Term
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Definition
| a product is anything that can be offered to a market to satisfy a need or want. It includes physical objects, services, persons, places, ideas and organizations |
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Term
| what are the three levels of a product? |
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Definition
1. core: the problem solving product or core benefits that consumers are really buying when they obtain a product
2. actual: the brand name, activities and processes that combine to deliver core benefits
3. augmented: additional customer benefits built around the core and actual product |
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Term
| Example of product levels: |
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Definition
UV sunscreen
core: protection from sunscreen, stop redness
actual: packaging, brand name, quality, styling, features
augmented: customer info service, satisfaction guarantee |
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Term
| what are the 4 types of consumer products |
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Definition
1. convenience
2. shopping
3. unsought goods
4 specialty |
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Term
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Definition
| frequent purchases bought with minimal buying effort and little comparison shopping. often sold at a low price, with widespread distribution such as staple, impulse, or emergency goods. |
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Term
| "advertising of convenience goods is about creating _____ _____ not _____" |
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Definition
| Advertising is about creating brand awareness, not selling. |
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Term
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Definition
| less frequent purchases requiring more shopping effort and price, quality and style comparisons. sold at higher prices than convenience goods and selectively distributed from fewer outlets. advertising and personal selling are conducted by the producer and reseller |
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Term
| "shopping goods advertisement generally combines _____ brand and ______ brand" |
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Definition
| shopping goods advertisement generally combines product brand and store brand. |
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Term
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Definition
| strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity. Often sold at higher prices from selective distributors. Promotion is carefully targeted by producers and resellers |
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Term
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Definition
| little product awareness and knowledge (or if aware, sometimes negative interest). Pricing and distribution varies. Advertising is often aggressive and conducted via personal selling by producers and resellers |
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Term
| what does the tangibility continuum tell us? |
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Definition
the tangibility continuum tells us that there are very few pure goods or services. most products contain both components
ex- tangible dominant: salt
intangible dominant: teaching |
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Term
| what are the 5 basic assumptions of services? |
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Definition
these characteristics separate services form tangible goods:
1. intangible
2. variable
3. perishable
4. synchronous delivery and consumption
5. lack of ownership
these service characteristics pose issues that are not faced by goods marketers |
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Term
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Definition
services that cannot be seen, touched or tasted. some challenges are:
providing tangible evidence
how to signal quality
how to reduce risk
how to communicate the offer |
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Term
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Definition
| quality control and standardization is difficult. Heterogeneity is the result of different people providing the same service in a slightly different way because no two people are identical, so there's difference or variability in the service |
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Term
| synchronous delivery and consumption assumption |
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Definition
services are produced and consumed at the same time, customers participate in service production. It's difficult to separate the service from the person who performs the act.
Interaction with the provider impacts on the service provision and satisfaction |
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Term
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Definition
services cannot be stored over time; providers cannot use inventory to manage fluctuations in demand and supply
services cannot be stored like physical goods; services cannot be returned after purchase |
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Term
| expanded mix for services: process |
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Definition
how a firm does things can be as important as what it does
customers are actively involved in processes, especially when acting as co-producers of service. however, operational inputs and outputs vary more widely |
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Term
| expanded mix for services: physical environment |
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Definition
design the servicescape and provide physical evidence of service performances
create and maintain physical appearances. these must be managed carefully, physical cues can have profound impact on customer impression |
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Term
| expanded mix for services: people |
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Definition
| interactions between customers and contact personnel strongly influence customer perceptions of service quality. well managed firms devote special care to selecting, training and motivating service employees. other customers can also affect one's satisfaction with a service |
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Term
| individual product decisions |
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Definition
| product attributes, branding, packaging, labeling, product support services |
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Term
| "regardless of the product (service or good), customers are seeking to buy the ______ of _______ which best _____ their _____" |
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Definition
| "regardless of the product, customers are seeking to buy the bundle of attributes which best satisfy their needs. |
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Term
| "Customers buy ____ not _____" |
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Definition
| customers buy benefits not products |
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Term
| what are the 4 product attributes? |
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Definition
1. quality: performance, durability, reliability
2. features:
3. style: the appearance of the product
4. design: attractive, safe, ease of use |
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Term
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Definition
| a name, sign, term, symbol, design or combination of these, that identifies the maker of sellers of a product or service. |
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Term
| brands have ______ on the balance sheet |
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Definition
| brands have value on the balance sheet |
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Term
| what is packaging and how does it relate to branding? |
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Definition
| packaging involves designing a container or wrapper fora product. while it also protects the product, it is a branding opportunity and a point of sale communication. the package design has practical and cost implications for production/delivery/storage |
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Term
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Definition
| identify, grade, describe and promote the product |
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Term
| what are the stages of the product life cycle? |
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Definition
1. product development stage
2. introduction
3. growth
4. maturity
5. decline |
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Term
| how do profits/sales correlate to the product life cycle? |
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Definition
| profits are negative from stages 1 to 2 while sales are steadily increasing and begin to slowly increase from growth to maturity with sales peaking in maturing and declining along with profits during the decline stage |
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Term
| PLC strategies: product development |
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Definition
| product development being when the company develops a new product idea. at this point sales, profits are negative, and investment costs are high |
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Term
| PLC strategies: introduction |
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Definition
| product introduction sees low sales, negative profits, and high costs per customer are acquired. However, there is little competition and innovators/early adopter are targeted |
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Term
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Definition
| product growth is marked with rapidly rising sales and profits. Competition grows as well and early adopters/early majority are targeted |
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Term
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Definition
| product maturity sees sales peak with high profits, but profits also begin to slowly decline. The middle/late majority are targeted during this time and competition begins to decline |
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Term
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Definition
| product decline is market by declining sales, profits, competition and low costs per customer. Laggards are the targets |
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