Foundations Chapter 12 – Flashcards

Unlock all answers in this set

Unlock answers
question
product
answer
Anything that an organization offers to satisfy consumer needs and wants, including both goods and services.
question
Pure goods
answer
Products that do not include any services
question
Pure services
answer
Products that do not include any goods.
question
Product layers
answer
1. Core benefit 2. Actual product 3. Augmented product
question
Core benefit
answer
One of the product layers. At the most fundamental level, consumers buy a core benefit that satisfies their needs.
question
Actual product
answer
A product layer that consists of the product itself; the physical good or the service that provides the core benefit.
question
Augmented Product
answer
One of the product layers. Most marketers wrap their actual products in additional goods and services, called this, that sharpen their competitive edge. They come in a range of different forms. Eg. Many upscale movie theaters in L.A. display props that have been played in the theater.
question
consumer products
answer
Products purchased for personal use or consumption.
question
business products
answer
Products purchased to use either directly or indirectly in the production of other productions.
question
Consumer product categories
answer
1. Convenience products 2. Shopping products 3. Specialty products 4. Unsought products
question
Convenience products
answer
A type of consumer product category. They are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis. Distribution tends to be widespread, with promotion by the producers. Eg. Coffee, toliet paper, chewing gum
question
Shopping products
answer
A type of consumer product category. They are the more expensive products that consumers buy less frequently. Distribution is widespread but more selective than for convenience products. Eg. Electronics, banking services, and athletic equipment
question
Specialty products
answer
A type of consumer product category. They are much more expensive that consumers seldom purchase. Most perceive these as so important that they are unwilling to accept substitutes. Eg. Sports cars, Tiffany jewlery, cosmetic surgery
question
Unsought products
answer
Goods and services that hold little interest for consumers. Price and distribution vary wildly, but promotion tends to be aggressive to drum up consumer interest. Eg. Disability insurance, prepaid burial plots, and blood donations.
question
Business product categories
answer
1. Installations 2. Accessory equipment 3. Maintenance, repair, and operating products 4. Raw materials 5. Component parts and processed materials 6. Business services
question
Installations
answer
A type of business product. They are large capital purchased designed for a long productive life. Marketing of these emphasizes personal selling and customization. Eg. Industrial robots, new buildings, airplanes, and railroad cars
question
Accessory equipment
answer
A type of business product. It includes smaller, movable capital purchases designed for a shorter productive life than installations. Marketing focuses on personal selling buy includes less customization than installations. Eg. Personal computers, power tools, furniture
question
Maintenance, repair, operating products
answer
A type of business product. It consists of small ticket items that businesses consume on an ongoing basis but don't become part of the final product. Marketing tactics emphasize efficiency Eg. Cleaning supplies, lightbulbs, and copy paper.
question
Raw materials
answer
A type of business product. Includes the farm and natural products used in producing other products. Marketing emphasizes price and service rather than product differentiation. Eg. Cotton, timber, wheat
question
Component parts and processed materials
answer
A type of business product. Include finished (or partially finished) products used in producing other products. Marketing emphasizes product quality as well as price and service. Eg. Batteries and spark plugs for cars, aluminum ingots for soda cans, and intel computer chips
question
Business services
answer
A type of business product. They are those services that businesses purchase to facilitate operations. Marketing focuses on quality and relationships; the role of price can vary. Eg. payroll services, janitorial services, and legal services.
question
Product differentiation
answer
The attributes that make a good or service different from other products that compete to meet the same or similar customer needs.
question
Quality level
answer
How well a product performs its core functions
question
Product consistency
answer
How reliably a product delivers its promised level of quality.
question
Dimensions of product quality
answer
1. Quality level 2. Product consistency
question
Product features
answer
The characteristics of the product you offer. If a product is well designed, each feature corresponds to a meaningful customer benefit.
question
Customer benefit
answer
The advantage that a customer gains from specific product features.
question
product line
answer
A group of products that are closely related to each other, either in terms of how they work, or the customers they serve.
question
Product mix
answer
The total number of product lines and individual items sold by a single firm.
question
Cannibalization
answer
One of the risks of adding new lines. This occurs when a producer offers a new product that takes sales away form its existing products.
question
brand
answer
A product's identity that sets it apart from other players in the same category. Typically they represent the combination of elements such as 1. Product name 2. Symbol 3. Design 4. Reputation 5. Image
question
Brand name categories
answer
1. Location based 2. Founder's name 3. Descriptive or functional 4. Evocative
question
brand extensions
answer
A new product, in a new category, introduced under an existing brand name.
question
line extensions
answer
Similar products under the same name. Eg. New flavors, sizes, colors, ingredients, and forms.
question
licensing
answer
Purchasing the right to use another company's brand name or symbol.
question
Cobranding
answer
When established brands from different companies join forces to market the same product. Eg. TGI Friday's markets a broad range of Jack Daniel's flavored food.
question
National brands (manufacturers' brands)
answer
The brands that the producer owns and markets. Many are well known and widely available. Eg. Oreo cookies, Dial soaps, and Nutella.
question
Store brands (private label)
answer
Brands that the retailer both produces and distributes.
question
Discontinuous innovation
answer
Brand new ideas that radically change how people live. Eg. The first car, the first TV, the first computer.
question
Dynamically continuous innovation
answer
Innovations that are characterized by marked changes to existing products. Eg. Cell phones, digital cameras.
question
Continuous innovation
answer
A slight modification of an existing product. Eg. New sizes, flavors, shapes, packaging, and design.
question
Types of innovation
answer
1. Discontinuous innovation 2. Dynamically continuous innovation 3. Continuous innovation
question
Stages of new product development
answer
1. Idea generation 2. Idea Screening 3. Analysis 4. Development 5. Testing 6. Commercialization
question
diffusion
answer
In order to become a commercial success, new products must spread throughout a market after they are introduced. It happens at different speeds, depending on the individual consumer and on the product itself.
question
Product characteristics that affect the rate of diffusion
answer
1. Observability 2. Triability 3. Complexity 4. Compatibility 5. Relative advantage
question
Product life cycle
answer
A pattern of sales and profits that typically changes over time
question
Stages of PLC
answer
1. Introduction 2. Growth 3. Maturity 4. Decline
question
Promotion
answer
The power to influence customers--to remind them, to inform them, to persuade them.
question
Integrated marketing communication
answer
The coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product.
question
positioning statement
answer
A brief statement that articulates how the marketer would like the target market to envision a product relative to the competition.
question
promotional channels
answer
Specific marketing communication vehicles, including traditional tools, such as advertising, sales promotion, direct marketing, and personal selling, and newer tools such as product placement, advergaming, and internet minimovies.
question
product placement
answer
The paid integration of branded products into movies, television, and other media.
question
advergaming
answer
Video games, created as a marketing tool, usually with brand awareness as the core goal.
question
buzz marketing
answer
The active simulation of word-of-mouth via unconventional, and often relatively low cost, tactics. Other terms for this are "guerrilla marketing" and "viral marketing"
question
Sponsorships
answer
A deep association between a marketer and a partner (usually a cultural or sporting event), which involves promotion of the sponsor in exchange for either payment or the provision of goods.
question
Advertising
answer
Paid, nonpersonal communication, designed to influence a target market with regard to a product, service, organiation, or idea.
question
Sales promotion
answer
Marketing activities designed to stimulate immediate sales activity through specific short-term programs aimed at either consumers or distributors.
question
Advantages of Broadcast TV
answer
1. Mass audience 2. High impact
question
Disadvantages of Broadcast TV
answer
1. Disappearing viewers 2. Jaded viewers 3. High cost
question
Advantages to Cable TV
answer
1. Targeted programming 2. Efficient 3. High impact
question
Disadvantages to Cable TV
answer
1. DVRs 2. Uneven quality
question
Advantages to Newspapers
answer
1. Localized 2. Flexible 3. Consumer acceptance
question
Disadvantages of newspapers
answer
1. Short life span 2. Clutter 3. Quality
question
Advantages to direct mail
answer
1. Highly targeted 2. International opportunity 3. Email option
question
Disadvantages to direct mail
answer
1. Wasted resources 2. High cost 3. Spam
question
Advantages to radio
answer
1. Highly targeted 2. Low cost 3. very flexible
question
Disadvantages to radio
answer
1. Low impact 2. Jaded listeners
question
Advantages to magazines
answer
1. Highly targeted 2. Quality 3. Long life
question
Disadvantages to magazines
answer
1. High cost 2. Inflexible
question
Advantages to outdoor advertising
answer
1. High visibility 2. Repeat exposure 3. Breakthrough ideas
question
Disadvantages to outdoor advertising
answer
1. Simplistic messages 2. Visual pollution 3. Limited targeting
question
Advantages to the internet
answer
1. 24/7 global coverage 2. Highly targeted 3. Interactive
question
Disadvantages to the internet
answer
1. Intrusive 2. Limited relationship
question
Consumer promotion
answer
Designed to generate immediate consumer sales, using tolls such as premiums, coupons, promotional products, rebates, and displays.
question
Trade promotion
answer
Marketing activities designed to stimulate wholesalers and retailers to push specific products more aggressively in the short term.
question
public relations (PR)
answer
The ongoing effort to create positive relationships with all of a firm's different publics, including customers, employees, suppliers, the community, the general public, and the government.
question
publicity
answer
Unpaid stories in the media that influence perceptions about a company or its products. Biggest advantage is that it is usually credible. Downside is that marketer usually has no control.
question
Personal selling
answer
The world's oldest form of promotion. It is person to person presentation of products to potential buyers.
question
missionary selling
answer
Promoting goodwill for a company by providing information and assistance to customers.
question
Sales process
answer
1. Prospect and Qualify 2. Prepare 3. Present 4. Handle Objections 5. Close sale 6. Follow-up
question
consultative selling
answer
A type of personal selling that involves shifting the focus from the products to the customers.
question
Team selling
answer
A type of personal selling that tends to be especially effective for large, complex accounts. The approach includes a group of specialists from key functional areas of the company. The goal is to uncover opportunities and respond to needs that would be beyond the capacity of a single salesperson.
question
Factors affecting the promotional mix
answer
1. Product characteristics 2. Stage in the PLC 3. Target audience 4. Push vs. pull 5. Competitive environment 6. udget
question
push strategy
answer
A marketing approch that involves motivating distributors to heavily promote a product to final customers. Usually through heavy trade promotion and personal selling.
question
Pull strategy
answer
A marketing approach that involves creating demand from the ultimate consumers so that they can pull your products through the distribution channels by actively seeking them.
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New