Marketing Quiz: Product

Product

• anything that can be offered to a market

• an object of the exchange process which a company is willing to provide

• key element in the overall market offering

• pure tangible goods, pure services, goods-and-services combination

Services

intangible products that involve activities

4 characteristics of services

1. Intangibility

2. Perishability

3. Variability

4. Inseperability

Intangibility

• cannot be seen, heard, smelled, touched, or tasted

• no ownership

Perishability

• cannot be stored for future use

• cannot be inventoried

• cannot be sold the next day

• if not availed they are gone forvever

Variability

hard to replicate

Inseparability

customer has to be present when the service is being rendered

Three Drivers

1. Need: a lack of basic requirement

2. Want: A specific requirement to satisfy a need

3. Demand: a set of wants plus the desire and ability to pay for a product

Kotler’s five levels of product

1. Core Benefit

2. Generic Product

3. Expected Product

4. Augmented Product

5. Potential Product

Core Benefit

the reason customer buy a product

Generic Product

basic ver. of the product; only made up of necessary features

Expected Product

features a customer expects from a products

Augmented Product

features that differentiate the product from its competitors

Potential Product

includes all possible improvements or transformations

3 Levels of Product Decision

1. Indv. Product Decisions

2. Product Line Decisions

3. Product Mix Decisions

Individual Product Decision

• marketers are expected to create products that sell well

• need to decide on: product attributes, branding, labelling, packaging, product support services

Product Attributes

quality, features, style and design

Branding

• identity of the product

• can dictate a more premium price because it communicates quality

Packaging

• first thing consumers see

• important marketing tool to communicate the brand

Labeling

means to identify the product,communicate the name, etc.

Product Support Services

after sales service to see how satisfiesd the customers are with the product.

Product Line Decision

• grp of products that are closely related

• ex: a car brand offering different models

Product Mix Decisions

• several product lines that make up the product mix

• ex: PC Corner

Product Development Process

idea → define → test → make it perfect → launch

Product Life Cycle

stages of growth and decline a product experiences

Four Lifestyle Stages

1. Introduction

2. Growth Stage

3. Maturity Stage

4. Decline Stage

Introduction Stage

• first time product is introduced to customers

• little to no competition

Growth Stage

• growing demand, increase in production, and expansion

• becomes recognizable in the market

Maturity Stage

• the most profitable stage

• competition is in its highest level

Decline Stage

• companies emulate the product

• product sales begin to drop