Chapter 13: Developing and Managing Products Flashcards
Good
tangible product
Service
intangible product
purchased to satisfy personal and family needs (convenience, shopping and specialty)
consumer product
bought for resale, for making other products
business product
where buyers want to expert only minimal effort
convenience product
item where buyers are willing to put lots of effort on planning and making purchase
shopping product
item that possesses uniqueness where buyers are willing to spend considerable purchasing effort
specialty product
product that is not actively sought out until a significant event occurs
unsought product
basic material that actually becomes part of a physical product
raw materials
large tools and machines used for production
major equipment
equipment used in a business’ production or office activities
accessory equipment
item that becomes part of a physical item or a product and is a fixed item
component part
used directly in production of another product but not identifiable in the finished product. ex: glue
process material
facilitates production but doesn’t become part of finished product. ex: paper, pencil
supply
intangible product that an organization uses in its operation
business service
- any product improvement that customers value over existing choices
- includes entirely new products or adaptations of existing products
innovation
Idea generation
1st phase of product development process
2nd phase of P.D. process. Screen ideas to select the best one
Product Analysis
3rd phase of P.D. process. Build prototypes of the product to test on a small scale
Development and testing
Final phase of P.D. Take all you’ve learned from previous phases and make final improvements before launching to the market
Commercialization
4 phases of Product Development Process
idea generation, product analysis, development and testing and commercialization
4 stages of Product Life Cycle
introduction stage, growth stage, maturity stage and decline stage
few competitors, sales low, profits low
introduction stage
customers begin to adopt product, sales and profits increase, competitors take notice and enter product category
growth stage
sales peak, profits decline as market becomes saturated and competitors lower prices
maturity stage
helps marketers maximize profitability of their products over time
product life cycle
collection of all the company’s products
product mix
group of similar products that are related in how they work or their target audience
product line
Decisions about product mix changes may be based on: (4)
- changes in customer preference
- challenges from competitors
- stage of product life cycle
- simplify product mix
Benefits of grouping by product line: (3)
- create clarity for consumers
- better management of the company’s product mix
- simplify branding decisions
protect product, attract buyer attention, provides product info, better serves customer needs
packaging
