[marketing] product quiz

product

  • anything offered to a market to satisfy a want or need

  • object company is willing to provide in exchange for something of equivalent or greater value. 

  • can be tangible goods, services, or a combination of both

service

  • intangible products that involve activities that does not result in ownership

  • are provided by one entity/person to another

Characteristics:

  1. Intangibility – Cannot be seen, touched, or owned.

  2. Perishability – Cannot be stored or inventoried for later use.

  3. Variability – Quality of service varies depending on provider.

  4. Inseparability – The customer must be present for service delivery.

Three Drivers of How Customers Attach Value to a Product

  1. Need – A lack of a basic requirement.

  2. Want – A specific requirement of a product to satisfy a need.

  3. Demand – A set of wants plus the desire and ability to pay for the product.

  • Customers choose a product based on their perceived value.

  • Satisfaction occurs when the actual value meets or exceeds perceived value.

Kotler’s Five Levels of Product

recognizes different levels of need for a product

  1. Core Benefit – The primary reason a customer purchases a product, addressing their most basic requirement or problem.

    (e.g., A hotel provides a place to sleep.)

  2. Generic Product – Basic version with essential features.

    (e.g., A hotel room with a bed, towels, and a cabinet.)

  3. Expected Product – Features expected by customers.

    (e.g., Clean rooms, WiFi, TV, air conditioning.)

  4. Augmented Product – Extra features differentiating it from competitors. (e.g., Free breakfast, access to a gym)

  5. Potential Product – Future improvements or innovations.

    (e.g., Smart hotel rooms, automated check-in services.)

3 Product Decision Levels

  1. Individual Product Decisions – marketers are expected to create products that will sell well & decide on the ff:

    • Product Attributes: Quality, unique features, style (appearance), design (look & use)

    • Branding: identity of the product, influencing pricing, customer loyalty, and perceived quality. (e.g., Nike's branding conveys performance and style.)

    • Packaging: first impression of the product, protecting it and communicating brand message. (e.g., Apple’s minimalist packaging suggests premium quality.)

    • Labeling: essential product information. (e.g., A cereal box with ingredients and calorie count.)

    • Product Support Services: After-sales service to ensure customer satisfaction. (e.g. apple care)

  2. Product Line Decisions – A group of closely related products (e.g., different car models for different lifestyles).

  3. Product Mix Decisions – The total range of products a company offers.

Product Development Stages

  1. Idea Generation: Identifying customer needs and wants by addressing them

  2. Idea Screening: reducing idea, choosing best one

  3. Concept Development & Testing: pursuing product after if viable

  4. Marketing Strategy Development: to introduce product to market

  5. Business Analysis: evaluation of attractiveness based on data

  6. Product Development: transforming concept to product

  7. Test Marketing: after concept & product test are successful

  8. Commercialization: introduce product to market

🌟 Product Life Cycle

  1. Introduction Stage – Low sales, minimal competition

  2. Growth Stage – Product is more recognizable & popular; Increased demand, sales, higher production, expanding market.

  3. Maturity Stage – Highest profitability, peak competition, need for innovation.

  4. Decline Stage – Decreasing sales, new alternatives emerge, product may be discontinued.