Product Management 1 (7.1 7.2, 8.1, 8.2) Flashcards
3 Layers of a Product (AAC)
Augmented, Actual, Core
What is a Product
A tangible good, service, person, place (destination), or idea/ ideology that satisfies a customer’s needs through the exchange process
Augmented Product
is the non-physical part of the product. It usually consists of lots of added value
- Warranty, Delivery, Installation
Actual Good
Is the tangible, physical product
Core Product
The core benefit of the product
- Car = Transportation
Durable Product
Long-lasting
Non Durable Product
Benefit over short period
-Toothpaste
Convenience Product (Staples)
Typically, durable goods that are purchased frequently and consumed immediately.
FMCGs
Type of convenience product with more variations and planned purchases. (More brand loyalty)
Impulse Goods
An item that a consumer does not plan to buy on a specific trip to the store.
Emergency Goods
Items purchased when we are in dire need,such as an umbrella during a rainstorm, a tire to replace a flat ,or aspirin for a headache
Price may be irrelevant and sizes are smaller.
Shopping Products
Product where consumers spend a considerable amount of time and effort on
Unsought products
These are goods and services for which a consumer has little awareness or interest in purchasing until it is needed.
- Casket, Fire extinguisher,
Continuous Innovation
Small change to an existing product to stand out from the competition. (easy for the consumer to adjust)
Dynamically Continuous Innovation
Pronounced change to an old product. (harder for consumer to change)
- CD to Digital
Discontinuous innovation
A Major groundbreaking change
- Intro to the first iphone
Phases in New Product Development
1) Idea Generation,
2) Product concept development and screening
3) Marketing strategy development
4) Business Analysis
5) Technical Development
6) Test Marketing
7) Commercialisation (full-scale plan)
Product Adoption
the process by which a consumer or customer beginsto buy and usea new good, service or idea
Diffusion
When the use of a product spreads throughout a population
Stages in the adoption process
Awareness
Interest
Evaluation
Trial
Adoption
Confirmation
Awareness
Seeing the product exists – need to educate customers about the product
Interest
Prospect consumer may see how the product can satisfy a new or existing need
Evaluation
Customer weighs the costs and benefits
Trial
The potential buyer will experience or test the product (Samples)
Adoption
Prospective buyer buys the product
Confirmation
Customer weight expected vs actual.
Categories of Adopters
Tech Enthusaiests (Risktakers)
Opinion Leaders (Knowledgeable )
Early Adopters (benefits shown by OL’s)
Sceptical Conservatives (Price sensetive low risk)
Laggards (Old people)
Product factors affecting rate of adoption
Relative advantage, Trialibility, Compatability, Complexity, Observability.8
Product Line
Firms total product offering to satisfy a small need
- Skincare products
Product Mix
All products are offered in a form that can satisfy an array of needs.
Full-line strategy
targets many consumer segments and thus has a wide variety of products/ brands
Limited-line strategy
Targeting a more limited number of segments with a limited number of products and a variety
Line Stretching
Adding new items
Downward Stretch
Adding lower priced, less sophisticated items.
Upward Stretch
Adding higher priced more sophisticated item
Two-way
Adding both high and low-priced
Line Filling
adding sizes and styles to a product
Line Concentration
Reducing product line when they are
Product Life Cycle
The product life cycle explains how products go through four distinct stages from birth to death
Product Life Cycle stages
Pre Launch, Introduction, Growth, Maturity, Decline
What is a brand
A name, Term, or symbol of a product that identifies one’s products and sets it apart from the competition.
Brand Equity
The Value of a brand to an organization
Self-concept attachment
The brand establishes the user’s identity
Nostalgic Attachment
Brand links with past self memories
Interdependence
Brands involvement with daily routine
Love brand attachment
Strong emotional bonds with the brand
Individual Brand Strategy
using a unique/separate brand for each product item
Family Brands (Umbrella)
A brandthat a group of individual products or individual brands share.
-Sony
Sub Brand
Combination of family/individual
Sony and PlayStation
National Brand
Brands that a products’ manufacturer owns and sells.
- BMW
Private Label brand
Brands that a retailer owns and sells
- Trader Joes, M&S
Generic Branding
No branding and made for price-sensitive consumers
Licensing
A company partners with another to sell in their market.
(Disney partnering with Hasbro)
Co-Branding
Companies working together to make one product
BMW/LV Bag
Ingredient Branding
Nivida chips in asus computers
