Product and service strategy Flashcards by Darshan Narayana

What stage is product and service strategy a part of?

It’s part of the marketing mix.

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What are the four Ps?

Product, price, place, and promotion.

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What is the definition of a product?

Anything that is offered in a market for attention,, acquisition, use, or consumption that satisfies a need or a want.

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What does a product include?

Physical objects, persons, services, events, places, organization, and ideas

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What are the three levels of a product?

-The middle: Core benefit

-The second ring: Actual product

-The third ring: Augmented product

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What is an augmented product?

Store atmosphere or in-store service such as warranty, installation, and after sales service

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What are the convenience, shopping, specialty, and unsought characteristics of purchase behavior?

-Convenience: Frequent purchases that take little time and effort
-Shopping: Infrequent purchases like comparison shopping
-Specialty: Infrequent purchases that include special brand preference
- Unsought: Little product awareness, knowledge, or interest

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Examples of convenience, shopping, specialty, and unsought products?

-Convenience: Newspapers, toothpaste, snacks
-Shopping: Furniture, Tv, clothes
-Specialty: Luxury goods/designer items
-Unsought: Life insurance and retirement plan

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what are the price components for convenience, shopping, specialty, and unsought products?

-Convenience: Low
-Shopping: Higher
-Specialty: Very high
-Unsought: Can vary

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Place components of convenience, shopping, specialty, and unsought products?

-Convenience: Widespread distribution and convenient locations
-Shopping: Selective distribution
-Specialty: Exclusive and limited
Unsought: Varies

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Promotion components of convenience, shopping, specialty, and unsought products?

-Convenience: Mass advertising and sales promotion
-Shopping: Advertising emphasizing differentiation with personal selling as well
- Specialty: Targeted Promotion
- Unsought: Aggressive advertising and personal selling

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What are the individual product decisions?

Product attributes, branding, packaging, labeling, product support services

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What are the product mix decisions?

Product mix width, length, depth, and product mix branding

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What are examples of product attributes?

attributes/feature, product benefits(Social, hedonic, functional), quality, design

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Advantages of branding

– To buyers
* Identify products
* Convey quality, value, & image
– To sellers
* Differentiation/ Segmentation
* Legal protection

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What are the characteristics of a good brand name?

Suggests product benefits, easy to pronounce and remember, distinctive, extendable, Translatable, and capable of legal registration/protection

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What are manufacturer brands?

These are national brands like coke or Samsung.

What are private brands?

Private brands that are more region specific like e-mart.

What is co branding?

When two established brands of different firms are used in the same product.

Components of brand equity?

Brand image, awareness, preference, loyalty trust

-Less price sensitivity and line extension/brand extension

What makes a good brand image?

When it’s distinctive, salient, and favorable

What are the functions of packaging?

Protection, identification, and info about product quality

What are product support services?

Augmented products that help increase relationships and differentiation

What are the examples of augmented services?

Delivery and credit, installation, warranty, after sales service

What is a product mix?

All of the lines and items that a firm offers for sale

What is product mix width?

Number of different product lines carried by a company(the bigger picture or categories of items like detergents, toothpastes, etc.)

What is the product mix length?

Number of different items within a product line

What is line filling?

Line Filling: A strategy where a company adds more items within its existing product line to fill gaps or offer more variety. This is done to target different customer preferences, increase market share, and reduce competition by offering a broader range of options at different price points or features

What is it when u line stretch upward or downward?

Line Stretching: Expanding a product line by adding new products at different price or quality levels. Upward Stretching: Adding higher-end or premium products to the line to target more affluent customers and enhance brand prestige. Downward Stretching: Adding lower-end or more affordable products to the line to attract price-sensitive customers and capture a larger market segment.

What is it when a product category is existing and a brand name is existing?

Line extension

What is it when a product category is existing but the brand name is new?

Multibrands

What is it when a product category is new but the brand name is existing?

Brand extension

What is it when a product category is new and the brand name is new?

New brands.

Characteristics of line extension? What are the advantages and risks?

* Line Extension – Existing brand names extended to new forms, sizes, and flavors of an existing product line – Advantages * Low-cost & risk; Variety * Variety – Risks * Diluted image; Poor performance of one

What are the characteristics of multi brands? What are the advantages and risks as well?

Multibrands – New brand names introduced in the same product line – Advantages * Each brand is unique to each market segment – Disadvantages * Increased cost

What are the characteristics of brand extensions? What are the advantages and disadvantages as well?

Existing brand names extended to new product lines – Advantages * Instant recognition and acceptance à Low promotion cost * Extension to complementary goods – EX: HP printer à HP printer ink – Disadvantages * Damage and dilution of the original brand – EX: Heinz à Heinz pet food * Inappropriate brand image – EX: Colgate gum – Important consideration * Perceived fit (similarity in products and image)

What is a service?

Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything (e.g., Banking, Hotels, Airlines, Tax preparation)

What are the mixes of tangible and intangible goods and services?

Pure tangible good, Both tangible good and service, and pure service

What are the characteristics of intangible services?

- Services can't be seen, tasted, felt, heard, or smelled before purchase - Making intangible service tangible in promotion(Visualization, and metaphor)

What are the characteristics of Inseparability

- Services can't be separated from their providers - Importance of face to face interaction

What are the characteristics of Variability

- The quality of the service depends on who provides them, and when, where, and how -Quality control is important

What are the characteristics of perishability?

- Services can't be stored for later use or sale - Variable pricing for fluctuating demand