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11 Cards in this Set
- Front
- Back
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there is Three levels of the product:
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1. Core product – core benefit or service
2. Actual product – packaging, brand name, quality, features, styling 3. Augmented product – Installation, delivery, after sale service, warranty (Each level adds value to the product and differentiates it from other products.) |
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What makes services special? (4 factors)
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Service intangibility – they cannot be seen, tasted, felt, heard or smelt in advance.
Service perishability – they cannot be stored for later sale or use. Service inseparability – they are consumed and produced at the same time and they cannot be separated from their providers. Service variability – their quality may vary greatly depending on who provides them and when, where and how. |
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What is Branding?
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A brand is a name, term, sign, symbol, or design, or a combination of these that identifies the goods
or services of one seller or group of sellers and differentiates them from those of competitors. |
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Why develop brands? (2 reasons)
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Supplier benefits
*Supports premium pricing *Differentiate from competitors *Enhances loyalty Consumer benefits *Assists easy identification of products *Reduces perceived risk *Enhances quality of purchase experience *Reduces complexity and time of *purchasing decision Building brands takes time….just look at JIBS-Phille! Continuity is the key to uphold a brand! |
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How to secure continuity (4 factors):
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Brand guide lines and philosophy
Centralized control unit which control home page, give-aways etc. Centrally contacted media/ad agencies Rules and routines for approval of campaigns and ads. |
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What is Brand equity?
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– “The extent to which customers are willing to pay more for the brand”
Ex. of high-equity brands: GE, Google, Facebook, Coca-Cola etc. |
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Product-line stretching decisions (3s):
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Downward stretch = New products lower quality and lower price
Upward stretch = New products higher quality and higher price Two-way stretch = Both ways |
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What means New-product development?
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- the development of original products, product improvements, product
modifications and new brands through the firm’s own R&D efforts |
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What are the 9 Steps in new product development?
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1. New product strategy
2. Idea generation* 3. Idea screening 4. Concept development and testing 5. Marketing strategy 6. Business analysis 7. Product development 8. Test marketing 9. Commercialization |
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What is included in *Idea generation:
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*Internal sources *External sources
Formal research Customers Executives Competitors Designers Distributors, suppliers, others Manufacturers Salespeople |
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Why do new products fail? (6 factors)
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-Overestimation of market size
-Poorly designed product -Overpriced -Poor promotion -Wrong distribution channel -Does not apply to the wants of the consumers |
