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2nd shift lecs > Product mix > Flashcards

Product mix Flashcards

1
Q

Product Development Decision Process

A
  • idea generation
  • idea screening
  • concept development and testing
  • marketing strategy development
  • business analysis
  • product development
  • market testing
  • commercialization
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2
Q

is the heart of a great brand. A company can achieve market leadership when the market is offered a product with superior quality and excellent customer service.

A

Product

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3
Q

is anything that can be offered to a
market to satisfy a want and/or need

A

Product

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4
Q

Product Characteristics & Classifications

A

Level 1: Core Benefit
Level 2: Generic/Basic Product
Level 3: Expected Product
Level 4: Augmented Product
Level 5: Potential Product

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5
Q
  • pertains to the benefit that a customer is buying
  • Each product should be built on Level 1, otherwise, the product will have no benefit or with an unaligned benefit
  • it is crucial to identify the benefit that a market is looking for to buy
A

Core benefit

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6
Q
  • In pharmaceutical viewpoint this
    pertains to choosing the correct dosage form to deliver the core benefit
  • product effectiveness and efficacy are more important factors than
    customer wants
A

Basic/Generic Product

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7
Q
  • the basic product concept is translated into a set of attributes that the markets expects
  • the marketer avoids misalignment and focuses instead on market need. (Ex. When a market expects an herbal product, they would usually check if the offering contains a chemical/synthetic/non-herbal ingredient)
A

Expected Product

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8
Q
  • In this level, brand positioning and competition take place.
  • should have a strong USP (unique selling proposition) – reason for
    buying despite numerous competitors
  • adds cost to the product but soon becomes expected benefits for customers to compare with others
A

Augmented Product

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9
Q
  • encompasses all the possible
    augmentations and transformations the
    product or offering might undergo in the
    future. Here is where companies search for new ways to satisfy customers and
    distinguish their offering
A

potential product

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10
Q

is a group of diverse but related items that function in a compatible manner

A

Product System

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11
Q

A pharmaceutical company can have a full Cardiovascular portfolio offering CV drugs such as anti-hypertensives, anticholesterol drugs, anticoagulant drugs

A

Product System

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12
Q

(also called a product assortment)
is the set of all products and items a particular seller offers for sale

A

Product Mix

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13
Q

A pharmaceutical company can offer a full range of dosage form and strengths of a particular product. Atorvastatin 10mg, 20mg, 40mg, 80mg

A

Product Mix

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14
Q

A product mix consists of various

A

product lines

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15
Q

4 Dimensions of Product Mix

A
  • width
  • length
  • depth
  • consistency
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16
Q

refers to how many different product lines the company carries

A

width

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17
Q

term used when a company
decides to offer another line of products to its offerings (Ex. Colgate offering a mouthwash and toothbrush are product line extensions)

A

Brand extension

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18
Q

refers to the total number of items in the mix

A

Length

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19
Q

refers to the number of variants in each product line

A

Depth

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20
Q

term used when expanding an
offering of an existing product (Ex. Offering different flavors of am antibiotic syrup)

A

Line extension

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21
Q

describes how closely related the various
product lines are (Ex. Is it consistent with the store Healthy Options to offer sugary drinks and salty chips?)

A

Consistency

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22
Q

is an attribute that can be built into a product to distinguish it among several competing products that has the
similar value offering. This attribute makes your product stand
from the crowd

A

differentiation

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23
Q

Approaches to Product Differentiation

A
  1. Form & Style
  2. Features
  3. Durability
  4. Reliability
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24
Q
  • Size, shape, or physical structure of a product.
  • Consider the many possible ____ of Multivitamins with Iron. It can be differentiated by dosage size,
    shape, color, coating, or action time.
A

form

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25
Q

describes the product’s look and feel to the buyer

A

style

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26
Q
  • Most products can be offered with varying _______that supplement their basic function – through market
    research/survey
  • Marketers should consider how many people want each _____, how long it would take to introduce it, and whether competitors could easily copy it
A

features

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27
Q

is a measure of the product’s expected
operating life under natural or stressful conditions

A

durability

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28
Q
  • is a measure of the probability that a product will not malfunction or fail within a specified time period
    (within declared shelf-life)
  • Buyers normally will pay a premium for more reliable products.
A

Reliability

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29
Q

The pharmaceutical company as a multi-billion peso industry faces strong competition. Because of this, differentiation becomes mandatory. Crucial part of a differentiation program is _________

A

Product Design

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30
Q

offers a potent way to differentiate and
position a company’s products

A

Product Design

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31
Q

is the totality of features that affect how a
product looks, feels, and functions to a consumer

A

Design

32
Q

offers functional and aesthetic benefits and appeals to both our rational and emotional sides

A

design

33
Q

includes all the activities of designing and
producing the container for a product

A

packaging

34
Q

is the buyer’s first encounter with the
product. A good ______ draws the consumer in and encourages product choice. In effect, they can act as “five
second commercials” for the product

A

packaging

35
Q

5 Objectives of packaging

A
  1. Identify the brand
  2. Convey descriptive and persuasive information
  3. Facilitate product transportation and protection
  4. Assist at-home storage
  5. Aid product consumption
36
Q

Factors affecting growth in use of packaging

A
  1. Self-service – rise of self-service economy
  2. Consumer affluence – some consumers are willing to pay extra for elegance, appearance, and convenience
  3. Company & brand image - instant recognition
    >Billboard effect – consumers attribute a specific color/branding to a specific product (Ex. GSK’s diamond pattern branding; Sandoz’ Giant “S” branding)
  4. Innovation opportunity – unique packaging attracts consumers who are looking to try new products
37
Q

can be a simple attached tag or an
elaborately designed graphic that is part of the package

A

labeling

38
Q

functions of labeling

A
  1. It identifies the product or brand
  2. It grades the product – provide sense of being standard or premium
  3. It describes the product – manufacturer, importer, net content, warnings, precautions.
  4. It promotes the product through attractive graphics
39
Q

Product Design Creativity Techniques

A
  • Attribute listing
  • Forced relationships
  • Morphological analysis
  • Reverse assumption analysis
40
Q

list the attributes of product and
modify each attribute

A

Attribute listing

41
Q

list several ideas and consider each in relationship to each of the others

A

Forced relationships

42
Q

start with a problem, think of dimensions, and create different possible combinations of solutions to that problem

A

Morphological analysis

43
Q

list all the normal assumptions about a product and then reverse them.
Instead of assuming that a consumer would always want a tablet form of a product, reverse them

A

Reverse assumption analysis

44
Q

is a necessary but not sufficient
step for new product success. Marketers must also distinguish winning concepts from losing concepts

A

Concept development

45
Q

a perceptual map is usually
prepared to show the position of a product or brand among
the competition

A

brand concept development

46
Q

shows the place of the product
among other competing products

A

Product positioning map

47
Q

shows the place of the brand among other competing brands

A

Brand positioning map

48
Q
  • The perceptual map helps the company to decide on how to design the product.
  • Three segments (1–3) are well served by existing brands (A–C). The company would not want to position itself next to one of those existing brands, unless that
    brand is weak or inferior or market demand was high enough to be shared.
  • Locate a segment on the perceptual map where your product will be distinctive.
A

Perceptual Map Key Concepts

49
Q

how to market the product to the customer through a specific mix of programs

A

Product Commercialization

50
Q

Dimensions of Product Commercialization

A
  1. Timing – answers the question: when?
  2. Geographic Strategy – answers the question: where?
  3. Target-Market Prospects – answers the question: to whom?
  4. Introductory Market Strategy – answers the question: how?
51
Q

is the finding the most suitable period at which a product can be sold having favorable market response

A

Timing

52
Q

Different Periods of Timing a Product Offering

A
  • First entry
  • Parallel entry
  • Late entry
53
Q

the first firm entering a market usually enjoys the “first mover advantages” of locking up key distributors and customers and gaining leadership. But rushing to early entry may backfire

A

First entry

54
Q

the firm might time its entry to coincide with the competitor’s entry. The market may pay more attention when
two companies are advertising the new product

A

Parallel entry`

55
Q

the firm might delay its launch until after the competitor has borne the cost of educating the market, and its product may reveal flaws the late entrant can avoid. The late entrant can also learn the size of the market

A

Late entry

56
Q

Factors Affecting Geographic Strategy

A
  • Market potential
  • Company’s local reputation
  • Cost of filling the pipeline
  • Cost of communication media
  • Competitive penetration
57
Q

can the market afford the product in the short and long run?

A

Market potential

58
Q

does the company/brand enjoy a positive
reputation

A

Company’s local reputation

59
Q

can the company assure selling of entire product offering variants? (Ex. Selling orange-flavored Paracetamol only in rural areas while selling Orange, Strawberry, and Grape flavors to urban areas)

A

Cost of filling the pipeline

60
Q

will it require light or heavy information
campaign?

A

Cost of communication media

61
Q

will the consumers be swayed to try your product and leave their brand loyalty

A

Competitive penetration

62
Q

the company must target initial distribution and promotion to the best
prospect groups

A

Target Market Prospects

63
Q
  • Ideally they should be early adopters, heavy users, and opinion leaders
  • The company should rate prospects and target the best group.
  • Aim = to generate strong sales as soon as possible to attract further prospects.
A

Target Market Prospects

64
Q

are new product enthusiasts and enjoy tinkering with new products. They usually report on early weaknesses

A

Innovators

65
Q

are opinion leaders. They are less price sensitive and willing to adopt the product if given personalized solutions and good service support.

A

Early adopters

66
Q

consumers who adopt the new technology when its benefits are proven and a lot of adoption has already taken place. They make up the mainstream market.

A

Early majority

67
Q

are skeptical conservatives who are risk averse, technology shy, and price sensitive.

A

Late majority

68
Q

are tradition-bound and resist the innovation until the current product they are using is no longer defensible

A

Laggards

69
Q

new-product launches often take longer and cost more than expected

A

Introductory Market Strategy

70
Q

is an individual’s decision to become a regular user of a product and is followed by loyalty to the product

A

adoption

71
Q

Steps in Consumer Adoption Process

A
  1. Awareness
  2. Interest
  3. Evaluation
  4. Trial
  5. Adoption
72
Q

the consumer becomes aware of the
innovation but lacks information about it.

A

Awareness

73
Q

the consumer is stimulated to seek information about the innovation

A

Interest

74
Q

the consumer considers whether to try the
innovation

A

Evaluation

75
Q

the consumer tries the innovation to improve his or her estimate of its value

A

trial

76
Q

the consumer decides to make full and regular use of the innovation.

A

adoption

77
Q

8 Major Causes of Product Failure

A
  1. Ignored or misinterpreted market research
  2. Overestimation of market size – product is good but there are few buyers
  3. High development costs – product is expensive to produce
  4. Poor design or poor product performance
  5. Incorrect positioning, advertising, or price – too expensive price
  6. Insufficient distribution support – cannot be seen on most channels
  7. Competitors who fight back hard – price war, brand war
  8. Inadequate payback (return profit) – product is good but return is non-attractive

2nd shift lecs (21 decks)

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