Chapter 8 Flashcards
Product
Anything that can be offered to a market that satisfy and want or a need
Service
Activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Consumer Product
Products purchased by consumers for their personal use
Convenience Products
Products and services that customers usually buy frequently, immediately and with a minimum of caparison and buying effort
Shopping Products
Less frequently purchased consumer products and services that shoppers compare carefully on suitability, quality, price, and style
Specialty Products
Consumer products and services with unique characteristic or brand identification for which a significant group of buyers is willing to make a special purchase effort
Unsought products
Consumer products that the consumer either does not know about or knows about but does not normally think of buying, ex life insurance, blood donations
Industrial Products
Purchased for further processing or for use in conducting a business
Three groups of industrial products
1) Materials and parts
2) Capital items
3) Supplies and services
New-Product Development
The development of original products, product improvements, product modifications, and new brands through the firms own product development efforts
Diffusion of innovations theory
a social sciences theory that divides members of a social group into segments according to how likely they are to adopt a new idea
Technology Adoption Life Cycle
Marketing theory that proposes that when marketing a technology product, marketers must cross a chasm, or significant gap, between members of the early adopters segment and members of the early majority segment before a new product will become successful
Idea Generation Stage
The systematic search for new ideas
- Companies now get new ideas from a variety of sources such as employees, distributors, suppliers, consumers, and competition
Crowdsourcing
Inviting broad communities of people such as customers, employees, independent scientists and researchers and even the public into the new product innovation process
Idea Screening
Screening new product ideas to spot good ideas and drop poor ones as soon as possible
- Look at things such as customer value proposition, target market, and the competition
RWW Question
Real, Win, Worth it
Concept Development and Testing
Detailed version of the new product idea stated in meaningful consumer terms
Market Strategy Development
Designing an Initial Marketing strategy for a new product based on the product concept
- Answer questions about how, where, and to whom the product will be introduced
Business Analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives
Product Development
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
- Involves more investment and rigorous testing and R&D
Test Marketing
The product and marketing program are tested in realistic marketing settings
Commercialization
Full scale introduction of the new product into the market
- Heavy investment into advertising and promotion
Product Life cycle
Course that a products sales and profits take over time
5 Stages of the Product Life Cycle
1) Product Development
2) Introduction
3) Growth
4) Maturity
5) Decline
Introduction Stage
New product is first distributed and made available for purchase
- Profits are very low or negative, due to low sales and high promotion expenses
Growth Stage
- Sales start climbing quickly
- Early adopters continue to buy and later buyers will start coming in
- Marketing strategy is sustain the growth for as long as possible
Maturity Stage
- Sales growth slows, or levels off
- Main goal is to prevent a decline
Decline Stage
- Products sales are declining
- May decide to harvest the product, reduce costs to increase short run profits
Style
Basic and distinctive mode of expression
- Increase and decrease over time
Fashion
Currently accepted or popular style of design, colour, or theme
- Rise and then decline, gradually
Fad
- New products that are extremely popular for a short period of time, and then disappear almost completely
- Sharp quick rise, and sharp fall
Product and service attributes
Product quality, features, and design
6 Main functions of packaging
1) Protection
2) Promotion
3) Information
4) Conveinience
5) Unitization
6) Handling
Product Line
- Group of products that are closely related because they function in a similar manner, are sold to the same groups, and are marketed through the same types of outlets, or fall within given price ranges
Product Line Length
Number of times in a product line
Product Line filling
Adding more items within the present range of the line
Product Line stretching
Lengthens its product line beyond its current range
Stretching Upward
- Adding prestige to their products
Product Mix or Portfolio
The set of all product lines and items that a company markets
Four Characteristics of a Service
Intangibility, Inseparability, Variability, and Perishability
Service Inseparability
Produced and consumed at the same times and cannot be separated for their providers
Service Variability
Quality of service depends on who provides them, when, where, why how
Service Perishability
They cannot be stored or used for later sale or use
Internal Marketing
Orienting and motivating customer contact employees and supporting people to work as a team to provide customer satisfaction
