Products

Question 1

What is a product?

Answer 1

A product is something that can be offered to a market for attention, acquisition, use,or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organisations and ideas

Question 2

What are the three levels of products and services according to motley and Armstrong (2014)

Answer 2

Core customer value
Actual product
Augmented product

Question 3

Describe what makes up an actual product?

Answer 3

Brand name
Quality level
Packaging 
Design
Features

Question 4

Describe what makes up an augmented product

Answer 4

Delivery and credit
Product support
Warranty
After sale service

Question 5

What are the two product based classifications?

Answer 5

Durable products

Non Durable products

Question 6

Describe durable products

Answer 6

Lasts for many uses and over a long period of time before hanging to be replaced (eg. Tv or car).
May require selective distribution through specialist channels and a communications approx b that is primarily centred on information and function rather than psychological benefits

Question 7

Describe non durable products

Answer 7

Can be used once or a few times before having to be replaced (eg food)

Question 8

What are the 5 product based classifications?

Answer 8

Convenience products
Shopping products 
Speciality products 
Unsought products
Service products

Question 9

What are convenience products?

Answer 9

Cheap, frequently purchase items that do not need much thought or planning?

Question 10

What are Shopping products?

Answer 10

Usually, infrequently purchased items. (eg. cars or household appliances)
It may require selective distribution through specialist and a communications approach that is primarily centred on information or function rather than psychological benefits

Question 11

What are the stages of the NPD (new product development) Process?

Answer 11

• Idea generation
• idea screening
• concept testing
• Business analysis
• Product development
• Test marketing
• Commercialisation
• Monitoring and evaluation

Question 12

What are speciality products?

Answer 12

People plan the purchase and will not accept substitutes.
It may require selective distribution through specialist channels.
Marketing communications may focus on functional and psychological benefits.

Question 13

what are Unsought products?

Answer 13

Not normally sought, often sold by sales people or bought as a result of change of circumstances

Question 14

what are service products?

Answer 14

Intangible products comprising activities, benefits or satisfactions that are not embodied in physical products (eg. holiday, financial advice)

Question 15

What is the Product Mix?

Answer 15

The total sum of all products and variants offered by an organisation

Question 16

What is the Product Line?

Answer 16

A group of products that are closely related. Consider production and market orientation

Question 17

What is the Product Item?

Answer 17

Individual products or brands, each with its own features, benefits, price etc

Question 18

What is the Product Line Length?

Answer 18

The total number of items within the product line

Question 19

What is the Product Line Depth?

Answer 19

The number of items within the product line - the item variants

Question 20

What is the Product Line Width?

Answer 20

A product mix defined by the number of product lines offered

Question 21

What is an important model to look at which products are worth investing in?

Answer 21

The BCG model (Boston box)

Question 22

What are the 5 stages of diffusion of Innovation?

Answer 22

Innovators
Early adopters
Early majority
Late majority
Laggards

Question 23

Describe Innovators in the diffusion of innovation model.

Answer 23

They help get the product off the ground.

These people are risk takers and tend to be younger, better educated, more affluent and confident.

Question 24

Describe Early adopters in the diffusion of innovation model.

Answer 24

They enter the market early but let the innovators take the real risk.
Tend to be opinion leaders.
It is important that promotors target them as they are more of a mainstream group than the innovators and they spread their recommendations via word of mouth.

Question 25

Describe the Early Majority in the diffusion of innovation model.

Answer 25

The mass market builds up as more and more people enter it. They do not like to take risks and like reassurance that the product is tried and tested. Social pressure may begin to build when the product reaches an early majority and so the product moves to the late majority.

Question 26

Describe the Late Majority in the diffusion of innovation model.

Answer 26

They may be less interested in the product.
Need more reassurance of the products benefit and worth.
Have the benefit of lots of knowledge and experience of previous groups.
The product is reaching its mature stage where there are a steady plateau of repeat purchases

Question 27

Describe the Laggards in the diffusion of innovation model.

Answer 27

The last remaining converts.
They do not like change.
Or they may have just not heard about the products
There are no risks at this point and will be easier to find the best products in the market.
Prices may also be falling.

Question 28

What are the 5 stages of the product life cycle?

Answer 28

• Development
• Introduction
• Growth
• Maturity
• Decline