core product
(noun)
The core product identifies what the consumers feel they are getting then they purchase the product.
Examples of core product in the following topics:
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Benefits and Solutions
- The core benefit is what consumers feel they are getting when they purchase a product.
- The four levels of a product include: core, tangible, augmented, and promised .
- Both are legitimate product cores.
- Because the core product is so individualized, and oftentimes vague, a full-time task of the marketer is to accurately identify the core product for a particular target market.
- Once the core product has been indicated, the tangible product becomes important.
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Development
- Development involves setting product specifications as well as testing the product with intended customer groups to gauge their reaction.
- The first is the applied laboratory research required to develop exact product specifications.
- The product concept is a synthesis or a description of a product idea that reflects the core element of the proposed product.
- The second aspect of market development involves consumer testing of the product idea.
- The product itself can be exposed to consumer taste or use tests.
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Marketing by Individuals and Firms
- When considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations.
- The development of new markets for the product may be a good strategy if the firm's core competencies are related more to the specific product than to its experience with a specific market segment.
- Product Development: This strategy offers new and improved products to the current market.
- A product development strategy may be appropriate if the firm's strengths are related to its specific customers rather than to the specific product itself.
- Diversification is the most risky of the four growth strategies since it requires both product and market development and may be outside the core competencies of the firm.
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Product Lines in Services
- By productizing a service it can be managed more like a product and various product lines can be created.
- There is a solution, however, to productize the service.
- Productizing a service means making the service look more like a product so that it is easier for customers to conceive, and thus buy.
- Service Product Management deals with managing a service product throughout its complete life cycle.
- The function is a core service business management function and is a mix of sales and marketing functions.
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Brands and Brand Lines
- A company introduces a brand line extension (also referred to as product line extension) by using an established product's brand name to launch a new or slightly different item which may or may not be in the same product category.
- While the products have distinct differences, they are in the same product category.
- Brand line extensions are crucial because they reduce financial risk associated with new product development by leveraging the parent brand name to enhance consumers' perception as a result of its core brand equity.
- Also, launching a new product is time consuming and requires a generous budget to create awareness and to promote a product's benefits.
- Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity.
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Determining a Budget
- For example, 70% will advance the reputation of the company and 30% will build "steeples" - the critical core themes that make a difference, which are usually only built one at a time.
- The foundation - This component is based on a strategic understanding of the product and market.
- The brand focus - This is the logo, corporate identity, tagline, style, and core message of the brand.
- Consumer experience - This includes the design of the product and its packaging, the product experience (for instance in a retail store), and service.
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Defining the Vision
- Corporate vision begins with a clear and concise understanding of who will buy the product or service produced by the company and what they want and need.
- It is simple and idealistic, appealing to core values.
- These can be personal core values or a company's core values.
- The core ideology is made up of core values and a core purpose.
- The core purpose of a company is it's "raison d'tre".
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Competitive Intelligence
- Once they know what consumers are looking for, they can align their product development resources accordingly.
- Competitive Intelligence (CI) in marketing research involves defining, gathering, analyzing, and distributing information about products, customers, and competitors and any aspect of the environment needed to support executives and managers in making strategic decisions for an organization.
- The CI field has been growing exponentially as it is becoming a must-have core competency for many businesses.
- At the core of this concept is the ability to understand the competition's position and predict the likely moves that competing companies will employ based on basic business principles.
- In essence, CI is a hybrid process of marketing research and strategic analysis that ultimately seeks to provide companies and their products with a competitive advantage in the marketplace.
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Cost-Based Pricing
- Cost-based pricing is the act of pricing based on what it costs a company to make a product.
- Cost-based pricing is the act of pricing based on what it costs a company to make a product.
- In addition, a company must also consider factors such as its competition, applicable government regulations, the cost of production and the customers.
- The bicycle division, which management thought of as Diamond's core business, generated just 10% of total revenues and barely covered its own direct labor and insurance costs.
- Distributing fixed costs can be difficult, since products affect fixed costs in different ways.
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Cultural Values
- Examples of cultural barriers that marketers may face abroad are: (a) language: Language differences cause many problems for marketers in designing advertising campaigns and product labels.
- Dominant cultural values are referred to as core values; they tend to affect and reflect the core character of a particular society.
- Core values are slow and difficult to change.
- In addition, core values are held by virtually an entire culture, whereas secondary values are not.
- Marketers who intend to market their products overseas may be very sensitive to foreign cultures.