Revel Flashcards Chapter 6: Product.
The basic anatomy of a product as 4 concentric rings…
Core product, tangible product, augmented product and potential product.
Core product (part of the anatomy of a product) and tangible product:
- Represents the main reason for its existence and purchase.
- Core benefit may be functional or psychological.
- The definition of the core benefit affects the tangible product, which is where the marketer communicates the offer of the core benefit through maybe branding or packaging.
Augmented product (part of the anatomy of a product):
- Represents the add ons that do not themselves form an intrinsic element of the product.
- May be used to increase the products/service benefits and attractiveness.
Potential product (part of the anatomy of a product):
- Acknowledges the dynamic and strategic nature of the product.
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How the layers work within the model?
- All 4 layers contribute to the buyers satisfaction.
- But the outer 2 augmented and potential depend on the definition of the core product to determine how they are realised.
What is product based classification?
- Groups together products which have similar characteristics.
There are 3 main categories:
- Durable products e.g cars, capital machinery.
- Non-durable products e.g. food and office stationary.
- Service products e.g. financial services, holidays and travel.
User-based classifications: consumer goods and services.
Convenience goods.
- Correspond to the routine response buying situation.
- inexpensive and frequent purchases.
User-based classifications: consumer goods and services.
Shopping goods.
- Rational assessment of alternative products.
- Pre-existing loyalty to certain brands.
User-based classifications: consumer goods and services.
Speciality goods.
- Equate with customers extensive problem solving situation.
- Emotive pull of brand name has an affect on buyers decisions.
User-based classifications: consumer goods and services.
Unsought goods.
Within the unsought category there are 2 types of situation:
1) The sudden emergency
2) Situation arises with the products that people wouldn’t normally buy without aggressive selling techniques.
User-based classifications: B2B goods and services.
Capital goods.
- Usually regarded as high risk as they are long term substantial investments.
- Thus they tend to use extensive decision making.
User-based classifications: B2B goods and services.
Accessory goods.
- Give peripheral support to the production process but without direct involvement.
- Low risk factor
User-based classifications: B2B goods and services.
Raw materials
Go onto further processing.
User-based classifications: B2B goods and services.
Semi-finished goods
Still need further processing until incorporation of the final product
User-based classifications: B2B goods and services.
Components and parts
- Are finished goods in their own rights, which have to be incorporated into assembly of the final product.
User-based classifications: B2B goods and services.
Supplies and services.
The product family:
- Product mix
- Product line
- Product item
- Product line length
- Product line depth
- Product mix width
What is the product mix?
Is the total sum of all the products and variants offered by an organisation
What is the product line?
A product line is a group of products that are closely related to each other.
This relationship may be product-orientated or market-orientated.
What is the product item?
- A product line consists of a number of product items.
- They are individual products or brands, with own features, benefits and price.
What is product line length?
The total numbers of products in the product line.
What is the product line depth?
The number of different variants of each item within a product line defines its depth.
A deep product line has many item variants.
What is product mix width?
The width of the product mix is defined by the number of product lines offered.
What is the most important function of branding:
The creation and communication of a 3 dimensional character for a product that is not easily copied or damaged by competitors efforts.
What is the value of a Brand Name?
- Any word or illustration which clearly distinguishes one seller’s goods from another.
- Brand names are enhanced by logos.
What is a trade name?
- Is the legal name of an organisation.
What is a trade mark?
Brand name, symbol or logo which is protected and registered for the owner’s sole use.
Advertising slogans, packaging associated with the brand can also be registered as trade marks.
What is a brand mark?
- Specifically the element of the visual brand identity that consists of not words but brands and symbols. e.g.McDonalds golden arches
The benefits of branding for the consumer, manufacturer and retailer…
Consumer: Communicates benefits better, helps product evaluation and reduces risk in purchasing.
Manufacturer: Helps create loyalty, helps create a USP (comp advantage) and allows premium pricing.
Retailer: Attracts customers and Benefits from brand marketing support.
What 2 effects can branding have…
- Create brand loyalty
- Creating something special in the consumers mind that competition would find difficult to touch.
Manufacturers perspective of why branding is valuable for them:
- Manufacturers key interest is in the building of defendable brand loyalty where the trust prevails price sensitivity.Thus allowing premium pricing.
Other subtle advantages may be evident through segmentation and competitive positioning strategies.
Brands continue to increase in value because of these 3 key components…
1) Relevance and meaning to customers lives.
2) Differentiation
3) Trust the brand will deliver its promises.
Retailer perspective of why branding is valuable for them specifically…
- Branded products draw customers into stores.
Different types of brands:
Manufacturer brands - to gain some control over trade promotions manufacturers should directly communicate with the end buyer.
Retailer and wholesaler brands - retailer own brands can differentiate through price.
What is the definition of a brand asset:
A name or symbol used to uniquely identify the goods and services of a seller from its competitors, with a view of obtaining wealth in excess of that obtainable without a brand.
To have a meaningful brand asset requires identification and quantification.
Some disadvantages of branding…
Danger of proliferation (rapid multiplication of parts), less shelf space for some brands.
