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Summary of Topics Covering Product Strategies

Terms in this set (42)

Difference between Core and Surrounding Products
Ex: At Carmela's the food is a core good and the ambiance is a surrounding product
Difference between goods and services
Goods are tangible while services are not
Classification of Products: Based on degree of Tangibility
1 Non-durable or perishable or consumable
2 Durable or white goods
3 services
White goods
Ex: refrigerator (last a very long time)
Services
Not tangible, inconsistent, and cannot be inventoried
CLASSIFICATION OF PRODUCTS: CONSUMER PRODUCTS
1 Convenience
a staples
b Impulse
c Emergency
2 Shopping
a heterogeneous
b homogenous
3 Unsought
a regular unsought
b new unsought
4 Specialty
Staples
Ex: Milk, Eggs, and Bread
Impulse
Widely available, not a lot of thinking involved
Emergency product
products that are purchased immediately when the need is great; doesn't have time to shop around
Heterogeneous product
product that has unique features (real estate)
Homogenous product
a product that is completely standardized and not differentiated; characteristic of products in perfect competition
Regular Unsought product
products that stay unsought but not unbought forever (gravestones, life insurance, and encyclopedia)
New Unsought product
products offering really new ideas that potential customers don't know about yet (iPad, Apple Watch)
INDUSTRIAL PRODUCTS
1 Production Goods: raw materials and components
2 Support Goods: installations, accessory equipments, supplies, and services
Raw Materials
Unprocessed natural products used in production
Components
ingredients; elements
Installations
High value and long life
Accessory Equipment
short life
Supplies
products that get consumed in production (electricity)
Services as an industrial service
the labor required
THE CONCEPT OF NEW PRODUCTS AND THEIR DEVELOPMENT PROCESS:
1 Idea Generation
2 Screening
3 Idea Evaluation
4 Development and Market Testing
5 Commercialization
Idea Generation
the systematic search for new-product ideas
Screening of Ideas
Internally and Externally for ensuring customer welfare and safety
Idea Evaluation
Theoretical Evaluation and Concept Testing
Development and Market Testing
Make product work, prove it works, research and trouble shoot, and prototype
Commercialization
release at test market, then full release
PRODUCT LIFE CYCLE
1 Introduction
2 Growth
3 Maturity
4 Decline
PRODUCT LIFE CYCLE GRAPH
Introduction
The initial phase of the product life cycle when a new product is introduced, costs are highest, and profits are lowest.
Growth
Market is growing as well as profits
Maturity
peak of life cycle
decline product life cycle
last phase of life cycle, still money to be made, but dying product
CONSUMERS OF PRODUCT LIFE CYCLE
1 Innovators (introduction)
2 Early Adopters (growth)
3 Early Majority (growth)
4 Late Majority (maturity)
5 Laggards (decline)
5 Levels of Brand Familiarity
1 Awareness
2 Familiarity
3 Affinity
4 Purchase
5 Loyalty
BRAND STRATEGIES
1 Manufacturer Branding
2 Private Branding or Reseller Branding
3 Generic Branding
Manufacturer Branding
Branding strategy in which a manufacturer sells one or more products under its own brand names.
Family Branding
Ex: Toyota
Multiproduct Branding
P&G
Private Branding or Reseller Branding
Product made by a manufacturer and sold to a retailer who in turn resells it under its own name.
Generic Branding
a strategy in which products are not branded and are sold at the lowest price possible
Some properties of Services
1 Non-patent-ability
2 No branding possible
3 Time
management
4 Promotional Implications
5 Distribution Problems
Creating Brand Insistence
1 Awareness (evoke TOMA)
2 Relevant Differentiation (big difference)
3 Value (good value for price)
4 Accessibility (convenient)
5 Emotional Connection
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