another
Label the boston matrix (top row then bottom row)
Top row - stars and question marks
Bottom row - cash cows and dogs
Axis X- market share (high-low)
Axis Y-market growth (cash usage (low-high)
Name a car company that has adapted for the international market
Toyota - models are developed and manufactured especially for selected regional markets
Factors to consider when developing the global product range
Growth/profit objectives
Experience, attitude and risk taking behaviour of the company
Characteristics of the market
Expectations & attitudes of consumers
Ease of distribution
Support from elements of the marketing mix
Additional factors to consider when developing global products
Country of origin effects Brand equity Packaging and labelling Celebrity branding Internet use in marketing strategy Green/ environmental issues
