Product Flashcards
(30 cards)
What is a Product?
Anything that can satisfy a need or want. Provides value. Utilitarian/Hedonic.
What are goods?
A physical tangible offering, that can often be experienced before purchased.
What is a service?
Intangible offering that doesn’t involve ownership.
What are Industrial products?
Raw materials. e.g. steel, timber.
what is a Product of expereince?
Events, shows and such
What is an idea as a product?
Concept, issue, philosphy. e.g. slip,slop,wrap.
Three Levels of Product?
Core Customer Value:
The core need the market is seeking. e.g. phone is communication device.
Actual product:
Features, Design, Packaging, Quality, Brand.
Durability.
Augmented Product:
Support repair, After-sale service, Warranty, Delivery. One of the main differences between competitors. All of this costs money, ensure that these are desired by customers.
4 Product Classifications.
Convenience products?
Convenience Products
Minimal time and effort. Inexpensive, frequently purchased, widely available. Packaging can be important to attract customers, as well as availability. e.g. milk
Widespread distribution, convenient locations.
Mass promotion from the producer. Low price.
Extra Product classification?
Business Products.
Classified according to how organisational customers use them.
Processed material, parts, equipment, specialised services.
4 Product Classifications.
Speciality products?
Speciality Products:
Willing to spend special effort to obtain them.
Brand loyalty. Low price sensitivity
Possess one or more unique characteristics. E.g. BMW, apple laptop, original artwork
High price. Exclusive distribution in few places per market area. more carefully targeted promotion from both producer and reseller.
4 Product Classifications.
Shopping products?
Shopping Products
Relatively infrequent purchase, Customers are willing to spend more time. E.g. Clothes.Higher price. selective distribution in fewer locations.
advertising and personal selling from producer and resellers.
4 Product Classifications
Unsought Products?
Unsought Products:
Unaware of needing the product, situations arise when they need it. e.g. Mechanics and health insurance. Marketers need to make people aware of the needs.
What is a Product Line?
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges.
Product Line filling and stretching?
Filling: Adding more products within the present line. Should ensure products are different to ensure they don’t eat up sales of other products.
Stretching: Lengthening the product line outside the product line. Downward e.g. making a cheaper series of cars for young people. Upward e.g attempting to add prestige, making an upscale car.
What is a brand?
A collection of symbols such as a name, logo, slogan and design intended to create an image in the customer’s mind that differentiates a product from competitors’ products.
What is brand image?
The set of beliefs that a consumer has regarding a particular brand. Consumer’s perception
Brand name/ brandmark/ trademark?
Brand name
Part of a brand that can be spoken, including words, letters and numbers.
(distinctive, recognisable, relevant, suggest, can be protected, extendable)
Brand mark
* The part of a brand not made up of words — it often consists of symbols or designs.
Trade mark
* A brand name or brand mark that has been legally registered so as to secure exclusive use
Benefits of brands to organisation?
Linking it to unique experiences and feelings.
Barriers to competitions, customers demand certain brands.
Easiest to extend products once brands are established. The customers trust.
Benefits of brands to consumers?
! Can communicate features and benefits (e.g. Sunkist)
! Reduces the risk in purchasing
! Simplifies the purchase decision
! Symbolic value
! Assure quality and reliability (promise to customer)
Importance of Branding?
Brand equity = the value of the brand to the company.
Strong brands build emotional connection with the consumer
Strong brand equity creates loyalty, communicates quality, and establishes clear positioning.
What makes a brand successful?
it excels at delivering the benefits to customers that they truly desire
It stays relevant
It is consistent
It is given ongoing support
It is properly positioned
It has a logical brand portfolio
It uses a variety of marketing activities to build equity
Individual branding?
A branding approach in which each product
is branded separately.
Family branding?
A branding approach that uses the same brand for several of the organisation’s products.
Manufacturer brands?
Brands owned by producers and identified with the product at the
point of sale.
