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MKTG > Product > Flashcards

Product Flashcards

1
Q

Consumer Products

A

used by the ultimate customer

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2
Q

Business Products

A

organisations purchase products that assist in providing other products for resale
(some are both consumer and business eg computers)

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3
Q

Convenience Products

A
  • Product: eg toothpaste, handsoap etc
  • Price: Relatively inexpensive
  • Distribution: Widespread (many outlets)
  • Promotion: price awareness and availability stressed
  • Brand Loyalty: Aware of brand but will accept substitutes
  • Purchase Behaviour: Frequent purchases, little time and effort spent shopping
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4
Q

Shopping Product

A
  • Product: Cameras, TV,airline ticket etc
  • Price: Fairly expensive
  • Distribution: Large number of selective outlet
  • Promotion: Differentiation from competitors stressed
  • Brand Loyalty: prefer specific brands but will accept substitutes
    Purchase Behaviour: Infrequent purchases made; needs much comparison shopping time
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5
Q

Specialty Product

A
  • Product: Rolls Royce car, heart surgery etc
  • Price: Usually very expensive
  • Distribution: Very limited
  • Promotion: Uniqueness, brand and status stressed
  • Brand Loyalty: Very brand loyal, will not accept substitutes
  • Purchase Behaviour: Infrequent purchases; needs much extensive search and decision time
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6
Q

Product Life Cycle

A

Describes the stages a new product goes through in the market place:

  • Introduction
  • Growth
  • Maturity
  • Decline
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7
Q

Introduction Stage

A

When the product is introduced to the intended target market

  • Sales grow slowly
  • Minimal profit ( often a result of large investment costs in product development)
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8
Q

Introduction

objective and marketing mix actions

A

Objective: gain awareness
Competition: few
Product: one
Price: Skimming or Penetrating
Promotion: inform, educate, stimulate ‘primary demand’
Distribution: limited (can be challenging as channel intermediaries may be hesitant to carry a new product)

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9
Q

Skimming Pricing

A

Set high initial price

  • helps recover from development costs
  • can capitalize on price insensitivity of early buyers
  • however can attract competitors as they see opportunity for profit
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10
Q

Penetration pricing

A

Low initial price

  • discourage competitors entering market
  • helps build volume in units
  • however company must closely monitor costs
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11
Q

Primary Demand

A

create a desire for the product class rather than specific brand as there are few competitors at this stage

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12
Q

Growth Stage

A

Rapid increase in sales

  • competitors appear
  • profit usually peaks at this stage
  • product sales grow at an increasing rate (new purchasers + repeat purchasers)
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13
Q

Growth

objectives and marketing mix actions

A

Objective: stress differentiation
Competition: more
Product: more versions
Price: gain market share
Promotion: stress points of difference (new features, improvements)
Distribution: more outlets (fight for shelf space in retail outlets)

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14
Q

Maturity Stage

A

Slowing of total industry sales or product class revenue

  • sales increase at a decreasing rate
  • marginal competitors begin to leave the market
  • most consumers are either repeat purchasers or have trialed and abandoned the product
  • profit declines due to fierce price comp btw competitors + cost of gaining new buyers
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15
Q

Maturity stage

objectives and marketing mix actions

A 
Objective: maintain brand loyalty
Competition: many
Product: full product line
Price: defend market share
Promotion: reminder orientated
Distribution: maximum outlets
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16
Q

Decline Stage

A

When sales drop

- due to environmental changes (eg fax machines when email came in)

17
Q

Decline Stage

objective and marketing mix actions

A 
Objective: harvesting or deletion
Competition: reduced
Product: best sellers
Price: stay profitable
Promotion: minimal promo
Distribution: fewer outlets
18
Q

Product Deletion

A

Dropping product from the line

- extreme move, not taken lightly as there will still be core customers using the product

19
Q

Product Harvesting

A

Retains product but reduces marketing costs

  • product will still be offered but no advertising c]money spent
  • maintains ability to meet customer requests
20
Q

Product adoption process

A

Awareness- consumer becomes aware of product through word of mouth, promotional activities or incidental exposure
Interest - consumer gains interest in product and seeks information
Evaluation - consumer evaluates information, decideds wheter to try product
Trial- consumer examines and tries out product
Adoption- consumer decides to purchase product, evaluates and determines if they will repurchase

21
Q

Diffusion of innovation

A

The theory that social groups influence the decisions made by individuals in such a way that innovations are adopted by the market in a predictable pattern over time

22
Q

Product Modification

A

altering one of more of a products characteristics, such as its quality, performance, or appearance, to increase the products value to customers and increase sales

23
Q

Market Modification

A

a company tries to find new customers, increase a products use among existing customers, or create new situations

24
Q

Re positioning the product

A

A company changes the place a product occupies in a consumers mind relative to competitive products.. by changing one or more of the four marketing mix elements

25
Q

Branding

A

companys’ use of a name, phrase, design, symbols or combination of these to identify its products and distinguish them from those of competitors

26
Q

Multiproduct branding Strategy

A 
A company uses one name for all its products in a product class
eg: Samsung, Sony, Huggies, Honda
27
Q

Multiproduct branding: Capitalizing on brand equity

A

consumers with a good experience with product will transfer this favorable attitude to other items in the product class with the same name

28
Q

Multiproduct branding:

Product line extension

A

using current brand name to enter a new market segment in its product class

pro: can result in lower advertising costs because the same name is used across all products thus raising the level of brand awareness
con: product line extension may come at the expense of other items in the product line

29
Q

Multiproduct branding:

subbranding

A

combines a corporate or family brand with a new brand, to distinguish a part of its product line from others
eg: Porsche Carrera (high end ) and Porsche Boxster (lower end)

30
Q

Multiproduct branding:

brand extention

A

using a current brand name to enter a different product class.
eg: Honda extending into snowblowers, lawn mowers, marine engines etc

-however, too many uses for one brand name can dilute the meaning of a brand for customers

31
Q

Multiproduct branding:

co-branding

A

the pairing of two brand names of two manufacturers on a single product

  • allows a firm to enter new product classes and capitalize on an already established brand name in that product class
32
Q

Multibranding Strategy

A

giving each product a distinct name
useful when each brand is intended for a different market segment
eg Disnet uses Miramax and Touchstone Pictures names for films directed at adults and uses itd Disney name for kids films

33
Q

Multibranding:

Fighting brands

A

some multibrand companies introduce new product brands as defensive moves to counteract competition. Their chief purpose is to confront competition.

34
Q

Multibranding disadvantages

A

compared with multiproduct strategy, advertising and promo costs tend to be higher
company must generate awareness among customers and retailers for each new brand name without the benefit of previous impressions

35
Q

Multibranding advantages

A

each brand is unique to each market segment

there is no risk that a product failure will affect other products in the line

36
Q

Private Branding

A

company manufactures products but sells them under the brand name of a wholesaler or retailer.
eg sears, Walmart,

large retailers that have their own established brand name

popular because it typically provides high profits for manufacturers and reseller

37
Q

Mixed Branding Strategy

A

firm markets products under its own name and that of the a reseller because the segment that is attracted to the reseller is different from its own market

MKTG (6 decks)

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