Chapter 10 book part 1 Flashcards
(25 cards)
What three basic elements does a customer judge on?
- Features and quality
- Service mix
- Price and quality
What is a ‘product’
A product is anything that can be offered to a market that can satisfy a want or need
In planning its market offering, a marketer needs to address five product levels. Each levels adds more customer value. The five product levels are…;
1st: Core benefit
2nd: Basic product
3rd: Expected product
4th: Augmented product
5th: Potential product
Augmented product product level (4th)
A product that exceeds customer expectations is prepared by the marketer
Potential product product level (5th)
Are all the possible augmentations and transformations the offering might undergo in the future
A users total consumption system
The way a user gets and uses products and services
The three marketer product classifications
- Durability and tangibility (durable vs nondurable)
- Consumer goods classification
- Industrial goods classification
Nondurable goods
Are tangible goods normally consumed in one or a few uses. Should be made available in many locations, charge a small markup, advertise to build preference.
Durable goods
Are tangible goods that survive many uses, require personal selling and service, command higher margins, require more seller guarantees.
Consumer goods classifications
- Convenience goods (purchased frequently)
- Shopping goods (compared based on suitability, quality, price and style)
- Specialty goods (Unique characteristics or brand identification. Buyers willing to make special effort to purchase)
- Unsought goods (Goods consumers do not know about or normally think of buying)
Industrial goods classification
- Raw materials and parts (farm or natural products)
- Manufactured materials and parts (Component materials or parts)
- Capital items
- Supplies and business services
Capital items
Capital items are long lasting goods that facilitate developing or managing the finished products.
Supplies and business services
Supplies and business services are short term goods and services that facilitate developing or managing the finished product.
9 Product differentiation possibilities
- Form
- Features
- Customisation
- Performance quality
- Conformance quality (degree to which units are identical and meet promised specifications)
- Durability
- Reliability
- Repairability
- Style (products look and feel)
What is important if a product cannot be physically differentiated?
When a product cannot be physically differentiated, the key to competitive success can lie in adding value services.
6 Service differentiations
- Ordering ease
- Delivery
- Installation
- Customer training
- Customer consulting
- Maintenance and repair
Design
Design is the totality of features that affect how a product looks, feels and functions to a customer.
A product system
A product system is a group of diverse but related items that function in a compatible manner
A product mix/product assortment
A product mix/product assortment is the set of all products and items a particular seller offer for sale
A product line
A product line is a group of products within a product class that is closely related because they perform similar functions, are sold to the same customer groups, are marketed through the same channels or fall within given price ranges.
A product type
A product type is a group of items within a product line that share one of several possible forms
Width of a product mix
is how many different product lines the company carries
Depth of a product mix
is how many variants are offered of each product in the line
Consistency of a product mix
is how closely related various product lines are in end use, production requirements, distribution or some other way
