Marketing Ch 7
Terms
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- Product
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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
(broadly: physical objects, services, events, persons, places, org's, ideas) - Service
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Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
(Ex: banking, hotel, airline, retail, tax preparation, home repair) - Consumer product
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Products & services bought by final consumers for personal consumption.
(Include convenience products, shopping products, specialty products, and unsought products) - Convenience product
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Consumer products & services that the customer usually buys frequently, immediately, and with a min of comparison and buying effort.
(Ex: soap, candy, newspaper, fast food) - Shopping products
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Less frequently purchased consumer products & services that customers compare carefully on suitability, quality, price, and style.
(Ex: furniture, clothing, used cars, major appliances, hotel & airline services) - Specialty products
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Consumer products & services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
(Ex: designer clothes, medical & legal specialists, specific brands & types of cars) - Unsought product
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Consumer products that the consumer either does not know about or knows about but does not normally think of buying.
(Ex: life insurance, preplanned funeral services, blood donations) - Industrial product
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Products bought by individuals and organizations for further processing or for use in conducting a business.
(Distinction btw consumer & industrial product - purpose for which product is bought) - Social marketing
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The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.
(Programs include public health campaigns, environmental campaigns) - Product quality
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The ability of a product to perform its functions; it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes.
(marketer's major positioning tools) - Brand
- A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
- Packaging
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The activities of designing and producing the conatiner or wrapper for a product.
(Can include primary container, secondary package, shipping package, and labeling) - Product line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
(major product line decision involves product line length) -
Product mix
(or product portfolio) -
The set of all product lines and items that a particular seller offers for sale.
(Ex: Avon- beauty, wellness, jewelry, gifts) - Brand equity
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The positive differential effect that knowing the brand name has on customer response to the product or service.
(the extent to which customers are willing to pay more for a brand) -
Private brand
(or store brand) - A brand created and owned by a reseller of a product or service.
- Cobranding
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The practice of using the established brand names of two different companies on the same product.
(Ex: Bravo! Foods cobranded with MasterFoods to creat Starburst Slammers, Milky Way Slammers -- the Ford Explorer, Eddie Bauer Edition) - Line extension
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When a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingrediants, or package sizes.
(Ex: Yoplait introduced new yogurt flavors, low-carb yogurt, yogurt with cholesterol reducers) - Service inseparability
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Services cannot be separated from their providers, whether the providers are people or machines.
(both provider and the customer affect the service outcome) - Brand extension
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Using a successful brand name to launce a new or modified product in a new category.
(Ex: Kimberly-Clark extended its huggies brand to a whole line of toiletries for tots) - Service intangility
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Services that cannot be seen, tasted, felt, heard, or smelled before they are bought.
(Ex: people undergoing plastic surgery can't see results before the purchase) - Service variability
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The quality of services may vary greatly, depending on who provides them and when, where, and how.
(Ex: Marriot has good service yet a specific Marriot desk employee may be unpleasant and slow) - Service perishability
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Services cannot be stored for later sale or use.
(Ex: Doctor charging patients for missed appt's because the service value existed only at that point) - Service-profit chain
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The chain that links service firm profits with employee and customer satisfaction. Focus attention to BOTH their customers & employees.
(5 links: internal service quality, satisfied & productive service employees, greater service value, and healthy service profits & growth) - Internal marketing
- Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
- Interactive marketing
- Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction.