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
Introduction:
Low sales
Higher cost-per-customer acquired
Negative profits
Innovators / early adopters are targeted
Little competition
Growth
Rapidly rising sales
Average cost-per-customer decreases
Rising profits
Early adopters/Early majority targeted
Growing competition
Maturity:
Sales peak
Low cost-per-customer
High profits
Middle majority targeted
Competition at peak, over time begins to decline
Decline Marketing:
Declining sales
Low cost-per-customer
Declining profits
Laggards are targeted
Declining competition
Challenges and limitations of using PLC:
Hard to:
identify what stage of the PLC the product is in
identify factors that affect product’s movement through stages
forecast sales level, length of each stage, and shape of PLC.
Not all products follow the traditional PLC
