Product, Branding, and Packaging Decisions - Chapter 9 Flashcards
Core customer value
The basic problem-solving benefits that consumers are seeking
Associated services / augmented product
The non-physical attributes of the product, including product warranties, financing, product support, and after-sale service
Consumer products
Products and services used by ppl for their personal use
Specialty goods/services
Products/services toward which customers show such a strong pref that they will expend considerable effort to search for the best supplier
Shopping goods/services
Products/services which consumers will spend a fair amt of time comparing alternatives
Convenience goods/services
Products/services for which the consumer is not willing to spend any effort to evaluate prior to purchase
Unsought products/services
Products consumers either don’t normally think of buying or don’t know abt
Product mix or product assortment
Complete set of all products offered by a firm
Product category
An assortment of items that the customer sees as reasonable substitutes for one another
Brands
The names, terms, designs symbols or any other features that identify one seller’s good or service as distinct from those of other sellers
Product mix breadth (sometimes ‘variety’)
Rep the # of product lines offered by the firm
Product line depth
The # of product categories within a product line
Stock keeping units (SKUs)
Smallest unit available for inventory control
Why do firms add new product lines?
To capture new or evolving markets, increase sales, and compete in new venues
Sometimes necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities
What does branding do for a product?
Provides a way for a firm to differentiate its product offerings from those of its competitors
Add value to product/services beyond physical & functional characteristics
Why do known firms spend less?
Well-known brands can spend relatively less on marketing costs than firms w little-known brands bc the brand sells itself
Brand equity
The sets of assets and liabilities linked to a brand that add to or subtract from the value provided by the product/service.
What do firms need to do to keep positive brand image
Brand health must be actively managed
Brand awareness
Measures how many consumers in a market are familiar w the brand and what it stands for, and have an opinion abt the brand.
The more customers are aware of or familiar w a brand, the easier their decision-making process will be
What do firms need to beware of with their brand names?
must be vigilant in protecting their brand names
If they are used so generically, over time, the brand itself can lose its trademark status
Perceived value
The relationship between a product/service’s benefits and its cost
- Customers usually determine the offering’s value in the relationship to that of its close competitors.
- If they feel an inexpensive brand is abt same quality as premium brand, perceived value of the chapter choice is high
Brand associations
Reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, etc.
Brand personality
Refers to a set of human characteristics associated w a brand that has symbolic or self-expressive meanings for consumers
Brand loyalty
Occurs when a consumer buys the same brand’s product or service again and again over time
Brand loyal customers are an important source of value for firms
Not always easy to achieve. Companies may use brand promise to attract and retain customers
