S2 - 1 - Product, what is a product? Flashcards
(33 cards)
what is a product?
anything that can be offered to a market for attention, acquisition, use to consumption that might satisfy a want or need
how can products be classified in terms of users?
CONSUMER
- convenience
- SHopping
- Speciality
- unsought
INDUSTRIAL
(business)
- material and parts
- capital items
- supplies and services
what are convenience products?
bought frequently, immediately, little comparison or buying effort
- toothpaste
- soap
- bread
what is the marketing mix for convenience products?
Price = low
Place = intensive distriibution is integral to ensure wide availability
promotion = build awareness and recognition, mass advertising, high ad budgets
point of the display and sale promotion may sway the customer decision nat last moment due to their being little comparison
what are shopping products?
bought less frequently, careful information gathering and comparison
- trainers
- furniture
- tv
what is the marketing mix for shopping products?
price = higher than convenience
place = selective distribution, may be specific stores, e.g. tech
promotion = mass marketing communications i typically supported by personal selling in stores ‘could i interest you in…’
what are speciality products?
unique characteristics, limited/no comparison, special purchase effort
- cars
- watch
what is the marketing mix for speciality products
price = high (can increase desirability)
place = exclusive distribution which can also increase desirability
promotion = carefully targeted advertising. personal selling becomes particularly important
what is a SP for someone could be a shopping product to another
what are unsought products?
unknown or normally unconsidered, little product awareness/knwoldge
customer likely to have little interest
- health
- blood donation
what is the marketing mix for unsought products?
price and place varies
promotion = aggressive and personal selling (cold calling) necessary
shock tactics and emotional appeals
such as organ donation 2017 Welsh ad
what are the product based classifications?
- durable
- non durable
- services
what are durable products?
- last for many uses
- infrequently purchased
- relatively expensive
- selective distribution
cars, home furniture
what are non durable goods?
- used once / few times
- freq purchased
- relatively inexpensive
- intensive distribution (conveniance products)
what are services?
- intangible
an act or performance offered y one party to another, although process may be tied to a physical product, the performance is essentially intangible and does not normally result in ownership of any factors of production - travel
- hospitality
- entertainment
how can services be characterised and why?
although they are products they have special characteristics and marketing needs
- intangibility
- inseparability (cannot be separated from providers)
- variability (quality of the service depends on who provides them and when, where and how)
- perishability (cannot be stored for later use, which is the issue when demand fluctuates)
what are the marketing services that deal with the characteristics of services
IT = offer clear signals of service quality to reduce uncertainty (e.g. place, people, price, advertising)
IS = improve provider customer interactions by investing significantly in staff training
V = automated systems, employee transcripts, check lists
P = try to track peaks and troughs in demand, pricing tactics to fill troughs, hire part time workers (e.g. during seasons, M&S do christmas temp roles, 3 week)
what is the extended marketing mix?
Product, price, place, promotion
and
(used for services)
People = recruiting, training, motivating, managing
Processes = automating, structuring, monitoring
Physical evidence = create tangible cues e.g. uniforms, adverts
what are the three levels of a product?
core customer value-> actual product -> augmented product
what is core customer value?
core benefit, what is the customer really buying
e.g. different type of holidays romance vs. family vs. adventure
can be emotional vs functional
E = how will the product make you feel
F = what will the proctologist’s enable you to do?
what is involved with actual product?
specific, tangible product and service features
design
quality level
packaging
tangible elements
enables the product to deliver its core value to customers
what is augmented product?
additional non tangible service and benefits
important way to tailer the core or actual product to the needs of the consumer
- user training
- installation
- garuntees
- customerservice (john lewis, if laptop breaks they give you spare)
what is a product mix?
set of total number of products lines that a seller offers in the market
number of product lines
has four dimensions
what is a product line?
is a group of closely related brands with similar functions, customer groups, outlets and price ranges
e.g. nike product line includes footwear and sports equipment
what are the four dimensions of the product mix?
width
length
depth
consistency
