Week 5 - Product

Question 1

Define product

Answer 1

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

Question 2

Define a service

Answer 2

An activity, benefit or satisfaction offered for sale that is intangible and does not require ownership

Question 3

What are the three levels of a product

Answer 3

1. 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

Question 4

Products and services fall into two broad classes based on the types of consumers that use them:

Answer 4

1. ) consumer products

2. ) industrial products

Question 5

Define consumer products

Answer 5

products bought by final consumers for PERSONAL consumption

Question 6

Define industrial products:

Answer 6

products bought by individuals and organisations for further processing for commercial use (business)

Question 7

4 types of consumer products:

Answer 7

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

Question 8

three types of industrial products

Answer 8

materiales and parts (Raw materials)
capital items (equipment e.g. offices, tools)
supplies and services (coal, paper, pencils, window cleaning)

Question 9

Define social marketing

Answer 9

the use of commercial marketing concepts and tools in programs designed to influence individuals behaviour to improve their well-being and that of society

Question 10

Product and service decisions:

marketers make product and service decisions at three levels:

Answer 10

individual product decisions
product line decisions
product mix decisions

Question 11

Define brand

Answer 11

name, term, sign or symbol that identifies and product or service and differentness them from competitors

Question 12

define product line

Answer 12

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

Question 13

explain product line stretching

Answer 13

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

Question 14

define a product mix

Answer 14

set of all product lines and items that a particular seller offers for sale e.g. coke, coke zero, coke life

Question 15

what are the four service characteristics

Answer 15

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

Question 16

explain product line filling

Answer 16

adding more items within the present range of lines

e.g. deodorant

Question 17

define service - profit chain

Answer 17

the chain that links service firm profits with employee and customer satisfaction

Question 18

what are the 5 links of service profit chain

Answer 18

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

Question 19

define internal marketing

Answer 19

service firms must orientate and motivate it’s service people to work as a team to provide customer satisfaction

Question 20

define frontline markeinig

Answer 20

Interacting with customers and others in the marketing channel on a one on one basis in person via digital tech

Question 21

what are the 3 types of service marketing

Answer 21

1. ) internal marketing
2. ) external marketing
3. front-line marketing

Question 22

define brand equity

Answer 22

the differential effect that knowing the brand name has on customer response to the product or it’s marketing

Question 23

Explain major brand strategy decisions:

Answer 23

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

Question 24

Define co branding

Answer 24

using established brand names of 2 different companies on the same product
e.g. nike+ipod sportkit

Question 25

define line extensions

Answer 25

extending an existing brand name to form new colours, sizes flavours od an existing product category
e.g. special K, k with berries

Question 26

define brand extension

Answer 26

extending an existing brand name to new product categories

e.g. coles insureance