Product Concept and Brand Classification
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Questions and Answers

What is the main goal of utilizing direct marketing tools?

  • To create brand awareness among the general public
  • To improve the overall image of the company
  • To build long-term relationships with stakeholders
  • To obtain a measurable response from individuals (correct)

Which communication tool is primarily unilateral and controlled by the advertiser?

  • Sales promotion
  • Public relations
  • Personal selling
  • Advertising (correct)

What does the concept of sales promotion primarily involve?

  • Adding promotional bonuses to products to boost sales temporarily (correct)
  • Building credibility and trust through informative communication
  • Engaging in direct, personal communication for relationship building
  • Running advertisement campaigns across multiple channels

The POEM model in marketing refers to which types of media?

<p>Paid, owned, earned (D)</p> Signup and view all the answers

What is the primary focus of personal selling as a communication tool?

<p>Engaging in direct interactions with immediate responses (C)</p> Signup and view all the answers

How can integrated marketing communications (IMC) best be described?

<p>The careful coordination of various communication channels (B)</p> Signup and view all the answers

What is the primary purpose of public relations (PR) in communication?

<p>To create informative messages that build trust and acceptance (D)</p> Signup and view all the answers

Which term best describes the combination of paid and unpaid efforts to enhance a website's visibility?

<p>Search Engine Marketing (SEM) (C)</p> Signup and view all the answers

What is the primary difference between comparators and meta-search engines?

<p>Comparators show only seller websites, while meta-search engines include multiple search results. (A)</p> Signup and view all the answers

Which of the following factors is NOT considered an internal factor influencing pricing?

<p>Economic environment (B)</p> Signup and view all the answers

What is meant by 'demand elasticity' in the context of pricing methods?

<p>The consumer’s perceived value influencing price sensitivity. (C)</p> Signup and view all the answers

How is the selling price determined in indirect distribution?

<p>Selling price is calculated as the manufacturer's price plus the distribution margin. (B)</p> Signup and view all the answers

Which statement best describes the role of costs in pricing methods?

<p>Costs must be calculated along with demand to set optimal prices. (A)</p> Signup and view all the answers

Which attribute is NOT a characteristic of a tangible product?

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

What is the core customer value associated with a product?

<p>The functional and emotional benefits (B)</p> Signup and view all the answers

What does the augmented product level include?

<p>Warranty and after-sale services (B)</p> Signup and view all the answers

Which of the following is NOT a benefit of branding?

<p>Guarantee of lower production costs (D)</p> Signup and view all the answers

Which component is considered part of the actual product?

<p>Brand name (B)</p> Signup and view all the answers

How can a brand create emotional connections with consumers?

<p>Through effective marketing and storytelling (D)</p> Signup and view all the answers

What defines a trademark in branding?

<p>The name and sign of a seller's goods or services (D)</p> Signup and view all the answers

Which of the following is an example of an intangible product?

<p>A family planning service (D)</p> Signup and view all the answers

What is the main characteristic of paid media?

<p>It requires a financial investment to convey messages. (B)</p> Signup and view all the answers

Which of the following is NOT considered owned media?

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

What distinguishes earned media from owned and paid media?

<p>Earned media results from client or follower actions. (D)</p> Signup and view all the answers

Which of these is an example of paid media in the form of direct marketing?

<p>A promotional email sent to customers (C)</p> Signup and view all the answers

Which advertising medium is included in paid media?

<p>Radio advertising (B)</p> Signup and view all the answers

What type of media do actions of followers contribute to?

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

What is the primary focus of owned media?

<p>To engage customers through brand-generated content. (D)</p> Signup and view all the answers

Which of these channels would likely fall under the category of paid media?

<p>A billboard advertising a new product. (C)</p> Signup and view all the answers

What is the primary function of distribution in marketing?

<p>To make products available to the market (D)</p> Signup and view all the answers

Which distribution method involves manufacturers selling directly to consumers?

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

What role do retailers serve in the distribution channel?

<p>They purchase products to sell to end consumers (D)</p> Signup and view all the answers

How do intermediaries provide value in the distribution process?

<p>By reducing the number of contacts needed (B)</p> Signup and view all the answers

What does a long distribution channel consist of?

<p>Manufacturer &gt; Wholesaler &gt; Retailer &gt; Consumer (B)</p> Signup and view all the answers

Which of the following is NOT a factor that influences the design of the marketing mix?

<p>Employee training programs (C)</p> Signup and view all the answers

What is the definition of a channel level in marketing?

<p>Each intermediary involved in the distribution process (A)</p> Signup and view all the answers

Which of the following best describes indirect marketing?

<p>Using third-party agents in the sales process (B)</p> Signup and view all the answers

What is the primary goal of exclusive distribution?

<p>To limit distribution to very few outlets (C)</p> Signup and view all the answers

Which of the following products is most likely to use exclusive distribution?

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

What is a key benefit of exclusive distribution?

<p>It creates a sense of exclusivity and elitism (A)</p> Signup and view all the answers

How does Apple typically manage the distribution of its products?

<p>Through its own stores and limited online platforms (A)</p> Signup and view all the answers

What distinguishes wholesalers from retailers?

<p>Wholesalers sell primarily to other businesses or intermediaries (B)</p> Signup and view all the answers

What is a virtual intermediary?

<p>A digital platform connecting buyers and sellers (A)</p> Signup and view all the answers

Price Comparison Websites (PCW) primarily serve which function?

<p>Facilitating comparisons of products for consumers (C)</p> Signup and view all the answers

What is a characteristic of wholesale trade?

<p>Wholesalers acquire products from multiple manufacturers (B)</p> Signup and view all the answers

Flashcards

Product

Anything that can satisfy a customer's needs, including goods, services, or ideas.

Tangible Product

A tangible product is something you can touch and feel, like a computer or a car.

Intangible Product

An intangible product is something you can't touch, like a service or an idea.

Core Customer Value

The core value a customer receives from a product, including its function, emotions, aesthetics, ethics, and trends.

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Actual Product

The physical and visible aspects of a product that customers experience, such as brand, packaging, design, and features.

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Augmented Product

Additional services offered alongside a product, such as delivery, warranty, product support, or customer service.

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Brand

A name, term, symbol, or design that identifies a seller's products and differentiates them from competitors.

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Brand Graphic Elements

Visual elements of a brand, such as a logo or a symbol, that are readily recognizable.

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Owned Media

Marketing communications that are created and controlled by the brand itself, such as websites, blogs, social media channels, email newsletters, and events. These channels allow brands to directly reach their target audience and build relationships.

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Paid Media

Marketing communications that involve paid placements on third-party channels, such as advertising on television, radio, online platforms, print publications, and billboards. These channels allow brands to reach a broader audience but require a financial investment.

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Earned Media

Marketing communications that are generated by external sources, such as news articles, social media posts, reviews, and customer testimonials. This type of media arises from positive brand experiences and engagement with customers or influencers.

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Advertising

A type of paid media involving paid placements for the brand's messages across various channels, including TV, radio, online platforms, print publications, and billboards.

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Point of Sale (POS) Advertising

A type of paid media involving paid placements specifically intended for audiences in the retail environment. These messages are strategically located for maximum exposure and impact at the point of purchase.

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Communication Mix

A process of creating and managing a combined set of communication strategies, including advertising, direct marketing, sales promotion, public relations, and personal selling, to effectively reach and persuade target audiences.

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POEM Model

A method of marketing that uses a combination of paid, owned, and earned media channels to reach a target audience.

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SEM (Search Engine Marketing)

A broader digital marketing strategy that includes both paid and unpaid efforts to increase a website's visibility on search engines. It often refers specifically to paid search ads, like Google Ads.

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Direct Marketing

A communication tool that allows direct interaction and engagement with the target audience, treating them as individuals, with the goal of obtaining a measurable response.

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Sales Promotion

A communication tool comprised of multiple techniques, aimed at both the distribution network and the final consumer, that promotes a product or service through temporary incentives or bonuses to increase sales.

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Distribution

Making products easily accessible to target customers through various intermediaries.

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Channel Level

A specific level of marketing intermediaries involved in bringing a product closer to the final consumer.

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Channel Length

The number of levels in a distribution channel, indicating the number of intermediaries involved.

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Direct Distribution System

A distribution channel where the manufacturer sells directly to the consumer.

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Indirect Distribution System

A distribution channel involving one or more intermediaries between the manufacturer and the consumer.

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Retailers

Businesses that buy finished goods from manufacturers and sell them to consumers.

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Wholesalers

Businesses that buy goods in bulk from manufacturers and sell them to retailers or businesses.

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Distribution Channel

A network of interconnected organizations that contribute to the distribution of products to consumers.

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Comparators

Websites that compare prices from various sellers in a specific category, like insurance or travel. They often do not display the seller's website directly, but instead provide a list of options.

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Meta-search engines

Websites that show prices from multiple sources, including both search engines and individual retailers. They display results from different sellers, allowing users to compare options directly.

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Price

The monetary value assigned to the satisfaction a customer receives when purchasing a product. It includes both tangible benefits and intangible value.

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Cost-based pricing

A pricing method where prices are determined based on the cost of producing the product, including raw materials, labor, marketing, and distribution costs. It ensures covering costs but may not consider market demand.

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Competition-based pricing

A pricing method where prices are based on the competitor's pricing strategies. It can involve aligning prices with competitors, offering prices higher than competitors, or offering prices lower than competitors.

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Exclusive Distribution

A distribution strategy where products are only available at a limited number of carefully chosen outlets, often just one per location.

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Online Marketplaces

Online platforms where multiple sellers offer products and services to buyers, facilitating safe and easy transactions. Both sellers and buyers remain on the platform until the transaction is complete.

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Price Comparison Websites (PCW)

Websites that specialize in helping consumers compare prices and product features from different retailers. They identify the best options based on consumer preferences and facilitate easy price comparisons.

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Direct Distribution

A strategy that involves a brand selling its products only through its own channels, like online stores or dedicated physical stores, maintaining strict control over distribution and brand image.

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Comparators (Price Comparison Websites)

Online intermediaries specializing in helping consumers find and compare products based on their requirements. They provide summaries and links to different online shops or compare websites.

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Study Notes

Product Concept and Classification

  • A product is anything—goods, services, or ideas—that can satisfy a buyer's needs.
  • Products are bought for the solutions they provide, not just their attributes.
  • Products can be tangible (physical) or intangible (non-physical).
  • Tangible products include physical goods (bread, computers, cars).
  • Intangible products include services (restaurant food, banking services) or ideas (political programs).
  • Tangible products have attributes like technical quality, brand, style, design, physical characteristics, packaging, and additional services like installation and repairs and warranties.

Brand, Packaging, and Labelling

  • A brand represents a name, term, symbol, or design to identify or differentiate a seller's goods or services from competitors' offerings.
  • Brands evoke feelings, emotions, and intangibles and represent consumer perceptions.
  • Brand characteristics include being short, evocative, distinctive, and translatable.
  • Desirable logos are simple, representative, scalable, and registrable.
  • Colour and design in a brand can evoke feelings and associations.
  • Brand elements include word marks (using words, letters, or numbers), figurative marks (using non-standard characters), shape marks, pattern marks, colour marks, and sound marks.

Types of Brands

  • Word marks utilize words, letters, or numbers.
  • Figurative marks include stylized or graphic characteristics.
  • Shape marks describe a product's three-dimensional shape.
  • Pattern marks consist of repeated elements.
  • Colour marks use specific colours or combinations.
  • Sound marks involve unique sounds or combinations.
  • Motion marks involve movement of elements.
  • Multimedia marks combine images and sound.
  • Holographic marks include holographic characteristics.

Packaging

  • Packaging includes primary containers (enclosing the product) and secondary containers (containing multiple primary packages).
  • Labelling contributes to a product's identity by clarifying product information.
  • Codification uses codes (e.g., GTIN) for unique identification.
  • Codes must follow specific rules depending on attribute changes, size or weight alterations, or changes in colour, smell, etc.

Multipacks

  • Multipacks involve packaging changes, formula changes, or promotional changes.
  • Coding improves intermediary effectiveness, reduces costs for manufacturers, and expedites transaction time at cash registers.

Promotion Principles

  • Communication—in marketing—is transmitting messages to influence attitudes and behaviour.
  • Key promotional concepts include advertising (paid messages), direct marketing (interaction with target audience), sales promotion (short-term incentives), public relations (building relationships), and personal selling.

Communication Mix

  • A promotion mix or communication mix is a blend of promotional tools used to communicate customer value and relationships.
  • Integrated marketing communications (IMC) involves integrating and coordinating all communication channels.
  • The POEM model (Paid, Owned, and Earned Media) is a framework for formulating a marketing strategy.

Owned Media

  • These are communication channels wholly owned and directly controlled by a company or brand.
  • Owned media include websites, blogs, social media accounts, apps, advertising emails, mobile advertising messages, letters containing commercial content, facility visit programs, contests and prizes, corporate reports, letters, internal news magazines, events, and celebrations.
  • Paid media involves external channels for communication where the brand pays for promoting messages.
  • Paid media includes advertising on television, film, cinema, radio, newspapers, magazines, outdoor (billboards) and in-shop advertising, among others.

Earned Media

  • This refers to communication that appears due to the actions of customers or followers, not through paid channels.
  • Earned media includes reviews, media coverage, social shares, and publicity.

Place (Distribution Channels)

  • Place involves decisions on how a product or service is made accessible to the consumer; this is also called place or distribution.
  • Direct marketing involves producers selling directly to customers (e.g., online shops, company stores).
  • Indirect marketing involves intermediaries like retailers and wholesalers between producers and customers.
  • The number of intermediaries involved determines the channel length.

Distribution Channel Decisions

  • Intermediaries help by reducing contacts, adapting assortment to needs, and overcoming logistical issues of time and place.
  • The number of levels denotes the number of intermediaries involved between manufacturer and consumer.
  • Channel design considers factors such as proximity, consumer needs, service, product, and environment.

Distribution Channel Evaluation

  • Channel choice depends on criteria like cost, control, ability to adapt, and distribution intensity (intensive, selective, exclusive).
  • Intensive distribution maximizes product visibility and convenience (e.g., Coca-Cola).
  • Selective distribution provides a balance between availability and exclusivity (e.g., L'Oréal).
  • Exclusive distribution restricts product availability (e.g., luxury cars, high-fashion).

Pricing Methods

  • Pricing considers external factors (demand, competitors) and internal factors (costs, business goals).
  • Cost-plus pricing adds a markup to production costs.
  • Demand-based pricing leverages consumer psychology and perceived value.
  • Competition-based pricing sets prices comparable to competitors' offerings.

Target Price Calculations

  • Target price calculates the acceptable cost level that enables revenue objectives.
  • Markup (or margin) is the added revenue per product's price and allows for intermediary or profit.

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ITM Units 4-7 PDF

Description

Explore the fundamentals of product concepts and branding through this quiz. Understand the differences between tangible and intangible products, and learn how branding, packaging, and labeling contribute to consumer perceptions. Test your knowledge on the key attributes that define successful products.

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