Principles of Marketing Chapter 8

Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Service
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Consumer product
Product bought by final consumer for personal consumption
Convenience product
Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
Shopping product
Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style
Specialty product
Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Unsought product
Consumer product that the consumer either does not know about or knows about but does not normally think of buying
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business
Materials and parts
Raw materials and manufactured materials and parts usually sold directly to industrial users.
Capital items
Industrial products that aid in the buyer’s production or operations.
Supplies and services
Operating supplies, repair and maintenance items, and business services.
Organization/ Event marketing
Activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.
Person marketing
Activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.
Place marketing
Activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places.
Social marketing
The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group
Product or Service Attributes
Communicate and deliver the benefits of quality, features, style and design.
Product Quality Level
The level of quality that support the product’s positioning.
Product Conformance Quality
The product’s freedom from defects and consistency in delivering a targeted level of performance.
Product features
Competitive tool for differentiating a product from competitors’ products.
Assessed based on the value to the customer versus the cost to the company.
Product quality
The ability of a product to perform its functions—it includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes
Style
Appearance of the product.
Design
A product’s usefulness as well as its looks.
Brand
A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Packaging
The activities of designing and producing the container or wrapper for a product
Labels
Identify the product or brand, describe attributes, and provide information.
Product line
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Product line length
The number of items in the product length.
Line stretching
Line filling
Product mix (or product assortment)
The set of all product lines and items that a particular seller offers for sale
Service intangibility
A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought
Service inseparability
A major characteristic of services—they are produced and consumed at the same time and cannot be separated from their providers
Service variability
A major characteristic of services—their quality may vary greatly, depending on who provides them and when, where, and how
Service perishability
A major characteristic of services—they cannot be stored for later sale or use
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction
Internal marketing
Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction
Interactive marketing
Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction
Managing service differentiation
Creates a competitive advantage from the offer ( distinctive features) , delivery (more able and reliable customer contact people, environment, or process), and image (symbols and branding) of the service.
Managing service quality
Provides a competitive advantage by delivering consistently higher quality than its competitors.
Service quality
Always varies depending on interactions between employees and customers.
Managing service productivity
Refers to the cost side of marketing strategies for service firms.
Employee recruiting, hiring, and training strategies.
Service quantity and quality strategies.
Brand equity
The positive differential effect that knowing the brand name has on customer response to the product or service
Private brand (or store brand)
A brand created and owned by a reseller of a product or service
Co-branding
The practice of using the established brand names of two different companies on the same product
Line extension
Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or packaging sizes
Brand extension
Using a successful brand name to launch a new or modified product in a new category