Reading...
Play button
Play button
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;
23 Cards in this Set
- Front
- Back
|
Types of products
|
Consumer- products purchased to satisfy personal and family needs
Business- products bought to use in an organizations operations, to resell,or to make other products. |
|
|
Classification of consumer products
|
Convenience products - Relatively inexpensive, frequently purchased items which buyers exert minimal effort.
Shopping products -Items for which buyers are willing to expend considerable effort in planning and making purchases. Specialty products - Items with unique characteristics that buyers are willing to expend considerale effort to obtain. Unsought products- Products purchased to solve a sudden problem, that consumers are unaware and not necessarily think of buying. |
|
|
Classification of business products
|
Installations- Facilities and non-portable major equipment
Accessory Equipment- Equipment used in production or office activities. Raw Materials- Basic natural materials that become part of a physical product such as eggs,grains,water,and lumber. Component Parts- Items that become part of the physical product: Computer chips, engine blocks etc Process Materials- Materials that are not readily identifiable when used directly in the production of other products such as screws,knobs, and handles MRO Supplies- Maintenance, repair,and operating items that facilitate production and do not become part of the finished product cleaners,rubberbands,staples. Business Services- Intangible products such as cleaning,legal and consulting. |
|
|
Product Line
|
A group of closely related product items viewed as a unit because of marketing,technical or end use considerations
|
|
|
Product Life Cycle
|
Introduction- Focus on product awareness
Growth- More competitors enter market, aggressive pricing, brand loyalty, Maturity- Intense Competition, Global expansion, improvements and differences, promotions. Decline- Eliminate/ reposition, cut promotion, plan for phase out |
|
|
Product adoption process
|
Awareness- the buyer becomes more aware of the product
Interest- The buyer seeks information and is receptive to learning Evaluation- The buyer considers the product's benefits and decides whether to try the product. Trial- The buyer examines,tests,or tries the product to determine if it meets needs Adoption- The buyer purchases the product and can be expected to use it again when the need for this type of product arises |
|
|
Adopter Categories
|
innovators- first adopters
Early Adopters- careful choosers Early Majority- deliberate and catious Late Majority- skeptics who only adopt when necessary Laggards- distrust new products |
|
|
Why do Products Fail
|
Products value or features didn't match the customers needs
Inneffective or inconsistent branding that didn't convey the right message or image technical or design problems poor market timing ineffective promotion insufficient distribution overestimated the market size |
|
|
Line Extensions
|
Development of a product that is closely related to existing products but is redesigned specifically to meet different needs
|
|
|
Product Modifications
|
Quality- Changes in material or production processes related to a products dependability and durability
Functional- Changes affecting a product versatility,effectiveness, convenience,or safety, usually requiring redesign Aesthetic- Changes to sensory appeal of a product such as altering taste,texture,sound,smell,or appearance. |
|
|
7 phases of product development
|
Idea Generation-Seeking Product ideas to achieve organizational objectives
Screening- Choosing the most promising ideas for further review. Concept Testing-Seeking potential buyers' responses to a product idea. Business Analysis- Assessing the potential of a product idea for the firm's sales, costs, and profits. Product Development- Determining if a product is feasible and cost effective. Test Marketing - Introducing a product on a limited basis to measure the extent to which potential customers will actually buy it. Commercialization- Deciding on a full scale manufacturing and marketing plans and preparing budgets. |
|
|
Product Deletion
|
Phase Out - allows a product to decline without change in the marketing strategy: no attempt is made to give the product new life.
Run-Out- exploits any strengths left in the product. Eliminates marketing expenditures. Immediate Drop- unprofitable product , the best strategy when losses are too great to prolong the products life. |
|
|
Brand
|
A name, term,design,symbol or other features that identifies a seller's products and differentiates them from competitors' products
|
|
|
Brand Loyalty
|
Recognition- aware brand exists and is alternative if preferred brand is unavailable-least level of loyalty
Preference-preferred over competitive offerings-Preferred #1 Insistence- strongly preferred,no subsitute. |
|
|
Types of Brands
|
Manufacture- Initiated by producer - COKE
Private distributor- Store brands aka Private selection, Americas Choice, Kirkland Are intiated and owned by resellers Generic- Indicate on the product category and do not include the company name or other identifying terms |
|
|
Branding Policies
|
Individual - Each product is given a different name GMC,Pontiac,Buick
Family- All of a firms products with the same name or part of the name - Common Themes Extension- New Product different catergory |
|
|
Co-Branding
|
Use 2 or more brands on one product, Marketers use co branding to capitalize on the brand equity of multiple brands breyers Hershey kisses ice cream
|
|
|
Packaging Functions
|
1.Protect product and maintain functional form
2. Offer convenience 3. Promote product 4. Communicate quality or premium nature of product. |
|
|
Packaging Considerations
|
1. Cost -
2. Tamper resistant 3. Promotional role-color which effects mood 4.Design Consistency 5. needs of resellers 6. Environmentally responsible |
|
|
Types of Advertising
|
Institutional- Advertising that promotes organizational images,ideas,and political issues
Product Advertising- Promotes the uses,features, and benefits of products Pioneer Advertising- Tries to stimulate demand for a product category rather than a specific brand. Competitive- points out a brands special features,uses,and advantages relative to competing brands . Comparative- Compares 2 or more brands on the basis of product characteristics. Reminder- Reminds customers of an established brand's characteristics and benefits Reinforcement-Assures current users they have made the right choice and how to get the most satisfaction from the brand. |
|
|
Communication Process
|
Source-A person,group,or organization with a meaning it tries to share with a receiver or an audience.
Reciever- the individual,group,or organization that decodes a codes message. Coding process-Converting meaning into a series of signs or symbols Communication channel - The medium of transmission that carries the coded message from the source to the receiver. decoding process- Converting signs and symbols into concepts and ideas. Noise- Anything that reduces a communications clarity and accuracy Feedback- The receivers response to a decoded message Source>Coded Message>Communication Channel>Decoded Message>Receiver ------Noise-------- |
|
|
Objectives of Promotion
|
Stimulate Demand- Primary- demand for a product catergory, Selective- demand for a specific brand.
Create Awareness- Increase awareness of brand, product features, image related issues, or operational characteristics. Encourage Product Trial- Free Samples,Coupons, Contests, Games etc Identify Prospects- Direct response form, Toll Free # Follow Up. Retain Loyal Customers- Cheaper than aquiring new ones, Special offers Facilitate Reseller Support- Maintain relationship, Share promo expense, Special offers/buying allowances. Combat Competitive Promo Efforts- Not about increasing sales or market share prevents lossof sales and market share Used in extremely competitive markets Reduce Sales Fluctuations- Minimize seasonal variations ,Become more efficient |
|
|
4 elements of Promotional Mix
|
Advertising- a paid non personal communication about and organization and its products transmitted to a target audience through mass media
Personal Selling- A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Public Relations- Broad set of communication efforts used to create/maintain favorable relationships between organization and stakeholders. Sales Promotion- An activity or material that acts as a direct inducement. Incentives free samples,games,rebates,premiums,coupons |
