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Marketing > Week 5 - Product > Flashcards

Week 5 - Product Flashcards

1
Q

What is a product?

A

The product is what the marketer takes to the market to get consumers to buy or engage in some type of exchange

Products rarely stay the same and will change to suit new technology and changing states

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2
Q

Goods, services, and ideas

A

A product is defined as a good,service or idea offered to the market for exchange

Goods are physical, tangible offerings that are capable of being delivered to a customers

Service are intangible offerings to the market

An idea can also be offered to the market in the form of a concept, issue

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3
Q

The total product concept

A

The total product concept is a way of viewing a product as the totality of value and benefits it provides to the customer

It is crucial for marketers to understand that when customers choose a product, they do not purchase a ‘thing’; rather, they buy a solution to a problem

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4
Q

Variations of product

A

Core Product
Expected Product
Augmented Product
Potential Product

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5
Q

Core Product

A

The fundamental benefit that responds to the customer’s problem of an unsatisfied need or want. For example, for a car, the core product is transportation.

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6
Q

Expected Product

A

This encompasses the tangible aspects, such as design, quality, and features.

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7
Q

Augmented Product

A

These are additional benefits that enhance the customer experience, such as warranties, customer service, or free delivery.

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8
Q

Potential Product

A

The potential product includes future upgrades, new features, or improvements that could be introduced. e.g. software updates that enhance security or add new functions, hardware upgrades, or compatibility with upcoming accessories

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9
Q

Product Relationships

A

The relationships between the organisation’s products can be described as follows
- Product item
- Product line
- Product mix

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10
Q

Product Item

A

This is the basic unit of a product, representing a unique model or version. A product item refers to a specific product within a line that has unique characteristics, such as brand, size, or price. For instance, within Apple’s offerings, the iPhone 15 Pro would be a product item.

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11
Q

Product Line

A

A product line is a group of related products that are marketed under a single brand and share similarities, such as purpose, target audience, or price range. Products in a line often vary in features or specifications but are fundamentally similar. For example, Apple’s iPhone series, which includes different models like the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, etc., represents a product line.

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12
Q

Product Mix

A

Also known as the product assortment, the product mix encompasses the entire range of products that an organisation offers. It includes all product lines and items a company sells. For example, Apple’s product mix includes multiple product lines like the iPhone, iPad, Mac, Apple Watch, and AirPods. The diversity and depth of the product mix reflect the company’s strategy for meeting different consumer needs and market demands.

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13
Q

Product classification

A

Consumer products are classified into one or more of the following main categories
- Shopping product
- Convenience product (Staple, impulse, emergency)
- Specialty products
- Unsought product

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14
Q

Shopping Products

A
  • Involve moderate to high engagement with decision-making
  • Expected to last a long time
  • Purchased relatively infrequently
  • Sell in low volume
    e.g. Electrical appliances, furniture, cameras, clothing
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15
Q

Convenience Products

A

Frequently purchased & sold in high volumes.
Three further categories
- Staple Products (Essentials to consumer’s everyday life - Food)
- Impulse Products (Goods which are purchased quickly because of sudden urges - Candy bar)
- Emergency Products (Items which are bought to meet immediate and unexpected needs - umbrella when raining)

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16
Q

Specialty Products (1)

A

Unique characteristics desired by their buyers
Consumers know exactly what they want, pre-selected by consumer
No close substitutes or alternatives

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17
Q

Specialty Products (2)

A

Available at a limited number of outlets
Purchased infrequently
Sell in low-volume
E.g Luxury bags (Hermès, Chanel, and Louis Vuitton)

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18
Q

Unsought Product

A

Unknown or unconsidered by the consumer

Challenge = making consumers aware

Marketing communication efforts = crucial

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19
Q

Product Classification

A

Business-to-business products are products purchased by individuals and organisations for use in the production of other products or for use in their daily business operations

Business-to-business products can be classified into three categories:
- Parts and materials (Raw materials, components)
- Equipment
- Service and supplies

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20
Q

Product Life Cycle

A
  1. New product development
  2. Introduction
  3. Growth
  4. Maturity
  5. Decline
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21
Q

New Product Development

A
  1. Idea generation
  2. Screening
  3. Concept evaluation
  4. Marketing strategy
  5. Business analysis
  6. Product development
  7. Test marketing
  8. Commercialisation
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22
Q

Product Adopotion

A

Awareness - The consumer becomes aware of the new product - consumer knows a little about the product

Interest - The consumer is interested in the product and finds more information about it

Evaluation - The consumer evaluates the information and decide whether or not to try it

Trial - The consumer tries the product and see if its satisfy their needs and wants

Adoption - The consumer buys the product and evaluates it and determines whether they will repurchase it.

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23
Q

Introduction

A

Considerable investment required

Goal: Build awareness and interest

Lag in building sales

Sales recoup R&D costs

Minor profits towards the end

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24
Q

Growth

A

Increase in popularity, sales and profit

Dependent on welcomingness of market

Competitors begin to enter the market with similar products

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25
Q

Maturity

A

Novelty wears off

Competitors more of and established

Sales peak and profitability falls

Decision to determine future of the product
- Change marketing mix (move back to growth)
- Leave the market and allow decline

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26
Q

Decline

A

Sales and profits fall
New products entering
Little interest
Drop or change the product

27
Q

The diffusion of innovation

A

The diffusion of innovation describes how innovations are adopted by the market over time

It suggests that the influence of social groups on the decisions made by individuals how new products and ideas are adopted

28
Q

The diffusion of innovation categories of innovaters

A

Innovators
Early Adopters
Early Majority
Late Majority
Laggards

29
Q

Innovators

A

People who they send the product out to (reviewers, famous people)

30
Q

Early Adopters

A

People who buy the product straight after release

31
Q

Early Majority

A

People who buy the product once it becomes popular

32
Q

Late Majority

A

People who gets the product towards the end of popular life cycle

33
Q

Laggards

A

People who buy the product once the hype is over

34
Q

Product Differentiation

A

Product differentiation is the creation of products and product attributes that distinguish one product from another (e.g. design, brand, image, quality and features)

Most of the product’s differentiating features are part of the augmented product layer.

35
Q

Branding

A

Brand - Refers to a collection of symbols intended to create an image in the customer’s mind that differentiates a product from competitors’ products
- Name
- Logo
- Slogan
- Design

36
Q

Brand Name

A

A brand name is part of a brand that can be spoken and can include words, letters and numbers.

A brand mark is a part of a brand not made up of words - it often consists of symbols and designs

To protect the brand, an organisation can register it as a trade mark with the relevant body. (e.g. IP Australia, or the Intellectual Property Office of New Zealand)

37
Q

Brand Equity

A

A well-known brand can be precious to an organisation in financial and non-financial terms. The added value that a brand gives a product is known as Brand Equity.

For marketers, the brand:
- Identifies the organisation’s product
- Differentiates the organisation’s products from competing products
- Attracts customers
- Helps introduce new products
- Facilitates the promotion of same-brand product

38
Q

Brand Equity

A

Brand loyalty: exists when the customer show a highly favourable attitude towards a specific brand

Brand equity metrics: Measuring the value of brands is extremely useful to organisations

High brand equity can be a valuable asset for a company and provide a strong competitive advantage

39
Q

Brand Equity Metrics

A

Brand assets (e.g. trademarks and patents)
Stock price analysis
Replacement cost
Brand attributes
Brand loyalty
Willingness-to-pay analysis

40
Q

Brand assets

A

these are tangible assets tied to a brand, like trademarks, patents, and copyrights, which legally protect brand identity, logos, slogans, and proprietary technology.

41
Q

Stock price analysis

A

This examines how the brand’s equity affects its publicly traded stock price. Strong brand equity often leads to higher investor confidence, which can drive up stock prices, indicating the brand’s perceived value in the market

42
Q

Replacement cost

A

This is the estimated cost of recreating a brand from scratch, including marketing, advertising, and building customer loyalty. It reflects the financial value invested in establishing the brand’s reputation, visibility, and consumer trust, underscoring the cost of building similar brand equity.

43
Q

Brand attributes

A

Unique characteristics or qualities associated with the brand, such as reliability, innovation, and quality. Positive brand attributes enhance brand recognition and consumer trust

44
Q

Brand Loyalty

A

This measures how likely consumers are to repeatedly purchase the brand’s products or services. High brand loyalty reflects substantial brand equity, as loyal customers tend to be less price-sensitive and more resistant to switching to competitors.

45
Q

Willingness-to-Pay Analysis

A

This assesses the premium customers are willing to pay for a brand’s products or services over similar, unbranded items. A high willingness to pay indicates strong brand equity, as customers perceive added value or unique benefits that justify the higher price.

46
Q

Brand Strategies

A

When developing brands within a product mix, an organisation may decide to pursue the following possible strategies
- Individual Branding
- Family Branding
- Brand Extension

47
Q

Individual branding

A

Uses a different brand on each product, giving each its own specific identity

48
Q

Family Branding

A

Uses the same brand on several of the organisation’s products

49
Q

Brand Extension

A

Gives an existing brand name to new product in a different category

50
Q

Brand Ownership

A

Manufacturer Brands
Private Label Brands
Generic Brands
Licensing
Franchising

51
Q

Manufacturer Brands

A

Are owned by producers and are the most common type of brand

52
Q

Private Label Brands

A

Are owned by sellers, such as wholesalers or retailers, and are not identified with the manufacturer

53
Q

Generic Brands

A

Are those products that only indicate the product category

54
Q

Licensing

A

Some organisations can enter a licensing agreement to use the names and symbols of other brand for a fee

55
Q

Franchising

A

Has many parallels of licensing

56
Q

Co-Branding

A

Co-branding is the use of two or more brand names on the same product
- Capitalise on the brand equity of multiple brands
- Improve the perceived value of a product
- maintain existing branding after another organisation’s brands are acquired

57
Q

Packaging

A

Packaging can become an important recognisable way for customers to identify a particular product much like a brand

58
Q

Packaging (2)

A

Marketers may want to change the package to
- express to customers that the product has changed in some way
- Update the style of package or logo to broaden the customer appeal
- Emphasises certain elements to further differentiate it from the competition

59
Q

Labelling

A

Usually, it forms parts of the package and provides identifying, promotional, legal and other information.

At its most basic level, the label identifies the product and the brand name but can provide helpful information. (Product name, brand)

Some of the information provided on labels is compulsory. (Ingredients for allergens)

60
Q

Approaches to management

A

Managing the product may require coordination and cooperation across different business departments.

A business may employ product managers to manage particular products or product lines , or brand managers to manage a particular brand within the organisation’s portfolio of brands

61
Q

Approaches to management (2)

A

Another alternative is to appoint a market manager who will be responsible for managing the marketing activities aimed at a particular part of the target market.

62
Q

Managing products through the life cycle

A

Marketers must determine which lifecycle stage their products is in to make appropriate decisions related to the marketing mix

Line extensions are the most common form of ‘new’ product. They are variations or derivatives of an existing product added to the product line, rather than superseding the original product (each iPhone model builds upon the previous generation introducing new features, variation in size & enhancements like improved camera)

63
Q

Managing products through the life cycle 2)

A

There may be the need to change an aspect of the marketing mix to reposition the product

Eventually, products may become obsolete. Product obsolescence may be either planned or unplanned

Marketing (11 decks)

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