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5 - Product and Price Management > Product Management > Flashcards

Product Management Flashcards

1
Q

What is at the core of bringing value to the customer?

A

The product experience

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2
Q

Example customer experience

A

-Apple
-it´s not only about the product but because of the lifestyle one wants to live

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3
Q

Definition product

A

A product is anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, or ideas.

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4
Q

SKU

A

stock-keeping unit

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5
Q

3 Product characteristics

A

1) Essential benefit
2) Core product
3) Enhanced product

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6
Q

Name the essential benefit of a product

A

the fundamental need met by the product (getting from point A to point B on an
Southwest Airlines)

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7
Q

Name the core product characteristic

A

the physical, tangible elements (e.g.,one kind of aircraft, low fares, good website).

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8
Q

Name the enhanced product characteristic

A

includes additional features, designs, and innovation that exceed expectations (e.g., frequent flyer program, fun and entertaining flight attendants).

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9
Q

How can a product be classified?

A

-by the nature of the product
-by who uses the product

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10
Q

Aspects of product nature

A

1) Tangibility (physical aspects of the product experience, is the product tangible?)
2) Durability (product usage)

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11
Q

Types of durability

A

-durable products: can be used many times, e.g. refrigerators, cars etc.
-non-durable goods: will be consumed after one or few uses (e.g. coke, soap etc.)

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12
Q

Who uses the product?

A

1) Consumers
2) Businesses

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13
Q

Types of consumer goods (4)

A

-Convenience Goods Staples: Impulse, Emergency
-Shopping Goods Furniture: Clothes, Appliances
-Specialty Goods: Unique characteristics iPhone
-Unsought Goods: Insurance

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14
Q

Types of business goods

A

-materials
-parts
-MRO (maintenance, repair, operations) supplies
-capital goods

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15
Q

Product aspects to create differentiation with

A

-Form
-Features
-Performance QUality
-Durability
-Realiability
-Repairability
-Style

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16
Q

Definition Product Line

A

A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction

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17
Q

Definition Product Mix

A

all the products offered by a company

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18
Q

Difference of product and product item

A

Product = coke
Product item = Coke in 0,5 bottles
The product item is what you sell and the product is what you market

19
Q

Stages PLC

A

-Introduction
-Growth
-Maturity
-Decline

20
Q

3 main aspects to know about PLC

A

1) Provides a framework for market analysis
2) It is looked at aggregated data from a whole industry not at a single company (Smartphone not Iphone)
3) It is a function of time and shows the development of a product category

21
Q

Objective Intro-Phase

A

-Build awareness
-Trial purchase of customer

22
Q

Profitability Intro-Phase

A

-Low sales, typically high failure rate
-High marketing and product costs

23
Q

Objective Growth-Phase

A

-differentiate product from competitors
-promote rapid expansion

24
Q

Profitability Growth phase

A

-Sales grow at increasing rate
-Profits are healthier as operations are streamlined

25
Q

Objective maturity phase

A

-transition product high growth to sales stability

26
Q

Profitability matrurity-phase

A

-Sales increase at a decreasing rate
-Cost minimization has reached full extent

27
Q

Objective Decline-Phase

A

Determine future of the product

28
Q

Profatibility Decline-Phase

A

-Long-run drop in sales
-Profit margins dramatically reduced

29
Q

Market Segments along the PLC

A

Nonexistent
-> New segment now established
-> Market approaching saturation
-> Changing tastes and substitute products erode share

30
Q

Targeted Consumers along the PLC

A

Innovators and Early Adopters -> Early Adopters to Majority ->Majority -> Laggards

31
Q

Competetive environment along the PLC

A

Little competition -> Many competitors -> Marginal competitors drop out -> Falling demand forces many out of market

32
Q

Competitor reaction along the PLC

A

Followers release similar products to pioneers ->Large companies acquire small ones -> Models emphasize style over function -> Remaining firms focus on specialty products

33
Q

Strategy introduction phase regarding product and price

A

-Product: High-quality, innovative design providing new benefit to consumers. Features well-received and understood by target consumers.
-Price: Price skimming or penetration.

34
Q

Strategy Introduction phase regarding communication and distribution

A

-Communications: Inform and educate target audience about the product’s features and benefits. Promotion focused on product awareness and to stimulate primary demand.
-Distribution: Wide distribution network with limited product availability

35
Q

Strategy growth phase regarding product and price

A

-Product: More features and better design. Diversification of product and release of complementary products/services.
-Price Penetration: New and improved models sold at high price points.
-Price Skimming: Existing models or earlier generations move down in price.

36
Q

Strategy Growth phase regarding promotion and distribution

A

-Promotion: Link the brand with key product features and highlight differentiation between competitors. Promotion emphasizes brand advertising and comparative ads.
-Distribution: Broaden distribution networks to keep up with expanding market demand

37
Q

Strategy Maturity phase regarding product and price

A

-Product: Product lines are widened or extended
-Price Penetration: Target high-end market, higher price.
-Price skimming: Lower price due to competitive pressures if product is not well-differentiated

38
Q

Strategy Maturity phase regarding promotion and distribution

A

-Promotion: Decide between short-term sales promotion or investing more in the brand.
-Distribution: Has reached maximum distribution

39
Q

Strategy decline phase regarding product and price

A

-Product: Consider product expense in terms of ROI.
-Price Penetration: Low price to stimulate demand.
-Price skimming: Pressure from competitors and consumers

40
Q

Strategy Decline phase regarding promotion and distribution

A

-Promotion: Cost not justified by conditions.
-Distribution: Reduce channels

41
Q

Definition tangible product

A
  • Physical products that one can feel, touch and see
  • Designed and manufactured from physical materials
42
Q

Define intangible product

A
  • Not physical products, but people can perceive or easily understand
  • Provide buyer with tangible benefits
43
Q

Define durable product

A
  • Not bought frequently, maybe once/twice a year
  • Longer product life cycle
  • Higher financial risk, more expensive
44
Q

Define nondurable product

A
  • Bought frequently
  • Short product life cycle (immediate consumption)
  • Low financial risk, cheap

5 - Product and Price Management (3 decks)

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