Products Flashcards
What are the 8 stages of product development in order?
- Idea Generation
- Idea Screening
- Concept Development
- Market Strategy
- Feasibility Study
- Product Design
- Test Marketing
- Market Entry
What is the difference between innovation and invention?
Inventions are new devices, methods, or processes developed from study or experimentation (Ex. Lightbulb). Innovation is a product or service that uses new
technology, items or processes to:
- Change existing products
- Change the methods used to produce products
- Change the ways used to distribute products.
What is required from the marketing team and production team?
Marketers need to know whether products are possible. The production team needs to know what products are desired.
What is the primary and secondary market?
The primary market is the group that a company typically targets. The secondary market is not the business’ main market, but does result in some sales
What is product Utility?
What makes a product valuable to
the consumer (so they purchase it over
another product).
These are sometimes called “economic utilities”
What are the 5 types of utilities?
- Form
- Information
- Place
- Time
- Possession
What is form utility?
The relationship between the function and the form. Takes into consideration the product’s scent, flavour,
colour, design, packaging and the materials used
What is information utility?
Provides the consumer with info about the benefits or features of the product. Advertising is included as it offers information about the product.
What is place utility?
Finding the most effective location to sell the product. Place utility is high if the customer can
easily purchase the product.
What is time utility?
The availability of the product when the customer wants it.
What is possession utility?
The ease at which the item can be purchased. Exchanging the product for some type of monetary value. Increasing this utility can include price reductions and options to finance.
What is positioning?
The attempt by marketers to associate their
product with an image, an attitude, a way of
life, a way of thinking, etc. in the minds of the
consumer.
What are the 5 types of positioning?
- Target
- Benefit
- Price
- Distribution
- Service
What is target positioning?
Marketing that needs to be focused on the consumer that is likely to buy it
What is benefit positioning?
This is created by the benefit that a product offers.
What is price positioning?
High pricing can position the product as a luxury, attracting high-end consumers. Low pricing also positions products as lower quality.
What is distribution positioning?
The way that a product is distributed can create positioning, Some products are only sold in certain stores. The first company to grab a new distribution channel may have quite an advantage (Amazon.com is an example).
What is service positioning?
Various services offered help to position a product.
Ex. 24-hour open store
What is branding?
Establishing an identity for a product that differentiates it from the competition
What 3 parts does branding consist of?
- Brand Name
- Brand Logo
- Brand Slogan
(All 3 are trademarked, creates brand loyalty)
What are the benefits of branding?
- To build loyalty
- To convey the “image” of the product
- Retain customer’s loyalty
- To gain a position in the market
- To aid advertising
- To aid promotion
What is the logo?
The Logo is the part of the brand in the form of a symbol that is usually registered.
What is the slogan?
The Slogan is a catchy phrase used to remind the consumer of a company or brand
What are non-traditional product life cycles?
- Fad
- Trends
- Niche
- Seasonal
