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66 Cards in this Set

  • Front
  • Back
Good
A tangible product we can see, touch, smell, hear, or taste
Attributes
features, functions, benefits, and uses of a product.
How do Marketers view products?
as a bundle of attributes that includes packaging, brand name, benefits, and supporting features in addition to a physical good.
Intangibles
Experience Based Products (services) which you can feel, touch, taste etc.
Core Product
All the Benefits the product will provide for consumers
eg. Coca Cola - Thirst quenching, great taste, pick-me-up,
Actual Product
The physical good (or service) that supplies the benefit, , Includes Packaging


eg. Coca Cola - Colouring, Carbonated Water, Sugar, Caffeine, Beautiful Bottle
Augmented Product
Other support features (+ actual product +benefits)

eg. Toll Free Number, Warranty, Credit, Delivery, Shopping Bag
Apple
- regarding market research
- regarding augmented product
- doesn't do market research because it isn't the consumer's job to know what they want
- itunes = revolutionized music for ipods
What is included in a product?
Everything the consumer received in the exchange
Customer Experience
target customer's perception and interpretation of all the touchpoints with the company

eg. the sales associate, store environment, website, call center, delivery all affect the consumer's perception of the company
Intangibility
Characteristic of the good that the customer can't see, touch, or smell (can't inspect or feel it before you buy it)
How do you persuade a customer to buy an intangible good?
Have physical cues to reassure the buyer.
eg. look of facility, furnishings, logo, business cards, websites, advertisments
Perishability
Characteristic of a service that makes it impossible to sore the service for a later sale or consumption

eg. this is why airlines offer discounts before the flight, why cruise ships offer big discounts for EE
Capacity Management
Organizations adjust services to match supply with demand
Variability
Characteristic of a service in that there is always slight (or large) variation
Inseparability
It's impossible to separate the service production and the service consumption
Service Encounter
Actual Interaction between customer and service provider
What are the dimensions of the Service Encounter?
Social contact Dimension - one person interacting with another person
Physical contact dimension - where the person receives the service
Distermediation
Customers obtain an outcome without a human provider (which is now easier thanks o the internet)
eg. Self-Checkout at grocery, Bank ATM, Online Brokerage companies (GEICO)
How do we categorize services from products?
Goods- Dominated Products ( eg. warranty, phone number)
Equipment or Facility Based Services (eg. hospitals, Gyms)
People Based Serices (eg. haircut)
Core Services
Basic Benefit of having the service performed
Service Scape
Actual physical facility where the service is performed, delivered and consumed
Augmented Services
Core service plus additional services provided to enhance value
Search Engine Optimization
A systematic process of ensuring that your firm comes up at or near the top of the lists of search phrases related to your business
Search Qualities
Product attributes (eg. smell, colour, texture) that the consumers can examine before purchase
Experience Qualities
Product characteristics that consumers can determine during or after consumption (eg. a vacation)
Credence qualities
Product characteristics that are difficult to evaluate even after they have been experienced (After a doctor diagnosis you still don't know)
SERVQUAL
multiple-item scale (tangibles, reliability, responsiveness, assurance, empathy) used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy
Gap analysis
Marketing research method that measures difference between customer's expectations of a service quality and what actually occured
What are five major gaps that arise from gap analysis?
+ b/t consumer and management (eg. When Operations oriented.... banks used to close early because it was convenient but consumers need it to open longer)
+ b/t management and quality standards( when no quality control method in place)
+ b/t quality standards and service delivery (employees provide poor service)
+ b/t service quality and consumer expectaions (when firm makes impossible promises)
+ b/t expected service and actual service (eg. fine dining customers- not the employee's fault)
Critical incident technique
We need to rethink our traditional differentiation between products and services. Instead, recognize that a service is core to every exchange and physical products and minor in terms to contribution to the value. [it's not products and services. it's SERVICE and a little product (mostly b/c of the perception of the product)]
new dominant logic for marketing
Company uses customer complaints to identify critical incidents that lead to problems
What are ways we can classify products?
by how long they last, by shopping behaviour, by target market
Durable goods
consumer products that provide benefits over a period of time, such as cars, furniture, and appliances.
Nondurable products
consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers).
Convenience Products
usually low priced, widely available, and purchased frequently with a minimum of comparison and effort
-> Many distribution points
eg. gum, movies
Shopping products
consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase.
-> Few distribution points
eg. fridge, car, phone
Specialty products
usually have unique characteristics and are important to the buyer and for which the buyer will devote significant effort to acquire
> Minimal distribution points
eg. wedding ring, roomba, rolex watch
Unsought products
consumers have little awareness or interest until the need arises
eg. life insurance, gravestone
What are 3 types of B2B customers?
Producers
Resellers
Organizations
Staple products
Basic or necessary items available almost everywhere
eg. Bread, milk, gasoline

-make sure at a comparable price and quality
Impulse products
Products people buy on the spur of the moment
eg. Magazines, things at the POS place

- make sure product is highly visible
Emergency products
Purchased in a dire need eg. Umbrella, bandages, plungers
intelligent agents
computer program that finds sites selling a particular product eg. shopbot

-if you don't want to compete on price, don't give shopbots your listing
Equipment (difference between heavy and light?)
expensive goods that an organization uses in its daily operations that lasts a long time

heavy - very expensive installation, lasts a long time eg. building, Robotic Equipment
light - portable, cost less, shorter life span
eg. computers, photocopy, water fountain
Maintenance, repair, and operating (MRO) products
- give examples of Maintenance, repair, and operating
goods that a business customer consumes in a short time

M = light bulbs, mops, tissues
R = nuts, bolts,
O = computer paper, oil
Raw Materials
Products of fishing, lumber, agricultural, and mining industries that Businesses purchase in order to use in their finished product
Processed Materials
Products created when firms transform raw materials from original state

eg. 4 by 2 wood
component parts
manufactured goods of finished items that organizations need to complete their own product

eg. computer manufacturer needs silicon chips
Innovation Premium
Measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results (new products, services and markets)
Innovation
why do companies need to innovate?
a product that consumers perceive to be new and different from existing products

- to remain competitive
How are innovations classified?
by amount of learning or behavioural change required by consumers
Discontinuous Innovations
Totally new product that majorly changes in the way we live
eg. Inventions of the telephone, the car, the Internet complete changed the ways we do things
Dynamically continuous Innovations
A change in an existing product that Requires a moderate amount of learning or behaviour change

eg. before used record players > Cassette > CD player > ipods
Continuous Innovations
Modification on an existing product that sets on brand apart from its competitors
where consumer don't need to learn anything to adopt it

eg. Crocs - Comfy clog shoes with holes punched in it
eg. flat screen monitors - already know how to use monitor
Knockoff
Product that copies, with slight modification, the design of an original product
New Product Development
- list the phases
Phases in which Firms develop new products

1. Idea Generation
2. Product concept development and screening
3. Marketing strategy development
4. Business Analysis
5. Technical Development
6. Test marketing
7. Commercialization
Idea Generation
Step 1 of product development
where marketers brainstorm for products that provide customer benefits and are compatible with company mission
Product concept development and Screening
Step 2 of product development
where marketers test product ideas for success
Marketing Strategy Development
Step 3 of Product Development
Where marketers think about the 4 P's and their product
Business analysis
Step 4 of product development
marketers assess a product's commercial viability (how profitable it is)
= analysis of the cost and demand
Technical development
Step 5 of product Development
where the company engineers create and refine a new product
Prototypes
Test versions of a proposed product
Patent
Legally prevents competitors from producing or selling the invention aimed at reducing or eliminating competiton for a period of time
Test Marketing
Step 5 of Product Development
Testing the complete marketing plan in a small geographic area that is similar to the larger market
- can be costly but save money in the long run
Commercialization
final step of product development
- new products gets launched into the market needing full scale commercialization