Chapter 05 Flashcards
Product Strategy (65 cards)
Consists of both goods and services.
Product
Is a package of benefits both
physical and psychological that a marketer
wants to present, or pack of expectations that
consumers desire to realize.
Product
THREE LEVELS OF A PRODUCT
Core Customer Value
Actual Product
Augmented Product
- the fundamental benefit or
value that a customer seeks when purchasing a
product. It answers the question: What is the customer
really buying?
Core Customer Value
- the tangible or physical product that
delivers the core benefit. This includes the product’s
features, design, brand, quality, and packaging.
Actual Product
- Additional services and
benefits that enhance the value of the actual product
and differentiate it from competitors. These are not
essential but improve customer satisfaction and loyalty.
Augmented Product
2 Major Product
CONSUMER PRODUCTS & INDUSTRIAL PRODUCTS
Types of product
goods and services
7 CONSUMER PRODUCTS
Convenience Products
Shopping Products
Durable Products
Non-durable Products
Specialty Products
Unsought Products
Services
4 INDUSTRIAL PRODUCTS
Material Parts
Manufactured Materials & Parts
Capital Items
Supplies & Business Services
Items which are used by ultimate consumers or households, and they can be used without further commercial and engineering processes.
CONSUMER PRODUCTS
Items that do not need much effort of planning from customers.
They are used in a day-to-day life and are frequently required
and can be easily purchased.
CONVENIENCE PRODUCTS
These products require special time and shopping efforts. They are
purchased purposefully from special shops or markets. Quality,
price, brand, style, and others are essential standards to be considered.
SHOPPING PRODUCTS
Can be used for an extended time and can be repetitively
made used of by one or more persons. Televisions, computer,
refrigerator, and vehicles are few examples of durable products.
DURABLE PRODUCTS
Products have short span of life. They
should be used within small time once they are
manufactured.
NON-DURABLE PRODUCTS
Unique or high-end products for which consumers are willing
to make a special effort to purchase.
SPECIALTY PRODUCTS
These are items customers are not aware of or do not often
think about. New products that have no brand recognition
fall under this classification.
UNSOUGHT PRODUCTS
Refers to intangible offerings provided by businesses to
fulfill customer needs and wants. Unlike physical products,
———– cannot be touched, stored, or owned, but they still
deliver value. ——are often part of a company’s core
offering or complement its tangible goods.
SERVICES
used as the inputs by manufacturing companies for further processes on the products or manufacturing other products.
INDUSTRIAL PRODUCTS
Natural resources or unprocessed materials that are used in
manufacturing or production processes. It falls into two major groups
which include farm products (wheat, cotton, livestock, fruits, vegetables)
and natural products (fish, lumber, crude petroleum, iron ore).
RAW MATERIALS
Products that become part of the finished product during the
manufacturing process. Example are engine parts, screws, circuit
boards, and glass for windows.
COMPONENTS & PARTS
Durable goods used in the production process but not part of the
final product. Examples are machinery, tools, buildings, and
vehicles.
CAPITAL GOODS
Products used in the daily operations of a business but not part of the
final product. Examples are lubricants, cleaning supplies, office
stationery, and protective gear.
SUPPLIES & CONSUMABLES
Intangible offerings that aid in the operation or maintenance
of a business. Examples are equipment repair, IT support,
logistics services, and consulting.
INDUSTRIAL SERVICES
