WK 8: PRODUCY Flashcards
The 4Ps in marketing are ___
Controlled and interrelated
Product:
Anything offered by a firm to provide value to customers, to satisfy a need or want
3 Product Levels:
- Core Benefit: What is the buyer really buying? What is the primary need the product is satisfying?
- Actual Product: Specific attributes of the product?
- Augmented Product: additional customer services and benefit
4 types of products:
C.U.S.S
Convenience
Unsought
Shopping
Specialty
Convenience:
Frequent purchase with minimal buying effort
Low price
Widespread distribution
Mass promotion
Shopping:
Higher priced than convenience goods
Selective distributive in fewer outlets
Requires slightly more shopping effort
Specialty:
High price and exclusive distribution
Carefully targeted
Strong brand loyalty and preference
Consumer product with strong brand identification
Unsought:
Little product awareness
Heavy advertising
New Product Development:
Process that takes a new product from its concept to the marketplace
7 New Product Development steps
- Idea generation
- Idea screening
- Concept development
- Marketing Strategy
- Design & Development
- Prototyping/Testing
- Launch
Development of original products may include:
Product improvements
Product modifications
New brands
Product Characteristics that Impact Adoption Rate:
→ 1. Relative Advantage - superior to existing products.
→ 2. Compatibility – fits the values, needs and experiences of potential consumers.
→ 3. Complexity – difficulty to understand or use.
→ 4. Trialability – can be tested or tried before a commitment to adopt is made.
→ 5. Observability
New Product diffusion curve
Early adopters, early majority, late majority, laggards
Product Life Cycle: P.I.G.M.D
Stages a product goes through between being introduced into the market until it is taken off the shelves
Product Development:
Begins when the company develops a new product idea
Sales are zero
Investment costs are high
Profits are negative