Chapter 8-11, 14-16

What are the three levels of a product?

Core, Actual, Augmented

What does Core Customer Value refer to?

Fundamental problem-solving benefit

What comprises the Actual Product?

Tangible features

What is included in the Augmented Product?

Extra services and benefits

What are the two classifications of products?

Consumer and industrial

What are raw materials in car manufacturing?

e.g., steel

What are capital items?

Long-term business assets

What do supplies & services include?

Office supplies, maintenance

How does Tesla position its electric cars?

Shopping & specialty product

What aspects does Tesla leverage?

Sustainability, technology, premium

What are the five key product decisions?

Individual Product Decisions

What do product attributes include?

Quality, features, style, design

What is an example of product attributes?

Dyson vacuum cleaners

What does branding encompass?

Name, logo, reputation

What does Nike's swoosh represent?

Performance and excellence

What is the purpose of packaging?

Protection, differentiation

How does Apple enhance the unboxing experience?

Minimalist white box

What does labeling serve to do?

Informative, persuasive

What campaign personalized Coca-Cola bottles?

'Share a Coke'

What types of services are included in Product Support Services?

Warranties, customer support

What is a Product Line?

Group of related products

What is a Product Mix?

Entire portfolio of products

What does Coca-Cola's product line strategy include?

Regular, Diet, Zero, flavored Coke

What is the intangibility in services?

Can't be seen or touched

What does inseparability mean in services?

Produced and consumed simultaneously

How does variability affect service quality?

Depends on provider's skills

What is perishability in the context of services?

Can't be stored for future use

What is Ritz-Carlton's focus in training staff?

Exceptional customer experiences

What does the Service Profit Chain connect?

Internal service quality to profit

What does Brand Equity refer to?

Power of a brand

What are line extensions?

New variations of existing brand

What are brand extensions?

Existing brand for a new product

What is multibrands?

Multiple competing brands

What does new brands refer to?

Creating entirely new brand

What is the focus of Chapter 9?

Innovation and product life cycle

How many key steps are in the New Product Development Process?

Eight key steps

What is the first step in the New Product Development Process?

Idea Generation

What is the purpose of Idea Screening?

Filtering viable ideas

What does Concept Development & Testing involve?

Creating prototypes and feedback

What does marketing strategy development include?

Target market, pricing, distribution

What is evaluated in business analysis?

Profitability potential

What is involved in product development?

Creating working models

What is test marketing?

Launching in small markets

What is the final step after successful test marketing?

Commercialization

How did Mattel revamp Barbie?

Career dolls, diverse body types

What are the four stages of the Product Life Cycle (PLC)?

Introduction, Growth, Maturity, Decline

Characteristics of the Introduction stage?

High costs, low sales, heavy promotion

Example of a product in the Introduction stage?

Electric vehicles

Characteristics of the Growth stage?

Sales rise, profits increase

Example of a product in the Growth stage?

Netflix

Characteristics of the Maturity stage?

Peak sales, intense competition

Example of a product in the Maturity stage?

Smartphones

Characteristics of the Decline stage?

Sales drop, companies decide

What actions can companies take in the Decline stage?

Maintain, Harvest, Discontinue

Example of a product in the Decline stage?

DVDs

What is pricing in marketing?

Critical component; generates revenue

What are the key factors for Apple's pricing strategy?

Strong brand, software, customer experience

Why did Tesla initially price its electric cars higher?

Target luxury consumers

What is Market-Skimming Pricing?

High initial prices for revenue

What is price fixing?

Illegal price agreements

What is Customer Value-Based Pricing?

Focus on perceived value

How does it achieve profitability?

High sales volume

What did Tesla do as competition increased?

Adopted competitive pricing

Example of Market-Skimming Pricing?

Apple's iPhone

What is predatory pricing?

Undercutting competitors

What is Premium Pricing?

Higher prices for quality

Example of elastic demand?

Airline tickets

Example of Product Line Pricing?

BMW's series cars

What is deceptive pricing?

Fake discounts

What elements of the marketing mix represent costs?

Product, Place, Promotion

What is Penetration Pricing?

Lower prices for market share

Example of inelastic demand?

Prescription drugs

What does a well-structured pricing strategy affect?

Profitability and market position

Gasoline price demand type?

Relatively inelastic

What do companies determine first in Customer Value-Based Pricing?

Price customers willing to pay

What is Cost-Based Pricing?

Cost plus markup pricing

What is Market-Penetration Pricing?

Low initial prices to attract customers

What happens to prices in Market-Skimming Pricing?

Gradually decrease over time

What is By-Product Pricing?

Selling production by-products

What is Bundle Pricing?

Multiple products at a discount

What is Cost-Plus Pricing?

Fixed percentage markup

What is a factor influencing pricing decisions?

Overall Marketing Strategy

What strategy helps build market share?

Low-cost production & loyalty

What is Psychological Pricing?

Prices end in .99

What factors are involved in pricing decisions?

Customer value, costs, market demand

What does Break-Even Pricing determine?

Price to cover total costs

How does Louis Vuitton price its products?

Maintains high prices

What pricing strategy involves multiple related products?

Product Mix Pricing

What is Promotional Pricing?

Temporary price reductions

What external factors impact pricing?

Economic conditions, regulations

What is competition-based pricing?

Based on competitors' strategies

What are the two pricing strategies for new products?

Skimming or penetration

What is Optional-Product Pricing?

Charging separately for features

What is Geographical Pricing?

Prices vary by location

What is Good-Value Pricing?

Quality and fair pricing

What is the goal of competition-based pricing?

Match, undercut, exceed pricing

What economic factors affect pricing strategies?

Inflation, exchange rates, downturns

What is Captive-Product Pricing?

Core product low, accessories revenue

What are Discounts and Allowances?

Seasonal, quantity, trade-in discounts

What strategy does Walmart use?

Low-cost leadership