MKT 100 Chapter 6

What is a product in marketing

Anything favorable or unfavorable that a person receives in an exchange, including goods, services, ideas, or experiences.

What are the three levels of a product?

• Core product (basic need)

• Actual product (brand, design, features)

• Augmented product (additional services like warranty or delivery).

What are the four types of consumer products?

1. Convenience (low effort)

2. Shopping (comparison needed)

   • Homogenous: Product is perceived as similar, look for lowest-priced brand that has the desired features

   • Heterogeneous: product is perceived as different in terms of quality and performance.Consumers shop around but have a hard time because the features, prices, and benefits vary.

3. Specialty (unique, no substitutes)

4. Unsought (not actively sought, like insurance)

What is a product line?

A group of closely related product items marketed under a single brand.

What is a product mix?

The total set of all products that a company offers for sale.

What is product modification?

Changing one or more characteristics of a product to improve it or adapt it to a new market.

What is planned obsolescence?

Intentionally designing a product to become outdated or non-functional after a certain period.

Why do companies reposition products?

To change consumer perceptions due to shifting demographics, competition, or declining sales.

What is a product line extension?

Adding new variations to an existing product line to reach new customers or meet different preferences.

What is product line contraction?

Eliminating items from a product line to focus on the most profitable ones.

What is branding?

A strategy used to create a unique name and image for a product in the consumer's mind.

What are the benefits of branding?

Brand recognition, customer loyalty, easier product introduction, differentiation, and higher perceived value.

What is the difference between manufacturer’s and private brands?

Manufacturer’s brands are owned by producers; private brands are owned by retailers or wholesalers.

What is the difference between individual and family branding?

ndividual branding uses unique names for different products; family branding uses a single brand for multiple products.

What is the difference between brand extension and line extension?

Brand extension uses an existing brand to launch a new product category; line extension adds new variations to existing products.

What is co-branding?

A marketing partnership where two or more brand names appear on one product to enhance value or prestige.

What is brand dilution?

Weakening of a brand through overextension or poor-fit products, leading to reduced consumer perception and loyalty.

What is a trademark?

A legally protected brand name, logo, symbol, or phrase used to distinguish a product.

What are the two types of labelling?

1. Persuasive (focuses on branding)
2. Informational (helps consumers make choices and reduce post-purchase dissonance)

What is the Universal Product Code (UPC)?

A barcode used to identify product characteristics at retail points of sale.

What are the stages of the new product development process?

1. New product strategy
2. Idea generation
3. Screening
4. Business analysis
5. Development
6. Test marketing
7. Commercialization

What are the stages in the product life cycle (PLC)?

1. Introduction
2. Growth
3. Maturity
4. Decline

What is diffusion of innovation?

The process by which a new product is adopted and spreads through the market.

Who are the adopter categories in the diffusion of innovation?

1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards