marketing

innovation

-the process by which ideas are transformed into new products and services that will help firms grow

diffusion of innovation

-the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters

pioneers

-new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market (also called breakthroughs)

first movers

-product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead

innovators

-those buyers who want to be the first to have the new product or service

early adopters

-the second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review

early majority

-a group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products and services can be profitable until this large group buys them

late majority

-the last group of buyers to enter a new product market; when they do, the product has achieved its full market potential

laggards

-consumers who like to avoid change and rely on traditional products until they are no longer available

reverse engineering

-involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist

lead users

-innovative product users who modify existing products according to their own ideas to suit their specific needs

concepts

-brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy

concept testing

-the process in which a concept statement that describes a product or service is presented to potential buyers or users to obtain their reactions

product development

-(also called product design) entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features

prototype

-the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually

alpha testing

-an attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development department

beta testing

-having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use

premarket test

-conducted before a product or service is brought to market to determine how many customers will try and then continue to use it

test marketing

-introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch

trade promotions

-advertising to wholesalers or retailers to get them to purchase new products, often through special pricing incentives

introductory price promotions

-short-term price discounts designed to encourage trial

trade show

-major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

manufacturer's suggested retail price (MSRP)

-the price that manufacturers suggest retailers use to sell their merchandise

slotting allowance

-fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products

product life cycle

-defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning

introduction stage

-stage of the product life cycle when innovators start buying the product

growth stage

-stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category

maturity stage

-stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

decline

-stage of the product life cycle when sales decline and the product eventually exits the market

Consumer scanner

-the data recorded by the retailers when consumers make purchases

Qualitative vs quantitative

-qualitative: derives data from observation, interviews or verbal interactions and focuses on meaning and interpretation of participants. quantitative is based on collected objective data that can be subjected to statistical analysis

steps in the new product development process

1. Idean Generation

2. Concept testing

3. product development

4. market testing

5. Product launch

6. Evaluation of results

In what stage of the Product Development Process are introductory price promotions, special events, and personal selling typically used to get wholesalers or retailers to purchase the new products?

-Product launch

Source of new product ideas

-customer input, competition products, licensing, internal research and development

A brief written description of a product or service that describes its technology, working principles, forms and what customer needs it would satisfy is a...

-New product concept

Wonder Widgets is testing its new widget product in their research and development facility to determine whether the new widget is performing according to its design and satisfying the need for which it is intended. Wonder Widgets is conducting...

-Alpha testing

Consumers who tend to enjoy novelty and are often regarded as opinion leaders for particular product categories are called...

-Early Adopters

During which stage of the product life cycle do sales typically increase the quickest?

-Growth

At which stage in the product life cycle do sale typically peak?

-Maturity

At which stage in the product life cycle are profits typically lowest

-Introduction

Laggards are most likely to initially purchase a product during which stage of its product life cycle?

-Deline

Product

-Anything that is of value to a consumer and can be offered through a voluntary marketing exchange

Complexity of products

At the center is core customer value: what are customer's look for? Than convert is an actual product: attributes such as brand name, features/design, quality level and packaging (level of importance varies) than the associate services (AKA augmented product) which includes the nonphysical aspects of the product such a warranty, financing, product support and after-sale service

-Core Customer Value

the basic problem solving benefits that consumers are seeking

-Actual product

The physical attributes of a product including the brand name, features/design, quality level, and packaging.

-Product Mix

consists of all of the product lines offered by an organization. For example, Cray Inc. has a small product mix of three supercomputer lines that are sold mostly to governments and large businesses. Fortune Brands, however, has a large product mix that includes product lines such as sporting equipment (Titleist golf balls) and plumbing supplies (Moen faucets).

-Breadth

the number of product lines offered by a firm

-Depth

The number of categoiries within a product line

-Product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

-Brand Extensions

entails using an established brand name as an umbrella when entering new businesses or developing a new product line that represents new categories to the company

-Brand Equity

the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

-Brand Awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

-Perceived value

the relationship between a product's or service's benefits and its cost

-Brand Repositioning

marketers change a brand focus to target new markets or realign brand's core emphasis with changing market preferences

-Branding Strategies

using a combination of marketing, operation, technological and professional activities to fix an instant perception in the minds of customers when they see brand name

-Packaging function

The activities of designing and producing the container or wrapper for a product

-Protects, informs, advertises, hygienic, bar codes

Service Quality

-customers' perceptions of how well a service meets or exceeds their expectations

Service Gaps

-When managers emphasize efficient operations over appropriate customer understanding, discrepancies occur

Four major branding Strategies

-Brand ownership

-Naming brands product lines

-Brand and line extensions

-co-branding

-Brand licensing

-Brand reposition's