Chapter 7 and 8: Product (Marketing 301) – Flashcards
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anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
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Product
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Three Levels of Product
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Core Benefit "Value" Actual Product Augmented Product
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what is the buyer really buying; marketers must first define the core, problem-solving benefits or services that consumers seek; most satisfying customer experience
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Core Customer Value
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Maslow's Hiearchy
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Self- Actualization Esteem Needs Social Needs Safety Needs Physiological Needs
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self-development and realization
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Self-actualization Needs
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Self-esteem, recognition, status
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Esteem Needs
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sense of belonging, love
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Social Needs
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security, protection
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Safety Needs
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Hunger, Thirst
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Physiological Needs
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need to develop product and service features, a design, quality level, a brand name, and packaging
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Actual Product
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offering additional consumer services and benefits; includes after-sale service, warranty, installation, delivery and credit
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Augmented Product
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Types of Consumer Products
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Convenience Product Shopping Product Specialty Product Unsought Product
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a product bought by final consumers for personal consumption
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Consumer Product
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a consumer product that customers usually buy frequently, immediately, and with minimal comparisons
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Convenience Product
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a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
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Shopping Product
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a consumer product with unique characteristics or brand identification for which significant group of buyers is willing to make a special purchase effort; expensive
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Specialty Product
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a consumer product that the consumer either does not know about or knows about but does not normally consider buying; donations, funeral arrangements, life insurance
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Unsought Product
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a product bought by individuals and organizations for further processing or use in conducting a business
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Industrial Products
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for-profit business and non-profit; consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward and organization
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Organization Marketing
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Politicans, entertainers, pro-athletes, doctors, lawyers; consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people
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People/Persons Marketing
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tourism, country-of-origin, immigration
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Place Marketing
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Public health campaigns, environmental campaigns, family planning, human rights; commercial marketing concepts and tools in programs designed to influence individuals behavior to improve their well-being and that of society
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Ideas/Social Marketing
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Three Levels of Product Decisions
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Individual Products Product Lines Product Mix/Product Portfolio
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identifies the product or brand; supports the brand's positioning; adds personality to brand
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Labeling
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a group of products that are closely rated because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given ranges
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Product Lines
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number of items in a product line
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Product Line Length
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when a company lengthens its product line beyond its current range
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Stretching
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adding more items within the present range of the line
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Filling
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the set of all product lines and items that a particular seller offers for sale
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Product Mix/Product Portfolio
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Product Mix Dimensions/Ways to Increase its Business
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Length, width, depth, consistency
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total number of items a company carries within its product lines
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Length
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different number of product lines the company carries
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Width
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number of versions offered for each product in the line
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Depth
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how closely related the various product lines are in end use, product requirements, distribution channels, or some other way
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Consistency
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physical objects, people, and places
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Market Offering
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a maker of identification for a product
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Brand
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the positive effect that knowing the brand name has on customer response to the product
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Brand Equity
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Three parts to Brand Positioning
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Product Attributes Benefit Beliefs and values
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lowest level, least desirable level because competitors can easily drop attributes customers only interested in what attributes can do for them
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Product Attributes
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brand can be better positioned by associating name with desirable benefit; intangible
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Benefit
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engage customers on deep, emotional level
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Beliefs and Values
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Desired Qualities of Brand Name Selection
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Suggests product's benefits and qualities Easy to pronounce, recognize, and remember Distinctive Extendable, not limited to one particular product Translate easily into foreign language Capable of being registered and legally protected
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Ideal shape for a logo is horizontal
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Law of Shape "Rise and Ries"
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Brand Development Strategies
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Line Extension Brand Extension Multibrands New Brands
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extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product; existing brand name, existing product category
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Line Extension
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using a successful brand name to launch a product in a new category; existing brand name, new product category
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Brand Extension
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multiple brands by the same company in the same product category; new brand names, existing product category
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Multibranding
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used when existing brand names are either unsuitable for brand extension or the company doesn't want to dilute them; new brand name, new product category
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New Brands
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Service Marketing Parts
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Intangibility Inseparability Variability Perishability
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services cannot be seen, tasted, felt, heard, or smelled before they are bought
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Service Intangibility
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services cannot be separated from their providers, whether the providers are people or machines
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Service Inseparability
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quality of services depend on who provides them as well as who, when, where, and how they are provided
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Service Variability
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services cannot be stored for later use or sale
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Service Perishability
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development of original products, product improvements, product modifications, and new brands through the firm's own research and development efforts
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New Product Development
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Bring new solutions and variety to customers' lives, and the key source of growth for companies
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Why new products?
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Steps of NPD
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Idea Generation Idea Screening Concept Development Concept Testing Marketing Strategy Development Business Analysis Product Development Test Marketing Commercialization
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systematic search for new product ideas
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Idea Generation
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company can find new ideas through form R&D
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Internal Idea Sources
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Customers, competitors, distributors, suppliers, outsourcing partners
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External Idea Sources
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screening process to reduce # of ideas by spotting good ones and dropping poor ones
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Idea Screening
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translate your product idea into a detailed concept stated in meaningful consumer terms
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Concept Development
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test concepts with a group of target consumers to find out level of appeal
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Concept Testing
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designing an initial marketing strategy designed for the new product consisting of target market and initial objectives, launch tactics, and long-term objectives
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Marketing Strategy Development
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a review of the sales, costs, and profit project for a new product to find out whether these factors satisfy the company's objectives
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Business Analysis
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developing the product concept into a physical product
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Product Development
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the stage of NPD in which the product and its proposed marketing program are tested in realistic market settings
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Test Marketing
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must decide when and where to initially introduce the new product into the market
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Commercialization
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successful NPD requires a customer centered, team based, and systematic effort
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Managing NPD
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focuses on finding new ways to solve customer problems and create more customer satisfying experiences
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Customer Centerd NPD
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company departments work closely together in cross-functional teams, overlapping steps in product development process to save time and increase effectiveness
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Team Based NPD
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begins when a company finds and develops a new product idea; sales start at 0 and the company's investment costs mount
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Product Life-Cycle
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Product Life-Cycle Stages
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Introduction Growth Stage Maturity Stage Decline Stage
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a period of slow sales growth as the product is introduced in the market; profits are nonexistent; create product awareness and trial
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Introduction
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if the product gains traction, sales start growing rapidly; objective: maximize market share; growth in sales will lead to a number of competitors entering the market, fighting over initial customers
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Growth Stage
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sales level off, many people already have the product; defend market share; try to get customers to switch to your product
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Maturity Stage
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Ways to Grow during maturity
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modify the market modify the product modify the rest of the marketing mix
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sales fall as people do not need to buy the product anymore; reduces expense to stay profitable, mile the and invest elseqhere
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Decline Stage
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a basic and distinctive mode of expression; has a cycle showing periods of renewed interest
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Style
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a currently accepted or popular style in a given field; tend to grow slowly, remain popular for a while, then decline slowly
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Fashion
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a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity; a fashion that enters quickly, adopted quickly, and declines fast
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Fads
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Problems with PLC model
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Reality is never as clean and clear as the PLC curve It can be hard to even identify which stage of PLC a product is really in Hard to forecast length of each stage of the PLC Strategy is both a result and cause of the PLC
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refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer
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Cannibalization
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affects product or service performance. It is closely linked to customer value and satisfaction.
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Product Quality
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a product can be offered with varying features. There can be the stripped down model and then the company can have higher-level models by adding more features.
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Product Features
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Style describes the appearance of the product. It doesn't make the product perform better. Design contributes to a product's usefulness as well as to its looks.
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Product Style and Design
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consumer is beyond advertising and picks the smart choice
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Overachieving Consumer
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Higher Brand Equity Provides
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Greater Awareness and Loyalty Basis for strong, profitable customer relationships Willingness to buy over competitors and/or willingness to pay a premium
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Occurs when two established brand names of different companies are used on the same product
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Co-branding
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Four Sponsorship Options
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Launched as a national brand (manufacturer's brand) Manufacturer may sell to resellers who give the product a private brand (store brand or distributors brand) Amost manufacturers create their own brand names, others market licensed brands Two companies can join forces and co-brand a product
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campaigns market themselves and polish their images
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Corporate Image Marketing
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an approach in which all of the company's people are involved in constantly improving the quality of the products, services, and business processes
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Total Quality Management
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the product's ability to perform its functions
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Performance Quality
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freedom from defects and consistency in delivering a targeted level of performance
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Conformance Quality
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activities of designing and producing the container or wrapper for a product
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Packaging
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a types of services that are an important part of the customers overall brand experience
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Product Support Services
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Four Consumer Perception Dimensions on Brands
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Differentiation Relevance Knowledge Esteem
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process of estimating total financial value of a brand
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Brand Valuation
