Chapter 10: Product Concepts Flashcards
(30 cards)
What is the starting point in creating a marketing mix?
The product offering is usually the starting point in creating a marketing mix
Define ‘product’
A product is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible or intangible, such as a service or idea
How are products classified?
Products can be classified as either business products or consumer products based on their inteded use
What is a business product?
Used to manufacture other goods/services, facilitate an organizations’ operations, or resell to other customers
What is a consumer products?
Bought to satisfy an individuals’ personal wants or needs
What are the 7 types of business products?
- Major equipment
- Accessory equipment
- Component parts
- Processed materials
- Raw materials
- Supplies
- Services
How are consumer products often categorized?
By the amount of effort required to shop fot them
What are the 4 categories of consumer products?
- Convenience
- Shopping
- Specialty
- Unsought
What are the key characteristics of convenience products?
Often recognized by brand name and normally require wide distribution to meet profit goals
What is a convenience product?
A relatively inexpensive item that merits little shopping effort, often bought with little planning
What is a shopping product?
One that requires comparison shopping because it’s usually more expensive than convenience products and found in fewer stores
What are the 2 types of shopping products?
- Homogeneous (basically similar)
- Heterogeneous (essentially different)
What is a specialty product?
A specialty product is a particular item for which consumers search extensively and are very reluctant to accept substitutes
What is an unsought product?
Either unknown to the potential buyer or a known product that the buyer doesn’t actively seek
What is often used to promote specialty products?
Selective, status-conscious advertising
How are unsought products generally sold?
They are generally sold through salespeople, direct mail, or direct response advertising
Define ‘product item’, ‘product line’, and ‘product mix’
- Product item = specific version of a product
- Product line = group of closely related product items
- Product mix = all products an organization sells
What is product mix width?
The number of product lines an organization offers
What are the 3 types of product modification?
- Quality modification
- Functional modification
- Style modification
What is product line depth?
Refers to the number of product items in a product line
What is planned obsolescence?
The practice of modifying products so that those already sold become obsolete before they need replacement
What is product repositioning?
Involves changing consumers’ perceptions of a brand
What is branding?
A tool used by marketers to distinguish their products from those of the competition
What is brand equity?
The value of a company/brand name, based on high awareness, perceived quality, and customer loyalty
