T6 - product Flashcards
Definition of total product concept
- product attributes that satisfy needs/wants of customers (it gives customers value)
- understanding how customers derive value from a product
The four ‘products’ of the total product concept
- Core product
- fundamental benefit that responds to customer’s problem of an unsatisfied need/want
* phone = reliable, accessible communication with others - Expected product
- attributes that deliver the benefit that forms the core product
- attributes that fulfil customer’s most basic expectations of the product
* phone = good size, intuitive - Augmented product
- bundle of benefits that the buyer may not require
- significant differentiating factors
* support services, guarantees
* phone = better sound quality, face recognition unlock - Potential product
- possibilities that may become part of the expected/augmented product
- includes features being developed or planned
* SMS
Product items
Particular version of an org’s product that can be differentiated by characteristics such as brand, style, price, quality
- Bonds socks vs Kmart socks
Product line
Set of closely related product items due to things such as:
- target market
- raw materials
- technology
- end use
- Bonds men’s underwear line
Product mix
Set of products that an org makes available to customers
- Bonds - underwear, singlets, socks
Product width
Number of product lines offered
Product length
Number of different products available in each product line
Consumer product subcategories (4)
- shopping products
- irregularly purchased
- moderate-high engaged with decn making process
- will be compared with other stores and ranges
- sold in low volumes
- expected to last long
* electricals
* furniture - convenience products
- inexpensie
- staple products
- impulse products
- little engagement with decn making
- frequently purchased
- emergency products
* food
* umbrella when it is raining - specialty products
- unique characteristics
- no close substitutes
- limited number of outlets
- infrequently purchased
- willing to spend lots of effort to obtain it
* BMW from a BWM dealer - unsought products
- consumer either does not know about the product or does not usually consider buying it
* security system after a burglary
Business product subcategories (3)
- parts and materials
- form part of production process
* raw materials like wool
* components or parts like brakes for bikes - equipment
- used in productions of the business’ products
* machinery
* accessories that help support production like computers - servies and supplies
- essential to business operations
* financial, legal services
* repair and oeprating supplies like paper
Product life cycle (5 stages)
Product’s current place in the market in terms of sales and profitability
- new product development (new to market, new to company, new to product line, new to product)
- introduction
- growth
- maturity
- decline
New product development process (8 phases for introducing products)
- idea generation
- screening ideas
- concept evaluation
- marketing strategy
- business analysis
- product development
- test marketing
- commercialisation
Product adoption process (AIETA)
- awareness
- interest
- evaluation
- trial
- adoption
Diffusion of innovation - speed of adoption by the market
- innovators
- early adopters
- early majority
- late majority
- laggards
Brand
Collection of symbols, slogans, name, design intended to create an image in the customer’s mind that differentiates a product from a competitor’s product
Brand equity
Added value that a brand gives a product
