Marketing Product Concepts Quiz

Product Definition

• A product can be anything offered to a market for acquisition, use, or consumption. It satisfies a want or need.
• Products can be categorized as goods (tangible) or services (intangible).
• Other product categories include industrial products, experiences, ideas, and people, places, or organizations.

Total Product Concept

• The Total Product Concept describes a product through three levels: core product, actual product, and augmented product.
• The core product represents the fundamental benefit the customer seeks from a product.
• The actual product encompasses the physical attributes, packaging, features, design, quality, and brand name.
• The augmented product includes additional services and benefits, such as support, delivery, credit, warranties, and after-sale services.

Product Classifications

• Product Item: An individual product.
• Product Line: A group of closely related product items.
• Product Mix: All product lines and items offered for sale by a company.

Business-to-Business Products

• Business-to-business products are categorized by how they are used by organizational customers.
• These include raw materials, processed materials, component parts, equipment, and maintenance, repair, and operating (MRO) products.

Branding

• Brand: A collection of symbols, like a name, logo, slogan, and design, that distinguishes a product from its competitors. It creates a specific image in the customer's mind.
• Brand Image: The consumer's perception of a specific brand, built from their beliefs and experiences.
• Brand Name: The spoken part of a brand, using words, letters, or numbers.
• Brand Mark: The non-verbal element within a brand, often using visual symbols or designs.
• Trademark: A legally registered brand name or brand mark, granting exclusive usage rights.

The Benefits of Brands

• For Organizations: Increased company value, customer preference and loyalty, a barrier to competition, higher profits, brand extensions, and coordinated channel behavior.
• For Consumers: Clear communication of features and benefits, reduced risk in purchasing, simplified decision-making, symbolic value, and assurance of quality and reliability.

Branding Decisions

• Individual Branding: Each product is branded separately.
• Family Branding: The same brand is used for multiple products within a company.
• Manufacturer Brands: Brands owned and identified with the producer.
• Private Label Brands (Store Brand): Brands owned by resellers (wholesalers or retailers) and not associated with the manufacturer.
• Co-brand: Two established brand names from different companies are used on the same product.
• Licensed Brand: A company uses names or symbols previously created by other manufacturers or celebrities.

Packaging

• Packaging attracts the consumer's attention, communicates product benefits, helps establish brand recognition and personality, physically protects the product, provides additional information and features, and augments the product with information, recipes, warranties, and ease of use.

Developing New Products

• New product development is crucial for companies due to increasing competition and rapid technological advancements.

Product Life Cycle

• The Product Life Cycle illustrates the course of a product's sales and profits throughout its lifespan.
• It consists of five distinct stages:
  • Product Development: Slow sales, no profits, high investment costs.
  • Introduction: Slow sales growth with no profits.
  • Growth: Market acceptance and increasing profits.
  • Maturity: Slowing sales growth.
  • Decline: Declining sales and profits.

PLC Stages

• Introduction: A single company usually introduces the product, focusing on attracting first-time customers.
• Growth: The goal is to encourage repeat purchases and build brand loyalty. More product variations are introduced to target wider market segments.
• Maturity: The longest stage, aiming to sell through as many outlets as possible. Promotion focuses on reminding customers and reinforcing brand loyalty.
• Decline: Competitors withdraw, product variations reduce, and a smaller number of companies remain profitable.

Marketing Mix Strategies in the PLC

• The Marketing Mix (4Ps) changes within each stage:
  • Product: New product variations are introduced, and the product might be modified to extend its life.
  • Price: Pricing strategies vary through each stage, adjusting to meet competitive pressure and demand.
  • Promotion: Promotion emphasizes building awareness in the introduction, then shifting to building purchase intent and loyalty in the growth stages.
  • Place: Distribution channels expand as the product matures.

Extending the PLC

• To prolong a product's life cycle, various strategies can be employed:
  • Market Modification: Increase consumption by current customers, find new customers in existing or new geographic markets.
  • Product Modifications: Alter product features, quality, or styling.
  • Mix Modifications: Adjust elements of the marketing mix, such as pricing, promotion, or distribution.

Test your knowledge on various aspects of product definitions and classifications. This quiz covers the total product concept, including core, actual, and augmented products. Additionally, you'll explore different types of products such as goods, services, and more.