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;
21 Cards in this Set
- Front
- Back
|
Define product. |
Anything that can be offered to a market to satisfy a want or a need.
|
|
|
What are the 5 product levels? |
Core benefit: what is the actual service (phone= communication, hotel = sleep) Basic Product Expected Product Augmented Product: exceeding expectations Potential Product: all possible improvements in the future |
|
|
A product is classified based on its... |
Durability Tangibility Use |
|
|
Differentiate between non durable goods, durable goods, and services. |
Non durable are used up quickly (soap, toothpaste). Charge small markup, induce trial, advertise heavily, build preference, keep shelves stocked.
Durable last a while (clothes, appliances). Require personal selling, guarantees, can charge high markup.
Services are intangible (hair, nails) |
|
|
Consumer goods are classified based on... |
Convenience Shopping Specialty Unsought |
|
|
Describe convenience goods. |
Bought frequently, effortlessly, and immediately.
Can be staples, impulse, or emergency. (Ketchup, candy, or umbrella).
|
|
|
Describe shopping goods. |
Based on suitability, price, quality, style. Example clothes or appliances. Can be homogenous (product is exact same but price is different) or heterogenous (prices are different but worth it because quality/features differ too) |
|
|
Describe specialty goods. |
Fancy cars Don't need convenient locations because you will go out of your way to get it. |
|
|
Describe unsought goods. |
Consumers don't know they should or want to get these.
Tombstones, fire alarms.
Require lots of personal selling and support. |
|
|
Define design. |
The totality of features that affect how a product looks, feels, and functions to a consumer.
Offers functional and aesthetic benefits to appeal to our rational and emotional side. |
|
|
What are the 3 types of line stretching ? |
Up market stretch Down market stretch Two way stretch |
|
|
What is line stretching? |
When a company stretches its current product line into additional markets. |
|
|
How and why would you down market stretch? |
With parent name With sub brand name With new brand name
To attract consumers looking for value pricing (WalMart successful) To retaliate at an attacker by locking in their lower market If middle market is stagnating or declining |
|
|
What is co branding? |
2+ well known brands combine into joint product or market together in some fashion
Ex. Tim's and Wendy's sharing same location
Works better if products are unique rather than similar/redundant |
|
|
What is ingredient branding? |
Special form of co branding
Creates brand equity for the components included within the branded product that is not necessarily found in others.
Ex. Goretex water resistant fibres |
|
|
Definition of the 5th P? |
Packaging: Activity of designing and producing the container of a product |
|
|
Which factors contribute to the emphasis on packaging? |
Self service: product must attract, describe, give confidence, create favorable impression so consumer picks it off the shelf
Consumer affluence: people are willing to pay more for convenience, dependability, prestige, and appearance of better packages
Company/brand image: contributes to instant recognition of brand
Innovation opportunity: new ideas (like resealable spouts) can bring big benefits and profits |
|
|
What are the 5 objectives of packaging? |
Identify the brand Convey descriptive/persuasive information Facilitate product transportation and protection Assist at home storage Aid product consumption |
|
|
What are the 4 functions of labels? |
Identify Grade Describe Promote |
|
|
Define warranties. |
Formal statements of expected product performance by the manufacturer. |
|
|
Define guarantees. |
Reduce perceived risk
Suggest high quality and dependable performance |
