Marketing Mix Product 1 (Lecture 12) Flashcards
def. product line
group of products that are closely related as they satisfy a class of needs
- usually used together
- sold to same customer group
- distributed through the same type of outlets
- fall within a given price range
how do companies consider each product in a product line?
as a specific product with a unique identity number
def. product mix
the number of product lines offered by a company
What are the two ways to classify products (general categories)?
- type of users
2. degree of tangibility (and endurance)
what are the two types of goods for different users
business goods
consumer goods
what are the two types of goods in terms of degree of tangibility and endurance?
- durable goods
- services
What are the four main types of consumer goods?
- convenience goods
- shopping goods
- specialty goods
- unsought goods
def. convenience good
purchased frequently with minimum shopping effort
consumer good,
def. shopping good
consumers compare them on several attributes
consumer good,
def. specialty goods
items for which the consumer makes a special effort to obtain
consumer good,
def. unsought goods
goods that the consumer either does not know about or does not initially want
consumer good,
T or F: classifications of consumer goods are absolute (ie they do not change)
false
classifications may vary from one consumer to another
what is a major aspect of a business good?
that their sales are often derived from the sales of consumer goods (derived demand)
What are the two kinds of business goods?
- production goods
2. support goods
def. production goods
items used in the manufacturing process that become a part of the final product
business good
def. support goods
- items purchased and used to assist in the production of the final product
- -ex. installations, accessory equipment, supplies, service to assist buyers
business good
What are the four different kinds of newness?
- Newness compared with existing products (improving upon the existing product
- newness in legal terms (eg 12 months old)
- newness from the company’s perspective
- newness from the consumer’s perspective (involving substantive learning by the consumer)
what are the 3 levels of newness from the company’s perspective
brand extension, significant innovation, revolutionary products
what are the 3 kinds of innovation (ie newness from consumer’s perspective)?
- continuous innovation (no new behaviours must be learned)
- dynamically continuous innovation(minor behaviours are learned)
- discontinuous innovation (entirely new behaviours must be learned)
What are the 7 categories of new services
- Major service innovations (radically new services and processes)
- Major process innovations (major process change to deliver service in a new way)
- service-line extensions (service extensions by banks offering insurance to their customers)
- process-line extensions (more improved process for more convenience, less time, higher value, etc.)
- supplementary-service innovations (offering additional services)
- basic service improvements (serving better and faster by modest changes)
- style changes (simplest typeof change; changing styles (ex. uniforms, colour schemes))
What are some reasons new products services fail?(7)
- insignificant “point of difference” from the competition
- incomplete market and product definitions
- too little market-attractiveness
- poor execution of the marketing mix
- poor product quality on critical factors
- bad timing (too soon, too late, trends shifting,etc.)
- no economical access to buyers (shelf-space)
What are some organizational problems behind new product failures?
- not really listening to the “voice of the consumer”
- skipping steps in the new product (important to set and observe “gates” and “milestones”)
- pushing a poorly conceived product into the market to generate quick revenue and ignoring the support work necessary
- “Groupthink” (everyone conforming to others) in task force and committee meetings
- not learning critical take-away lessons from past failures
what can help you evaluate performance compared to goal?
marketing dashboards
