product and services Flashcards
product-service continuum
products and services have elements of both tangible goods and services (eg: computer tangible but requires warranty and updates)
product lines
group of related products offered by a firm (eg: Nike shoes or Boeing airplanes)
product mix
assortment of all products a firm offers (samsung electronics and appliances)
corporate product lines and product mix
manage the overall portfolio
brand level product lines
firms that emphasize individual product lines and variations under a specific brand (eg: Virgin Group uses the Virgin name for airlines & hotels
product life cycle: stages
introduction, growth, maturity, decline
product life cycle: introduction
high costs, low sales, limited competition
product life cycle: growth
rapid sales growth, higher competition, focus on brand differentiation
product life cycle: maturity
sales plateau, intense competition, price warsp
product life cycle: decline
sales drop to newer innovations or changing consumer preferences
product life cycle: revitalization
strategies to reposition or target new uses for a product
product life cycle: implications
companies must adapt marketing strategies (eg: focusing on cost efficiency in mature or niche markets in decline)
break-even analysis
focus on understanding when revenue will cover total costs (bigger pictures helps in pricing and investment)
types of brands
national (broadly recognized), private labels (owned by retailers), generic (low-cost alternatives)
sources of brand value: brand equity
value added due to brand reputation
source of brand value: brand personality
human-like traits associated with a brand
co-branding
collaboration between brands to enhance value
brand extensions
using an established brand name for a new product category
genericide
when a brand name becomes synonymous with the product category
main brand
parent identity (toyota)
subbrand
specific product line under the main brand (prius under toyota)
multi-sided (two sided) platforms
services connecting two distinct groups without providing the service themselves (Uber: drivers and riders) (eBay: buyers and sellers)
chicken-and-egg problem
challenges when one side of a depends on the other to adopt first
jumpstarting
strategies to overcome the chicken and egg problem, including subsidies and focusing marketing to high-demand areas
