marketing ch.10 Flashcards
Product
a good,service or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is recieved in exchange for money or something else of value
Good
has tangible attributes that a consumer can sense
nondurable good
consumed in one or few uses
durable good
usually lasts over many uses
services
intangible activities/benifits that an org provides to satisfy consumer’s needs in return for money/something of value
consumer products
purchased by ultimate consumer
convenience products
items that consumers purchase frequently with little shopping effort
shopping products
items for which the consumer compares several alternatives on criteria such as price quality or style
unsought products
items that the consumer does not know about or knows about but does not initially want
business products
products/organizations buy that assist in providing other products for resale
components
items that become part of the final product
support products
items used to assist other goods and services
product item
specific product that has a unique brand
product line
is a group of products or service items that are
product mix
consists of all of the product lines offered by an organization
Newness in terms of existing products
if a product is functionally different from existing products
Newness from consumers perspective
defined by degree of learning required
continuous innovation
only minor changes in behavior are required
discontinuous innovation
involves making the consumer learn entirely new consumption pattern to use the product
Newness in legal terms
FTC(federal trade commsission) advises that the term new be limited to use with a product up to 6 months after it enters regular distribution
3 levels of new
Lowest: least risk. Product line extension
Middle:
significant jump in tech
brand extension involving putting an established brand name on a new product in a new market
High: a radical invention
protocol
a statement that before product development begins identifies:
A wellds-defined target market
specific customer needs/wants
what the product will do to satisfy consumers
Stage 1: New Product Strategy Development
defines the role of the new product in terms of the firms overall objectives
Uses SWOT analysis
Environmental Scanning
Defines protocol
Stage 2: Idea Generation
involves developing a pool of concepts to serve as candidates for the new prodcuts
Open innovation
organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and orgs
crowdsourcing
involves generating insights leading to actions based on massive numbers of peoples ideas
Stage 3: Screening and Evaluation
Internally and externally evaluates new product ideas to eliminate thos e that warrant no further effort
Internal approach
firms employees evaluate the technical feasibility of a new product idea to see if it meets objectives
external approach
uses conspet tests-external evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product
Step 4: Business Analysis
specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
Step 5: Development
stage of the new product process that turns teh idea on papaer into prototype
step 6: Market testing
test to see if prospective consumer would buy
test marketing
offering a product for sale on limited bases in a defined are a for specific period
standard test markets
company develops product then attempts to sell it through normal distribution channels in a number of test market cities.
controlled test markets
contracting the entire test program to outside service. Service pays retailers for shelf space
Simulated Test Markets
replicates full scale test markets to a limited degree
Stage 7: Commercialization
the stage of the new product process that positions and launches a new product in full-scale production and sales. Most expensive stage
