[marketing] product quiz

Product

Anything offered to a market to satisfy a want or need; can be tangible goods, services, or a combination of both.

Service

Intangible products that involve activities that do not result in ownership, provided by one entity/person to another.

Characteristics of Service

1. Intangibility – Cannot be seen, touched, or owned.

2. Perishability – Cannot be stored or inventoried for later use.

3. Variability – Quality of service varies depending on provider.

4. Inseparability – The customer must be present for service delivery.

Three Drivers of How Customers Attach Value to a Product

1. Need – A lack of a basic requirement.

2. Want – A specific requirement of a product to satisfy a need.

3. Demand – A set of wants plus the desire and ability to pay for the product.

• Customers choose a product based on their perceived value.

• Satisfaction occurs when the actual value meets or exceeds perceived value.

Kotler’s 5 Levels of Product

1. Core Benefit

2. Generic Product

3. Expected Product

4. Augmented Product

5. Potential Product

Core Benefit

The primary reason a customer purchases a product, addressing their most basic requirement or problem.

Generic Product

The basic version of a product with essential features.

Expected Product

Features that customers expect when purchasing a product.

Augmented Product

Extra features that differentiate it from competitors.

Potential Product

Future improvements or innovations to a product.

3 Product Decision Levels

1. Individual Product Decisions

2. Product Line Decisions – group of closely related products (e.g., different car models for different lifestyles).

3. Product Mix Decisions – The total range of products a company offers.

What should marketers decide on under Individual Product Decisions?

• Product Attributes: Quality, unique features, style (appearance), design (look & use)

• Branding: identity of the product, influencing pricing, customer loyalty, and perceived quality. (e.g., Nike's branding conveys performance and style.)

• Packaging: first impression of the product, protecting it and communicating brand message. (e.g., Apple’s minimalist packaging suggests premium quality.)

• Labeling: essential product information. (e.g., A cereal box with ingredients and calorie count.)

• Product Support Services: After-sales service to ensure customer satisfaction. (e.g. apple care)

Product Development Stages

1. Idea Generation: Identifying customer needs and wants by addressing them

2. Idea Screening: reducing idea, choosing best one

3. Concept Development & Testing: pursuing product after if viable

4. Marketing Strategy Development: to introduce product to market

5. Business Analysis: evaluation of attractiveness based on data

6. Product Development: transforming concept to product

7. Test Marketing: after concept & product test are successful

8. Commercialization: introduce product to market

Product Life Cycle

Introduction

Growth

Maturity

Decline

Introduction Stage

The phase in the product life cycle characterized by low sales and minimal competition.

Growth Stage

The phase where the product becomes more recognizable and popular, with increased demand and sales.

Maturity Stage

The phase of highest profitability and peak competition in the product life cycle.

Decline Stage

The phase of decreasing sales and emergence of new alternatives, potentially leading to product discontinuation.