Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Marketing Strategy > Product Strategy > Flashcards

Product Strategy Flashcards

1
Q

what is a product

A

Anything that can be offered to a market for attention,
acquisition, use, or consumption and that might satisfy a want or need.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a service

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is product as eexperience

A

Experiences represent what buying the product or
service will do for the customer.

E.g. Disneyland, Legoland,
Universal Studios

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the levels of a product

A

core product

actual product

augmented product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is core benefit

A

➢What the consumer is really buying.
➢Problem-solving benefits / service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is actual product

A

➢The Must-Have

➢ Makeup of the Product. Includes the brand name,
features, design, warranty, packaging, quality level.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is augmented product

A

➢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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

example of core benefit

A

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?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

example of actual product

A

5 characteristics (must have)

  1. Features – Mega pixels, Memory, Battery life
  2. Style & Design – Super-slim, large screen, sleek
  3. Packaging – The White Box
  4. Quality level – Superior
  5. Brand name – iPhone 7
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

example of augmented product

A

➢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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is consumer products

A

– those bought by final consumers for
personal consumption (B2C)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is industrial products

A

– those purchased for further processing or for use in conducting a business (B2B)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

the key difference between consumer and industrial products is the _______ for which product is bought

A

PURPOSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

4 types of consumer products

A

convenience product
shopping product
speciality product
unsought product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are convenience product

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are Shopping Goods – 4Ps

A
  • 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.
17
Q

what are Specialty Goods – 4Ps

A
  • 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.
18
Q

what is unsought goods

A
  • 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.
19
Q

3 decisions in product strategy

A

individual product decision

product line

product mix

20
Q

what is product line

A
  • 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.
21
Q

what is product line depth

A
  • 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.
22
Q

what is product mix

A

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.

23
Q

what are individual product decision

A
  1. Product Attributes & Benefits – What are the
    USPs
  2. Packaging
  3. Labeling
  4. Product Support Services
24
Q

what are the 3 Product Attributes – UNIQUE SELLING POINT/ FEATURES (a Must-Have in any Good Product)

A

A. Quality
B. Features
C. Style & Design

25
Q

what is quality

A

Ability of a product to perform
its functions and free from defects

26
Q

what is features

A

Differentiates a product from the competition; assessed based on value and cost

27
Q

what is style and design

A

Style describes the appearance of product. Design contributes to a product’s usefulness and its looks

28
Q

what is packaging

A

 Designing and producing the container or wrapper for a
product.

 Original purpose – to contain, and protect product

 Now – also to attract attention, describe product, make a sale

 To developing a good package, consider:

➢Packaging concept, Package elements, Product safety, Environmental concerns

29
Q

what is labelling

A

Printed information appearing on or with the package.

30
Q

what are the 2 forms of labelling

A

persuasive

informational

31
Q

what is persuasive

A

◆ Focuses on promotional theme

◆ Promotes the product through attractive graphics
or sales promo messages

◆ Information is secondary

32
Q

what is informational

A

◆ Helps make proper selections

◆ Lowers after purchase ‘Angst’. Cos everything stated!

◆ Includes use/care

33
Q

what is product support services

A

 Assess the value of current services and obtain ideas for new services.

 Assess the cost of providing the services.

 Put together a package of services that delights the customers and yields profits for the company.

 Think IKEA….

34
Q

what is product life cycle

A

▪ The course of a product’s sales and profits over its
lifetime.

▪ 4 stages of the PLC –introduction, growth, maturity and decline.

35
Q

what is introduction stage

A

▪ Introduction stage is when the new product is first launched.

▪ Marketing Objective: create product awareness & encourage trial

▪ Sales: low
▪ Costs: high cost per customer
▪ Profits: negative
▪ Product: offer a basic produt, not many products or product lines.
▪ Promotion: aggressive advertising to create awareness & promotional initiatives to encourage trial (e.g. samples, gift with purchase)
▪ Price: use cost-plus formula
▪ Place/Distribution: little or low distribution

36
Q

what is growth stage

A

▪ Growth stage is when the new product satisfies the market.

▪ Marketing Objective: maximize market share

▪ Sales: rapidly rising
▪ Costs: average cost per customer
▪ Profits: rising
▪ Product: product quality increases, many new features, different types of product items introduced, service, warranty etc

▪ Promotion: Less on promotional incentives, More on Branding & Relationship
Building with customers
▪ Price: price stabilize a little or decline to increase volume, frequent changes
▪ Place/ Distribution: More intensive distribution, and build upon this network

37
Q

what is maturity stage

A

▪ Maturity stage is when the new product attains maximum sales/profits.

Marketing Objective: maximize profits while defending market
share

▪ Sales: peak, slowdown in sales
▪ Cost: low cost per customer
▪ Profits: high

▪ Product: diversify brand and models, but stabilize with STAR products

▪ Promotion: Maintain and continue to encourage brand switching by
highlighting brand differences

▪ Price: match or beat competitors so will Drop, but will eventually Stabilise

▪ Distribution: Maintain the intensive distribution network

38
Q

what is decline stage

A

▪ Marketing Objective: reduce expenditures and milk the brand

▪ Sales: declining
▪ Costs: low cost per customer
▪ Profits: declining

▪ Product: phase out/KILL weak items, re-vitalize products etc

▪ Promotion: reduce to minimal
level to retain hard-core loyal
fans.

▪ Price: cut price

▪ Distribution: selective–phase out unprofitable outlets

39
Q
A

Marketing Strategy (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions