Week 6 Flashcards
What is a product?
- A product is a good, service or idea offered to the market for exchange
What are the components of the total product concept?
- Core → what they are buying (benefit that is wanted)
- Expected → Can see (eg. brand names)
- Augmented → Benefits not needed, but might distinguish
- Potential → May be added
How are products classified?
- Consumer products → products purchased by households and individuals for their own private consumption
- Business-to-Business products → products purchased by individuals and organisations for use in the production of other products or for use in their daily business operations
What are the stages of the product life cycle?
- New product development
- Introduction (slow growth/loss)
- Growth (sales pick-up)
- Maturity (maximum sales revenue)
- Decline (sales drop)
What are the stages of new product development?
- Idea generation
- Screening → Which are good ideas now?
- Concept evaluation → How is it going to work?
- Marketing strategy → Who is our target market? Strategy?
- Business analysis → Will there be a profit?
- Product development → Does the product work?
- Test marketing → Trial market to see whether the product works for the target market?
- Commercialisation → Launch product
What are the stages of the product adoption process?
- Awareness
- Interest
- Evaluation
- Trial
- Adoption
What is the diffusion of innovations?
- The concept showing that people with different characteristics buy products at different times
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards
What is a brand?
- Brand refers to a collection of symbols, such as the name, logo, slogan and design, intended to create an image in the customer’s mind that differentiates a product from competitors’ products.
What is brand equity?
- The added value that a brand gives a product is known as brand equity.
What are the different types of brand ownership?
- Manufacturer brands
- Private label brands
- Generic brands
- Licensing
- Franchising
- Co-branding
What are manufacturer brands?
- Person who makes the product, names the product
- eg. Ford
What are private label brands?
- Manufacturers make products for other people, and labelled by the other people
- eg. Woolworths Select
What are generic brands?
- Products that are not branded
- eg. Salts
What is licensing, in relation to brands?
- Somebody purchases the right to use another brand name
- eg. Disney characters
What is franchising, in relation to branding?
- Sell the business idea to other people
- eg. McDonalds
What is co-branding?
- Two different businesses branding one product
- eg. Smith/Heinz Tomato Sauce Chips
What are the different ways products are packaged?
- Primary packaging → bottle
- Secondary packaging → box
- Shipping package → shipping box
What are the components of the Product/Market growth strategy matrix and what does it show?
- Shows there are 4 ways businesses can grow
1. Market penetration → We sell more of our existing product to existing customers
2. Market development → We sell more of the existing product to new customers
3. Product development → We sell new products to our existing customers
4. Diversification → We sell new products to new customers
What are the types of consumer products?
- Shopping products → If you would walk past one shop to get to another
- Unsought products → Consumers would not buy or know about
- eg. Funeral insurance
- Convenience products (eg. staple, impulse, emergency) → If you would not walk past one shop to get to another
- eg. Umbrella, bandaids
- Specialty products → Care taken in buying (Drive across town)
- eg. Rolex watch
What are the business-to-business products?
- Parts and materials (Raw materials and components)
- Equipment (Capital equipment and Accessory equipment)
- Services and supplies (Business services, MRO supplies)
