Chapter 7 Flashcards
(24 cards)
Define product
Give 6 examples of products
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
Services, events, people, places, organizations or ideas
Define service
Give the 2 extremes of market offerings and 2 egs for each
A form of product consisting of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything
- Pure tangible good (soap, toothpaste)
- Pure services (banking, legal services)
How are marketers differentiating their offers?
Give the 3 levels of products/services and 2 egs of each
Creating and managing customer experiences with their brands/companies
- Core Customer Value - What is the buyer really buying? (connectivity, entertainment)
- Actual Product (camera, phone)
- Augmented Products - Offering additional services/benefits (warranty, after-service care)
Define consumer products
Give and define the 4 types of consumer products and 1 eg of each
Products and services bought by final consumers for personal consumption
- Convenience Products - Products/services that customers buy frequently, immediately and with minimum comparison/buying effort (milk)
- Shopping Products - Less frequently purchased, customers compare carefully on suitability, quality, price and style (TV)
- Speciality Products - Products with unique characteristics/brand identifications for which buyers are willing to make a special purchase effort (camera)
- Unsought Products - Products that the consumer either doesn’t know exists, or knows about but doesn’t normally think of buying (burial spot)
Give and define the 5 components in product/service decisions
- Product Attributes - Defining the benefits it will offer
- Branding - (Brand) - A name, term, sign, symbol or design that identifies maker/seller of product/service
- Packaging - Designing and producing the container or wrapper for a product
- Labelling - Identifies the product, describes things about it and promotes the brand
- Product Support Services - Survey customers periodically then take steps to fix the problems/add new services to delight customers and yield profits
Name the 3 product attributes
Give and describe the 2 dimensions in product quality
What are product features
What 3 questions can be asked in surveys about features?
Product quality, features, style and design
- Level - Performance quality or ability of a product to perform its functions
- Consistency - Quality conformance (consistency) means freedom from defects, and consistency in delivering a targeted level of performance
Competitive tools that differentiate a company’s products from competitors
- How do you like the product?
- Which features do you like most?
- Which features could we add to improve the product?
Define style
Define design
Give 2 ways brands can help buyers
Give 3 ways brands can help sellers
Describes the appearance of a product (how it looks)
Contributes to a product/s usefulness and looks
- Identify products that might benefit them
- Says something about product quality/consistency
- Brand name can tell a story about a product
- Brand name/trademark provides legal protection
- Helps seller to segment market
Define product line
Give and define the 3 types and 1 eg of each
A group of closely related products that function similarly, are sold to same customer groups, marketed through same outlets or fall within given price ranges
- Product Line Length - No. of items in line (iPhone - 10)
- Product Line Filling - Adding more items to current range of the line (iPhone adding a 9 range)
- Product Line Stretching - Lengthening product line beyond current range (iPhone adding 11 range)
Define product mix (or product portfolio)
Give and define the 4 dimensions of the product mix
All the product lines and items that a particular seller offers for sale
- PM Width - No. of different product lines in a company
- PM Length - Total no. of items within product lines
- PM Depth - No. of versions of each product in each line
- PM Consistency - How closely related the product lines are in end use, production requirements or distribution channels
Give the 4 ways a company can increase its business
- Add new product lines, widening product mix
- Lengthen existing product lines
- Add more versions of products, deepening product mix
- Pursue more product line consistency
How much US GDP do services account for?
How much GWP do services make up?
Name the 4 characteristics of a service
80%
64%
Intangibility, inseparability, variability, perishability
Define intangibility, and what does this bring?
Define inseparability, and what phrase does this link to?
Define variability
Define perishability
Services cannot be seen, tasted, felt, heard or smelled before purchase. Brings uncertainty
Services cannot be separated from their providers and the customer is present as the service is produced. Links to provider-customer interaction
The quality of services depends on who provides them, and when, where and how they are provided. E.g. if you make an appointment later in day, quality may not be top
Services cannot be stored for later sale or use
What do customer prefer to variability?
Give 2 ways service providers can create this?
Name the 5 links in the service-profit chain
Consistency
Training employees and manuals - standardizing
- Internal service quality
- Satisfied/productive employees
- Greater service value
- Satisfied/loyal customers
- Healthy service profits and growth
Define internal service quality
Define greater service value
What 2 behaviors may loyal customers engage in?
Superior employee selection and training, a quality work environment and strong support for those dealing with customers
More effective/efficient customer value creation and service delivery
Make repeat purchases, refer other customers
In terms of the marketing pyramid, what is at the top, left bottom and right bottom?
What type of marketing goes between the company and employees?
” employees and customers?
” company and customers?
Company, employees, customers
Internal marketing
Interactive marketing
External marketing
Define internal marketing
Define interactive marketing
Which 3 major marketing tasks do service companies face?
The service firm must orient and motivate its customer-contact employees and support service people to work as a team to provide customer satisfaction
Service quality depends on the quality of the buyer-seller interaction during the service encounter
- Service differentiation
- Service quality
- Service productivity
Give 5 ways companies can differentiate their services and 1 example of each
- Innovative features that set companies apart (e.g. banks now offer take a picture of your cheque)
- Superior delivery process (e.g. Amazon)
- Reliable customer-contact people (e.g Apple ‘geniuses’)
- Superior physical environment (e.g. waiting rooms)
- Image differentiation (e.g. Starbucks - high brand image)
Define brand equity
Give the 5 competitive advantages companies can gain by having high brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing. Usually when companies have high brand equity, customer perceive their services to be of high quality
- High level of consumer brand awareness/loyalty
- More leverage in bargaining with resellers
- Greater ability to launch line and brand extensions
- Defence against fierce price competition
- Basis for building strong and profitable customer relationships
Name the 4 components of building strong brands
Give the 3 ways brands can position themselves and 1 example of each
Give the 6 desirable qualities for selecting a brand name
Brand positioning, brand name selection, brand sponsorship, brand development
Product attributes (special ingredient), desirable benefits (Nike dry fit), beliefs and values (Patagonia)
- It should suggest something about the product’s benefits and qualities
- Should be easy to pronounce, recognize and remember
- Should be distinctive
- Should be extendable (able to adapt to changing lines)
- Translate easily into foreign languages
- Capable of registration and legal protection
Give and describe the 4 brand sponsorship options and 1 example of each
- Manufacturer’s brand (national brand) - the manufacturer owns the brand (e.g. Samsung tablets)
- Private brand (store brand) - the retailer owns the brand (e.g. Walmart ‘great value’)
- Licensed brand - companies can pay royalties to own brands created by others (e.g. characters from books)
- Co-brand - two companies join forces (e.g. Nike and Apple created the Nike+iPod sports kit)
Which type of brand sponsorship is gaining more support? How many savings do store brands save people?
Give 3 advantages store brands have
Private/store brands. 38%
- Store brands are often priced lower than comparable national brands
- Yield higher profit margins for reseller
- Give resellers exclusive products that cannot be bought from competitors
Give a statistic about licensing
Give 2 advantages of co-branding
Give 3 disadvantages of co-branding
Annual retail sales of licensed products in the US and Canada have grown from $4b in 1977 to $55b in 1987 and over $252b today
- Creates broader consumer appeal and greater brand equity
- Allows companies to expand existing brand into a category it might have difficulty entering alone
- Involves complex legal contracts/licenses
- Must carefully coordinate advertising, sales, promotions
- Each partner must trust that other will take care of brand
Give and define the 4 aspects of brand development and 1 example for each
- Line Extension - When a company extends it’s existing brand name to new colors, sizes, flavors of an existing product (e.g. Yoplait, Lays)
- Brand Extension - Extend an existing brand name to a new product category (e.g. Dove)
- Multibrands - New brand names in existing product category (e.g. Pantene, Herbal Essences owned by P&G)
- New Brands - Start a new brand from scratch
Define brand experience
What do companies need to do to manage brands?
Customers coming to know a brand through a range of contacts and touch points
Periodically audit their brands’ strengths and weaknesses
