Marketing Ch. 10

What is products

Is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value

What is a services

Are the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value

What are Nondurable goods

It last less than 3 years

What are a Durable goods

Last longer than 3 years

What is consumer products

are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort

What are the four types of consumer products

Conveniencce products, Shopping products, Specialty products, Unsought products

What is Convenience Products

are items that the consumer purchases \n frequently, conveniently, and with a minimum of shopping effort

What is shopping products

are items for which the consumer compares several alternatives on criteria such as price, quality, or style

What is specialty products

are items that a consumer makes a special effort to search out and buy

What is unsought products

are items that the consumer either does not know about or knows about but does not initially want

What is business products

are products organizations buy that assist in providing other products for resale. Also called B2B products or industrial products

What is derived demand

demand for products associated with main product

What are components

Products used to build main product

What are 4 of the support products

• Installations \n • Accessory equipment \n • Supplies \n • Industrial services

Different product forms exist within the what

Product Class

What is the Product item

a specific product that has a unique brand, size, or price, identified by the Stock keeping unit (SKU)

What is product line

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range

Product mix

consists of all of the product lines offered by an organization

What are the two types of newness compared to existing products

1. Product is new if functionally different from existing products
2. Revolutionary newness can create new industries (Example:Smartphones and apps)

What is feature bloat

Unnecessary features or functions

Feature fatigue

Consumers choose overly complex products

What are the 3 types of innovation for newness from the consumers perspective

1\. Continuous innovation

2\. Dynamically continuous innovation

3\. Discontinuous innovation

Newness in legal terms in limited

6 months

Newness from the organization’s perspective

• Product line extension

• Jump in innovation '

• Brand extension

What is Protocol

is a statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers

Why is it difficult to produce a successful new product

Most consumers buy the same 150 items

Less than 3% of new CPG exceed year 1 sales of

$50 million

What are marketing reasons for new product failures

\

1. Insignificant point of difference
2. Incomplete market and product protocol
3. Not satisfying customer needs on critical factors
4. Bad timing
5. No economical access to buyers
6. Poor execution of the marketing mix
7. Too little market attractiveness


5. Poor product quality

Organizational inertia in new-product failures

Encountering groupthink

Avoiding the not invented here problem

Open innovation

Open innovation

practices that encourage the use of external \n and internal Ideas

New Product Vitality has an index between

20 to 30% is good

What is New Product development process

Of the seven stages, an organization goes through to identify opportunities and converts them to salable products or services

Stage 1: What is New Product Strategy development

\n The stage of the new-product process that defines the role of a new product in terms of the firm’s overall objectives

Stage 2: What is idea generation

is the stage of the new-product process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage’s results

What are some ways to get idea generation

• Open innovation
• Employee and co-worker suggestions
• Customer and supplier suggestions
• Crowdsourcing

Research and development laboratories

• Industrial design \n • Outside labs: IDEO

Competitive products

Crowdfunding

Stage 3: What is screening and evaluation

Is the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort

What is Customer experience management (CEM) and is it the Internal or External approach to Screening and evaluation

Internal approach and it is the process of managing the entire customer experience within the company

What is the Screening and evaluation External Approach

Concept tests

Stage 4: What is a Business analysis

Is the stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections

What is a prototype

Full scale model

Stage 5: What is Development

Is the stage of the new-product process that turns the \n idea on paper into a prototype

Stage 6: What is Market Testing

Is the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy

What are some examples of market testing

• Standard test markets \n • Controlled test markets \n • Simulated test markets \n • When test Markets don’t work, use mock-ups or prototypes

Stage 7: What is Commercialization

Is the stage of the new-product process that positions and launches a new product in full-scale production and sales