Product

Question 1

Define a Product

Answer 1

Anything that a firm can offer for consumption, acquisition or attention that may satisfy a want or need; so product is designed around bringing highest value to consumers.

Question 2

Name and explain the 3 Product Layers

Answer 2

Core Benefit- Key benefits gained by consumers
Actual Product- Tangible product features
Augmented Product- Product add-ons/ complimentary services

Question 3

Name and explain the 4 key differences between products and services

Answer 3

Inseparability- Services produced and consumed in same timeframe
Perishability- Services cannot be stored or returned once used
Intangibility- Products are tangible, services are not.
Variability- Services can never be replicated exactly.

Question 4

Name the 2 types of Product Classification

Answer 4

Consumer Products

Industrial Products

Question 5

Define Consumer Products, and name and define the 4 types with examples.

Answer 5

• Products purchased by individual consumers for final consumption.

Convenience Products- Bought frequently with little effort (bread)
Shopping products- Bought less frequently, more comparison on key attributes like price (Clothing)
Speciality Products- Unique characteristics and brand appeal (rolex)
Unsought products- Rarely purchased(life insurance)

Question 6

Define Industrial Products, and name and explain the 3 types with examples.

Answer 6

Products purchased by other firms for further processing/ business use.

Material and parts- Raw resources for production.
Capital Items- Used in operations (computer systems)
Supplies + services- Business services (maintenance)

Question 7

Name and explain the 5-Step product decision process

Answer 7

1. Product Attributes
   - Product features and quality
2. Branding
   - The combination of name, designs etc. by which a product is identified.
3. Packaging
   - Container for product that facilitates storage, protection, promotion etc.
4. Labelling & Logos
   - Identify key product features, and help promotion.
   - Informative vs persuasive labelling.
5. Business support services
   - Elements of the augmented product that benefit post-purchase behaviour

Question 8

Name the 2 main strategies for New Product Development.

Answer 8

1. Acquisition

2. New product development

Question 9

Define Acquisition

Answer 9

Where a firm purchases a license, patent or whole firm in order to add new products to its portfolio.

Question 10

Define and explain the 8-Step process for New Product Development.

Answer 10

• Where the firm itself creates original products and brands using its R&D.

1. Idea Generation (Internal, External)
2. Idea Screening (Viability
3. Product Concept & Concept Testing (detailed version of idea for consumer)
4. Marketing Strategy Development (STP + MIX)
5. Business Analysis (Financials)
6. Product Development (Concept - Tangible Product)
7. Test Marketing - Testing product and desired marketing mix together with target segment.
   (Used when uncertainty over marketing mix or product, and large investment)
8. Commercialisation- When and where to launch the product

Question 11

During commercialisation, what group is key? What does this allow access too?

Answer 11

• Key to get Early Adopters to desire the product, if they don’t it will die, prevents access to early and late majority where largest levels of innovation diffusuion occur.

Question 12

2 keys when developing new products?

Answer 12

Team based and systematic

• Include a lot of function collaborating
• Deploy resources efficiently (More for test marketing than idea generation)

Customer-Centred (Marketing Concept)