Products Flashcards
Definition
anything that can be offered to a market for attention, acquisition, use or consumption that usually satisfies a need (utilitarian and hedonic)
Utilitarian needs
Usefulness. form, place, time, possession, image
Hedonic needs
satisfaction provided in use
Products include
goods, services, events, persons, places, organisations, ideas, or a mix
Good
physical tangible offering
Service
intangible offer doesn’t end in ownership
Industrial product
materials, capital items, services
Experience
sporting event, festival
Ideas
concept issue or philosophy
Product-service continuum
Pure tangible good —– pure intangible service
Levels of products
core, actual, augmented
Core product
key benefit and customer value which satisfies the need
Actual product
features, form and function of the product: features, design, quality, branding, packaging
Augmented product
additional consumer services and benefits: delivery credit, product support, after-sale, warranty, symbolic and experiential
Product line
a set of closely related product items sold to same customer groups, described by depth - number of alternatives
Product mix
all product lines and items an organisation offers, described by width and consistency
Expanding product line
filling (more variations) or stretching
Product line stretching
increasing or decreasing (or both) quality and price of a product
Product classifications
consumer and business
Consumer products
used for personal consumption. convenience, shopping, specialty, unsought
Convenience products
minimal time or effort, frequent, widely available, inexpensive, mass promotion. Milk
Shopping products
less frequent, more time, effort and money, comparison of brands, less distribution, ads and personal selling. Appliances
Specialty products
unique, require special effort, little distribution or comparison, strong brand preference, targeted promotion. Expensive Jewellery
Unsought products
consumer is unaware of need, requires large agressive marketing effort, personal selling. Insurance
Business products
*not talked about
Component parts, maintenance repair and operating, specialised service, processed materials, raw materials, equipment
Branding
process of make a product and organisation identifiable to customers and diffeentiate from competitors
Brand
collection of symbols that identifies and communicates an organisation and its products
Brand mark
symbols or designs of a brand, suggests what it is selling.
Trademark
legally registered brand name or mark to secure exclusivity
Benefits of brands to orgs
add value, build equity, build consumer preference and loyalty, barrier to competition, higher profit, base for extension, coordinate channel behaviour
Benefit of brand to consumer
communicate features and benefits, reduce risk during purchasing, simplify purchase decision, symbolic value, assure quality and reliability
Brand equity
differential effect brand name has on customers, more power means more equity/loyalty and clear positioning
Brand equity pyramid
awareness - consideration - acceptance/trial - attitude - loyalty/advocacy
Brand strength
differentiation, knowledge, relevance, esteem
Brand value
total financial value of a brand
Brand success
relevant, consistent, supportive, positioned, logical mix, varied marketing activities.
Brand strategy
positioning, name selection, sponsorship, development
Brand positioning
clear in target consumers’ minds. Product attributes, desirable benefit, strong beliefs and values
Brand name
represents products and benefits, target market and marketing strategies
Brand sponsorship
manufacturer brands, private label brands, co-brand, licensed brand
Manufacturer brands
brands owned by producers, identify with product at point of sale. Kelloggs
Private label brand
brands owned by resellers (wholesalers and retailers), don’t identify with manufacturer. Woolworths home brand
Co-brand
two established brand names used on one product. McFlurry with M&Ms
Licensed brand
company licenses names previously created or celebrities. Nirvana cotton on T-shirts
Individual branding
each product branded separately. P&G
Family branding
same brand on all products. Yeti
Packaging role
attract customer attention, communicate benefits, recognition and personality, protection, additional benefits, help with augmentation. “protect what it sells and sell what it protects”
Developing new products
making existing product range better. new and improved replacements or additions to product lines
Reason for new product development
increasing competition, rapid change in technology, changing lifestyles and values
Product life cycle definition
the course and management of a product’s sales and profits throughout time from being a new product
Product life cycle
new product development, intro, growth, maturity, decline
New product development
large marketing investment into developing new idea, no sales or profits
Introduction
negative profit from investments, no sales. first time consumers (early adopters) to try
Growth
rapid market acceptance. increasing sales and profits. encourage loyalty, target more segments. competition develops
Maturity
longest stage. most potential buyers have accepted. use strategies to reach more customers, sell through more outlets, reinforce loyalty and repeat purchases
Decline
competitors withdraw. decide whether to drop or keep. sales and profits fall.
Product class vs form
Class is a type of product (soap) form is a variation (foaming cleanser). Classes have longer PLC
PLC applications
styles, fashions, fads
Style
basic and distinctive mode of expression, go in and out of vogue. PLC has multiple peaks and pits
Fashion
current accepted style, slow growth, long maturity.
Fad
temporary period of high sales from immediate popularity and enthusiasm
Extending PLC
market modifications, product modifications, mix modifications
Market modifications
penetrate (current market consumer more) or develop (go to new market) market
Product modifications
Stretching (feature, style or quality changes) or filling (adding into line)
