MKT 523: CHAPTER 1

What is the definition of product planning?

The process of envisioning, conceptualizing, developing, producing, testing, commercializing, sustaining, and disposing of organizational offerings to satisfy consumer needs and achieve organizational objectives.

What are the two primary processes involved in product planning?

Product development and product management.

How is innovation characterized in the context of product planning?

Innovation can be an outcome (new product/service), a process (like product planning), or a mindset that enables new ideas or methods.

What distinguishes inventions from innovations?

Inventions are technical devices that may or may not satisfy a market need, while innovations are developed around inventions to offer clear benefits to customers.

What are the five types of innovation?

Product innovation, process innovation, business model innovation, marketing innovation, and organizational innovation.

What does 'core benefit' refer to in product definition?

The fundamental element or benefit that the consumer is really buying, derived from their needs or wants.

What is the difference between a product line and a product mix?

A product line consists of closely related product items, while a product mix includes all the different product families, lines, and items a company offers.

What is product deletion?

The process of evaluating and terminating products that consistently incur losses.

What role does product planning play in resource allocation?

It analyzes current and new products to determine resource needs and prioritize their allocation for success.

What defines a continuous innovation?

An incremental improvement to a product that builds on existing products rather than creating a new category.

What are line extensions in product development?

New versions of an existing product that include unique features not present in the original.

How does product proliferation impact a company?

It can overwhelm the company with too many products, making product planning more difficult and resource management challenging.

What is a new-to-the-world product?

A technological innovation that creates a completely new market that did not previously exist.

What are customer-based success measures for new products?

Measures such as customer satisfaction, acceptance, original customers, unit volume, and repeat customers.

How can competitive-based success measures be defined?

Includes metrics like market share, competitive benchmarking, and establishing competitive advantages.

What potential changes might be included in the potential product aspect of the product definition?

All potential augmentations and transformations that a product might undergo to satisfy future consumer needs.

What does 'cannibalization' mean in the context of product planning?

When a new product takes sales away from an existing product within the same company.

What are two outcomes of product planning regarding existing products?

Appraisal of performance and product deletion.

Why is understanding new product failure important for companies?

A failure for one company may indicate success for another, particularly from a technological perspective.

What is the role of marketing program support in product planning?

Product planning provides market information and customer feedback to refine existing and future marketing efforts.

What is the primary goal of product planning?

To develop products that meet consumer needs and contribute to organizational success.

What does 'product life cycle' refer to?

The stages a product goes through from development to decline, including introduction, growth, maturity, and decline.

What is market segmentation in product planning?

The process of dividing a broad target market into smaller, more defined groups of consumers.

What are the key components of a marketing strategy in product planning?

Target market identification, positioning, and the marketing mix (product, price, place, promotion).

What is a unique selling proposition (USP)?

A feature or benefit that makes a product stand out from competitors in the eyes of consumers.

How do trends affect product planning?

Trends can influence consumer preferences and dictate product features, styles, and marketing messages.

What is the importance of product testing?

It helps identify and rectify potential issues before the product is launched to ensure quality and consumer satisfaction.

What role do consumers play in product planning?

They provide feedback and preferences that guide product development and enhancements.

What are the risks associated with product planning?

Market misalignment, financial loss, and resource wastage due to failed product launches.

What is a product portfolio?

A collection of different products offered by a company, illustrating its range and strategy in various markets.