10.2 develop effective products and services Flashcards
analyzing existing information gathered for another purpose but used to solve a current problem
secondary research
provides a unique identification for a company’s products
brand name
true or false
most new products introduced by companies are not totally new, but are improvements on existing products
true
many ideas for product improvements result from ____ of consumers and from their experience in using current products
many ideas for product improvements result from ideas of consumers and from their experience in using current products
true or false
the first step in marketing research is to develop a data collection procedure
false
first step - define the marketing problem
additions and improvements to the basic product are known as _____
product features
services are ____, meaning that the availability of a service must match the demand for that service at a specific time
perishable
____ product planning is a costly and time consuming process, companies invest several million dollars and spend years developing these products
new product planning is a costly and time consuming process, companies invest several million dollars and spend years developing these products
What are the components of a product?
- basic product
- product features
- options
- brand name
- packaging
- guarantee/warranty
everything a business offers to satisfy a customer’s needs
product
a product is made up of several components
studies carried out to gather new information specifically directed at a current problem
primary research
collect information by recording the actions of consumers rather than asking them questions, done by marketing researchers
observations
What are the 5 steps in a marketing research study?
- define the marketing problem
- study the situation
- develop a data collection prodedure
- gather and analyze information
- propose a solution
a way to build customer confidence in a company’s products is by offering a ___
guarantee or warranty
if the product breaks or does not meet customer expectations, the company will repair, replace or provide a refund
tangible items you can see and examine
products
ex. books, boats, hamburgers
services are _____, meaning that they are consumed at the same time they are produced
inseparable
provides protection and security for the product before it is used, may also make product storage and use easier
packaging
services are ____, meaning they have no physical form
intangible
a research method where a small number of consumers take part in a group discussion
focus group
this is a less structured way of gathering the ideas, experiences and opinions of consumers
the simplest form of a product
basic product
is not unique and is usually available from several companies
_____ gather information from people using a carefully planned set of questions
surveys
the availability of a service must match the demand for that service at a specific time because it is:
- heterogeneous
- perishable
- inseparable
- intangible
perishable
an ____ presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results
experiment
services are _____, meaning that there will be differences in the type of quality of service provided
heterogeneous
all marketing research studies involve gathering and analyzing ______
information
activities that are consumed at the same time they are produced
services
finding solutions to problems through carefully designed studies involving consumers
marketing research
What are the stages of new product planning?
- 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
when customers are offered choices of features, the choices are known as ____
options
when buying car, can choose color, engine size, navagation, etc
Most surveys are sent to consumers through the ____, or by using the ____, or done over the _____
most surveys are sent to consumers through the mail, by using the internet, or done over the phone
most products that are identified as new in a company’s advertising _____ (are/are not) new at all
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
In what ways are services different from products?
- products can be seen and examined, services cannot
- services are intangible, inseparable, perishable and heterogeneous
