Marketing 2205 Chapter 7: Products, Services, and Brands

Vocabulary practice flashcards covering product classifications, service marketing, product mix decisions, and brand strategy based on the lecture notes.

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Service

An activity, benefit, or satisfaction offered for sale that is intangible and does not result in the ownership of anything.

Core Customer Value

The most basic level of a product that addresses what the customer is really buying (for example, entertainment, self-expression, productivity, and connectivity when purchasing an Apple iPad).

Actual Product

The intermediate level of a product where the core benefit is turned into product features, design, a quality level, a brand name, and packaging.

Augmented Product

The additional consumer services and benefits built around the core customer value and actual product, such as delivery and credit, product support, warranty, and after-sale service.

Consumer Products

Products bought by final consumers for personal consumption.

Industrial Products

Products bought by individuals and organizations for further processing or for use in conducting a business, categorized into materials and parts, capital items, and supplies and services.

Convenience Products

Consumer products that customers buy frequently, with little planning, little comparison or shopping effort, low customer involvement, low prices, and widespread distribution (e.g., toothpaste, magazines, and laundry detergent).

Shopping Products

Consumer products bought less frequently that require much planning and shopping effort, comparison of brands on price, quality, and style, higher prices, and selective distribution (e.g., major appliances, televisions, furniture, and clothing).

Specialty Products

Consumer products with strong brand preference and loyalty, special purchase effort, little brand comparison, low price sensitivity, highest prices, and exclusive distribution (e.g., luxury goods like Rolex watches or fine crystal).

Unsought Products

Consumer products that buyers have little awareness or knowledge of (or little to negative interest if aware), requiring aggressive advertising and personal selling (e.g., life insurance and Red Cross blood donations).

Organization Marketing

Activities undertaken to create, maintain, or change the attitudes and behaviour of target consumers toward an organization.

Person Marketing

Activities undertaken to create, maintain, or change attitudes or behaviour toward particular people.

Place Marketing

Activities undertaken to create, maintain, or change attitudes or behaviour toward particular places.

Social Marketing

The use of traditional business marketing concepts and tools to create behaviours that promote individual and societal well-being.

Individual Product Decisions Sequence

The sequence of decisions focused on creating core customer value: Product attributes, Branding, Packaging, Labeling and logos, and Product support services.

Product Line

A group of closely related products that have similar functions, are sold to the same customer groups, and are marketed through similar outlets or fall within given price ranges.

Product Line Length

The number of items in the product line.

Product Line Filling

Adding more items within the present range of the product line.

Product Line Stretching

Lengthening a product line beyond its current range downward, upward, or both ways.

Product Mix

The set of all product lines and items that a particular company offers for sale.

Product Mix Width

The number of different product lines the company carries.

Product Mix Length

The total number of items a company carries within its product lines.

Product Mix Depth

The number of versions offered for each product in the line.

Product Mix Consistency

The relativity of the various product lines in end use, production requirements, distribution channels, or some other aspect.

Service Intangibility

A fundamental characteristic stating that services cannot be seen, tasted, felt, heard, or smelled before purchase.

Service Inseparability

A characteristic stating that services cannot be separated from their providers.

Service Variability

A characteristic stating that the quality of services depends on who provides them and when, where, and how.

Service Perishability

A characteristic stating that services cannot be stored for later sale or use.

Service Profit Chain

A chain linking service firm profits with employee and customer satisfaction consisting of five links: Internal service quality, Satisfied and productive service employees, Greater service value, Satisfied and loyal customers, and Healthy service profits and growth.

Internal Marketing

A marketing effort where service firms sell customer-contact employees on the importance of delighting customers.

Interactive Marketing

A marketing effort where service firms help employees master the art of interacting with customers.

LATTE Method

A Starbucks problem-solving technique for recognizing disgruntled customers: Listen to the customer, Acknowledge their complaint, Take action by solving the problem, Thank them, and Explain why the problem occurred.

Brand Equity

The differential effect that knowing the brand name has on customer response to the product or its marketing.

Brand Value

The total financial value of a brand.

Customer Equity

The value of customer relationships that the brand creates.

Manufacturer's Brand

A brand marketed under the producer's or manufacturer's own name (e.g., La-Z-Boy).

Private Brand

A brand name owned by a wholesaler or retailer (e.g., President's Choice, Mastercraft, Our Compliments), accounting for one in five items sold in Canada.

Brand Licensing

A brand sponsorship method using names and symbols created by other companies, celebrities, or well-known movie characters for a fee.

Co-branding

The use of the established brand names of two different companies on the same product or its package (e.g., 'Intel inside' ingredient branding).

Individual Branding

A strategy of using different brand names for different products when products vary greatly in use or performance (e.g., P&G).

Family Branding

A strategy of marketing several different products under the same brand name (e.g., Sony).

Line Extension

A brand development strategy applying an existing brand name to an existing product category.

Brand Extension

A brand development strategy extending an existing brand name to a new product category.

Multibrands Strategy

A brand development strategy introducing new brand names within an existing product category.

New Brands Strategy

A brand development strategy creating a new brand name when entering a new product category.