Chapter 9 Flashcards
What are the top 5 reasons firms create new products?
1) Changing customers needs
2) Market Saturation
3) Managing risk through diversity
4) Fashion cycles
5) Improvising business relationships
a good, service, or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers’ needs
and is received in exchange for money are known as
Products
Tangible and intangible attributes make up
Goods
What type of goods are for one or few uses and are typically sold through advertising?
Non-durable goods
What type of goods lasts over many uses and are typically sold through personal selling?
Durable goods
Intangible activities or benefits are known as
Services
A thought that leads to a product or action is known as an
Idea
What type of products are classified by the amount of effort spent on a decision, the attributes used in making the decision, and the frequency of the purchase are defined as
Consumer Products
What type of product is purchased frequently, conveniently, and with minimum shopping effort?
Convenience product
What are the 3 types of convenience goods?
Staples
Impulse
Emergency
What type of convenience good is something you buy at least one a month or more?
Staples
What type of convenience good is purchased without planning?
Impulse
What type of convenience good is needed in a hurry?
Emergency
What type of product involves consumers taking more time to consider options by comparing several alternatives on criteria such as price, quality, or style before the purchase?
Shopping Products
What type of product has consumers who make a special effort to search out and buy because of unique characteristics or loyalty to a specific brand
Specialty Products
What type of products involve consumers who do not know about them or have consumers know about them but they do not initially want or have any desire to buy the product under normal circumstances
Unsought Products
What term refers to an entire category or industry?
Product Class
What term groups associated items together?
Product Line
Which term can be described as a specific product having a unique brand, size or price uses SKUs
Product Item
What term describes the complete set of all products/services offered by a firm?
Product Mix
The number of product lines offered by a firm is known as
Breadth
The number of products within a product line is known as
Depth
What are 4 ways that define a product as “new”?
Newness: Compared to Existing products
Newness: Based on consumer’s perspective
Newness: In legal terms
Newness: From the organization’s perspective
What type of newness is based on the new features and capabilities compared to current offerings is known as
Newness: Compared to Existing Products
What are some examples of newness: compared to existing products?
Flip phones to smartphones
Old chunky Nintendo to Wii
What type of innovation requires no new learning by consumers is known as
Continuous Innovation
What type of innovation disrupts consumer’s normal routine but does not require totally new learning
Dynamically Continuous Innovation
What type of innovation requires new learning and consumption patterns by consumers
Discontinuous Innovation
What are some examples of newness: based on consumer perspective
Toothpaste: Don’t need to learn how to reuse it just has different qualities
Swiffer offers a new way to mop other than traditional way
Jump to iPhone from landline
New improved shaver, detergents, and toothpaste are all examples of which type of innovation?
Continuous Innovatio
Electric toothbrush, compact disk player, and automatic flash unit for cameras
are all examples of which type of innovation?
Dynamically Continuous Innovation
Wireless routers, digital video recorder, and electric cars are are all examples of which type of innovation?
Discontinuous Innovation
Which type of innovation has a market strategy that aims to gain consumer awareness and wide distribution?
Continuous Innovation
Which type of innovation has a market strategy that aims to advertise points of difference and benefits to customers?
Dynamically Continuous Innovation
Which type of innovation has a market strategy that aims to educate consumers through product trial and personal selling
Discontinuous Innovation
Products are considered new in legal terms ** months from when it enters distribution?
6 months
The incremental improvement of an existing product line the company already sells is known as
Product Line Extension
What are some examples of newness: from an organizational perspective
New flavors or varieties existing of coke or oreos
Putting brand names on new products in an unfamiliar market can be defined as
Brand Extension
T/F- It is difficult to produce a successful new product
True
T/F- Most consumers buy the same 150 items
True
T/F- Less than 3% of new CPG exceed 1 year sales of $50 million
True
A statement before product development begins that identifies a well defined target market, specific customer needs/wants, and what the product will be and do to satisfy customers can be defined as
Protocol
What are some of the key marketing reasons for new-product failures?
- Insignificant point of difference
- Incomplete market and product protocol before product development starts
-Not satisfying customer needs on critical factors
- Bad Timing
- No economical access to buyers
- poor product quality
- poor execution of the marketing mix
- too little market attractiveness
What is the best way to avoid a new product failure?
Have a protocol
Do your marketing research
