Week 7

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Questions and Answers

What is the primary purpose of a brand name?

To reduce the competition in the market

To create a new product category

To increase the price of a product

To create an image in a customer's mind that differentiates a product from a competitor's product (correct)

What are the benefits of brands to organizations?

Company value, consumer preference and loyalty, barrier to competition, high profits, and base for brand extensions (correct)

Decreased brand equity

Reduced customer satisfaction and loyalty

Increased competition and lower profits

What is the term for a set of beliefs a customer has regarding a particular brand?

Brand image (correct)

Brand mark

Trademark

Brand name

What is the benefit of a brand to customers in terms of risk reduction?

Reduces the risk in purchasing (B) Signup and view all the answers

What is the term for the process of adding a new product line to the existing product mix?

Product line stretching (A) Signup and view all the answers

What is the term for a group of products that are closely related because they function in a similar manner?

Product line (D) Signup and view all the answers

What is the benefit of branding to customers in terms of quality and reliability?

It assures quality and reliability (C) Signup and view all the answers

What is the term for a brand name or brand mark that has been legally registered to secure exclusive use?

Trademark (A) Signup and view all the answers

What is the term for the collection of symbols such as name, logo, slogan, and design intended to create an image in a customer's mind?

Brand (A) Signup and view all the answers

What is the term for the value of a brand to an organization?

Brand equity (C) Signup and view all the answers

What is individual branding?

A branding approach in which each product is branded separately (A) Signup and view all the answers

What is family branding?

Using the same brand for several of the organisation's products (B) Signup and view all the answers

What is co-branding?

When two established brand names of different companies are used on the same product (C) Signup and view all the answers

What is the first stage of the product life cycle?

Product development (A) Signup and view all the answers

What is the stage of the product life cycle characterized by a slowdown in sales growth?

Maturity (B) Signup and view all the answers

What is the last stage of the product life cycle?

Decline (D) Signup and view all the answers

What is market modification in extending the product life cycle?

Current customers consume more (B) Signup and view all the answers

What is product modification in extending the product life cycle?

Feature modification (B) Signup and view all the answers

What is licensed branding?

Where a company licenses names or symbols previously created by other manufacturers (D) Signup and view all the answers

What is manufacturer branding?

Brands owned by producers and identified with the product at the point of sale (D) Signup and view all the answers

What is a primary characteristic of a product that satisfies customer needs?

It provides a solution to a problem (D) Signup and view all the answers

What is the core benefit that a customer wants from a product?

The core product (D) Signup and view all the answers

What type of product is an intangible offering that does not involve ownership?

Service (B) Signup and view all the answers

Which of the following is an example of an 'idea' product?

Slip, slop, slap and wrap! (D) Signup and view all the answers

What is the total product concept composed of?

Three core levels (B) Signup and view all the answers

What is the definition of a product?

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or a want (C) Signup and view all the answers

What is the primary benefit that customers seek from a product?

Want satisfaction (D) Signup and view all the answers

What is the term for the physical 'tangible' offering of a product?

Good (C) Signup and view all the answers

What is the term for the materials, capital items, and services that are used to produce a product?

Industrial product (D) Signup and view all the answers

What is the term for a sporting event or festival?

Experience (C) Signup and view all the answers

Study Notes

Product Classification

A product can be classified as a convenience product, shopping product, specialty product, or unsought product based on how consumers buy them.
Convenience products: inexpensive, frequently purchased, widely available, and have self-service packaging (e.g., groceries).
Shopping products: purchased infrequently, with consumers comparing alternatives based on a few criteria (e.g., cameras, clothes, furniture).
Specialty products: consumers make a special effort to obtain them due to unique characteristics (e.g., Mac laptop, Tesla, original artworks, iPhone 15).
Unsought products: consumers are unaware of the need for the product until a sudden problem arises (e.g., mechanic, health insurance).

Product Line and Mix

A product line is a group of closely related products that function similarly, are sold to the same customer groups, and are marketed through the same outlets or fall within a given price range.
Product mix refers to all product lines and items a company offers for sale, with width referring to the number of product lines and consistency referring to how closely related the lines are.
A company can expand its product line by filling or stretching it.

Branding

A brand is a collection of symbols (name, logo, slogan, and design) intended to create an image in a customer's mind, differentiating a product from competitors.
Brand image is the set of beliefs a customer has about a particular brand, while a brand name is a part of a brand that can be spoken (ideally distinctive, recognizable, relevant, suggestive, extendable, and protectable).
A brand mark is the part of a brand not made up of words, often consisting of symbols or designs.
Trademark refers to a brand name or brand mark that has been legally registered for exclusive use.

Benefits of Brands

Benefits to organizations: company value, consumer preference and loyalty, barrier to competition, high profits, and a base for brand extensions.
Benefits to customers: communicates features and benefits, reduces risk in purchasing, simplifies purchase decisions, and provides symbolic value, assurance of quality and reliability.

Branding Decisions

Individual branding: each product is branded separately.
Family branding: the same brand is used for several products.
Brand sponsorships, manufacturer brands, co-brands, and licensed brands are other branding approaches.

Product Life Cycle (PLC)

The PLC consists of five distinct stages: product development, introduction, growth, maturity, and decline.
Each stage has its own characteristics regarding sales, profits, and investment costs.

Marketing Mix Strategies

Extending the PLC: market modifications (increased consumption, new customers), product modifications (feature, quality, style), and mix modifications.

Total Product Concept

A product consists of three core levels: the core product (core customer value), actual product (packaging, features, design, quality), and augmented product (warranty, delivery, credit, and symbolic benefits).

Product Definition

A product is anything that can be offered to a market to satisfy a need or want, providing value and meeting customer needs and wants (hedonic or utilitarian, or hybrids).
Products can be goods (physical, tangible), services (intangible), industrial products (materials, capital items, services), experiences (sporting events, festivals), ideas (concepts, issues, or philosophies), or people (politicians, entertainers), places (tourism), or organizations (not-for-profit).

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