Chapter 7 notes

Total group of products offered by the company.

Assortment in one categories

Variety of categories

• 1. Physical (tangible)
• 2. Service (intangible)
• 3. Symbolic (perceptual)

• 1. economies of scale
• 2. package uniformity
• 3. standardization
• 4. scales and distribution efficiency
• 5. equivalent quality beliefs

• 1. convenience products
• 2. shopping products
• 3. specialty products
• 4. unsought products

• 1. raw materials
• 2. component parts
• 3. process materials
• 4. maintenance, repair, and operating products
• 5. accessory equipment (shampoo conditioner dryers)
• 6. installations (major purchases: equipment, ERP)
• 7. business services

• 1. feature
• 2. price
• 3. service

• 1. intangibility
• 2. simulataneous production and consumption
• 3. perishability
• 4. heterogeneity
• 5. client-based relationships

closely related products (aqua fresh, coke,)

• 1. new-to-the-world products (discontinuous innovations)
• 2. new product lines
• 3. product line extensions
• 4. improvements or revisions of existing products
• 5. repositioning
• 6. cost reductions

• 1. idea generation
• 2. screening and evaluation
• 3. development
• 4. test marketing
• 5. commercialization

combination of name, symbol, term, and/or design that identifies a specific product

• 1. brand name
• 2. brand mark

• 1. product identification
• 2. comparison shopping
• 3. shoppting efficiency
• 4. risk reduction
• 5. product acceptance
• 6. enhanced self-image
• 7. enhanced product loyalty

Positive attitude toward a brand that causes customers to have a consistent preference for that brand over all other competing brands in product category

• 1. brand recognition
• 2. brand preference
• 3. brand insistence

Value of a brand

Use of two or more brands on one product

Involves a contractual agreement where a company permits an organization to sue its brand on noncompeting products in exchange for licensing fee.

Creating a mental image of the product offering and its differentiating features in the minds of the target market.

Creating differences in the firm�s product offering that set it apart from competing offerings

Represents customer preceptions and preferences spatially by means of a visual display

• 1. Unmet needs or preferences
• 2. Customers have no desire for a product offering with this combination of dimensions

• 1. Product descriptors
• 2. Customer Support Services
• 3. Image

Positive outcomes or need satisfaction acquired from a purchased product

Performance characteristics that communicate how the features make the product behave, hopefully in a fashion that is distinctive and appealing to customers

• 1. Strengthen the current position
• 2. Repositioning
• 3. Repostion the competition

• 1. Overall marketing goals
• 2. Product strategy
• 3. Pricing strategy
• 4. Distribution strategy
• 5. Promotion strategy

• 1. Understanding of the specific uses and benefits that target customers seek in a new product
• 2. Description of the product including potential uses and benefits
• 3. Potential for creating a complete product line that can create synergy in sales, distribution and promotion
• 4. Analysis of the feasibility of the product concept

• 1. Develop of a new product image
• 2. Find and attract new users to the product
• 3. Discover new applications and uses

• 1. Attempt to postpone the decline
• 2. Accept its inevitability

• 1. Market segment potential
• 2. Market Position of the Product
• 3. Firm�s price and cost structure
• 4. Rate of market deterioration