Topic 1 Flashcards
Product
Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Service
An activity, benefit, or satisfaction offered for sale that is essentially
intangible and does not result in the ownership of anything.
Products are a key element in the____
overall market offering
Marketing mix planning
begins with____
building an offering that brings value to target customers
Product planners need to think about products and services on____
on three levels
What is the core value of the Three Levels of Product?
The most basic level is the core
customer value
Three Levels of Product: What is the core customer value?
It addresses the question: What is the buyer really buying? When
designing products, marketers must first define the core, problem-solving benefits or
services that consumers seek.
Three Levels of Product: What is the second level?
The actual product. Product planners must turn the core benefit into an actual
product. They need to develop product and service features, a design, a quality level,
a brand name, and packaging.
Three Levels of Product: What is the third level?
An augmented product. product planners must build an augmented product around the core benefit
and actual product by offering additional consumer services and benefits.
When developing products, marketers first must identify____
the core customer value that
consumers seek from the product.
Products and services fall into two broad classes based on the types of consumers
who use them. What are these two broad classes?
consumer products and industrial products
Consumer products
products and services bought by final consumers for
personal consumption
Consumer products include____
convenience products, shopping products, specialty products, and unsought products
Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of convenience products?
Frequent purchase; little planning, little comparison or shopping effort; low customer involvement
Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of shopping products?
Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style
Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of specialty products?
Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity
Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of unsought products?
Little product awareness or knowledge (or, if aware, little or even negative interest)
Type of Consumer Products & Marketing Considerations: What promotion style is necessary for convenience products?
Mass
promotion by
the producer
Type of Consumer Products & Marketing Considerations: What promotion style is necessary for shopping products?
Advertising and personal selling by both the producer and resellers
Type of Consumer Products & Marketing Considerations: What promotion style is necessary for specialty products?
More carefully targeted promotion by both the producer and resellers
Type of Consumer Products & Marketing Considerations: What promotion style is necessary for unsought products?
Aggressive advertising and personal selling by the producer and resellers
Consumer product
A product bought by final consumers for personal consumption.
Convenience product
A consumer product that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
Shopping product
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style.
Specialty product
A consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
Unsought product
A consumer product that the consumer either does not know
about or knows about but does not normally consider buying.
Convenience products
are consumer products and services that customers usually
buy frequently, immediately, and with minimal comparison and buying effort.
Examples include laundry detergent, candy, magazines, and fast food. Convenience
products are usually low priced, and marketers place them in many locations to make
them readily available when customers need or want them.
Shopping products
are less frequently purchased consumer products and services
that customers compare carefully on suitability, quality, price, and style. When
buying shopping products and services, consumers spend much time and effort in
gathering information and making comparisons. Examples include furniture,
clothing, major appliances, and hotel services. Shopping product marketers usually
distribute their products through fewer outlets but provide deeper sales support to
help customers in their comparison efforts.
Specialty products
consumer products and services with unique characteristics
or brand identifications for which a significant group of buyers is willing to make a
special purchase effort. Examples include specific brands of cars, high-priced
photography equipment, designer clothes, gourmet foods, and the services of
medical or legal specialists. buyers are usually willing to travel great distances to buy one.
Buyers normally do not compare specialty products. They invest only the time
needed to reach dealers carrying the wanted products.
Unsought products
consumer products that the consumer either does not know
about or knows about but does not normally consider buying. Most major new
innovations are unsought until the consumer becomes aware of them through
advertising. Classic examples of known but unsought products and services are life
insurance, preplanned funeral services, and blood donations to the Red Cross. By
their very nature, unsought products require a lot of advertising, personal selling,
and other marketing efforts.
Industrial product
A product bought by individuals and organizations for further
processing or for use in conducting a business.
Industrial products are those products _____
purchased for further processing or for use
in conducting a business. Thus, the distinction between a consumer product and an
industrial product is based on the purpose for which the product is purchased. If a
consumer buys a lawn mower for use around home, the lawn mower is a consumer
product. If the same consumer buys the same lawn mower for use in a landscaping
business, the lawn mower is an industrial product.
What are the three groups of industrial products and services?
materials and parts, capital
items, and supplies and services
Materials and parts
raw materials as well as
manufactured materials and parts. Raw materials consist of farm products (wheat,
cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude
petroleum, iron ore)
Manufactured materials and parts
consist of component
materials (iron, yarn, cement, wires) and component parts (small motors, tires,
castings). Most manufactured materials and parts are sold directly to industrial users.
Capital items
industrial products that aid in the buyer’s production or operations,
including installations and accessory equipment. Installations consist of major
purchases such as buildings (factories, offices) and fixed equipment (generators, drill
presses, large computer systems, elevators). Accessory equipment includes portable
factory equipment and tools (hand tools, lift trucks) and office equipment
supplies and services
Supplies include
operating supplies (lubricants, coal, paper, pencils) and repair and maintenance
items (paint, nails, brooms). Supplies are the convenience products of the industrial
field because they are usually purchased with a minimum of effort or comparison.
Organization
marketing
consists of activities undertaken to create, maintain, or change the
attitudes and behavior of target consumers toward an organization.
corporate image marketing
Business firms sponsor
public relations or corporate image marketing campaigns to market themselves and
polish their images.
Person marketing
consists of activities
undertaken to create, maintain, or change attitudes or behavior toward particular
people. People ranging from presidents, entertainers, and sports figures to
professionals such as doctors, lawyers, and architects use person marketing to build
their reputations. And businesses, charities, and other organizations use well-known
personalities to help sell their products or causes.
Place marketing
involves activities undertaken to create, maintain, or change attitudes
or behavior toward particular places. Cities, states, regions, and even entire nations
compete to attract tourists, new residents, conventions, and company offices and
factories.
social marketing
The use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their well-being and that of
society
Product quality
The characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs
Total quality management (TQM)
an approach in which all of the company’s people
are involved in constantly improving the quality of products, services, and business
processes
