Chapter 8 Terms Flashcards
Attributes
Include 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
Good
A tangible product that we can see, touch, smell, hear, or taste
Core Product
All the benefits the product will provide for consumers or business customers
Actual Product
The physical good or the delivered service that supplies the desired benefit
Augmented Product
The actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale
Durable Goods
Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances
Nondurable Goods
Consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers)
Convenience Product
A consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum of comparison and effort
Consumer Packaged Good (CPG)
A low-cost good that is consumed quickly and replaced frequently
Shopping Products
Goods or services for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase
Specialty Products
Goods or services that have unique characteristics and are important to the buyer and for which he or she will devote significant effort to acquire
Unsought Products
Goods or services 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
Equipment
Expensive goods that an organization uses in its daily operations that last for a long time
Maintenance, Repair, and Operating Products (MRO)
Goods that a business customer consumes in a relatively short time
Raw Materials
Products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products
Processed Materials
Products created when firms transform raw materials from their original state
Component Parts
Manufactured goods or subassemblies of finished items that organizations need to complete their own products
Innovation
A product that consumers perceive to be new and different from existing products
Continuous Innovation
A modification of an existing product that sets one brand apart from its competitors
Dynamically Continuous Innovation
A change in an existing product that requires a moderate amount of learning or behavior change
Discontinuous Innovation
A totally new product that creates major changes in the way we live
Research and Development (R&D)
A well-defined and systematic approach to how innovation is done within the firm
New Product Development
The phases by which firms develop new products, including idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization
Idea Generation
A phase of product development in which marketers use a variety of sources to come up with great new product ideas that provide customer benefits and that are compatible with the company mission
Product Concept Development & Screening
The second step of product development in which marketers test product ideas for technical and commercial success
Technical Success
Indicates that a product concept is feasible purely from the standpoint of whether or not it is possible to physically develop it, regardless of whether it is perceived to be commercially viable
Commercial Success
Indicates that a product concept is feasible from the standpoint of whether the firm developing the products believes there is or will be sufficient consumer demand to warrant its development and entry into the market
Business Analysis
The step in the product development process in which marketers assess a product’s commercial viability
Technical Development
The step in the product development process in which company engineers refine and perfect a new product
Market Test (Test Marketing)
Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter
Simulated (Virtual) Market Test
Application of special computer software to imitate the introduction of a product into the marketplace allowing the company to see the likely impact of price cuts and new packaging—or even to determine where in the store it should try to place the product
Commercialization
The final step in the product development process in which a new product is launched into the market
Product Adoption
The process by which a consumer or business customer begins to buy and use a new good, service, or idea
Diffusion
The process by which the use of a product spreads throughout a population
Innovators
The first segment (roughly 2.5 percent) of a population to adopt a new product
Early Adopters
Those who adopt an innovation early in the diffusion process but after the innovators
Early Majority
Those whose adoption of a new product signals a general acceptance of the innovation
Late 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.
Laggards
The last consumers to adopt an innovation
Relative Advantage
The degree to which a consumer perceives that a new product provides superior benefits
Compatibility
The extent to which a new product is consistent with existing cultural values, customs, and practices
Complexity
The degree to which consumers find a new product or its use difficult to understand
Trialability
The ease of sampling a new product and its benefits
Observability
How visible a new product and its benefits are to others who might adopt it
