MKM 433 - Product Management Flashcards

Vocabulary flashcards covering fundamentals of product and brand, key components, classifications, product mix dimensions, line stretching strategies, and value creation systems from the MKM 433 Product Management course.

Product

A tangible (good) or intangible (service) offering designed to satisfy human needs, wants, and demands, representing a total value proposition evaluated through product features, quality services, and price.

Brand

A distinctive name, term, sign, symbol, or design intended to identify and differentiate a seller's goods or services from competitors, establishing a unique market identity.

Brand Marketing

Strategies and actions, such as advertising, PR, and content marketing, aimed at creating a unique brand identity, values, and perceptions to foster emotional connections, loyalty, and market share.

Special Features

Unique capabilities or attributes that add user value to a product.

Physical Attributes

Tangible characteristics of a product, including size, shape, color, materials, and overall design.

Brand & Brand Image

The identifier (name or logo) and the public perception or reputation formed through customer interactions.

Guarantee / Warranty

Formal commitments by sellers to repair or replace failing products.

Psychological Benefits

Intangible emotional advantages provided to users, such as status or peace of mind.

After-Sales Service

Post-purchase support, maintenance, and technical assistance provided for a product.

Consumer Goods

Products purchased directly by end-users for personal consumption.

Industrial Goods

Products purchased by businesses to assist in production or operational processes.

Convenience Products

Frequently bought items purchased with minimal effort and time, requiring intensive distribution.

Shopping Products

Higher price point items where consumers compare variants across price, quality, and style before purchasing.

Specialty Products

Unique high-end items with strong brand identification and no direct substitutes, for which buyers exert extra purchasing effort.

Product Mix Width

The total number of distinct product lines offered by a company, such as a company selling Cereal, Snacks, and Beverages having a width of 3.

Product Mix Length

The total count of individual products across all lines combined, such as 3 lines with 4 items each resulting in a total length of 12.

Product Mix Depth

The number of item variations, such as flavors, sizes, or colors, offered within a single product line.

Product Mix Consistency

How closely related product lines are in usage, distribution, or target market, such as high consistency in food products versus low consistency in general retail.

Upward Stretch

A product line strategy of adding premium or higher-end items to reach affluent market segments.

Downward Stretch

A product line strategy of introducing simplified or cheaper items for budget-conscious buyers.

Two-Way Stretch

A product line strategy of simultaneously expanding into both high-end and budget-tier markets.

Customer Derived Value

The net value obtained by a customer, expressed as $\text{Net Value} = \text{Total Customer Value} - \text{Total Customer Cost}$, where total cost includes monetary price, time, energy, and psychological costs.

4-Step Value Process

A value creation process developed by Moore & Pessemier following the sequence: $\text{Opportunity Identified} \rightarrow \text{Opportunity Developed} \rightarrow \text{Value Produced} \rightarrow \text{Value Retained / Added}$.

Value Chain Business System

A business framework structured as $\text{Suppliers} \rightarrow \text{Operations} \rightarrow \text{Sales, Distribution, and Promotion} \rightarrow \text{Services}$, directly supported by continuous New Product Development.