Chapter 12 and 13 exam review Flashcards
the development of a product that is closely related to existing products in the line, but is designed specifically to meet different customer needs
Line Extension
What are 3 reasons for line extensions
focus on a different segment, more precisely satisfy needs of current segment, capture market share from competitors
changes in one or more characteristics of a product
Product modification
- Product must be modifiable
- customers must be able to perceive customer satisfaction
- Modifications should produce greater customer satisfaction
are requirements for what
Product Modification
is that the customers accustomed to the original may resist the modified version
Drawback
What are the 3 Major ways to modify products
- Quality modifications
- Functional Modifications
- aesthetic modifications
Changes related to a product’s dependability and durability
Quality Modifications
Change’s affecting the product’s versatility, effectiveness, convenience, or safety
Functional modifications
changes the sensory appeal of a product by altering taste, texture, sound, smell, or appearance
aesthetic modifications
innovative benefits, different and better than existing products, never been sold by any organization before, and never been sold by a particular firm or in a market before are all definitions of what
New product
what are the 7 phases of the new product development process?
- idea generation
- screening
- Concept testing
- business analysis
- product development
- test marketing
- commercialization
is the activity of seeking product ideas to achieve organizational objectives
Idea Generation
means selecting the ideas with the greatest potential for further review
screening
is seeking a sample of potential buyers’ responses to a specific product idea
concept testing
involves evaluating the potential impact of a product idea on the firm’s sales, costs, and profits
business analysis
is determining if producing a product id technically feasible and cost-effective
Product development
is a limited introduction of the product in geographic areas chosen to represent the intended market
Test marketing
is refining and finalizing plans and budgets for full-scale manufacturing and marketing a product
Commercialization
the process of creating and designing products so customers perceive them as different from competing products
product differentiation
the amount of quality a product possesses
level of quality
the degree to which a product has the same level of quality over time
consistency of quality
how a product is conceived, planned, and produced, (the total sum of a product’s physical characteristics
product design
physical appearences of a product (involves functioning and usefulness
styling
what are the three aspects of product differentiation are
product quality, product design and features, and customer services
specific design characteristics that allow a product to perform certain tasks (helps company differentiate its product)
Product features
human or mechanical efforts or activities that add value to a product
customer services
creating and maintaining a certain concept of product in a customers mind
product positioning
created by questioning a sample of consumers about their perceptions of products, brand and organization with respect to two or more dimensions
perceptual map
best when products are equal and if the price is lower
head-to-head
critical when introducing a brand into a market in which the company already has one or more brands
avoid competition
eliminating a product from the product mix when it no longer satisfies a sufficient number of customers
deletion
responsible for a product, a product line, or several distinct products that make up a group
product manager
responsible for a single brand
brand manager
responsible for managing the marketing activities that serve a particular group of customers
market manager
a cross-functional group that creates entirely new products that may be aimed at new markets
venture teams
An intangible product that involves a deed, performance, or an effort that cannot physically be held
Service
A practice whereby customer contact jobs are outsourced into workers homes
Home sourcing
A service is not physical and cannot be perceived by the senses
Intangibility
Production of a service cannot be separated from its consumption by customers, customers must be present at the consumption of the service and cannot take the service home, implies a shared responsibility between the customer and service provider in giving and receiving the service
Inseparability of production and consumption
Unused service capacity from one time period cannot be stored for future use, service marketers have to balance supply and demand
Perishability
Service has variations in quality
A.manufactured easier to standardize
B. Heterogeneity increases as labor intensiveness increases
C. Equipment based services have greater homogeneity
Heterogeneity
Interactions resulting in satisfied customers who use a service repeatedly, important for service providers to maintain customers/ clients over the long-term, word of mouth communication has a key role in client-based relationship building
Client-based relationships
The level of interaction between provider and customer needed to deliver the service
The look of facilities plays an important role in high-contact industries
Well-trained, satisfied employees are essential
Customer contact
What are the 6 characteristics of services
Intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, customer contact
Services generally come in a bundle, core service, supplementary service, heterogeneity allows for customization, which creates a competitive advantage.
Development of service (4P)
The basic service experience a customer expects to receive
core service
One or more supportive services used to differentiate the service bundle from competitors
Supplementary service
Marketers deliver services in a variety of ways
Service may be provided at a customers home or business
“At arms length”, with no face-to-face contact
Marketing channels for services are usually short and direct
Inventory management is a serious concern for services
Distribution of services (4P)
Intangibility results in promotion-related challenges
Tangible question are a typical way to promote services
Personal selling can help customers visualize the service experienced
Word-of-mouth communication is important
Promotion of services (4P)
Pricing should consider: consumer price sensitivity, nature of the transaction, costs
Prices can be based on: performance of specific tasks, time, level of demand
Marketers must decide whether to bundle options and how to price bundles
Consumers rely on price as an indicator of service quality
Pricing of Services (4P)
Customers perception of how well a service meets or exceeds expectations
Service Quality
Tangible attributes (of a product) such as color, style, size, feel, or fit that can be evaluated prior to purchase
Search qualities
Attributes such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service
Experience qualities
Attributes that customers may be unable to evaluate even after purchasing and consuming a service
Credence quality
Two levels of expectations: desired and acceptable
Customer-contact employees are in the best position to learn what consumers want
Zone of tolerance
Analysis of customer expectations
What the customer really wants
Desired
The level of service. That is adequate
Acceptable
The difference between the two levels (desired and acceptable)
Zone of tolerance
An organization must set goals to ensure good service delivery
The most important aspect of service quality specifications is managers commitment to service quality
Service quality specifications
Customer-contact employees are often the least trained and lowest paid
Customer contact employees should be well trained
Evaluation and compensation system is important to employee performance
Employee performance
Service companies must set realistic expectations about their services and deliver on promises
Word of mouth from other customers shapes expectations (not manageable by the organization)
Management of service expectations
What are the 4 qualities that affect service quality?
Analysis of customer expectations, service quality specifications, employee performance, management of service expectations
Marketing activities conducted to achieve some goal other than ordinary business goals such as profit market share, or return on investment
Two categories: nonprofit organization marketing, social marketing
Nonprofit marketing
A collective of individuals who have an interest in or concern about an organization, product, or social cause
Target public
Direct consumers of a product of a nonprofit organization
Client public’s
Indirect consumers of a product of a nonprofit organization
General publics
