Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
47 Cards in this Set
- Front
- Back
|
Marketing Mix |
The 4 P's of Marketing Product Price Promotion Place |
|
|
Product |
- Should meet customers needs and wants e.g., asbbank.co.nz, facebook.com, trademe.co.nz - Provide value Good: A physical tangible offering Service: Intangible offering that does not involve ownership Idea: Concept, issue, or philosophy |
|
|
3 Levels of a Product |
Core Actual Product Augmented Product |
|
|
Core |
Myopic - firms that don't know the core of their business risk being myopic |
|
|
Actual Product |
The physical product that delivers the core product. Packaging (helps to facilitate ease of communication) Features: - brand name (promise to people, in terms of the quality) - quality level (ability to perform, its function overtime -design (blend of form and function, attractive, yet easy) |
|
|
Augmented Product |
What is happening afterwards Installation: providing installation for customers, or instructions on how to install it. A contact number. Warrantee After sale service |
|
|
Product Mix |
the set of all products offered for sale |
|
|
Product Line |
a group of products intended for essentially similar uses |
|
|
Existing product expansion |
Line extensions - new products that are closely related to existing products in a product line Product modifications - changes to the characteristics of a product that results in a product that supersedes the original. The main types of product modification relate to > functionality > quality > aesthetics |
|
|
1. Consumer Product Classifications |
- Convenience Products > Willing to spend only minimal time and effort e.g., inexpensive, frequently purchased products. Widely available, self service -- milk, bread, rice |
|
|
2. Consumer Product Classifications |
- Shopping Products > Wishing to compare a few alternatives on a few criteria e.g., appliances, furniture, cameras, clothing |
|
|
3. Consumer Product Classifications |
- Specialty Products > Willing to make a special effort if needed, possess one or more unique characteristic e.g., Mac Laptop, original artwork |
|
|
4. Consumer Product Classification |
- Unsought Products > Unaware of needing the product, sudden problem e.g., mechanic, health insurance |
|
|
Product Life Cycle Stage 1 |
Introduction - usually a single company only produces the product - the goal is to get first time consumers to try the product - if the product is successful, competitors will follow |
|
|
Product Life Cycle Stage 2 |
Growth - the goal is to encourage repeat purchase and to build brand loyalty - more product variations are introduced to target more market segments - price competition may develop |
|
|
Product Life Cycle Stage 3 |
Maturity - usually the longest stage - companies will try and sell the product through as many outlets as possible - promotion is targeted at reminding customers and reinforcing brand loyalty |
|
|
Product Life Cycle Stage 4 |
Decline - competitors start to withdraw - less product variations exist - a few companies may remain quite profitable |
|
|
Extending the PLC |
- Market Modifications > current customers consume more (market penetration) > find new domestic customers (market development) > find new foreign customers - Product modification - Feature modifications - Style modifications - Mix modifications |
|
|
Developing New Products |
A continuous process of looking for ways to make the existing product range better New product development is becoming increasingly important to companies due to: - increasing competition in a global marketplace - rapid changes in technology - changing consumer lifestyles and values |
|
|
Phases in new development : 1 |
Idea Generation : Identify products that will provide important customer benefits compatible with the company mission |
|
|
Phases in new development : 2 |
Product concept development and screening : Expand product ideas into more complete product concepts and estimate the potential commercial success of product concepts |
|
|
Phases in new development : 3 |
Marketing strategy development : Develop preliminary plane for target markets, pricing, distribution and promotion |
|
|
Phases in new development : 4 |
Business Analysis : Estimate potential for profit. Figure out what the potential demand is, what expenditures will be required, and what the cost is of marketing product |
|
|
Phases in new development : 5 |
Technical Development : Design the product and the manufacturing and production process |
|
|
Phases in new development : 6 |
Test Marketing : Develop evidence of potential success in the real market |
|
|
Phases in new development : 7 |
Commercialisation : Implement full-scale marketing plan |
|
|
Product Adoption Process |
The sequential of process of awareness, interest, evaluation, trial an adoption through which a consumer decides to purchase a new innovative product. AIETA Awareness Interest Evaluation Trial Adoption |
|
|
Diffusion of innovations |
The theory that social groups influence the decisions made by individuals in such a way that innovations are adopted by the market in a predictable pattern over time |
|
|
Factors Affecting The Rate : 1 |
Relative advantage - the degree to which a new product provides superior benefits |
|
|
Factors Affecting The Rate : 2 |
Complexity - whenever the product is difficult to use or understand |
|
|
Factors Affecting The Rate : 3 |
Compatibility - the extent to which a new product is consistent with existing practices |
|
|
Factors Affecting The Rate : 4 |
Trialability - the ease of using a new product and experiencing its benefits |
|
|
Factors Affecting The Rate : 5 |
Observability - how visible the product is to other consumers |
|
|
Product Differentiation |
The creation of products and product attributes that distinguish one product from another Characteristics that customers may perceive to be differentiators include design, brand, image, style, quality, features and price |
|
|
Brand |
A collection of symbols such as a name, logo, slogan and design intended to create an image in the customer's mind that differentiates a product from competitors' products |
|
|
Brand Image |
The set of beliefs that a consumer has regarding a particular brand |
|
|
Brand Name |
Part of a brand that can be spoken, including words, letters and numbers |
|
|
Brand Mark |
The part of a brand not made up of words - it often consists of symbols or designs |
|
|
Trade Mark |
A brand name or brand mark that has been legally registered so as to secure exclusive use of the brand |
|
|
The importance of branding |
Brand equity = the value of the brand to an organisation Strong brands build an emotional connection with the consumer Strong brand equity creates customer loyalty, communicates quality, helps establish clear positioning, and allows for premium prices |
|
|
What makes a successful brand... |
It excels at delivering the benefits to customers that they truly desire It stays relevant It is consistent It is properly positioned It has a logical brand portfolio |
|
|
Individual Branding |
A branding approach in which each product is branded separately |
|
|
Family Branding |
A branding approach that uses the same brand for several of the organisation's products |
|
|
Manufacturer Brands |
Brands owned by producers and clearly identified with the product at the point of sale |
|
|
Private label brands |
Brands owned by resellers, such as wholesalers or retailers, and not identified with the manufacturer |
|
|
Generic Brands |
Products that only indicate the product category |
|
|
Packaging |
Designed to attract the consumer's attention Helps quickly communicate the product benefits Provides easy brand recognition Designed to physically protect the product May provide additional benefits May help augment the product with information, recipes, warranties |
