Week 5 - Product Flashcards
Define product
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want
products = goods, services, experiences + ideas
Define a service
An activity, benefit or satisfaction offered for sale that is intangible and does not require ownership
What are the three levels of a product
- core customer value
(what is the customer really buying?) e.g. quants = transportation
2. Actual product: brand name features design packaging quality level
Augmented product: delivery and credit product and support warranty after sale service
> each level adds more customer value
designed by product planners
bundle of benefits
Products and services fall into two broad classes based on the types of consumers that use them:
- ) consumer products
2. ) industrial products
Define consumer products
products bought by final consumers for PERSONAL consumption
Define industrial products:
products bought by individuals and organisations for further processing for commercial use (business)
4 types of consumer products:
CONVIENCE: frequent purchase little planning low price widespread distribution Mass promotion by producer e.g. toothpaste
SHOPPING: Less frequent much planning higher price few outlets/selective distribution advertising and personal selling used to promote e.g. major appliances e.g. tv's
SPCIALTY: (rolex) strong brand preference strong loyal little brand comparison high price exclusive outlets carefully targeted advertising by producer
UNSOUGHT (red-cross) little product awareness / knowledge price varies distribution varies promotion usually aggressive and personal selling
three types of industrial products
materiales and parts (Raw materials) capital items (equipment e.g. offices, tools) supplies and services (coal, paper, pencils, window cleaning)
Define social marketing
the use of commercial marketing concepts and tools in programs designed to influence individuals behaviour to improve their well-being and that of society
Product and service decisions:
marketers make product and service decisions at three levels:
individual product decisions
product line decisions
product mix decisions
Define brand
name, term, sign or symbol that identifies and product or service and differentness them from competitors
define product line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
the main decision involves ‘product line length’ - the number of items in the product line
can’t be too short = under supply
or too much over supply surplus
therefore manage periodically
explain product line stretching
occurs when a company lengthens it’s product line beyond it’s current range
these can be:
downward stretch (lower quality and price)
upward stretch (higher quality and price)
or both
define a product mix
set of all product lines and items that a particular seller offers for sale e.g. coke, coke zero, coke life
what are the four service characteristics
Intangibility:
cannot be physically touched
Inseparability:
services can not be separated from providers
Perishability:
services can not be stored for later sale or use
Variability:
quality of service depends on who provides them
explain product line filling
adding more items within the present range of lines
e.g. deodorant
define service - profit chain
the chain that links service firm profits with employee and customer satisfaction
what are the 5 links of service profit chain
internal service quality - superior employee selection e.g. trained results in
satisfied and productive service employees - satisfied, loyal and hardworking results in
greater service value: more effective and efficient customer value creation and service delivery which results in
satisfied and loyal customers - remain loyal, repeat purchase and refer to friends results in
healthy service profits and growth
define internal marketing
service firms must orientate and motivate it’s service people to work as a team to provide customer satisfaction
define frontline markeinig
Interacting with customers and others in the marketing channel on a one on one basis in person via digital tech
what are the 3 types of service marketing
- ) internal marketing
- ) external marketing
- front-line marketing
define brand equity
the differential effect that knowing the brand name has on customer response to the product or it’s marketing
Explain major brand strategy decisions:
brand positioning - attributes, benefits, beliefs and values
Brand name + selection - selection + protection (legally)
Brand sponsorship = manufacturers brand, private brand, licensing + co branding
Brand development - line extensions, brand extensions, new brands and multi brands
Define co branding
using established brand names of 2 different companies on the same product
e.g. nike+ipod sportkit
