24108 Lecture Notes - Lecture 6: Marketing Strategy, Consumer Protection, Brand Equity
Product: a good, service or idea offered to the market for exchange
Good: a physical (tangible) offering capable of being delivered to a
customer
Service: intangible offering that does not involve ownership
Idea: concept, issue or philosophy offered to the market
Total product concept:
• Describes core product, expected product, augmented product
and potential product in order to analyse how the product
creates value for the customer.
o Core product – main function of product
o Expected product – actual product that you see
o Augmented product – after sales service, warranty,
guarantees etc
o Potential product – possible features in the future
• Product item
o A particular version of a product
• Product line
o A set of product items related by characteristics such as
end use, target market, technology or raw materials
• Product mix
o All products that an organisation makes available to
customers
• Consumer products
o Purchased by households and individuals for their own
private consumption
• Business-to-business products
o Purchased by individuals and organisations for use in the
production of other products or for use in their daily
business operations
• Shopping products
o Moderate to high engagement in the decision making
process, with the purchase decision based on features,
quality and price
• Convenience products
o Fast-moving consumer goods
o Inexpensive, frequently purchased, bought with little
engagement in the decision-making process
• Specialty products
o Highly desired products with unique characteristics that
consumers will make considerable effort to obtain
• Unsought products
o Purchased to meet a sudden, unexpected need
Business-to-business products
• Part and materials
o B2B products that form part of the purchasing of business
products
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• Equipment
o Capital equipment and accessory equipment used in the
production of the business’ products
• Supplies and services
o B2B products that are essential to business operations, but
do not form part of the production process
Product Life Cycle:
• New product development
• Introduction
• Growth
• Maturity
• Decline
New product development process:
1. Idea generation
2. Screening
3. Concept evaluation
4. Marketing strategy
5. Business analysis
6. Product development
7. Test marketing
8. Commercialisation
Product adoption process
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Product: a good, service or idea offered to the market for exchange. Good: a physical (tangible) offering capable of being delivered to a customer. Service: intangible offering that does not involve ownership. Idea: concept, issue or philosophy offered to the market. Product life cycle: new product development, introduction, growth, maturity, decline. New product development process: idea generation, screening, concept evaluation, marketing strategy, business analysis, product development, test marketing, commercialisation. Awareness can"t buy if you don"t know about it. Interest won"t buy if you don"t like. Evaluation won"t buy if it"s not good. Trial if another product is better then you won"t buy it. Adoption if something better comes up they will substitute that; if not they will repurchase. Developing brands: individual branding, each product is branded separately, family branding, brand-extension, same brand for several of the organisation"s products, existing brand name to new product in a different category.
