Unit 9 Flashcards
What is product
product is a good or service that is characterized by tangible and intangible attributes
what are goods
physical/virtual items capable of being delivered to a purchaser
what are durable vs non durable goods
durable goods last over an extended number of uses and are purchased infrequently
non durable goods are conusmed in one or a few uses and are replenished frequently
what are services
actions or activities resulting in a measurable change of state for the purchaser caused by the provider
what are tangible attributes
physical characteristics of a product that are discernible by the senses
what are intangible attributes
attributes that are symbolic or subjective eg., stylish, reliable, comfortable
what is the good service continuum
a way to put products on a spectrum between goods dominated offerings and service dominated offerings
what are examples of good dominated, service dominates, and balanced offerings
pure commodities are good dominated, services like consulting are service dominates as they offer no tangible product, a balanced offering is something like a fast food restaurant offering both a good and a service
what are the types of products
convenience products, shopping products, specialty products, unsought goods
what are convenience products
purchased frequently, minimal shopping effort, widely available, inexpensive
marketers should focus on packaging, price, and availability
what are shopping products
higher in price, purchased less frequently, involved evaluation of alternatives
marketers should focus on effective messaging
what are specialty products
expensive, purchased rarely, limited sellers, deliberately sought out, brand comparison is rare
marketers should focus on quality and brand status
what are unsought goods
unknown to customer, not of interest to customer, delay of benefits
marketers should focus on extensive promotion(awareness, value, counter negative attitudes)
what is the total product concept
conceptualization of a product that helps to identify it’s benefits
what is core product
basic definition of the product
fundamental benefits derived from using the product
what is actual product
attributes that deliver the intended benefits
features a customer takes into consideration when buying a product
point of product differentiation
what is augmented product
additional features that the buyer may not require
typically non-tangible and service related
creates better customer experience
eg., warranty, product assembly
what is the product mix
the total range of products offered for sale by a company
it is a combination of product lines
what is product line
the group of similar or related products marketed under a single brand name offered by the same company
what is product mix width
the number of product lines an org has
what is product line depth
the amount of products in a product line
no one overall depth for the entire org but have to go line by line
what is price
price is the money or other something of value exchanged for the ownership or use of a product
what is demand oriented pricing
focusing on customers and what they are looking for and establishing price based on that
what is competition oriented pricing
adjusting prices in relation to competitors in the market
what is cost oriented pricing
when you base the pricing of a product on how much it costs to make a product
price is typically just above the cost
what is profit oriented pricing
getting as much for a product as possible to maximize profits
what is penetration pricing
setting a low price on a new product to appeal to the mass market then increase the price over time
generates intent but may not retain customers
what is price skimming
setting the highest initial price that consumers are willing to pay then lower the price once the demand for those consumers is satisfied
creates perception of high quality, high early revenues, but can ecourage entry of competitors
what is prestige pricing
product price is set high and remains high
effective for status symbol products
high profits but potential for limited customer based and needs a sound reputation
what is odd-even pricing
set prices slightly under a target price
creates illusion of a bargain, product may be perceived as lower quality and pricing may seem manipulative
what is below marketing pricing
setting a price lower than that of competitors
attracts price conscious shoppers and allows for larger sales volume but product may be perceived as lower quality
what is loss leader pricing
product is sold at a price that is not profitable in hopes that customer will buy additional regularly priced products
common for new business as it helps build a customer base but can attract cherry picking customers
what is retailing
the sale of a product from a point of purchase direfctly to a customer who intends to use that product
what is retailing utility
the usefulness or value provided by a retailer
what is place utility
making products easily accessible to potential customers
conveniant store locations, discoverability online, numerous purchasing locations
what is possession utility
increasing ease of ownership
payment plans, numerous payment options
what is form utility
degree to which product design meets customer needs
customized products, product alterations, wider selection
what is time utility
making products available when customers need them
extended hours, fast delivery, seasonal items year-round
what are independent retailers
owned by an individual, family, or partnership
owners are responsible for decision making, usually just 1-3 locations, higher prices
what is corporate chain retailing
multiple outlets under common ownership
largely centralized control with lower prices and larger inventory
what is a contractual system
agreement between an individual and a business to operate and outlet
greater independence
what is promotion
promotion is the communication or activity intended to persuade the target market of the merits of a given product
intended to generate interest, encourage sales, improve brand image
what is consumer promotion(sales promotion)
short term incentives to generate interest in a product
includes coupons, contests, rebates
encourages immediate purchase and promotes word of mouth but may result in lower revenue
what are public relations
activities meant to build and maintain a positive image for a product brand or org
includes press releases, conferences, content on websites or social media
what is earned media vs unearned media
earned media is unpaid content generated about a product, brand, or org
limited control of messaging from earned media but may seem more objective and trustworthy
what is experiential marketing
creating an interactive experience between customers and a product or brand
taxing on time and resources but can create an emotional connection to a product or brand
what is advertising
paid form of media used to communicate to consumers about a product/brand
includes billboards, print ads, tv commercials, radio ads, online ads,
controlled messaging but can be seen as a nuisance
what is shock appeal in advertising
words images and or actions meant to startle and offend
may be controversial, disturbing, or provocative
intended to capture attention but may have a negative impact on brand image
what is sexual appeals in advettising
words, images, or actions intended to deliver a message designed to evoke sexual thought, feelings, and or arousal in a target audience
may be explicit or subtle and is meant to attract attention but has not been shown to have any significant effect and just results in more negative attitudes
what is a unique selling point
the primary benefit of a product or service
the one feature that distinguishes a product form competing products
what are consumer vs business(industrial) goods
consumer goods are purchased for personal use
business goods are purchased to be used directly or indirectly in the production of other goods for resale
what are the major marketing considerations for industrial goods
price, personal selling, ability to meet customer specifications, reliability of supply
what are capital items
expensive goods with long life span that are used in the production of another good or service
what are parts and materials
less expensive gods that directly enter a manufacturers production process
what is a brand
a name, term, symbol, or design that identifies a good or service
components are brand danme, logo, trademark, patents
what are national branding options
individual brand strategy or family brand strategy
what is an individual brand strategy
each product in a companies product mix has its own name
multi branding is using a different brand name for each item a company offers in the same product category
what is a family brand strategy
family brand is the use of the same brand name for a group of related productswha
what is co branding
when a company uses equity in another brand name to market its own brand name product or service
also aplies to two orgs sharing common facilities such as two restaurants in one location
what are private label brands and generic brands
products produced at the specification of the distributor eg., Kirkland signature costco
generic brands are products without a brand name or identifying feature
what are licensed brands
occurs when a brand name or trademark is used by a license
what are cult brands
a brand that captures the imagination of a small group of devotees who then spread the word, make convets, and help turn a fringe product into a mainstream name
what are the three stages of brand loyalty
brand recognition, brand preference, brand insistencew
what is brand equity
the value a customer derives from a product over and above the value derived from its physical attributes
what is the difference between advertising and sales promotion
advertising says why to buy a product, sales promotion offers incentives
what are the two types of sales promotion
consumer promotion, trade promotion
what is the difference between consumer promotion and trade
promotion
consumer promotion pulls a product through distribution chain by increasing consumer demand
trade promotion pushes product through chain by encouraging channel members to market on behalf of the product
what are the objectives of consumer promotion
trial purchase, repeat purchase, multiple purchase
what is redemption rate of a coupon
number of coupons returned to an organization expressed as a percentage of the total number of coupons in distribution for a particular offer
