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Definition
Need-satisfying offering of a firm.
Customers buy products to satisfy a need or want. Satisfaction may require a "total" product offering that is really a combination of excellent service, a physical good with the right features, useful instructions, a convenient package, a trustworth warranty, and perhaps even a familiar name that satisfied customers in the past. |
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| A product's ability to satisfy a customer's needs or requirements. |
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| The set of all product lines and individual products that a firm sells. |
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Set of individual products that are closely related.
Products may be related because they're produced or operate in a similar way, sold to the same target market, sold through the same types of outlets, or priced at about the same level. |
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A particular product within a product line.
Usually differentiated by brand, level of service offered, price, or some other characteristic. |
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| The use of a name, symbol, or design - or a combination of these - to identify a product. Includes use of brand names, trademarks, and pratically all other means of product identification. |
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A word, letter, or a group of words or letters for identifying a product.
Example: WD-40 |
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| A legal term. Includes those words, symbols, or marks that are legally registered for use by a single company. |
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A tangible product that a company sells. Can be seen and touched.
Example: Shoes |
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An intangible product that a company sells. Not physical.
Example: Services, like accountant or tax preparation. |
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| Same as a trademark except that it refers to a service offering. |
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| How well customers recognize and accept a company's brand. |
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| Potential customers won't buy a brand unless its image is changed. |
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| Final consumers don't recognize a brand all - even though intermediaries may use the brand name for identification and inventory control. |
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| Customers remember the brand. |
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| Target customers usually choose the brand over the other brands, perhaps becuase of habit or favorable past experience. |
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| Customers insist on a firm's branded product and are willing to search for it. |
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| The value of a brand to its current owner or to a firm that wants to buy it. |
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| Spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them. The law applies to goods shipped in interstate or foreign commerce. |
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| The same brand name for several products. |
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| A well-known brand that sellers pay a fee to use. |
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| Separate brand names for each product. |
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| Products that have no brand at all other than identification of their contents and the manufacturer or intermediary. |
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| Brands created by producers. Sometimes called national brands. |
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| Brands created by intermediaries. |
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| Same as dealer brands. Also know as private labels. |
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| Competition between dealer brands and manufacturer brands. In the US, over 20% of grocery story purchases are now dealer brands with percentages much higher in many European countries. |
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| Involves promoting, protecting, and enhancing a product. Easier to identify and promotes the brand at the point of purchase and even in use. |
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| Universal Product Code (UPC) |
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Definition
| Identifies each product with marks readable by electronic scanners. Speeds the checkout process and reduces need to mark the price on each item. |
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| Federal Fair Packaging and Labeling Act |
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Definition
| Requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information. The law also calls on industry to try to reduce the confusing number of package sizes and make labels more useful. |
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| Explains what the seller promises about its product. |
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| Magnuson-Moss Act (of 1975) |
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| Says that products must provide a clearly written warranty if they choose to offer any warranty. A warranty must be available for inspection before the purchase. Must be clear whether warranty is full or limited. |
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| Products meant for the final consumer. |
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| Products meant for use in producing other products. |
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| How are consumer products classified? |
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Definition
Based on how consumers think about and shop for products.
Classes are: convenience, shopping, specialty, and unsought. |
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| Products a consumer needs but isn't willing to spend much time or effort shopping for. These products are bought often, require little service or selling, don't cost much, and may even be bought by habit. |
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| What are the different kinds of convenience products? |
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| Staples, impulse products, or emergency products. |
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Definition
Products that are bought often, routinely, and without much thought.
Examples: breakfast cereals, canned soup, and most other pacaged foods used almost every day in almost every household. |
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| What are the marketing mix considerations for staples? |
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Definition
| Maximum exposure with widespread, low-cost distribution; mass selling by producer; usually low price; branding is important. |
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Definition
| Products that are bought quickly - as unplanned purchases - because of a strongly felt need. |
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| What are the marketing mix considerations for impulse products? |
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| Widespread distribution with display at point of purchase. |
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| Products that are purchased immediately when the need is great. |
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| What are the marketing mix considerations for emergency products? |
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Definition
| Need widespread distribution near probable point of need; price sensitivity low. |
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Definition
| Products that a customer feels are worth the time and effort to compare with competing products. |
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| Homogeneous Shopping Products |
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Definition
Shopping products the customer sees as basically the same and wants at the lowest price.
Example: computers or TVs |
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Term
| What are the marketing mix considerations for homogeneous shopping products? |
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Definition
| Need enough exposure to facilitate price comparison; price sensitivity high. |
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| Heterogeneous Shipping Products |
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Definition
Shopping products the customer sees as different and wants to inspect for quality and suitability.
Example: clothing, furniture |
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| What are the marketing mix considerations for heterogeneous shopping products? |
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Definition
| Need distribution near similar products; promotion (including personal selling) to highlight product advantages; less price sensitivity. |
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Definition
| Consumer products that the customer really wants and makes a special effort to find. It's the customers willingness to search - not the extent of searching - that makes it a specialty product. |
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| What are the marketing mix considerations for specialty products? |
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Definition
| Price sensitivity is likely to be low; limited distribution my be acceptable, but should be treated as a convenience or shopping product (in whichever category product would typically be included) to reach persons not yet sold on its specialty product status. |
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| Products that potential customers don't yet want or know they can buy. |
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| Products offering really new ideas that potential customers don't know about yet. |
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| What are the marketing mix considerations for new unsought products? |
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Definition
| Must be available in places where similar (or related) products are sought; needs attention-getting promotion. |
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| Regularly Unsought Products |
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Definition
| Products - like gravestones, life insurance, and encyclopedias - that stay unsought but not unbought forever. |
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| What are the marketing mix considerations for regularly unsought products? |
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| Requires very aggressive promotion, usually personal selling. |
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Definition
| The primary difference between consumer products market and business products market. The demand for business products derives from the demand for final consumer products. |
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Definition
| Product whose total cost is trated as a business expense in the year it's purchased. |
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| A long-lasting product that can be used and depreciated for many years. |
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| What are the different classes of business products? |
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Definition
| Installations, Accessories, Raw Materials, Components, Supplies, and Professional Services. |
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Definition
| Important capital items, such as buildings, land rights, and major equipment. |
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| What are the marketing mix considerations for Installations? |
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Definition
| Usually requires skillful personal selling by producer, including technical contacts, or understanding of applications; leasing and specialized support services may be required. |
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Definition
Short-lived capital items - tools and equipment used in production or office activities.
Example: copy machine |
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| What are the marketing mix considerations for accessory equipment? |
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Definition
| Need fairly widespread distribution and numerous contacts by experienced and sometimes technically trained personnel; price competition is often intense, but quality is important. |
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Definition
Unprocessed expense items that are moved to the next production process with little handling.
Examples: logs, iron ore, and wheat |
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| What are the marketing mix considerations for raw materials? |
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Definition
| Grading is important, and transportation and storing can be crucial because of seasonal production and/or pershable products; markets tend to be very competitive. |
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Definition
| Raw material products grown by farmers. |
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| Raw material products that occur in nature. |
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Definition
Processed expense items that become part of a finished product.
Component parts are finished (or nearly finished) items that are ready for assembly into the final product.
Component materials are items such as wire, plastic, or textiles. They have already been processed but must be processed further before becoming part of the final product. |
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| What are the marketing mix considerations for component parts and materials? |
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Definition
| Product quality and delivery reliability are usually extremely important; negotiation and technical selling typical on less-standardized items; replacement after market may require different strategies. |
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Definition
Expense items that do not become part of the finished product.
Supplies can be divided into 3 types: maintenance, repair, and operating supplies. |
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| What are the marketing mix considerations for maintenance, repair, and operating (MRO) supplies? |
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Definition
| Typically require widespread distribution or fast delivery (repair items); arrangements with appropriate intermediaries may be crucial. |
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Definition
| Specialized services that support a firm's operations. Usually expense items. |
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| What are the marketing mix considerations for professional services? |
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Definition
| Services customized to buyer's need; personal selling very important; inelastic demand often supports high prices. |
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Term
| What conditions make for favorable branding? |
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Definition
| Product is easy to label and identify by brand or trademark. Product quality is easy to maintain and the best value for the price. Dependable and widespread availability is possible. Demand is strong enough that the market price can be high enough to make the branding effort profitable. There are economies of scale. Favorable shelf locations or display space in stores will help. |
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| What are the five levels of brand familiarity? |
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Definition
| Rejection, Nonrecognition, Recognition, Preference, Insistence. |
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| What are some characteristics of a good brand name? |
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Definition
| Short and simple. Easy to spell and readd. Easy to recognize and remember. Easy to pronounce. Can be pronounced in only one way. Can be pronounced in all languages. Suggestive of product benefits. Adaptable to packaging/labeling needs. No undesireable imagery. Always timely (does not go out of date). Adaptable to any advertising medium. Legally available for use. |
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| When does it make sense to use a family brand? |
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Definition
| When products are similar in type and quality. |
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| When should an individual brand be used? |
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Definition
| When it's important for a product to have a separate identity as when products vary in quality or type. |
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| Why do intermediaries develop dealer brands? |
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Definition
| Better margins. Leverage with national brands. |
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