Product Flashcards
What is a Product?
Anything someone receives in an exchange
Good, service, or idea/belief
Includes Physical features, seller’s reputation, seller’s services, and how it is viewed. (brand image)
Has monetary value
satisfies customers wants/Needs
What is a good?
Tangible object that can be purchased
Can be stored and resold
What is a service?
An activity that is intangible.
Inseparable - Consumed at the same time of production
Perishable - can’t be stored
Heterogeneous - differences between services
What does product/service management involve?
obtaining, developing, maintaining and improving a product
What are the phases of Product Development?
Idea generation
Idea screening
product development
test marketing
introduction
Evaluation of customer acceptance
Product Development: Product Planning
Make decisions about features and services to help sell the product
Allows
- coordinate existing products
- add/delete products
- defines product features, packaging, branding, warrantees
Product Development: Idea generation
involves tracking cultural trends and customer behaviors
Ideas come from customers, competitors, channel members, employees
focus groups and panels
Product Development: Screening Ideas
ideas are evaluated before resources are spent - money, people, time
Goal is to narrow ideas down to what is most profitable
Product Development Cycle: Product Development
prototype is developed
marketers develop marketing strategy
Test products - cost and durability
Product Development: Test Marketing
test marketed in geographic areas
can be costly - outside research firm
Product Development: Introduction
“commercialization” when products become mass distributed
First company has advantage in building brand loyalty
Can be expense- research, advertising, distribution - have to sell fast
Evaluation of customer acceptance
customer acceptance/enjoyment
Market research is used
Product mix
all the different products that a company sells or makes
many catagories
more than one brand so they aren’t dependent upon it
number and type depends on company objective and desired brand image
Product line
group of closely related products
product width
number of different products a manufacturer sells
product depth
how deep you go with the variations of a single product line - size, price ranges, colors, fabric, styles
What 2 factors do consumers classify product purchases?
Importance to the consumer
Willingness of the consumer to shop around to compare before buying
Convenience goods
purchases made with little thought to shopping for best price
Staples, Impulse goods, emergency goods
Staple goods
products that are routinely purchases - toilet paper, toothpaste,
Impulse goods
spur of the moment - candy
Emergency goods
urgent need - umbrella, gas, plumbing,
Shopping Goods
More expensive than convenience goods
consumers will devote time
Attribute based goods, price based goods
Attribute based goods
a shopping good
variety of differences exist between products, a number of factors to make a decision - computer, cell phone,
Price based goods
similar features but significant price difference - TVs, Pharmaceutical drugs
Specialty goods
products consumers perceive as valuable that bring brand loyalty.
Refuse to accept substitute.
Unsought goods
people don’t want to shop for until an urgent need
funeral services, medical care, legal
Seasonal goods
only available certain times of the year - XMAS, McRib
