Products and Services for Consumers

What is diversification?

Diversification is one step further than adaptation. It is introducing a new product to a market.

Explain the core component of the product component model.

The core component of the product component model is the aspect that contains what satisfies the needs and wants of the consumer. It is the platform for a product. It can vary between markets. It contains the product platform, design features, and functional features of a product.

What is the country of origin effect?

The country of origin effect is any influence that the country or manufacture or design has on a consumer's perception of product.

What needs to be considered when preparing a product for international packaging?

When preparing a product for international packaging it is important to consider the consumer requirements, the shipper requirements, the distributor requirements, and the government requirements.

What needs to be considered when taking part in brand strategy?

When taking part in brand strategy is important to consider whether or not it will be a global or national brand. It is also important to be aware of brand piracy.

Explain why one may have to take part in adaptation when introducing a product to a market

Adaptation of a product may be necessary when entering a new market because there may be physical or mandatory requirements.

What is an example of the adaptation of products?

An example of adaptation of a product is blinkers.

What is an example of the country of origin effect?

An example of the country of origin effect is chocolate. Another is leather. A negative effect is cars made in Mexico.

What is an example of the standardization of products?

An example of the standardization of a product is McDonalds.

What is a product?

A product is a bundle of benefits that will best satisfy a consumer's needs and wants. This bundle includes all of a product's tangible and intangible elements.

Why is it beneficial to have a global brand?

A global brand is beneficial because there is an automatic awareness that comes with it when entering a new market.

What is product homologation?

Product homologation is when changes are made to a product due to local product and service standards.

What is the adoption of a product?

The adoption of a product is when the market accepts the product.

What is the diffusion of a product?

The diffusion of a product is the process of acceptance by the consumers in a particular market.

What is the key decision criteria when deciding to adapt or standardize a product?

The key decision criteria for choosing standardization or adaptation of a product is: 1. Nature of a the product 2. Market development 3. Cost-benefit relationship 4. Legal requirements 5. Competition 6. Support system (infrastructure) 7. Physical environment 8. Market conditions

What are the negative sides to having a global brand?

The negative aspects of a global brand are that there can be piracy/counterfeiting of the brand and there can be look-a-like brands.

What is included in the packaging component of the product component model?

The packaging component of the product component model includes the price, quality, package, styling, trademark, and brand name of a product.

What is the product component model?

The product component model demonstrates the different layers of a product and the different decisions we have to make as marketers.

Describe standardization of a product

The standardization of a product is an extension of domestic marketing. It is the selling of one generic, standard product. The marketing plan can be standardized for many things but adapted for some. It is preferable because of lower costs (economies of scale) but is not always realistic.

What are the steps of the process of acceptance in market?

The steps of acceptance in the market include awareness, knowledge, evaluation, trial, and adoption.

What is included in the support services component of the product component model?

The support services component of the product component model includes delivery, warranty, spare parts, repair and maintenance, installation, instructions, and other related services.

What are the three layers of the product component model?

The three layers of the product component model are the core component, the packaging component, and the support services component.

What factors facilitate the diffusion of a product?

There are product-related and market-related factors that facilitate diffusion. The product-related factors are relative advantage, compatibility, low complexity, trialbility, and communicability (observability). The market-related factors are customer innovativeness, need perception, and economic ability.

Describe the concept of quality

There are two aspects in regards to the concept of quality. The first aspect is market-perceived quality, which is the consumer's perception of a product. The second aspect of quality is performance quality.

How can one enhance the market-perceived quality of a product?

To enhance the market-perceived quality of a product one can apply the 4 Ps.