10.2 develop effective products and services

Question 1

analyzing existing information gathered for another purpose but used to solve a current problem

Answer 1

secondary research

Question 2

provides a unique identification for a company’s products

Answer 2

brand name

Question 3

true or false

most new products introduced by companies are not totally new, but are improvements on existing products

Answer 3

true

Question 4

many ideas for product improvements result from ____ of consumers and from their experience in using current products

Answer 4

many ideas for product improvements result from ideas of consumers and from their experience in using current products

Question 5

true or false

the first step in marketing research is to develop a data collection procedure

Answer 5

false

first step - define the marketing problem

Question 6

additions and improvements to the basic product are known as _____

Answer 6

product features

Question 7

services are ____, meaning that the availability of a service must match the demand for that service at a specific time

Answer 7

perishable

Question 8

____ product planning is a costly and time consuming process, companies invest several million dollars and spend years developing these products

Answer 8

new product planning is a costly and time consuming process, companies invest several million dollars and spend years developing these products

Question 9

What are the components of a product?

Answer 9

• basic product
• product features
• options
• brand name
• packaging
• guarantee/warranty

Question 10

everything a business offers to satisfy a customer’s needs

Answer 10

product

a product is made up of several components

Question 11

studies carried out to gather new information specifically directed at a current problem

Answer 11

primary research

Question 12

collect information by recording the actions of consumers rather than asking them questions, done by marketing researchers

Answer 12

observations

Question 13

What are the 5 steps in a marketing research study?

Answer 13

1. define the marketing problem
2. study the situation
3. develop a data collection prodedure
4. gather and analyze information
5. propose a solution

Question 14

a way to build customer confidence in a company’s products is by offering a ___

Answer 14

guarantee or warranty

if the product breaks or does not meet customer expectations, the company will repair, replace or provide a refund

Question 15

tangible items you can see and examine

Answer 15

products

ex. books, boats, hamburgers

Question 16

services are _____, meaning that they are consumed at the same time they are produced

Answer 16

inseparable

Question 17

provides protection and security for the product before it is used, may also make product storage and use easier

Answer 17

packaging

Question 18

services are ____, meaning they have no physical form

Answer 18

intangible

Question 19

a research method where a small number of consumers take part in a group discussion

Answer 19

focus group

this is a less structured way of gathering the ideas, experiences and opinions of consumers

Question 20

the simplest form of a product

Answer 20

basic product

is not unique and is usually available from several companies

Question 21

_____ gather information from people using a carefully planned set of questions

Answer 21

surveys

Question 22

the availability of a service must match the demand for that service at a specific time because it is:

• heterogeneous
• perishable
• inseparable
• intangible

Answer 22

perishable

Question 23

an ____ presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results

Answer 23

experiment

Question 24

services are _____, meaning that there will be differences in the type of quality of service provided

Answer 24

heterogeneous

Question 25

all marketing research studies involve gathering and analyzing ______

Answer 25

information

Question 26

activities that are consumed at the same time they are produced

Answer 26

services

Question 27

finding solutions to problems through carefully designed studies involving consumers

Answer 27

marketing research

Question 28

What are the stages of new product planning?

Answer 28

• idea development - creative process to generate new product ideas. ideas come from scientists, suggestions of salespeople & other employees, from consumer surveys, and consumer focus groups
• idea screening - companies have lots of new ideas then evaluate all of them to see if there is a demand for each product
• strategy development - develop a full marketing strategy for one of the ideas, target market for the product is studied, alternative marketing mixes developed
• production and financial planning - company develops a production procedure and identifies the facilities, equipment and people that will be needed to produce the product. costs of production and marketing are determined and a financial plan is developed to make sure product will make a profit
• limited production and test marketing - company produces a limited quantity of the product and test it in a small part of the market. this allows the company to make sure the product can be produced and marketed as planned before a large investment is made for full production
• full scale production - if a product is successful in all prior steps then a full scale production and marketing is done for the product. company continues to gather info on production and sales to be sure financial projections are being met. competitors also watch because they will probably introduce competitive products

Question 29

when customers are offered choices of features, the choices are known as ____

Answer 29

options

when buying car, can choose color, engine size, navagation, etc

Question 30

Most surveys are sent to consumers through the ____, or by using the ____, or done over the _____

Answer 30

most surveys are sent to consumers through the mail, by using the internet, or done over the phone

Question 31

most products that are identified as new in a company’s advertising _____ (are/are not) new at all

Answer 31

most products that are identified as new in a company’s advertising are not new at all

most ‘new’ products are really just old products with minor or major improvements

Question 32

In what ways are services different from products?

Answer 32

• products can be seen and examined, services cannot
• services are intangible, inseparable, perishable and heterogeneous