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
