Products Flashcards
(28 cards)
What is a product?
A product is something that can be offered to a market for attention, acquisition, use,or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organisations and ideas
What are the three levels of products and services according to motley and Armstrong (2014)
Core customer value
Actual product
Augmented product
Describe what makes up an actual product?
Brand name Quality level Packaging Design Features
Describe what makes up an augmented product
Delivery and credit
Product support
Warranty
After sale service
What are the two product based classifications?
Durable products
Non Durable products
Describe durable products
Lasts for many uses and over a long period of time before hanging to be replaced (eg. Tv or car).
May require selective distribution through specialist channels and a communications approx b that is primarily centred on information and function rather than psychological benefits
Describe non durable products
Can be used once or a few times before having to be replaced (eg food)
What are the 5 product based classifications?
Convenience products Shopping products Speciality products Unsought products Service products
What are convenience products?
Cheap, frequently purchase items that do not need much thought or planning?
What are Shopping products?
Usually, infrequently purchased items. (eg. cars or household appliances)
It may require selective distribution through specialist and a communications approach that is primarily centred on information or function rather than psychological benefits
What are the stages of the NPD (new product development) Process?
- Idea generation
- idea screening
- concept testing
- Business analysis
- Product development
- Test marketing
- Commercialisation
- Monitoring and evaluation
What are speciality products?
People plan the purchase and will not accept substitutes.
It may require selective distribution through specialist channels.
Marketing communications may focus on functional and psychological benefits.
what are Unsought products?
Not normally sought, often sold by sales people or bought as a result of change of circumstances
what are service products?
Intangible products comprising activities, benefits or satisfactions that are not embodied in physical products (eg. holiday, financial advice)
What is the Product Mix?
The total sum of all products and variants offered by an organisation
What is the Product Line?
A group of products that are closely related. Consider production and market orientation
What is the Product Item?
Individual products or brands, each with its own features, benefits, price etc
What is the Product Line Length?
The total number of items within the product line
What is the Product Line Depth?
The number of items within the product line - the item variants
What is the Product Line Width?
A product mix defined by the number of product lines offered
What is an important model to look at which products are worth investing in?
The BCG model (Boston box)
What are the 5 stages of diffusion of Innovation?
Innovators Early adopters Early majority Late majority Laggards
Describe Innovators in the diffusion of innovation model.
They help get the product off the ground.
These people are risk takers and tend to be younger, better educated, more affluent and confident.
Describe Early adopters in the diffusion of innovation model.
They enter the market early but let the innovators take the real risk.
Tend to be opinion leaders.
It is important that promotors target them as they are more of a mainstream group than the innovators and they spread their recommendations via word of mouth.
