WK 7: Product Flashcards
Two types of products?
1) Consumer products
2) Industrial Commercial Products.
What are the 4 types of consumer products?
- Convenience, everyday G/S/
- Shopping, fairly important G/S, less frequent e.g. computers.
- Specialty, particular brands, sought regardless of location or price.
- Unsought, new to marketplace e.g. insurance.
Define industrial and commercial products, + expense and capital items
Generally purchased in large quantities and used to create other products or to operate the organisation.
Expense items: relatively inexpensive goods, generally used within a year of purchase.
Capital items: more expensive, with a longer useful life e.g. comps, vehicles, factories.
4 Stages of the Product Life Cycle?
Intro: R&D phase to first commercial availability.
Crucial phase, careful planning needed.
Growth: Marked by rapid jump in sales. Struggle for market share.
Maturity: Usually longest stage. Sales leveling off. Much supply to match demand.
Decline: Sales and profit fading.
Product identities?
1) Brand
2) Brand equity
3) Brand loyalty
Define brand
- Unique name, symbol or design that sets the product apart from those offered.
- Legal protections afforded by a trademark and any relevant intellectual property.
- Overall company or organisational brand.
Define brand equity
Brand equity: Value company has built on a brand. Based on strength and appeal in the marketplace.
Define brand loyalty
Brand loyalty: Degree to which customers continue to purchase a specific brand. Brand awareness: familiar with product. Preference: Buyer will select product if it is available. Insistence: buyer will accept no substitute.
Define Product-Line, +ves and -ves
group of products from a single manufacturer that are similar in terms of use or characteristics.
+ve = additional revenues and visibility in retail stores.
-ve = can be expensive and confusing to buyers.
Define Product-Mix, Wide, Long and Deep
Org with several product lines.
Wide: Several product lines.
Long: Carries several items in its product lines.
Deep: Number of versions of each product in a line. E.g. multiple flavours for a cereal/chip.
4 Product expansion strategies?
1) Line Filling
2) Line extension
3) Brand extension
4) Line stretching
Define line filling
Developing items to fill gaps in the market that have been overlooked by competitors or have emerged as consumer tastes and needs shift
Define line extension
Creating variations of an existing product
Define brand extension
Using the brand of existing products on products in a new category.
Define line stretching
Adding items with price points above or below the current product.
