Product and Price Flashcards
What does the total product concept refer to?
The bundle of services offered by a product or service
What are the four levels that the total product concept can be analysed by?
Basic core, accessory ring, psychological ring and time
What does the basic core refer to?
The bundle of functional benefits that the product offers
What does the accessory ring refer to?
The added-value benefits which are not directly paid for but yet received
What does the psychological ring refer to?
Benefits resulting from the customer’s feeling associated with using the product
What does the time refer to?
The amount of time taken or saved when products are purchased and during the use of a product
What is the product line of a company?
The whole group of related products manufactured by a single company
What does product line depth refer too?
The number of sub-products offered by a business within a particular line of products
What does price reflect?
The cost of producing and marketing a product
What are the internal factors in determining price?
Resources, employees and management strategy
What are the external factors in determining price?
Cost of production, marketing mix and objectives
What is the broad definition of external factors?
Competition, economy and politics
What is the distribution channel?
The way a product gets from manufacturer to retailer
What are the factors that need to be considered when making distribution decisions?
Consumers, product and economics
What is promotion?
The attempt to increase sales by communicating the positive attributes to potential customers
