Chapter 8 - Delivering Products and Brands That Meet Customer Needs
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Questions and Answers

What describes the individuals who never buy a product innovation?

  • Market innovators
  • Brand loyalists
  • Early adopters
  • Non-adopters (correct)

What are the stages of the product life cycle (PLC)?

  • Development, introduction, growth, maturity, decline (correct)
  • Creation, promotion, retention, termination
  • Introduction, competition, market saturation, decline
  • Concept, testing, launch, market sharing

What is brand equity?

  • The popularity of a brand in the market
  • The cost of creating a brand
  • The customer loyalty associated with a brand
  • The financial value of a brand (correct)

What occurs during the process of branding?

<p>Giving meaning to brands (B)</p> Signup and view all the answers

What is brand extension?

<p>Applying a valued brand name to multiple products (A)</p> Signup and view all the answers

What is the primary reason customers purchase products?

<p>They are seeking benefits. (D)</p> Signup and view all the answers

Which type of brand extension involves diversifying into unrelated product categories?

<p>Out-Of-Category Extensions (A)</p> Signup and view all the answers

What do marketers need to consider at the planning stage of new product development?

<p>Creating a marketing strategy consistent with company visions. (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic used to distinguish services from goods?

<p>Marketability (C)</p> Signup and view all the answers

What is the definition of continuous innovation in marketing?

<p>Minor adjustments that enhance product performance. (B)</p> Signup and view all the answers

What do sensory benefits primarily appeal to?

<p>One or more of the five senses (D)</p> Signup and view all the answers

What aspect of branding includes visual designs and logos?

<p>Brand marks (C)</p> Signup and view all the answers

What is typically a result of premature product release in the market?

<p>High failure rates (B)</p> Signup and view all the answers

Which factor is NOT associated with the goods-services continuum?

<p>Profit orientation (D)</p> Signup and view all the answers

What is the core product level in the context of product offerings?

<p>The benefits that the product provides (A)</p> Signup and view all the answers

Which stage of new product development involves testing market demand and refining sales forecasts?

<p>Commercialization (C)</p> Signup and view all the answers

What do out-of-category extensions do in branding?

<p>Expand into entirely different product categories. (C)</p> Signup and view all the answers

Which benefit addresses how customers emotionally respond to their purchases?

<p>Psychological benefits (D)</p> Signup and view all the answers

What is a co-brand in marketing?

<p>A product that features another brand as an ingredient (C)</p> Signup and view all the answers

What are the essential motivating benefits that the customer is purchasing called?

<p>Core Product (B)</p> Signup and view all the answers

Which type of benefit relates to the emotional response elicited from a product purchase?

<p>Psychological Benefits (C)</p> Signup and view all the answers

In which stage of the product life cycle do category sales begin to peak and then level off?

<p>Maturity Stage (B)</p> Signup and view all the answers

What type of innovation involves significant improvements to a product's delivery capabilities?

<p>Discontinuous Innovations (D)</p> Signup and view all the answers

Which of the following is known for experiencing varying quality from provider to provider?

<p>Variability (D)</p> Signup and view all the answers

What does the term 'market nicher' refer to?

<p>A brand that dominates a small market segment (B)</p> Signup and view all the answers

What is the primary focus during the planning step of product development?

<p>Evaluating viability with marketing strategy (A)</p> Signup and view all the answers

In terms of adopting innovations, who are the 'laggards'?

<p>Last group to adopt innovations (D)</p> Signup and view all the answers

Which characteristic of services makes them impossible to store or keep for later?

<p>Perishability (A)</p> Signup and view all the answers

What does 'augmented product' refer to?

<p>Additional attributes enhancing the product (B)</p> Signup and view all the answers

What stage comes immediately after the introduction stage in the product life cycle?

<p>Growth Stage (B)</p> Signup and view all the answers

What is defined as the financial value of a brand?

<p>Brand Equity (A)</p> Signup and view all the answers

Which consumer group adopts innovation after the early adopters?

<p>Early Majority (D)</p> Signup and view all the answers

Which of the following best describes the 'product life cycle'?

<p>The pattern of sales growth and decline in a product category (A)</p> Signup and view all the answers

What is the main purpose of the commercialization stage in product development?

<p>To launch and sell the product (C)</p> Signup and view all the answers

What is the primary function of brands for consumers?

<p>To simplify identification and set expectations (D)</p> Signup and view all the answers

Which type of brand seeks to dominate a small segment of the market?

<p>Market nicher (A)</p> Signup and view all the answers

What best describes brand equity?

<p>The willingness to pay more for one brand over another (C)</p> Signup and view all the answers

Why do brands help convey relative value?

<p>They provide a standard for quality assurance. (A)</p> Signup and view all the answers

What is an example of an out-of-category brand extension?

<p>A clothing brand releasing a perfume (A)</p> Signup and view all the answers

Which approach focuses on leadership in branding?

<p>Building an image on market leadership (B)</p> Signup and view all the answers

What is a characteristic of market challengers?

<p>They seek direct competition to gain market share. (A)</p> Signup and view all the answers

What is known as a co-brand strategy?

<p>Featuring one brand within another as an ingredient (B)</p> Signup and view all the answers

What is one reason new products fail at a high rate?

<p>Insufficient marketing strategies prior to launch (A)</p> Signup and view all the answers

How are new products categorized in terms of innovation?

<p>As either innovative or imitative (D)</p> Signup and view all the answers

What are innovators in the diffusion of innovation framework?

<p>Consumers who adopt a product early in the process (B)</p> Signup and view all the answers

What does a brand's promise typically convey?

<p>The expected experience with the product (D)</p> Signup and view all the answers

What is considered a low-price branding strategy focused on?

<p>Building an image associated with affordability (B)</p> Signup and view all the answers

What signifies a brand concept being successfully commercialized?

<p>It is broadly accepted in the marketplace (B)</p> Signup and view all the answers

Flashcards

What are products?

Products are what companies offer to customers in exchange for something of value, like money. Think of it as the tangible or intangible items you buy.

What are benefits?

Benefits are the good things you get from using a product. They are the positive outcomes and advantages.

Sensory benefits

Sensory benefits appeal to your senses - sight, smell, taste, touch, and sound. They make products enjoyable or appealing.

Functional benefits

Functional benefits are about how well a product performs its intended job. It's about efficiency and effectiveness.

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Resource benefits

Resource benefits save you valuable resources, usually time and money. They make things easier or cheaper.

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Psychological benefits

Psychological benefits are about how a product makes you feel. They evoke positive emotions and feelings.

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Core product

The core product is the main reason you buy something. It's the essential benefit you're seeking.

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Actual product

The actual product includes all the physical and intangible features of a product. It's what you see, touch, and experience.

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Augmented product

An augmented product is extra features added to a basic product to make it more attractive. It's things added on top.

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What are services?

Services are benefits you get when someone does something for you. They are intangible actions or activities.

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Intangibility

Intangibility means services can't be touched or physically held. They are not physical objects.

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Perishability

Perishability means services are consumed as they're produced. You can't save them for later.

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Inseparability

Inseparability means services are connected to the person providing them. The provider and the service go together.

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Variability

Variability means services can vary depending on who provides them and when they're delivered. Every experience can be different.

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What is innovation?

Innovation is making a product better at delivering its main benefit to customers. It's about improvement and advancement.

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Non-Adopters

Consumers who never purchase a new product innovation.

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Product Life Cycle (PLC)

The stages a product category goes through from development to decline, showing sales and profit trends.

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PLC Stages

The different phases of the product life cycle, including development, introduction, growth, maturity, and decline.

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Brand Equity

The financial value of a brand, often reflected in consumers' willingness to pay more for a trusted brand.

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Brand Extension

Using an existing brand name to launch new products, either within the same category, a related category, or a completely different category.

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What do customers buy?

Customers buy the benefits that products deliver, not the products themselves.

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Product as a bundle

A product is viewed as a collection of benefits that satisfy customer needs.

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Core Values

Deeply held beliefs and priorities that guide customer decision-making.

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Levels of a Product

Products exist on multiple levels: core product, actual product and augmented product.

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Discontinuous Innovation

A significant jump in a product's ability to deliver its primary benefit.

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Continuous Innovation

Small, incremental improvements to a product's benefit-delivering capabilities.

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Brand Name

The part of a brand that can be spoken, such as a word or phrase.

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Market Leader

The most dominant brand in a category with the highest market share.

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Market Challenger

A brand competing directly with the leader, trying to gain market share.

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Market Follower

A brand that wants market share but avoids direct competition with the leader.

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Market Nicher

A brand that focuses on a small, specific segment of the market.

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Co-Branding

When two brands collaborate on a product, combining their strengths.

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Study Notes

8.1 What Products Mean to Marketers

  • Products are benefit delivery systems; customers buy benefits, not products.
  • Benefits include sensory, functional, resource, and psychological aspects.
  • Products are total market offerings with multiple levels: core, actual, and augmented.
  • Goods and services exist on a continuum; services are intangible, perishable, inseparable, and variable.

8.2 New Products and Innovation

  • Innovation improves a product's benefit delivery, categorized as discontinuous (major improvement) or continuous (small improvement).
  • New product development is a process involving conceptualization (idea generation, screening), planning (strategy development), and commercialization (production, launch).
  • New product failures are common and costly, often due to issues like poor timing, inadequate marketing, and bad ideas.

8.3 Product Life Cycle

  • The product life cycle (PLC) tracks sales and profits for a product category over time.
  • Stages include development, introduction, growth, maturity, and decline.
  • PLC patterns can be varied, including fads and fashions.

8.4 Product Brands and Branding

  • Brands identify products and services, consisting of brand names (spoken) and brand marks (visual).
  • Brand equity is the financial value of a brand, reflecting customers' willingness to pay more.
  • Different brand roles exist (market leader, challenger, follower, nicher).
  • Brand extensions (in-category, near-category, out-of-category) leverage existing brand equity.
  • Co-branding combines two brands to create a new product.
  • Branding develops a brand image, a collection of associations.

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Test your knowledge on key marketing concepts including product innovation, stages of the product life cycle, brand equity, and branding processes. This quiz will help you understand the fundamentals essential for marketing strategies.

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