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Product mix or portfolio
Total group of products offered by the company.
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depth
Assortment in one categories
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Width
Variety of categories
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Bundle
- 1. Physical (tangible)
- 2. Service (intangible)
- 3. Symbolic (perceptual)
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Benefits of offering a large portfolio
- 1. economies of scale
- 2. package uniformity
- 3. standardization
- 4. scales and distribution efficiency
- 5. equivalent quality beliefs
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Types of consumer products
- 1. convenience products
- 2. shopping products
- 3. specialty products
- 4. unsought products
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Business 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
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Three things when comparing a shopping product
- 1. feature
- 2. price
- 3. service
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Unique characterisitics of services and resulting marketing challenges
- 1. intangibility
- 2. simulataneous production and consumption
- 3. perishability
- 4. heterogeneity
- 5. client-based relationships
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product lines
closely related products (aqua fresh, coke,)
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Six new product strategies
- 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
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Stages of new product development
- 1. idea generation
- 2. screening and evaluation
- 3. development
- 4. test marketing
- 5. commercialization
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brand
combination of name, symbol, term, and/or design that identifies a specific product
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two parts of the brand:
- 1. brand name
- 2. brand mark
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Overall advantages of Branding
- 1. product identification
- 2. comparison shopping
- 3. shoppting efficiency
- 4. risk reduction
- 5. product acceptance
- 6. enhanced self-image
- 7. enhanced product loyalty
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Brand 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
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Three degrees of brand loyalty
- 1. brand recognition
- 2. brand preference
- 3. brand insistence
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Brand Equity
Value of a brand
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Co-branding
Use of two or more brands on one product
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Brand licensing
Involves a contractual agreement where a company permits an organization to sue its brand on noncompeting products in exchange for licensing fee.
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Positioning
Creating a mental image of the product offering and its differentiating features in the minds of the target market.
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Product differentiation
Creating differences in the firm�s product offering that set it apart from competing offerings
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Perceptual map
Represents customer preceptions and preferences spatially by means of a visual display
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Why does lack of competition within the mindspace occur?
- 1. Unmet needs or preferences
- 2. Customers have no desire for a product offering with this combination of dimensions
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Differentiation Strategies
- 1. Product descriptors
- 2. Customer Support Services
- 3. Image
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Benefits
Positive outcomes or need satisfaction acquired from a purchased product
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Advantages
Performance characteristics that communicate how the features make the product behave, hopefully in a fashion that is distinctive and appealing to customers
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Positioning Strategies
- 1. Strengthen the current position
- 2. Repositioning
- 3. Repostion the competition
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Strategic considerations during the product life cycle
- 1. Overall marketing goals
- 2. Product strategy
- 3. Pricing strategy
- 4. Distribution strategy
- 5. Promotion strategy
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Components of a product concept
- 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
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4 General options for strategy selection throughout the maturity stage
- 1. Develop of a new product image
- 2. Find and attract new users to the product
- 3. Discover new applications and uses
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Two basic options during the decline stage
- 1. Attempt to postpone the decline
- 2. Accept its inevitability
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Factors to consider before deciding on an appropriate marketing strategy during the decline stage
- 1. Market segment potential
- 2. Market Position of the Product
- 3. Firm�s price and cost structure
- 4. Rate of market deterioration
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