Chapter 8 Flashcards
Features, functions, benefits, and uses of a product. Marketers view products as a bundle of attributes that includes the packaging, brand name, benefits, and supporting features in addition to a physical good.
Attributes
All the benefits the product will provide for consumers or business customers
Core Product
The physical good or the delivered service that supplies the desired benefit
Actual Product
The actual product plus other supporting features such as warrant, credit, delivery, installation, and repair service after the sale
Augmented Product
Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances
Durable Goods
Consumer products that provide benefits for a short period of time because they are consumed (such as food) or are no longer useful (such as newspaper)
Nondurable Goods
A consumer good or service that is usually low-priced widely available, and purchased frequently with a minimum of comparison and effort
Convenience Product
Basic or necessary items that are available almost everywhere
Staple Product
A product people often purchase on the spur of the moment
Impulse Product
Products we purchase when we’re in dire need
Emergency Product
Goods or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase
Shopping Products
Computer programs that find sites selling a particular product
Intelligence Agents
Goods or services that has a unique characteristic and is important to the buyer for which he or she will devote significant effort to acquire
Specialty Products
Goods or Service for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention
Unsought Products
Expensive goods that an organization uses in its daily operations that last for a long time
Equipment
Goods that a business customer consumes in a relatively short period of time
Maintenance, Repair, and Operating (MRO) Products
Products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products
Raw Materials
Products created when firms transform raw materials from their original state
Processed Materials
Manufactured goods or subassemblies of finished items that organization need to complete their own products
Component Parts
A product that consumers perceive to be new and different from existing products
Innovation
A modification of an existing product that sets one brand apart from its competitors
Continuous Innovation
A new product that copies, with slight modification, the design of an original product
Knockoff
A change in an existing product that requires a moderate amount of learning or behavior change
Dynamically Continuous Innovation
A totally new product that create major changes in the way we live
Discontinuous Innovation
The coming together of two or more technologies to create a new system with greater benefits than its separate parts
Convergence
The phases by which firms develop new products including: idea generation, product concept development and screening, market strategy development, business analysis, technical development, test marketing, and commercialization
New Product Development
The FIRST STEP in Product Development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission
PHASE 1: Idea Generation
The SECOND STEP in Product Development in which marketers test product ideas for technical and commercial success
PHASE 2: Product Concept Development and Screening
The THIRD STEP in Product Development
PHASE 3: Marketing Development Strategy
The FOURTH STEP in Product Development process in which marketer’s assess a product’s commercial viability
PHASE 4: Business Analysis
The FIFTH STEP in Product Development process in which company engineers refine and perfect a new product
PHASE 5: Technical Development
The test versions of a proposed product
Prototypes
A legal mechanism to prevent competitors from producing or selling an invention, aimed at reducing or eliminating competition in a market for a period of time
Patent
The SIXTH STEP in Product Development process in which the firm begins testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter.
PHASE 6: Test Marketing
The SEVENTH STEP and final step in the Product Development process in which a new product is launched into the market
PHASE 7: Commercialization
The process by which a consumer or business consumer begins to buy and use a new good, service, or idea
Product Adoption
The process by which the use of a product spreads throughout a population
Diffusion
In the context of product diffusion, the point when a product’s sales spike from a slow climb to an unprecedented new level, often accompanied by a steep decline in price
Tipping Point
A massive advertising campaign that occurs over a relatively short time frame
Media Blitz
A purchase made without any planning or search effort
Impulse Purchase
Awareness Interest Evaluation Trial Adoption Confirmation
The Stages in Consumer’s Adoption of a New Product
The first segment (roughly 2.5%) of a population to adopt a newproduct
Innovators
Those who adopt an innovation early in the diffusion process; but after the first segment of adopters
Early Adopters
Those whose adoption of a new product signal a general acceptance of the innovation
Early Majority
The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase
Late Majority
The last consumers to adopt an innovation
Laggards
The degree to which a consumer perceives that a new product provides superior benefits
Relative Advantage
The extent to which a new product is consistent with existing cultural values, customs, and practices
Compatibility
The degree to which consumers find a new product or its use difficult to understand
Complexity
The ease of sampling a new product and its benefits
Trialibility
How visible a new product and its benefits are to others who might adopt it
Observability
