Ch.8 Product Flashcards
InTangible- non durable products (services)
Intangible
Inseparable
Variable
Perishable
Product
Create customer delight and profitable relationships
Is a market offer for attention, use…not just goods but services, places, people, ideas, organizations
Product levels
Augmented product- warranty, assembly, delivery (support services)
Actual product- features, packaging, design
Core customer value
Features are not benefits
People don’t buy features but benefits
Types of products
Convenience products (frequent, location is critical, substitutes are acceptable)- impulse, staples (to replenish), emergency (unexpected needs)
Shopping- more expensive than convenience, location is more important (differentiated by price, perception, quality) ex: homogenous (flights) or heterogenous(furniture)
Specialty- ex: jewellery diamonds
Unsought goods- marketed through promotions ex: insurance, telephone or tv at their start
Product line management
Product line- group of products closely related in function or segment or price
Lenght- # of products in the line (filling (more in current range like new shampoo (sedal)), stretching (same product but more beyond current range) up, down or both, like marriott hotels 4 dif segments))
Product mix strategy
Width # of product lines
Length # of different products
Depth product variations marketed
New product dvpm
Newness for the consumer has to do with learning time (windows vista)
For the company, when it has an improvement (iPhone 5)
Why new products
Diversify and reduce risk Remain competitive and up to date in tech Replace dying products Evolve current products Market demands
Failures
Almost no differentiation Not attractive or affordable for market (complicated fake cigarettes) Bad timing Overestimation of market size Not enough market
Steps
NP strategy dvpm
Idea generation
Screen & evaluation narrow amount of ideas and estimate costs, returns and market size is it a need?
Business analysis potential - marketing strategies and profit projections, prototype
Dvpm- pilot tests, redesign, pretest market
Mark testing -test, analyse, repeat
Commercializations continuos improvement, feedback
Product life cycle
Introduction
Growth
Maturity
Decline
Adoption rates
Relative advantage- better than substitutes
Compatibility- fit to current values and trends
Complexity- ease to understand
Divisibility- ability to sample
Communicability- ability to transmit value
Product attributes
Quality (level or consistency)
Features
Design
Product level decisions
Attributes
Branding
Packaging & labelling
Product support services
Branding
Name, symbol, design that identifies & differentiates the product of a seller from the one of another
Packaging
Protect
Assist in marketing
Enhance quality (safer, reusable, easier usage)
Sometimes, it has it’s own use (self warming)
Or can be representative (coke bottle trademark) or multitasking (Heinz dip & squeeze)
Osea adds value!
Issues with packaging
Costly (Heinz)
Unsafe (self warming)
Bad image (cheap)
Label fonctions
ID
Describe
Promote
New product process (6)
Idea generation
Screening & eval- narrow to worthiness
Bus analysis- projection of sales, costs, profit
Development- prototype, test, redesign
Market testing- design package & manufacturing processes, test real market, retest (price changes)
Commercialization- build plants & supply chain
Successful new product
Constantly improve product & other Ps
Attention to feedback: customer preference, + demand, mass production, - cost, - price
Product life cycle
Intro
Growth
Maturity
Decline
Changes of awareness, competition level, loyalty
Hard to know at the moment what stage we are in
Hard to predict length of each stage & factors that cause change in stage
Strategy can be cause & consequence of plc
PLC management
Change product (coca vainilla), market (increase consumption, find new use), reposition (start a trend, react to competition)
