mark 3

Core customer value

The basic problem-solving benefits that consumers are seeking.

Actual product

When marketers convert core customer value into a product.

Associated services/augmented product

Nonphysical aspects of the product such as product warranties, financing, product support, and after-sale service.

Consumer products

Products and services used by people for their personal use.

Specialty products/services

Products/services for which customers express strong preferences and will expend considerable effort to search for the best suppliers.

Shopping products/services

Products/services for which consumers spend time comparing alternatives.

Convenience products/services

Products/services for which the consumer is not willing to spend any effort to evaluate before the purchase.

Unsought products/services

Products/services that consumers do not normally think of buying or do not know about.

Product mix

Complete set of all products and services offered by a firm.

Product lines

Groups of associated items that consumers tend to use together.

Cannibalize

When sales of one product take away sales from another similar product without increasing net sales or market share.

Brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for.

Brand loyalty

Occurs when a consumer buys the same brand’s product or service repeatedly over time.

Brand equity

Set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

Family brands

When multiple products are sold under one brand name.

Individual brands

Products that have individual identities and are not linked to the corporate name.

Brand extension

Use of the same brand name in a different product line.

Line extension

Use of the same brand name within the same product line.

Co-branding

Practice of marketing two or more brands together on the same package, promotion, or store.

Brand licensing

Contractual arrangement where one firm allows another to use its brand name, logo, or symbols in exchange for a fee.

Service quality

Customer's perception of how well a service meets or exceeds their expectations.

Service gaps

The result of when the delivery of a service fails to meet customers’ expectations.

Knowledge gap

Difference between customers’ expectations and the firm’s perception of those customer expectations.

Delivery gap

The difference between the service standards set by the firm and the actual service delivered.

Communication gap

Difference between the actual service provided and the service promised by the firm’s promotion.