product
anything that can be offered to a market to satisfy a need or want
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| Term | Definition |
|---|---|
| product | anything that can be offered to a market to satisfy a need or want |
| Tangibility (Goods) | Tangible; can be seen, touched, and owned |
| Tangibility (Services) | Intangible; cannot be seen, touched, or owned |
| Inseparability (Goods) | Produced, stored, and consumed separately |
| Inseparability (Services) | Produced and consumed simultaneously |
| Perishability (Goods) | Non-perishable; can be stored for future use |
| Perishability (Services) | Perishable; cannot be stored for later use |
| Variability (Goods) | Standardized; quality remains consistent |
| Variability (Services) | Variable; quality depends on who provides it and how |
| Ownership (Goods) | Ownership is transferred to the buyer |
| Ownership (Services) | No ownership is transferred; only access or use is granted |
| 5 Product Levels by Kotler (PLK) | refers to the main product or service a company provides to meet the needs of its target customers. This offering is broken down into five levels, which help analyze the cumulative value a customer receives |
| Core Benefit | The fundamental need or value that the customer gains. |
| The smartphone allows users to communicate with others. (5 plk) | Core Benefit |
| Generic Product | The basic physical product features |
| Features include a camera, touch screen, and app capabilities (5 plk) | Generic Product |
| Expected Product | Attributes and conditions customers typically expect |
| Expectation of long battery life, high-speed internet, and a user-friendly interface (5 plk) | Expected Product |
| Augmented Product | Additional services and benefits that differentiate the offering |
| Offering a warranty, technical support, and accessories (like a screen protector) (5 plk) | Augmented Product |
| Potential Product | All future augmentations and transformations the product might undergo |
| Researching new technology to enhance battery life or increase processing speed (5 plk) | Potential Product |
| Product Mix | refers to the number of product lines a firm has under its umbrella. Essentially, when you take all the product lines a company offers and group them together, you have that company's product mix |
| Width | The number of product lines that a firm has |
| If a company sells beverages, snacks, and apparel, its width is three (one for each line). (PM) | Width |
| Length | The total number of products in the product mix |
| If the company sells 5 types of beverages, 3 types of snacks, and 2 types of apparel, the total length is 10 products (5+3+2). (PM) | Length |
| Depth | The total number of variations of a product within a specific product line |
| Variations can include differences in size, flavor, or other attributes. For example, if one type of beverage comes in small, medium, and large, the depth for that specific product is three. (PM) | Depth |
| Consistency | The relationship between the products in a product mix |
| This relationship is specifically defined with regards to the production and the distribution channel used for the products. Highly consistent products might use the same factories and be sold in the same stores (PM) | Consistency |
| Consumer Products | These products are categorized based on how consumers shop for them |
| Convenience Products | Products that are frequently purchased with minimal effort |
| Snacks, drinks, toiletries. (If your professor mentions a brand of chips, it’s a convenience product.) (CP) | Convenience Products |
| Shopping Products | Products that consumers compare on quality, price, and style before purchase |
| Clothing, electronics, furniture. (If your professor mentions a specific brand of television, it’s a shopping product.) (CP) | Shopping Products |
| Specialty Products | Unique items with distinct features that require special purchasing effort and for which consumers are willing to travel or search |
| Luxury cars, branded watches. (If your professor mentions a Rolex or a Ferrari, it is a specialty product.) (CP) | Specialty Products |
| Unsought Products | Products not actively sought by consumers until a specific need arises |
| Insurance, emergency repairs (CP) | Unsought Products |
| Industrial Products | These are products sold to other businesses for use in manufacturing or operations |
| Materials and Parts | Raw materials and components used in manufacturing. Examples: Steel, batteries, cotton |
| Capital Items | Long-lasting goods used for production and operations. Examples: Machinery, equipment, buildings. |
| Supplies and Services | Short-term goods and services needed for operations. Examples: Office supplies, maintenance services |
| Product Differentiation | Once classified, a brand differentiates its product. __________ enhances customer appeal and serves as a critical differentiator in competitive markets |
| Product Form | The size, shape, or physical structure |
| Features | Elements that supplement the basic function |
| Customization | Tailoring the product for specific needs |
| Performance Quality | The level at which the primary characteristics operate |
| Conformance Quality | The degree to which all produced units are identical and meet promised specifications |
| Durability | The measure of the product’s expected operating life |
| Style | The product’s look and feel to the buyer |
| Ordering Ease | refers to how easy it is for the customer to place an order with the company. |
| Delivery | refers to how well the product or service is brought to the customer. It includes speed, accuracy, and care throughout the process. |
| Installation | refers to the work done to make a product operational in its planned location |
| Customer Consulting | includes data, information systems, and advice services the seller offers to buyers. |
| Maintenance and Repair | help customers keep purchased products in good working order. |
| Why new products are important? | New products expand market reach and share. Toadapt to changing customer needs. To differentiate companies from competitors. New products increase revenue and profitability. To boost brand reputation and loyalty. To leverage new technologies for improvement. To extend product life cycles |
| Product Life Cycle (PLC) | describes the stages a product goes through from its introduction to its withdrawal. Understanding the stage helps define marketing strategy |
| Introduction | Low sales, negative profits, high cost per customer, few competitors. Customers are Innovators |
| Introduction | Objective: Create product awareness and trial. Strategy: Offer a basic product; charge cost-plus pricing; build selective distribution |
| Growth | Rapidly rising sales, rising profits, growing number of competitors. Customers are Early adopters |
| Growth | Objective: Maximize market share. Strategy: Offer product extensions, service, warranty; price to penetrate market; build intensive distribution |
| Maturity | Peak sales, declining profits, stable/declining number of competitors. Customers are the Middle majority |
| Maturity | Objective: Maximize profit while defending market share. Strategy: Diversify brands and models; price to match or best competitors; stress brand differences |
| Decline | Declining sales, low cost per customer. Customers are Laggards |
| Decline | Objective: Reduce expenditure and milk the brand. Strategy: Phase out weak products; cut price; go selective (phase out unprofitable outlets) |
| Packaging | defined as all activities involved in designing and producing the container for a product. It is increasingly used as a marketing tool due to several factors, including consumer affluence and opportunities for innovation |
| Primary Packaging | This level directly protects the product and is the immediate container. It includes branding |
| A brand of soft drink (like those in Coca-Cola’s product mix) uses a bottle or can as its primary packaging. This container not only holds the liquid but also displays the brand name, helping to identify the brand (Packaging) | Primary Packaging |
| Secondary Packaging | This groups multiple primary items together, typically for retail display |
| A multipack of yogurt cups is enclosed in a cardboard box or carton. This secondary packaging makes it easier for the retailer to manage the inventory and for the shopper to purchase several units at once, facilitating product transportation (Packaging) | Secondary Packaging |
| Transit Packaging | This protects products during transport and storage |
| A manufacturer uses large shipping boxes or pallets wrapped in plastic to secure goods for shipment to stores. This level is crucial for protection during the delivery process (Packaging) | Transit Packaging |
| Labeling | involves the information attached to or designed as part of the package. A ____ can be a simple tag or an elaborate graphic and may carry significant details or just the brand name |
| Brand Label | This label's primary function is to identify the product or brand |
| The iconic, distinctive font and flowing design used for the brand name on a bottle of Expressa Coffee (as discussed previously) serve as a brand label, using color and style to convey brand identity and attract attention (Label) | Brand Label |
| Descriptive Label | This provides essential information about the product |
| The nutritional information panel on a cereal box, listing ingredients, calories, and serving size, is a descriptive label. This provides the customer with the necessary data to evaluate the product against their Expected Product needs (Label) | Descriptive Label |
| Promotional Label | This uses attractive graphics to help market and sell the product |
| A seasonal sticker on a product advertising a limited-time offer or a new feature is a promotional label, leveraging the power of labeling to promote the product (Label) | Promotional Label |
| Grade Label | This identifies the product’s judged quality with a letter, number, or word |
| The "Grade A" label on eggs or the quality ratings applied to different cuts of meat are examples of grade labels, assuring the consumer of the product's Performance Quality (Label) | Grade Label |