WEEK 6 Flashcards
What is a product?
a physical good, service, idea, person, or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value to acquire it.
How do you classify consumer products
- Convenience Products
- Shopping Products
- Speciality Products
- Unsought Products
What does a product involve?
Core product - actual benefit or service
Actual product - brand name, features, quality, design/styling, packaging, capabilities
Augmented product - customer service, warranty, delivery and credit, personnel, installation, after sales support
What is a brand?
A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers
That aura of beliefs & expectations about a product / service which make it distinctive… stretches beyond physical into psychologica
What are the consumer benefits of branding?
*Product identification
*Tells them about benefits
*Creates interest / character
*Reduce purchase risks
What are the company benefits of branding?
*Attracts customer
*Protect against competition
*Creates advantage
*Allows premium pricing
*Easier to target / position
What are the types of brands?
*Manufacturer brands - owned / developed by manufacturer
*Own label brands - retailer’s own
*Generic brand - no frills, plain packaging
What is the product lifecycle?
Introduction stage
Growth stage
Maturity stage
Decline stage
What are the reasons for new or modified products?
changing consumer
-Rising income & expectations
- Increasing education & sophistication
- Change in social habits & customs
- Change in population
- Legislation
Changing marketplace
- Technology
- Increase competition
- Changing trading methods
- Demand for improvements
What is the New Product Development Process
Generate ideas
Initial screening
Develop concept and test
Develop marketing strategy
Business analysis
Develop product
Test market
commercialisation
What is the diffusion of innovation?
a concept suggesting that customers first enter a market at different times, depending on their attitude to innovation
and new products, and their willingness to take risks.
Customers can thus be classified as innovators, early adopters, early majority, late majority and laggards.
