Product Strategy and Marketing Lecture (Knowt made them)

Flashcards covering product definitions, levels of product, assortment characteristics, packaging functions, the product life-cycle, and branding strategies based on lecture notes.

Product

Anything that can be offered on the market to meet the needs or desires of consumers, including physical goods, services, ideas, persons, or places.

Product features vs. benefits

Features are the technical characteristics of a product (e.g., A19 Pro processor), while benefits are the value or satisfaction the customer gains (e.g., faster performance).

Three levels of the product (Th. Levitt)

A product structure proposed in the 1980s consisting of the core benefit, the basic product, and the augmented product.

Five product levels (Ph. Kotler)

A model consisting of the core benefit, basic product, expected product, augmented product, and potential product.

Core benefit

The fundamental service or benefit that the customer is really buying (e.g., connectivity for a mobile phone).

Expected product

The minimum standards consumers anticipate, such as a mobile phone having a camera, GPS, and text messaging capabilities.

Potential product

All the transformations and augmentations a product might undergo in the future, such as holographic displays on phones.

Product Assortment Width (Breadth)

The number of different product lines a company produces or a retailer carries.

Product Assortment Length

The number of products within a specific product line.

Product Assortment Depth

The different versions or variants of the same product that exist in each product line (e.g., croissant with chocolate vs. pistachio).

Packaging functions

The key roles of packaging include protection, providing information, differentiation, advertising, and facilitating sale organization and consumption.

Intelligent packaging

Packaging that protects a product while also monitoring its condition, communicating with consumers, or supporting logistics via temperature or freshness indicators.

Vaccine Vial Monitor (VVM)

A time-temperature indicator used on vaccine vials to show if the product is usable based on the color change of an inner square compared to an outer circle.

Convenience products

Consumer products categorized into staples, impulse goods, and emergency goods based on shopping habits.

Product Life-Cycle (PLC) Stages

The standard progression of a product through introduction, growth, maturity, and decline.

Fashion products

Products characterized by a very rapid rate of adoption in the market, with maturity and decline varying by the specific trend.

Fad products

Products with a very short life cycle, characterized by rapid adoption, a very short maturity phase, and an equally rapid decline.

Innovators

The first $2.5\%$ of consumers to adopt a new product, described as tech enthusiasts.

Early Adopters

The second group to accept a new product, representing $13.5\%$ of the market, often described as visionaries.

Laggards

The final group of consumers to adopt a new product, representing $16\%$ of the market (skeptics).

BCG growth-share matrix

A framework for strategic market planning used to balance a portfolio by analyzing market growth rate and relative market share.

Manufacturer brand

A branding strategy where the producer of the product owns the brand name.

Retailer/Store brand

A branding strategy where the retailer or store owns the brand rather than the manufacturer.

Family brands

A strategy where one name is used to brand all of a company's product lines and products.

Individual brands

A strategy where different names are used for each of a company's products (e.g., Nestlé using KitKat, Purina, and Gerber).

Umbrella brands (Joined brands)

A combination of a family brand and an individual brand name (e.g., Nestlé Aero).

Brand extension

Using an existing brand name to enter a new product category.

Brand dilution

A negative consequence of brand extension where the original brand's reputation is weakened (e.g., Colgate Beef Lasagna).