Week 6 Flashcards
Product is
good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies customers needs and is received in exchange of smthing of value
Consumer products
- convenience product
- shopping products
- specialty products
- unsought products
what makes a product customer products?
- the efforts a customer spends on the decision
- the attributes used in making the decision
- the frequency of the purchase
3 levels of product decision
- product item
- product line
- product mix
packaging and labeling products
what is packaging and label
packaging is any container which a product is offered
label identifies the product
benefits of packaging and labeling products (3)
challenges of packaging and labeling products
- environmental concerns
- healthy, safety, and security issues
- cost reduction
- need a continuous update to connect with customer
What is a new product?
newness compared with existing product, functionally different
Why does new-product fail?
- insufficient point of difference
- incomplete market and product protocol before development
- bad timing
- not satisfying the customer’s needs
- too little market attractiveness
- poor execution of the marketing mix
- no economical access to buyers
- poor product quality
product life cycle
describes the stages of new product goes through in the marketplace
managing the product life cycle
role of product/brand manager (4)
- manage existing product
- new product development
- implement a marketing program
- extensive data analysis (category development index/CDI, brand development index/BDI)
3 stages to manage product life cycle
- product modification (product bundling, new characteristics)
- market modification (new customers, increasing product use, creating a new use situation)
- product repositioning (changing place product occupies in consumer’s mind, reacting to competitor’s position, reaching a new market, catching a rising trend, changing the value offered)
the uniqueness of services (four i’s)
- intangibility
- inseparability
- inconsistency
- inventory
7Ps in service marketing
- product (service)
- people
- place
- price
- promotion
- physical environment
- process
branding is
name, phrase, symbol, designs to identify the product and distinguish from those of competitors
brand name is
word or device to distinguish a seller’s products or services
trademark
a firm legally registered its brand name
brand equity
added value a brand name give to a product beyond the functional benefits
2 advantages of brand equity
- competitive advantage
- consumers are willing to pay a higher price
valuing brand equity (2)
- financial advantage
- brands can be bought and be sold
branding strategies
- multiproduct
- multibranding (pros n cons)
- private (pros n cons)
-mixed
risk of cannibalization (3)
- product line extension
- brand extension
- subbranding
brand dilution
when a customer no longer associate a brand with a specific product or service or think less favorably about the brand
business products
- derived demand
- components
- support products
product class/industry
group of products that are homogenous or substitutes
product item:
product line:
product mix:
product form:
product item: stock keeping unit (SKU)
product line: group of product or service that are closely related
product mix: all product lines offered by the organization
product form: different shapes, types
feature bloat and feature fatigue
feature bloat: unnecessary features or functions
feature fatigue: consumers choose overly complex products
Newness from the consumer’s perspective (3)
- continuous innovation
- dynamically continuous innovation
- discontinuous innovation
Newness from the organization’s perspective (3)
- product line extension
- jump in innovation
- brand extension
how to avoid new product failures
- Groupthink
- avoiding NIH problem
- open innovation
protocol is and identifies (3)
statement that before a product begins, identifies
1. a well defined target market
2. specific customer needs, wants, preferences
3. what the product will be and do to satisfy consumers
7 stages in the new product leading to success
- new product strategy development
- idea generation
- screening and evaluation
- business analysis
- development
- market testing
- commercialization
stages of product life cycle
- introduction
- growth
- maturity
- decline
harvesting means
continues to offer the product but reduces the marketing costs
3 aspects - charting the product life cycle
- length
- shape
- high learning
- low learning
- fashion
- fad - rate
diffusion of innovation
- innovators
- early adopters
- early majority
- late majority
- laggards
product life cycle and diffusion of innovation have barriers to adoption + how to overcome
- usage - compatible with habits
- value - incentive to change
- risk - physical, economic, social
- psychological - culture or image
overcome these barriers, firms provide
warranties, money-back guarantees, usage instructions, demonstrations, and free
samples.
brand personality
a set of human characteristics associated with a brand name
creating brand equity
- develop positive brand awareness
- establish a brand’s meaning for consumers
- elicit the proper response to brand’s meaning
- create intense brand loyalty with customers
branding strategies - multiproduct branding (4)
- product line extension
- subbranding
- brand extension
- co branding
packaging and labeling advantage
- communication
- functional
- perceptual
services classified as (2)
- equipment based
- people based
successful service organizations (3)
- understand how consumers make a purchase decision
- understand how consumers evaluate quality
- determine how to present an advantage over competitors
dimensions of service quality (5)
- reliability
- tangibility
- responsiveness
- assurance
- empathy
service blueprint
a tool to help teams understand how customer sees the business service process
services in the future
3 key factors
- technological development
- understanding service delivery and consumption
- social imperative for sustainability
idle production capacity occurs when
service provider is available but there are no demand for the service
