Product Strategy Flashcards
what is a product
Anything that can be offered to a market for attention,
acquisition, use, or consumption and that might satisfy a want or need.
what is a service
Service is a form of product that consists of activities,
benefits, or satisfactions offered for sale that are
essentially intangible and do not result in ownership.
E.g., Legal advice, banking, hotel, airline, retail, tax
preparation, doctor’s examination
what is product as eexperience
Experiences represent what buying the product or
service will do for the customer.
E.g. Disneyland, Legoland,
Universal Studios
what are the levels of a product
core product
actual product
augmented product
what is core benefit
➢What the consumer is really buying.
➢Problem-solving benefits / service
what is actual product
➢The Must-Have
➢ Makeup of the Product. Includes the brand name,
features, design, warranty, packaging, quality level.
what is augmented product
➢Good-to-Have. Additional benefits/services around the
core and actual product such as delivery and credit,
instructions, installation, warranty, service.
➢Special Features (not offered by key competitors)
example of core benefit
Cosmetics – to buy hope? EG. Loreal is selling HOPE … What about the 5-star hotel Ritz Carlton? What about NYP?
Shoes – protection for feet (Comfort)? Or Beauty? Or Both?
example of actual product
5 characteristics (must have)
- Features – Mega pixels, Memory, Battery life
- Style & Design – Super-slim, large screen, sleek
- Packaging – The White Box
- Quality level – Superior
- Brand name – iPhone 7
example of augmented product
➢The ‘Good to Haves’ but not totally necessary
➢After-sales service – e.g. support services (may even be Actual Product), free workshops like ‘how to use the features in new Samsung phone’
➢Warranty – e.g. for parts and labour
what is consumer products
– those bought by final consumers for
personal consumption (B2C)
what is industrial products
– those purchased for further processing or for use in conducting a business (B2B)
the key difference between consumer and industrial products is the _______ for which product is bought
PURPOSE
4 types of consumer products
convenience product
shopping product
speciality product
unsought product
what are convenience product
Convenience Goods - 4Ps
* Price: Inexpensive, frequently purchased
* Place: Little effort needed to purchase,
Must make it Available everywhere cos
people buy frequently
* Promotion: Packaging, Sales Promo creating impulse buying etc
what are Shopping Goods – 4Ps
- Price: More Costly, but Mid-Range
- Place: Available a lot of places, but not Everywhere, and Not as frequently bought
as convenience products - Promotion: Focus on Branding & Info providing as Consumer does some research before purchasing. Some Sales Promo also.
what are Specialty Goods – 4Ps
- Price: Very Costly, cos very Unique features and Consumer is prepared to pay a premium
- Place: Only one or few places selling it, and consumers Make special purchase effort
- Promotion: Focus on Branding & Relationship with Customers. NOT Offers.
what is unsought goods
- Those goods that consumers do not know or
- Do not think of buying (No Need Do Anything)
- If Do not Know – then Do MORE Promotion to
gain Awareness.
3 decisions in product strategy
individual product decision
product line
product mix
what is product line
- Product line is a group of
product items that are
closely related because
they function in a similar
manner, - are sold to the same
customer groups, - are marketed through the
same types of outlets, - or fall within given price
ranges.
what is product line depth
- Product Line Depth
means how many
different variations are
there in that Product Line. - The variations can come in
the form of Flavors, sizes,
packaging, Ingredients or
benefits etc. - The more Variations, the
Deeper will be the Product
Line.
what is product mix
Product Mix is means the Total of ALL the Product Items and Product Lines that the company has.
Likely smaller the company setup/New Setups, Smaller the Product Mix and Vice Versa.
what are individual product decision
- Product Attributes & Benefits – What are the
USPs - Packaging
- Labeling
- Product Support Services
what are the 3 Product Attributes – UNIQUE SELLING POINT/ FEATURES (a Must-Have in any Good Product)
A. Quality
B. Features
C. Style & Design
