marketing mix: product Flashcards
(35 cards)
convenience goods - definition
convenience goods are bought frequently, immediately and with minimal effort
shopping goods - definition
are those the consumer characteristically compares on such bases as suitability, quality, price and style
specialty goods - definition
have unique characteristics or brand identification for which enough buyers are willing to make a special purchasing
Unsought goods - definition
are those the consumer does not know about or normally think of buying, such as smoke detectors
what are the three product propositions?
augmented propositions
embodied proposition
core proposition
definition of proposition
A set of tangible and intangible attributes, related not just to physical goods but also services, ideas, people, places, experiences or a mix of these elements
Three product levels
Core - generic
embodied - expected
augmented
Core generic product level - detail
- commodity goods
- meets the buyers or users basic needs - eg a car satisfying a transportation need
- easy to copy
Embodied (expected) product levels- detail
value engineered to satisfy a specific targets minimum purchase conditions
Augmented product level - detail
Added values satisfying non-functional eg emotional as well as functional need
product lifecycle - complete
development
introduction
growth
maturity
decline
core product
fundamental benefit or value the customer receives
actual product
the tangible item ie a phone
product mix/ product assortment
Refers to the complete set of products and services a company offers to consumers
This includes all product lines the company sells, regardless of their differences
product width
the number of different product lines
product length
the total number of items across all lines
product depth
the number of versions within a single product line
product consistency
how closely related product lines are in terms of use, production or distribution
what is a brand according to keller - 1998
a set of mental associations, held by the consumer, which adds to the perceived value of a product or service
why do consumers like brands?
- helps people to identify their preferred products
- informs consumers about the source of a product
- helps people to gauge the level of product quality
-reduces the amount of time spent making product-based decisions and in turn decreases the time spent shopping - reduce levels of perceived risk and in doing so improve the quality of the shopping experience
- provides psychological reassurance or reward, esp for products bought on an occasional basis
manufacturers and retailers like branding because:
- enables premium pricing
- develops customer loyalty and repeat purchase buyer behaviour
- helps differentiate a product from competitive offerings
- encourages cross-selling to other brands owned by the manufacturer
- assists the development and use of integrated marketing communications
- contributes to corporate identify programmes
- provides some legal protection
brands as symbolic devices
- consumers show more interest in brands for what they say about them rather than what they acc do for them
- different people ascribe different meanings to the same product
- brands are also used by people as ritual devices to help celebrate a particular occasion
brands are used as a decision-making cues
brand recognition is one of the most important cues in decision making
- low involvement - brand familiarity may be the single most important cue
- high involvement - product categories, brand recognition is one of the most important cues in forming the consideration set
how do brands act as risk reducers?
financial risk
time risk
performance risk
social risk
psychological risk
