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50 Cards in this Set
- Front
- Back
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Three levels of product
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core benefit: what is the buyer really buying
Actual product: the name, parts, styling, features,and packaging Augmented Product: additional consumer services and benefits |
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Consumer product
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product bought by final consumer for personal consumption
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Convenience product
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Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
buying behavior: frequent purchase, little planning, little comparision or shoppign effort, low customer involvement Price: low price Distribution: widespread distribution, convenient locations Promotion: mass promotion by the producer Examples: toothpaste, magazines, laundrey detergent |
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Shopping product
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consumer good that that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style.
Buying behavior: less frequent purchase, much planning and shopping effort,comarison of brands on price,quality, style Price: Higher price Distribution: selective distribution in fewer outlets Promotion: advertising and personal selling by both producer and resellers Examples: major appliances, televisions, furniture, clothing |
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Specialty product
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Consumer product with unique characteristicsor brand identification for which a significant group of buyers is willing to make a special purchase effort.
Buying Behavior: Strong brand prefernce and loyalty, special purchase effort, little comparison of brands, low price sensitivity Price: high price Distribution: Exclusive distribution in only one or a few outlets per market area Promotion: More carefully targeted promotion by both producers and resellers Examples: luxury goods, such as Rolex watches or fine crystal |
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Unsought product
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Consumer products that the consumer either does not know about or knows about but does not normally think of buying.
Buying behavior: little product awareness, knowledge (or if aware, little or even negative interest) Price: Varies Distribution: Varies Promotion: agressive advertising and personal selling by producers and resellers Examples: life insurance, red cross blood donations |
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Brand
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A name, term, sign, symbol, or design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
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Packaging
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The activities of designing and producing the container or wrapper for a product
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Functions of Labeling
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Identifies the product or brand, describes product, helps promote product and suppor it's positioning
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The Functions of Packaging
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Attracting attention
describing the product Innovative packaging can boost sales Product safety Holding product |
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Desirable qualities for a brand name
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1) Suggest something about the product's benefits and qualities
2) Easy to pronounce, recognize, and remember 3)Distinctive 4) Extendable 5) Easily translated into other languages 6) Capable of registration and legal protection |
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Brand Equity
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The positive differential effect that knowing the brand name has on customer response to the product or service.
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Internal Marketing
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Orienting and motivating customer-contact employees and the supporting service people to work as a team to provide customer satisfaction.
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Interactive Marketing
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Training service employees in the fine art of interacting with customers to satisfy their needs.
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The steps in the New Product Development process
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Idea generation
Idea screening Concept development and testing Marketing strategy development Business analysis Product Development Test Marketing Commercialization |
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Idea development
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The first step in the new product development cycle
The systematic search for new product ideas |
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Idea Screening
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Second Step in the new product development process
Screening new product ideas in order to spot good ideas an drop poor ones as soon as possible |
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Concept devlopment and testing
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Third step in the new product development process
Includes product concept (a detailed version of the new product idea stated in meaningful consumer terms) and concept testing (testing new product concepts with a group of target customers to find out if the concepts have strong consumer appeal |
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Markeing strategy development
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Fourth step in the new product development process
Designing and initial marketing strategy for a new product based on the product concept |
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Business analysis
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5th step in the new product development process
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives. |
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Product development
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6th step in the new product development process
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product |
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Test Marketing
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7th step in the new product development process
The stage of new product development in which the product and marketing program are tested in more realistic market settings |
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Commercialization
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The 8th and final step in the new product development process
Introducing a new product to the market |
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The Stages in the Product Life Cycle
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1) Product development
2) Introduction 3) Growth 4) Maturity 5) Decline |
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Introduction Stage (product life cycle)
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Period of slow sales growth as the product is introduced in the market. Profits are nonexistant in this stage (heavy expenses of product introduction)
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Growth Stage (product life cycle)
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A period of rapid market acceptance and increasing profits
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Maturity Stage (product life cycle)
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A period of slowdown in sales growth because the product has revieved acceptance by most potential buyers. Profits level off or decline.
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Decline Stage (product life cycle)
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The period when sales fall off and profits drop.
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Why do many new products fail?
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-Company overestimates market size
-Actual product is poorly designed -Incorrectly positioned -Launched @ wrong time -Priced too high -Poorly advertised -Introduced despite poor research findings -Costs of development higher than expected -Tougher competition than expected |
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How do channel members add value?
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intermediaries create greater efficiency in making goods available to target markets. Offer contacts, experience, specialization, and scale of operation to companies.
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The key functions of marketing channels
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Information
Promotion Contact Matching Negotiation Physical distribution financing Risk Taking |
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Channel Conflict
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Disagreement among marketing channel members in goals and roles - who should do what and for what rewards
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Horizontal Conflict
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occurs among firms at the same level of the channel
Ex. Ford dealerships in different cities or Holiday Inn operators |
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Vertical Conflict
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Conflicts between different levels of the same channel
Ex. Company and reseller |
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Intensive distribution
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Stocking the product in as many outlets as possible
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Exclusive distribution
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Giving a limited number of dealers the exclusive right to distribute the company's products in their territories
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Selective distribution
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The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products
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Channel management Decisions
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Selecting channel members
Managing and motivating channel members Evaluating channel members |
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Marketing logistics
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The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
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Major Logistics Functions
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Warehousing--storing tangible goods until they can be sold
Inventory Management--how much inventory to have on hand Transportation--duh Logistics information management--sharing of information between channel partners |
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Retailing
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All activities involved in selling goods or services directly to final consumers for their personal, non-business use
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Wholesaling
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All activities involved in selling soods and services to those buying for resale or business use.
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Major store retailer types
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Specialty Stores
Department Stores Supermarkets Convenience Stores Discount Stores Off-Price Retailers Superstores |
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Specialty Stores
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Carry a narrow product line with a deep assortment
Ex. apparel stores |
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Department Stores
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Carry several product lines with each line operated as a separate department managed by specialis buyers or merchandisers
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Supermarkets
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A relatively low cost, low margin, high volume, self-service operation designed to serve the consumer's total needs for grocery and household products.
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Convenience Stores
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Relatively small stores located near residential areas, open long hours 7 days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices
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Discount Stores
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Carry standar merchandise sold at lower prices with lower margins and higher volumes
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Off-Price Retailers
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Sells merchandise bought at less than regular wholesale prices and sold at less than retail
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Superstores
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Very large stores traditionally aimed at meeting consumers' total needs for routinely purchased food and nonfood items.
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