Product

Question 1

What is a product?

Answer 1

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Include products and services.

Question 2

What is a service?

Answer 2

Form of a product that consists of activities, benefits, or satisfactions offers for sale that are technically intangible and do not result in the ownership of anything

Question 3

What are the levels of products?

Answer 3

1. Core customer value - what the buyer is actually buying e.g satisfy their thirst
2. Actual product e.g coffee
3. Augmented product - additional consumer services and benefits e.g WiFi

All done to creat value that customers want in stage one.

Question 4

What’s a consumer product?

Answer 4

Bought by final consumers for final consumption.

Classified into convenience, shopping, specialty and unsought.

Question 5

What is a convenience product?

Answer 5

Customers usually buy frequently, immediately, and with minimal comparison and buying effort e.g. eggs

• low price
• mass promotion
• widespread distribution

Question 6

What is a shopping product?

Answer 6

The customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price and style e.g. a tv

• higher price
• selective distribution
• advertising and personal selling

Question 7

What is a specialty product?

Answer 7

Has unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort e.g designer clothes.

• brand preference
• High price
• exclusive distribution
• targeted promotion

Question 8

What is a unsought product?

Answer 8

Consumer doesn’t know or does know but wouldn’t consider buying e.g. life insurance

• price and distribution vary
• aggressive advertising

Question 9

What is an industrial product?

Answer 9

A product bought by individuals and organisations for further processing or for conducting a business e.g. raw materials like wheat

Question 10

What is product decision steps?

Answer 10

1. Product attributes
2. Branding
3. Packaging
4. Labelling and logos
5. Product support services

Question 11

What does product attributes include?

Answer 11

• Quality (Product quality is the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs). Product quality has two dimensions: level and consistency e .g. Ryanair have low level of quality compared to BA but they are very proud of how consistent they are being on time. TQM e.g. Ford used after assembly line, now moved onto lean six sigma production.
• Product features are a competitive tool for differentiating the company’s product from competitors’ products.
• Style describes the appearance of a product. Design contributes to a product’s usefulness as well as to its looks, both add customer value.

Question 12

What is a brand?

Answer 12

A name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service

Question 13

What does a brand do?

Answer 13

• Advantages to consumers and sellers e.g. trademark

- Brand equity

Question 14

what are the characteristics of a successful brand?

Answer 14

Characteristics of successful brand
o Excels at delivering benefits customers truly desire; is properly positioned
o Stays relevant but consistent
o Pricing strategy based on customers’ perceptions of value
o Brand portfolio and hierarchy makes sense
o Monitors equity and uses full repertoire of marketing activities to build equity
o Managers understand brand’s meaning to consumers
o Brand given proper support, sustained over the long run

Question 15

What is brand equity?

Answer 15

the differential effect that knowing the brand name has on customer response to the product and its marketing. It is the added value of a product being branded rather than not branded. BE is high when costumer sees product as highly relevant to them and when they know about brand e.g. Apple now more expensive than 80’s when less people knew about them.

Question 16

Types of branding

Answer 16

• Brand positioning
• Brand Name
• Brand sponsorship
• Product line: Stretching - adding items to line e.g. McDonalds adding quarter pounder. Filling - adding sizes or styles e.g. Hoover offer diff models in diff sizes. Contracting product line - dropping items
• Product mix
• Brand development

Question 17

What is product support services?

Answer 17

1. survey customers periodically to assess the value of current services and to obtain ideas for new ones.
2. take steps to fix problems and add new services that will both delight customers and yield profits to the company

Question 18

What are the four services characteristics?

Answer 18

1. Intangible e.g. Banking
2. Inseparability e.g. Doctors
3. Perishable e.g. can’t store for future use
4. Variability e.g. in level of quality (vary dr by dr?)

Question 19

What is internal services marketing?

Answer 19

Internal marketing means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

so between company and employees.

Question 20

What is interactive services marketing?

Answer 20

Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.

so between the customers and employees.

Question 21

What is Young& Rubicam’s Brand Asset Evaluator?

Answer 21

Measures brand strength along four consumer perception dimensions:

1. Differentiation (what makes the brand stand out)
2. Relevance (how consumers feel it meets their needs)
3. Knowledge (how much consumers know about the brand)
4. Esteem (how highly consumers regard and respect the brand)”

Question 22

What is the branding strategy?

Answer 22

1. Brand positioning
2. Brand name selection
3. Brand sponsorship
4. Brand development

Question 23

what is brand value?

Answer 23

total financial value of a brand

Question 24

what is brand positioning?

Answer 24

3 levels:

1. based on product attributes (worst one, competitors can copy easily) e.g. Dyson ball
2. based on a desirable benefit e.g. John Lewis ‘never knowingly undersold’
3. Based on strong beliefs and values (best one, engages on emotional level) e.g, Hovis farmers lad advert.

Question 25

a brand name should...

Answer 25

1. suggest qualities 2. easy to remember and pronounce 3. distinctive 4. extendable 5. translate easily 6. capable of legal protection

Question 26

What is brand sponsorship?

Answer 26

A brand created and owned by a reseller of a product or service. A manufacturer has four sponsorship options: Manufacturer's brand e.g Coke Store brand E.g. own brand Licensed brand e.g. Disney Co-branding e.g Fiat and Arbarth

Question 27

Brand development strategies?

Answer 27

``` Line extension (existing, existing)ne.g. Quarter pounder Brand extension (New PC, existing) e.g. added chicken selects (already had chicken nuggets) Multibrands (New BN, existing) e.g. P&G New brands (new,new) e.g. McDonald's open new store not called McDonald's ``` top of table product category side of table brand name existing, New

Question 28

New Product development steps

Answer 28

1. Idea generation 2. Product concept development and screening 3. Marketing strategy 4. Business analysis 5. Technical development 6. Test marketing 7. Commercialisation

Question 29

Types of idea generation:

Answer 29

1. Continuous innovation: modification of an existing product that sets one brand apart from its competitors e.g. IPhone continuous improvements. 2. Dynamically continuous innovation: change in an existing product that requires a moderate amount of learning or behaviour change e.g. when Siri was added, consumer had to learn how to use. 3. Discontinuous innovation: totally new product that creates major changes in the way we live e.g. when smart phones were made.

Question 30

Three steps of development and testing

Answer 30

1. Idea screening - Technical success indicates that a product concept is feasible purely from the standpoint of whether or not it is possible to physically develop it - Commercial success indicates that a product concept is feasible from the standpoint of whether the firm developing the product believes there is or will be sufficient consumer demand to warrant its development and entry into the market. 2. Concept development - several descriptions of the product are generated to find out how attractive each concept is to customers. From these concepts, the best one is chosen. 3. Concept testing - calls for testing new product concepts with groups of target consumers e.g. driverless cars. Once developed can the test. - Needs to be technically viable e.g. Apple testing process before phones are made.

Question 31

NPD marketing strategy considerations

Answer 31

Designing marketing strategy for new product based on concept. - Target market - Positioning (value proposition) - Goals (market share, profits) - Short-term strategy (4 Ps) - Long-term strategy (4 Ps)

Question 32

What is business analysis?

Answer 32

- Estimating costs, sales, profitability. Data on related products is very useful.

Question 33

What is technical development?

Answer 33

- figure out all the possible problems, and make sure it has all the physical attributes you wanted it to have. - Prototyping (and patenting?) - Desired physical and psychological characteristics - Test with small groups of consumers

Question 34

What is test marketing?

Answer 34

- The stage at which the product and marketing program are introduced into realistic market settings - Trading off information vs cost and delay - Standard vs controlled vs simulated test markets

Question 35

What is commercialisation?

Answer 35

- Should we go ahead at all? - Timing - Geographical rollout

Question 36

What is the product life cycle?

Answer 36

The course of a products sales and profits over its lifetime. 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline

Question 37

Introduction characteristics and strategies:

Answer 37

- slow sales - negative profit - innovator customers - few competitors - use cost-plus pricing - selective distribution - product awareness targeted at innovators - heavy sales promotion to enhance trial e.g Big Mac sauce

Question 38

Growth characteristics and strategies:

Answer 38

- rapid acceptance, so sales - profits - av cost per customer - early adopter customers - growing no. of customers - off product extension e.g. warranty - price to penetrate market - build engagement in mass market - reduce promotion and take advantage of demand e.g. 3D TV

Question 39

Maturity characteristics and strategies:

Answer 39

- sales slow/peak - profit still high but levels off - low cost per customer - mainstream adopters - competitors beginning to decline - diversify brand - price match - intensive distribution - stress differentiation - encourage brand switching e.g. laptops

Question 40

Decline characteristics and strategies?

Answer 40

- sales drop - profit drop - lagging adopters - declining competitors - phase out weak items - cut price - selective distribution - reduce advertising to just keep loyal customers e.g. radios