Marketing Exam 3 Products Wolter

Term
1 / 24
What is a product?
Click the card to flip 👆
Terms in this set (24)
What is a product?
A bundle of benefits
What is the product level inner ring?
Core Product (inner ring): essential motivating benefit the customer is purchasing. It's what the customer wants to get most
§ Ex: the fun, relaxation, adventure, and family time of a great vacation
What is the product level middle ring?
o Actual Product (middle ring): the physical and intangible properties or characteristics the product takes on. This can include attributes such as the materials, styling, and branding. It's what the customer actually gets to satisfy what they want most
§ Ex: a Carnival Cruise Lines family cruise package
What is the product level outer ring?
o Augmented Product (outer ring): these are extra attributes and features that are not part of the actual product but may be offered to make the offering more attractive, to speed purchase decisions, and to match or differentiate the actual product from competitors
§ Ex: deep discounts on airfare to the cruise port, hotel accommodations the night before departure, preferred boarding and check-in
How do failures affect the levels
Delta air lines introducing more AI= bad for business because nobody likes robot
What is feature fatigue?
consumers choose overly complex products

"Feature Fatigue:" Canon camera features used to be incredibly overwhelming with stats, new features descriptions are more streamline.
What are the four categories of benefits?
o (From bottom to top): functional, emotional, life-changing, social impact (self-transcendence)
How does the pyramid relate to Maslow's hierarchy?
o Very similar to Maslow's in the sense that basic needs/ basic values are at the bottom and as you approach the top it becomes more complex
In general which category of benefits must be fulfilled first?
o Functional because it is on the bottom
What are services?
o Actions or activities performed by the seller for the buyer
Why is it useful to think of services and goods as a continuum?o Mostly goods example: furniture purchased cash and carry o Balanced Goods-Services example: furniture reupholstery o Mostly Services example: furniture moversWhy is the US a service-based economy?Because the majority of what the U.S. produces is "intangible."How are services different from goods?Services are intangible, perishable, inseparable, and variable § Intangible: Services cannot be seen, tasted, felt, heard, or smelled before purchase § Variability: quality of services depends on who provides them and when, where, and how § Inseparability: services cannot be separated from their providers § Perishability: services cannot be stored for later sale or useWhat are the five service characteristics that affect marketing?Intangibility Variability Inseparability Perishability OwnershipHow does intangibility of services affect marketing?Intangibility: Intangible products are harder to assess. Benefits of intangible products must be made tangible. Tangible products often push intangible benefits to take advantage of the lasting power of abstract concepts in memory. Also, assessing the cost of a "unit of service" is difficult.How does Variability of services affect marketing?Variability: A heterogeneous product cannot be standardized, so it is harder to take advantage of economies of scale. Also, a heterogeneous product has greater FLE and customer input and therefore quality is harder to control.]How does Inseparability of services affect marketing?Inseparability: An inseparable product must be produced in front of and along with customers. Quality is hard to achieve and assess for the organization. Also, the customer must be accommodated within the servicescape creating capacity issues. Mass production and economy of scale is difficult to obtain. Customers impact each other.How does Perishability of services affect marketing?Perishability: A perishable product cannot be produced ahead of time, so demand must be forecast. A perishable product cannot be returned for a comparable product and therefore, additional remedies must be offered.How does ownership of services affect marketing?Ownership: Products will often be judged based on the quality of the transferred object. The object will often be considered the core product whereas everything else is periphery. When there is no ownership transfer, other things start to become more relevant such as relationships and tangible cues.What is a new product?o innovation as an improvement in a product's ability to deliver its primary benefit to customers, and we can distinguish between two types of innovation (from book)What is a discontinuous innovation product and continuous innovation product?§ discontinuous innovations: the large jumps in a product's benefit-delivering abilities. For example, suppose the primary benefit we sought was long-distance communication. Prior to the telegraph, communication was in the form of letters and documents delivered by hand or on horseback. § Continuous innovations: Between discontinuous innovations come smaller incremental improvements to products' benefit-delivery capabilitiesWhat kind of innovation is a consumer likely to come up with?o Consumers are good for validating (i.e. testing) and evolving but not for creating discontinuous innovations (they would probably come up with a continuous innovationWho makes the innovations that lead to discontinuous new products?§ Innovative ideas with strong market potential tend to come from "experts" in the field who combine newly emerging existing technologies.What are the stages of the NPD process?o Conceptualization: idea generation, idea screening, concept development, concept screening o Planning: strategy development, marketing strategy, establishing a competitive advantage, business analytics, situation analysis, marketing plan, marketing mix o Commercialization: product development, test marketing, product launch, rollout