chp 10 product marketing

A product

is a bundle of attributes (features, functions, benefits, and uses) that a person receives in an exchange

products are divided into 2 categories

consumer products and business products

Consumer products

are purchased by the final consumer

Business products-

are purchased by other industries or firms and can be classified as production goods

Production goods

raw materials or component parts used in the production of hte final product

Support goods

such as machinery, fixed equipment, software systems, and tools that assist in the production process

4 levels of a products

Core, tangible, augmented, and promised

Core

satisfies the most basic need of the customer

Tangible product

"perceived by touch" tangible aspects of a product are those that can be touched and held

Augmented product-

includes the tangible product and all of the services that support it

The promised product

Long term result that the customer hopes to achieve

consumer product categories

convemience

shopping

specialty

unsought proucts

Consumer product categories

is an inexpensive product that requires a minimum amount of effort on the part of the customer in order to select and purchase

Shopping products

are usually more expensive and purchased occasionally, TV

Heterogeneous shopping products

are unique

Clothing or furniture, stylistic differences, based on finding right fit

Homogeneous shopping products

are similar. Refrigerators each model has certain features available but basic functions of all models are similar

Specialty products

From the consumers perspective these products are so unique that its worth it to go great lengths to find and purchase them

Unsought products

are those the customer never plans or hopes to buy

Products that customer is unaware of or products consumer hopes not to need

Product marketing

is the function of understanding the target customers needs and promoting and selling the product to target customer

Product life cycle

5 stages

Product development

Market introduction

Growth

Maturity

Decline

Promotion mix

how marketers think about the marketing mix and the blend of promotional activities

Product line

is a group of products marketed by an organization to one general market

Products have some characteristics, customers, and uses in common and may also share technologies, distribution channels, prices, services etc

strategic business units

a self contained planning unit for which discrete business strategies can be developed

Group like products into product lines and then group lines if business targeting a commission set of customers into something called

growth share matrix

Companies evaluate product portfolios and SBUs using the

tool used to analyze the product portfolio

depth

umber pf products in a product line refers to as

products line width

Number of separate product lines owned by a company is

Full line strat

ompany will attempt to catty every conceivable product needed and wanted by the target customer

Few Full line manufacturers

attempt to provide items for every conceivable market niche, instead they provide many products for a particular market segment

limited line strategy

will carry selected items

Limited line manufacturers

will add an item if the demand is great enough

Line extension strategy

Adding new products under an already established and well known brand name

Line filling strategies

Involve increasing number of products in existing product line to take advantage of market place gaps and reduce competition

Product proliferation

intro of new varieties of initial product or products that are similar (ketchup manuf intro pizza flavored sauce)

Brand extension-

string brand preference allows comp to intro related product under the brand umbrella (jello intro pie filling

Private branding

- producing and distributing a related product under the brand of a distributor or other producers (costco tire)

Lean startup methodology

company develops and launches its minimum viable product to a limites audience, captures market and user data and quickly uses that into to make adjustments