module 7 Flashcards
product
Anything that delivers value to satisfy a need or want and induces merchandise, services, events, people, places, organizations, info, even ideas.
Enhance product:
experiences exceed minimum expections, i.e. frequent flyer programs, early bird checkins
Core product:
on time, safe, experience matches expectations
Essential benefit:
moving from point A to point B
What are the four ways of classifying products?
Tangibility, durability, consumer goods, business goods
How can a company create point of differentiation for their products.
form, features, performance quality, conformance quality, durability, reliability, repairability, style
Product line:
group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction
Product mix:
all the product offered by a company.
What is Product life cycle (PLC)
Introduction, growth, maturity, and decline
There are two lines in the PLC graph namely sales revenue and total profits. How do these two lines on the PLC graph change as products move from the introduction phase to the decline stage?
Sales line increases dramatically in the intro and growth stages as the product moves through the consumer adoption process. At some point, sales begin to decline. But that doesn’t mean the death of a product.
Profit starts in the red “no profit” zone, as the product category grows, companies recoup their initial costs and begin to realize a return on their investments.
From a company’s perspective what are the types of new products?
New to the world: not been available before
Upgrades or modifications to existing products
Additions to existing product lines
Reposition existing products
Cost reduction
Identify the three major activities in new product development?
Identify product opportunities
Define the product opportunity
Develop the product opportunity
Identify the eight specific tasks associated with new product development?
Generate new ideas Screen and evaluate ideas Define and test product concept Create marketing strategy Conduct business case analysis Develop the product Test the market Product launch
What is the consumer product adoption process?
All consumer goes through this process while adopting the product from leaning to becoming a loyal customer
Identify the five stages through which a consumer moves before adopting a product?
Awareness: insufficient info to move forward through the adoption process
Interest: received additional info
Evaluation: combine all info and evaluate the product for trial purchase
Trial: purchase product for the purpose of making a value decision
Adoption: purchase the product with the intent of becoming a dependable user
Rogers’s diffusion of innovation theory defined several intrinsic characteristics of innovations that influence an individual’s decision to adopt or reject an innovation. Identify the intrinsic characteristics of innovations?
Relative advantage Compatibility Complexity/simplicity Trialability observability
What are the legal requirements for package label?
Label space is allocated to marketing communications, marketing messages take up the dominant space on the label (brand, logo, product image, etc.)
How do warranties and service agreement build customer confidence?
It’s the commitment to the product, and is mostly clearly worded in the products warranties and service agreements. the customer has the legal right to return the product to the appropriate location.
Define the terms- General warranties, Specific warranties?
General warranty: broad promises about product performance and customer satisfaction
Specific warranty: explicit product performance promises related to components of the product.
