Product Mix Flashcards
1
Q
PRODUCT DEVELOPMENT DECISION PROCESS
A
Idea Generation
Ideal Screening
Concept Development and Testing
Marketing Strategy and Development
Business Analysis
Product Development
Market Testing
Commercialization
2
Q
Is the idea worth considering?
A
Idea Generation
3
Q
Is the product idea compatible
with company objectives,
strategies, and resources?
A
Ideal Screening
4
Q
Can we find a good concept
consumers say they would try?
A
Concept Development and Testing
5
Q
Can we find a cost-effective,
affordable marketing strategy?
A
Marketing Strategy
Development
6
Q
Will this product meet our profit
goal?
A
Business Analysis
7
Q
Have we got a technically and
commercially sound product?
A
Product
Development
8
Q
Have product sales met
expectations?
A
Market Testing
9
Q
Are product sales meeting
expectations?
A
Commercialization
10
Q
the heart of a great brand
A
Product
11
Q
anything that can be offered to a market
to satisfy a want and/or need
A
Product
12
Q
Kotler’s five product levels model
A
- Core
- Generic
- Expected
- Augmented
- Potential
13
Q
Fulfills the basic benefit consumers want
A
Core
14
Q
Provides actual product with tangible qualities
A
Generic
15
Q
Generic product + other attributes consumers want
A
Expected
16
Q
Product + Additional factors which set the product apart from competition
A
Augmented
17
Q
Product + tangible and intangible features
A
Potential
18
Q
pertains to the benefit that a
customer is buying.
A
product’s core benefit
19
Q
E.g Anti-inflammatory ingredient, Herbal/plant origin Multivitamin ingredients
A
Core product
20
Q
In pharmaceutical
viewpoint this pertains to choosing the correct dosage
form to deliver the core benefit
A
Generic
21
Q
n this level, the marketer avoids misalignment and
focuses instead on market need.
A
Expected product
22
Q
E.g Effective, great-tasting, handy, contains
a known herbal product
A
Expected product
23
Q
Packaging without Branding
A
Expected product
24
Q
. In this level, brand positioning and competition
take place.
A
Augmented
25
should have a strong USP
(unique selling proposition) – reason for buying despite
numerous competitors.
Augmented product
26
E.g. An herbal anti-inflammatory lozenge, A multivitamin in chewable softgels; or a multivitamin as oral aerosol
Augmented product
27
important in order to differentiate the
product from its competitors
Branding
28
When the product is _________, it stands out from
the other products
differentiated
29
Encompasses all the possible augmentations and
transformations the product or offering might undergo in the future
POTENTIAL
30
Here is where companies search for new
ways to satisfy customers and distinguish their offering
POTENTIAL
31
E.g Fast-acting property in Lozenge products is already
considered as a level 5 property
POTENTIAL
32
A group of diverse but related items that function in a
compatible manner
PRODUCT SYSTEM
33
E.g. A pharmaceutical company can have a full
Cardiovascular portfolio offering CV drugs such as
anti-hypertensives, anti-cholesterol drugs,
anticoagulant drugs
PRODUCT SYSTEM
34
Products that work together effectivel
Product system
35
Also called a product assortment
PRODUCT MIX
36
The set of all products and items a particular seller
offers for sale
PRODUCT MIX
37
E.g A pharmaceutical company can offer a full range of dosage form and strengths of a particular product.
Atorvastatin 10mg, 20mg, 40mg, 80mg
Product mix
38
A product mix consists of various ________
product lines
39
4 DIMENSIONS OF PRODUCT MIX
Width
Length
Depth
Consistency
40
- refers to how many different product lines the
company carries
Width
41
a term used when a company
decides to offer another line of products to its
offerings
Brand extension
42
refers to the total number of items in the mix
Length
43
refers to the number of variants in each
product line
Depth
44
term used when expanding an
offering of an existing product
Line extension –
45
describes how closely related the
various product lines are
Consistency
46
APPROACHES TO PRODUCT DIFFERENTIATION
Form and Style
Features
Durability
Reliability
47
is a measure of the product’s
expected operating life under natural or
stressful conditions
Durability
48
is a measure of the
probability that a product will not
malfunction or fail within a specified
time period (within declared shelf-life
Reliability
49
Crucial part of a
differentiation program is ____________.
product design
50
offers a potent way to differentiate and
position a company’s products
Product design
51
the totality of features that affect how a
product looks, feels, and functions to a consumer
Design
52
offers functional and aesthetic benefits and
appeals to both our rational and emotional sides
Design
53
Energy, passion, danger
Red
54
Best for action-oriented products, spped or power, or dominant or iconic brands
Red
55
adventure and fun
Orange
56
Attention-grabber, stimulate appetites.
Orange
57
Value and discounts.
Orange
58
Sunny warmth and cheerines. Stimulate mental activity - wisdom and intellect
Yellow
59
Products for sports or social activities, or content looking to garner attention
Yellow
60
Cleanliness, freshness, renewal, evironmental frinedliness
Green
61
color that is overused in the marketplace
Green
62
Wholesome attributes, organic or recycled product, health and wellness
Green
63
security, efficiency, productivity and a clearness of mind. Ceanliness, openness, relaxation
Blue
64
High-tech industy,cleaning and personal care products to spas and vacation destination
Blue
65
Nobility and wealth
Purple
66
Luxury brand and products, air of mystery and uniqueness
Purple
67
frilliness and warmth, soft, peaceful and comforting qualities
Pink
68
Personal care products, baby-related products, sugary treats
Pink
69
honesty and dependability
Brown
70
classic and strong. luxury, sophistication and authority
Black
71
purity and cleanliness, innovation and modernity
White
72
includes all the activities of designing and
producing the container for a product.
Packaging
73
the buyer’s first encounter with the
product.
Package
74
can act as five-second commercials
Packaging
75
5 Objectives of packaging
1. Identify the brand
2.Convey descriptive and persuasive information
3.Facilitate product transportation and protection
4.Assist at-home storage
5.Aid product consumption
76
Factors affecting growth in use of packaging:
Self-service
.Consumer affluence
Company & brand image
.Innovation opportunity
77
a label performs several
functions:
○ It identifies the _______________
○ It _______________ the product – provide sense of being
standard or premium
○ It _______________ the product – manufacturer, importer,
net content, warnings, precautions.
○ It _______________ the product through attractive graphics
(like packaging)
○ It identifies the product or brand
○ It grades the product – provide sense of being
standard or premium
○ It describes the product – manufacturer, importer,
net content, warnings, precautions.
○ It promotes the product through attractive graphics
(like packaging)
78
list the attributes of product and
modify each attribute.
Attribute listing
79
An NSAID suspension has attributes such as
color, flavor, packaging
Attribute listing
80
list several ideas and consider
each in relationship to each of the others
Forced relationship
81
An NSAID for headache and Caeine for people
suffering from Caeine-dependence = an NSAID
with Caffeine for people experiencing
cafeine-dependence induced headache
Forced relationship
82
start with a problem, think of
dimensions, and create different possible combinations
of solutions to that problem
● Morphological analysis
83
list all the normal
assumptions about a product and then reverse them.
Instead of assuming that a consumer would always
want a tablet form of a product, reverse them
Reverse assumption analysis
84
is a necessary but not sufficient
step for new product success
Concept development
85
helps the company to decide on
how to design the product.
perceptual map
86
DIMENSIONS OF PRODUCT COMMERCIALIZATION
Timing
Geographic Strategy
Target-Market Prospects
Introductory Market Strategy
87
Factors Affecting Geographic Strategy:
Market potential
Company's local reputation
Cost of filling the pipleline
Cost of communication media
Competitive penetration
88
are new product enthusiasts and enjoy
tinkering with new products. They usually report on
early weaknesses
Innovators
89
are opinion leaders. They are less
price sensitive and willing to adopt the product if given
personalized solutions and good service support.
Early adopters
90
consumers who adopt the new
technology when its benets are proven and a lot of
adoption has already taken place. They make up the
mainstream market
Early majority
91
- are skeptical conservatives who are risk
averse, technology shy, and price sensitive.
Late majority
92
are tradition-bound and resist the
innovation until the current product they are using is no
longer defensible.
Laggards
93
is an individual’s decision to become a regular
user of a product and is followed by loyalty to the
product.
Adoption
94
STEPS IN CONSUMER ADOPTION PROCESS:
Awareness
Interest
Evaluation
Trial
Adoption
95
- the consumer becomes aware of the
innovation but lacks information about it.
Awareness
96
the consumer is stimulated to seek
information about the innovation
Interest
97
- the consumer tries the innovation to improve his
or her estimate of its value
Trial
98
the consumer decides to make full and
regular use of the innovation.
Adoption
99
8 MAJOR CAUSES OF PRODUCT FAILURE
1. Ignored or misinterpreted market research
2. Overestimation of market size
3. High development costs
4. Poor design or poor product performance
5. Incorrect positioning, advertising, or price
6. Insufficient distribution suppor
7. Competitors who fight back hard
8. Inadequate payback (return profit
