Chapter 8

Question 1

Product

Answer 1

Anything that can be offered to a market that satisfy and want or a need

Question 2

Service

Answer 2

Activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Question 3

Consumer Product

Answer 3

Products purchased by consumers for their personal use

Question 4

Convenience Products

Answer 4

Products and services that customers usually buy frequently, immediately and with a minimum of caparison and buying effort

Question 5

Shopping Products

Answer 5

Less frequently purchased consumer products and services that shoppers compare carefully on suitability, quality, price, and style

Question 6

Specialty Products

Answer 6

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

Question 7

Unsought products

Answer 7

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

Question 8

Industrial Products

Answer 8

Purchased for further processing or for use in conducting a business

Question 9

Three groups of industrial products

Answer 9

1) Materials and parts
2) Capital items
3) Supplies and services

Question 10

New-Product Development

Answer 10

The development of original products, product improvements, product modifications, and new brands through the firms own product development efforts

Question 11

Diffusion of innovations theory

Answer 11

a social sciences theory that divides members of a social group into segments according to how likely they are to adopt a new idea

Question 12

Technology Adoption Life Cycle

Answer 12

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

Question 13

Idea Generation Stage

Answer 13

The systematic search for new ideas
- Companies now get new ideas from a variety of sources such as employees, distributors, suppliers, consumers, and competition

Question 14

Crowdsourcing

Answer 14

Inviting broad communities of people such as customers, employees, independent scientists and researchers and even the public into the new product innovation process

Question 15

Idea Screening

Answer 15

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

Question 16

RWW Question

Answer 16

Real, Win, Worth it

Question 17

Concept Development and Testing

Answer 17

Detailed version of the new product idea stated in meaningful consumer terms

Question 18

Market Strategy Development

Answer 18

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

Question 19

Business Analysis

Answer 19

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives

Question 20

Product Development

Answer 20

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

Question 21

Test Marketing

Answer 21

The product and marketing program are tested in realistic marketing settings

Question 22

Commercialization

Answer 22

Full scale introduction of the new product into the market

- Heavy investment into advertising and promotion

Question 23

Product Life cycle

Answer 23

Course that a products sales and profits take over time

Question 24

5 Stages of the Product Life Cycle

Answer 24

1) Product Development
2) Introduction
3) Growth
4) Maturity
5) Decline

Question 25

Introduction Stage

Answer 25

New product is first distributed and made available for purchase
- Profits are very low or negative, due to low sales and high promotion expenses

Question 26

Growth Stage

Answer 26

• 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

Question 27

Maturity Stage

Answer 27

• Sales growth slows, or levels off

- Main goal is to prevent a decline

Question 28

Decline Stage

Answer 28

• Products sales are declining

- May decide to harvest the product, reduce costs to increase short run profits

Question 29

Style

Answer 29

Basic and distinctive mode of expression

- Increase and decrease over time

Question 30

Fashion

Answer 30

Currently accepted or popular style of design, colour, or theme
- Rise and then decline, gradually

Question 31

Fad

Answer 31

• New products that are extremely popular for a short period of time, and then disappear almost completely
• Sharp quick rise, and sharp fall

Question 32

Product and service attributes

Answer 32

Product quality, features, and design

Question 33

6 Main functions of packaging

Answer 33

1) Protection
2) Promotion
3) Information
4) Conveinience
5) Unitization
6) Handling

Question 34

Product Line

Answer 34

• 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

Question 35

Product Line Length

Answer 35

Number of times in a product line

Question 36

Product Line filling

Answer 36

Adding more items within the present range of the line

Question 37

Product Line stretching

Answer 37

Lengthens its product line beyond its current range

Question 38

Stretching Upward

Answer 38

• Adding prestige to their products

Question 39

Product Mix or Portfolio

Answer 39

The set of all product lines and items that a company markets

Question 40

Four Characteristics of a Service

Answer 40

Intangibility, Inseparability, Variability, and Perishability

Question 41

Service Inseparability

Answer 41

Produced and consumed at the same times and cannot be separated for their providers

Question 42

Service Variability

Answer 42

Quality of service depends on who provides them, when, where, why how

Question 43

Service Perishability

Answer 43

They cannot be stored or used for later sale or use

Question 44

Internal Marketing

Answer 44

Orienting and motivating customer contact employees and supporting people to work as a team to provide customer satisfaction