The difference between the core product, the actual product, and the augmented product
What is the difference between the core product, the actual product, and the augmented product?
What is a test market? What are some pros and cons of test markets?
Chapter 11
Why is quality such an important product strategy objective? What are the dimensions of product quality? How has E-commerce affected the need for quality product objectives?
What does it mean to license a product? What is co-branding?
Chapter 12
What are intangibles? How do basic marketing concepts apply to the marketing of intangibles?
Describe how the Internet is used to market services.
Chapter 13
Explain the role of distribution channels.
Explain intensive, selective, and exclusive forms of distribution.
- Augmented Product: This encompasses the additional services and benefits that enhance the actual product and often differentiate it from competitors. It includes things like warranties, customer support, delivery, installation, financing, and after-sales service. For a car, the augmented product might include a warranty, roadside assistance, and maintenance services. For a smartphone, it could include cloud storage, software updates, and technical support.
What is a test market? What are some pros and cons of test markets?
A test market is a limited introduction of a new product and its marketing mix in a specific geographic area or to a select group of consumers to gauge their reactions before a full-scale national or international launch. It allows a company to gather real-world feedback on various aspects of the product and marketing strategy.
Pros of Test Markets:
- Reduced Risk: It's far less expensive to fail in a limited test market than with a full-scale launch.
- Gathering Feedback: Provides valuable insights into consumer acceptance, usage patterns, and potential problems with the product or marketing mix.
- Refining the Marketing Mix: Allows for adjustments to pricing, promotion, distribution, and product features based on real consumer behavior.
- Forecasting Sales: Offers a more realistic estimate of potential market share and sales volume.
- Identifying Potential Problems: Can uncover unforeseen issues with the product, packaging, or marketing strategy before a costly wider rollout.
- Creating a Promotional Buzz: Can generate initial excitement and awareness for the product.
Cons of Test Markets:
- Costly and Time-Consuming: Even a limited test market requires significant investment of time and money.
- Limited Reach: The results from a small test market may not accurately represent the entire target market.
- Competitive Exposure: Competitors can observe the test market and potentially develop a counter-strategy or launch a similar product more quickly.
- Customer Confusion: If the product or marketing changes significantly after the test market, early adopters might be confused.
- Missed Opportunities: A lengthy test market can delay the full launch, potentially missing out on market opportunities.
- Negative Impact on Brand Reputation (if the test fails): A poorly executed test market can create a negative perception of the brand in the test area.
- Unconvincing Results: Small-scale success doesn't guarantee large-scale success due to different market dynamics.
Chapter 11
What is the difference between the core product, the actual product, and the augmented product?
- Core Product: This is the fundamental benefit or problem-solving service that the customer is really buying. It's the need being fulfilled. For example, the core product of a car is transportation, and the core product of a smartphone is communication and access to information.
- Actual Product: This is the tangible offering itself, including its features, design, brand name, quality level, and packaging. It's what the customer physically receives and uses. For a car, the actual product includes the engine, seats, exterior design, and brand. For a smartphone, it includes the screen size, processing power,