Week 7 Flashcards
product
a good, a service, or an idea, consisting of a bundle of tangible and intangible attributes
uniqueness of services
intangibility
inconsistency
inseparability
inventory
idle production capacity
supply of service exceeds demand; expensive
the total product concept
augmented: additional features or benefits that come with the actual product
actual: physical product including branding, design, and features
core
benefits derived
product line
a group of similar products that are closely related because they satisfy a similar need and are directed at the same general target market
product mix
all the product lines marketed by a company
product line length
the total number of products or brands in a product line
product line depth
the assortment of different versions of each product sold within its product line
production goods
used in manufacturing process and become part of final product (raw materials, components)
support goods & services
assist in production includes: installations, accessory equipment, supplies, services
branding
means the use of a name, term, symbol, or design to identify a product and to distinguish it from competitors
functional trust
comes from quality, reliability and consistency
emotional trust
comes from workplace practices, environmental polices, community responsibility, and consumer connection to the brand
brand equity
the value of a brand that results from the favourable exposure, interactions, associations, and experiences that consumers have with a brand over time
brand strategies
individual
family
brand extension
sub-brand
individual brand
when a company uses a brand name solely for a specific product category
family brand
when a company uses a brand name to cover a number of different product categories
brand extension
when new goods or services are introduced under an existing flagship brand name
sub-brand
a brand that uses the family brand name as well as its own brand name and identity so that it can take on the strengths of the parent’s brand but also differentiate itself
protecting brands
patents
copyrights
trademarks
patents
used to legally protect new technologies, unique processes, or formulations from usage by other companies
copyrights
used to legally protect orginial written works, sound recordings, or forms of communication from being copied by others
trademarks
used by people or organizations to protect brand images, names, slogans, and designs from usage by others
brand loyalty
favourable attitudes that result in purchase insistence and commitment
modifying the product
product improvements (altering quality, performance, appearance, features)
modifying the market
finding new users, increasing use
repositioning the product
reacting to a competitor’s position, reaching a new market, catching a rising trend, changing the value offered
introduce a new product
- newness compared with existing products
- newness in legal terms (12 months)
- newness from the company’s perspective
- newness from the consumer’s perspective
minor innovation
minor product modifications that require no adjustments on behalf of the consumer
continuous innovations
new products with more than just a minor product improvement, but that do not require radical changes by the consumer
radical innovations
new products that involve the introduction of a product that is entirely new and innovative to the market
