Kotler|Armstrong Principles of Marketing Chapter 8 Vocabulary

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Three Levels of Product
Augmented product, Actual product, Core customer value
Consumer product
A product bought by final consumers for personal consumption.
Convenience product
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Shopping product
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
Specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Unsought product
A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
Type of Consumer Products
Convenience, Shopping, Specialty, Unsought
Industrial product
A product bought by individuals and organizations for further processing or for use in conducting a business.
Social marketing
The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
Individual Product Decisions
product attributes, branding, packaging, labeling, and product support services.
Product quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
The activities of designing and producing the container or wrapper for a product.
Product line
A group of products that are closely related 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 price ranges.
Product mix (or product portfolio)
The set of all product lines and items that a particular seller offers for sale.
Four Service Characteristics
Intangibility, Inseparability, Variability, Perishability
Service intangibility
Services cannot be seen, tasted, felt, heard, or smelled before they are bought
Service inseparability
Services are produced and consumed at the same time and cannot be separated from their providers.
Service variability
The quality of services may vary greatly depending on who provides them and when, where, and how.
Service perishability
Services cannot be stored for later sale or use.
Service profit chain
The chain that links service firm profits with employee and customer satisfaction.
Three Types of Service Marketing
Internal marketing, External marketing, Interactive marketing
Internal marketing
Orienting and motivating customercontact employees and supporting service people to work as a team to provide customer satisfaction.
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.
Brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing.
Major Brand Strategy Decisions
brand positioning, brand name selection, brand sponsorship, and brand development
Store brand (or private brand)
A brand created and owned by a reseller of a product or service.
The practice of using the established brand names of two different companies on the same product.
Brand Development Strategies
Line extension, Brand extension, Multibrands, New brands
Line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand extension
Extending an existing brand name to new product categories.
Core customer value
Consists of the core problem solving benefits that consumers seek when they buy a product.
Actual product
Exists around the core customer value of the product and includes the quality level, features, design, brand name, and packaging.
Augmented product
The actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance.

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