question

product

answer

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

question

good

answer

has tangible attributes that a consumer's 5 senses can percieve ex= apple's ipad (it can be touched and its features can be seen and heard; its intangible attributes consist of its delivery or warranties)

question

nondurable good

answer

an item that will be consumed in one or a few uses ex= food and gasoline

question

durable good

answer

one that usually lasts over several uses ex= appliances, cars, and mobile phones

question

what kind of goods rely heavily on consumer advertising?

answer

nondurable goods

question

what kind of goods emphasize personal selling for their direction of marketing?

answer

durable goods

question

services

answer

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value -significant part of U.S economy (40% of GDP)

question

a ______ is a thought that leads to action such as a concept for a new invention

answer

idea

question

2 broad categories of products:

answer

1. consumer products 2. business products

question

consumer products

answer

products purchased by the ultimate consumer

question

business products (a.k.a B2B products or industrial goods)

answer

products organizations buy that assist in providing other products for resale

question

how is the iMac computer both a consumer product and a business product?

answer

it can be sold to customers for personal use or to business firms for office use

question

types of consumer products differ in terms of:

answer

1. effort the consumer spends on the decision 2. attributes used in making the purchase decision 3. frequency of purchase

question

convenience products

answer

items that the consumer purchases frequently with a minimum of shopping effort -relatively inexpensive -widespread distribution; many outlets -promotion: price, availability, and awareness is stressed -brand loyalty of consumers: aware of brand but WILL accept substitutes ex= toothpaste

question

shopping products

answer

items for which the consumer compares several alternatives on criteria such as price, quality, or style -fairly expensive -large number of selective outlets -promotion:differentiation from competitors is stressed -brand loyalty of consumers: prefer specific brands but WILL accept substitutes ex= cameras, TVs, couches, clothes, cars

question

specialty products

answer

items that the consumer makes a special effort to search out and buy -usually very expensive -distribution is limited -promotion: uniqueness of brand and status stressed -brand loyalty of customers: very brand loyal; will NOT accept substitutes ex= rolls-royce cars, watches, diamond ring

question

unsought products

answer

items that the consumer doesn't know about or knows about but doesn't initially want -prices vary -distribution is often limited -promotion: awareness is essential -brand loyalty of customers: will accept substitutes ex= burial insurance, life insurance

question

a major characteristic of business products is that their sales are often the result of ____

answer

derived demand -the sales of business products frequently result (or are derived from) the sale of consumer products

question

a consumer demand for ford cars (consumer product) increases, the company may increase its demand for paint spraying equipment (business product) what does this illustrate?

answer

derived demand

question

business products may be classified as ____ or _____

answer

1. components -items that become part of the final product -includes raw matterials as well as assemblies of parts 2. support products -items used to assist in producing other goods and services (installations, accessory equipment, supplies, industrial services)

question

buildings and fixed equipment is what?

answer

installations (a support product)

question

tools and office equipment are what?

answer

accessory equipment (a support product)

question

stationary, paper clips and brooms are what?

answer

supplies (a support product)

question

maintenance, repair, and legal services are what?

answer

industrial services (a support product)

question

product item

answer

a specific product that has a unique brand, size, or price

question

ultra downy softner for clothes comes in several different sizes illustrates what?

answer

product item

question

SKU (stock keeping unit)

answer

a unique identification number that defines an item for ordering or inventory purposes -each product item has this

question

product line

answer

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 thru the same outlets, or fall within a given price range

question

a group of products that are similar in terms of consumer needs and uses, market segments, sales outlets, or prices

answer

product line

question

product mix

answer

consists of all the product lines offered by an organization

question

Cray Inc. has a small ________ of 4 supercomputer lines that are sold mostly to governments and large businesses

answer

product mix

question

services can be classified according to whether they are delivered by:

answer

1. people or equipment 2. business firms or nonprofit organizations 3. government agencies

question

equipment based services do not have what marketing concern?

answer

of inconsistent quality because employees dont have direct contact when providing the service to consumers -instead, consumers receive automated services such as doing self check in at southwest airlines or using Schwab's online stock trading

question

Equipment-based services

answer

1. automated (self-service) -ATMs and online brokerages 2. operated by relatively unskilled operators -Motion picture theatres, dry cleaners, taxis 3. operated by skilled operators -electric utilities, airlines

question

computer networks is what kind of equipment based service?

answer

operated by skilled operators

question

automated car washes is what kind of equipment based service?

answer

automated (self-service)

question

People-based services

answer

1. unskilled labor -lawn care, security gaurds 2. skilled labor -appliance repair, plumbers 3. professionals -management consultants, accountants

question

a lawyer is an example of what type of people-based service?

answer

professionals

question

a caterer is an example of what type of people-based service?

answer

skilled labor

question

janitorial services is an example of what type of people-based service?

answer

unskilled labor

question

four l's of services

answer

the four unique elements that distinguish services from goods -intangibility -inconsistency -inseparability -inventory

question

which of the 4 l's does this illustrate? services can't be touched or seen before the purchase decision -instead service is the performance (rather than an object)

answer

intangibility

question

which of the 4 l's does this illustrate? services depend on the people who provide them -as a result, their quality varies with each person's capabilities and day-to-day performance

answer

inconsistency

question

what is more of a problem in services than it is with tangible goods?

answer

inconsistency ex= baseball team may have great hitting and pitching one day but next day they suck

question

which of the 4 l's does this illustrate? the consumer can't distinguish the service provider from the service itself ex= the quality of large lectures at the college is excellent but if they have bad counseling you won't separate your perception of the "educational experience"-the service itself

answer

inseparability

question

which of the 4 l's does this illustrate? costs involve paying the service provider along with any needed equipment

answer

inventory

question

idle production capacity

answer

when the service provider is available but there is no demand for the service

question

what does this illustrate? a physician is paid to see patients but no one schedules an appointment the idle physicians salary must be paid regardless of whether the service was performed

answer

idle production capacity

question

U.S bank has both a ___a_____ service (a checking account) and ___b__ services such as deposit assistance, parking, drive throughs, and ATMS

answer

a) core service b) supplementary service

question

what is the goods-service continuum?

answer

organizations can offer a range of products from the tangible (goods-dominant) to the intangible (services-dominant)

question

a fast food restaurant has _______ which include courtesy, cleanliness, speed, and convenience

answer

intangible services

question

newness compared with existing products

answer

-if a product is functionally different from existing products, it can be classified as new

question

the proliferation of extra features-sometimes called _______ overwhelms many consumers (overwhelming the consumer with mind-boggling complexity)

answer

feature bloat

question

the U.S federal trade commission (FTC) advises the the term "new" be limited to use with a product up to ______ months after regular distribution

answer

6 (difficulty with this suggestion is in the interpretation of the term regular distribution)

question

newness from the organization's perspective: newness and innovation in products are at 3 levels

answer

1. lowest level -involves the least risk -product line extension -incremental improvement of an existing product for the company (ex-purina added new line of elegant meldeys to its existing line of 50 varieties of fancy feast gourmet cat food) 2. next level is a significant jump in the innovation or technology ex=from a regular landline telephone to a cell phone 3. true innovation -truly revolutionary product such as the first apple computer

question

continuous innovation

answer

consumers dont need to learn new behaviors (requires NO learning by consumers) marketing strategy= gain consumer awareness and wide distribution

question

new improved shaver, detergent, and toothpaste are all examples of _____ -->toothpaste manufacturers can add new attributes or features like "whitens teeth"

answer

continuous innovation

question

dynamically continuous innovation

answer

only minor changes in behavior are required -disrupts consumer's normal routine but doesn't require total new learning marketing strategy= advertise points of difference and benefits to consumers

question

electric toothbrush, compact disc player, automatic flash unit for cameras are all examples of _____ -->heinz launched its EZ squirt ketchup with array of colors and kid friendly squeeze bottles to encourage kids to write their names on their hot dogs

answer

dynamically continuous innovation

question

wireless router, digital video recorder, and electric car are all examples of ______

answer

discontinuous innovation

question

discontinuous innovation

answer

involves making the consumer learn entirely new consumption patterns to use the product marketing strategy= educate consumers thru product trial and personal selling

question

a new product or service needs a precise __________, a statement that before the product development begins, identifies a well defined target market; specific customers needs, wants, and preferences; and what the product will be and do

answer

protocol

question

what do protocols identify? (3 things)

answer

1.well defined target market 2. specific customers needs, wants, and preferences 3. what the product will be and do

question

insignificant point of difference (marketing reason for new product failures)

answer

-points of difference is the single most important factor for a new product to defeat competitive ones (having superior characteristics that deliver unique benefits to the user)

question

Generall Mills introduced Fingos (a sweetened cereal flake the size of a chip) consumers were supposed to snack on them dry but they didnt. the ________ was not important enough to get consumers to stop eating competing snacks such as potato chips and popcorn

answer

point of difference (marketing reason for new product failures)

question

what marketing reason for new product failure is this? groceries carry more than 30,000 different SKUs with about 20,000 new packaged goods introduced each month the cost to gain access to retailer shelf space is huge. shelf space is judged in terms of sales per square foot. Thirsty dog (beef flavored water for your dog) must displace existing product on the shelves but it failed to generate enough sales to meet these requirements

answer

no economical access to buyers (marketing reason for new product failures)

question

incomplete market and product protocol before product development starts (marketing reason for new product failures)

answer

without this protocol, firms try to design a vague product for a phantom market ex-Avert Virucidal tissues contained vitamin c designed to kill cold/flu germs when you use the tissue. it failed in test marketing, people didnt believe the claims-lack of product protocol that clearly defined how it would satisfy consumers wants/needs

question

not satisfying customers needs on critical factors (marketing reason for new product failures)

answer

this factor stresses that problems on one or two critical factors can kill the product, even though the general quality is high

question

bad timing (marketing reason for new product failures)

answer

results when a product is introduced too soon, too late, or when consumer tastes are shifting dramatically ex= microsoft introduced Zune player a few years after Apple launched its iPod and other competitors offered their MP3 players

question

poor product quality (marketing reason for new product failures)

answer

factor often results when a product isn't thoroughly tested -costs to an organization include labor, materials, and other expenses to fix the problem -loss of sales, profits, and market share ex=xbox 360 video game console had problem when their microprocessors ran too hot it would cause them to pop off the motherboard so microsoft set aside 1 billion to extend the warranty and fix any affected consoles for free

question

too little market attractiveness (marketing reason for new product failures)

answer

ideal= large market with high growth and real buyer need -often target market is too small or competitive to warrant huge expenses necessary to reach out ex-the spray designed to rid scary creatures from a kid's bedroom (brand name could've scared kids more and also was this even a real market?)

question

poor execution of the marketing mix: brand name, package, price, promotion, distribution (marketing reason for new product failures)

answer

somewhere in the marketing mix there may be something that kills the product ex-garlic cake (company forgot to tell their potential customers how its supposed to be served so the garlic cake died because they were left to wonder what it is and why would someone want to eat that)

question

not really listening to the voice of the customer (organizational problems causing new product failure)

answer

product managers may believe they know better than their customers or feel they cant afford the valuable marketing research that can uncover problems

question

skipping stages in the new product process is what kind of new product failure?

answer

organization failure -the 7 stage process is a sequence; skipping a stage often leads to disaster (this is why many firms have a "gate" to ensure that one step is completed before moving on)

question

pushing a poorly conceived product into the market to generate quick revenue (organizational problems causing new product failure)

answer

marketing managers are under pressure from top management to meet revenue targets -this focus on speed results in overlooking the network of services needed to support the physical product

question

what does this illustrate? someone in the new-product meeting suspects the product concept is a dumb idea but is afraid to say something for fear of being cast as "negative thinker"

answer

encountering "groupthink" in task force and committee meetings (organizational problems causing new product failure)

question

not learning critical takeaway lessons from past failures (organizational problems causing new product failure)

answer

easiest lessons are from "intelligent failures"-ones that happen early in the new product process -at this point these failures are less expensive and immediately give better understanding of customers wants and needs

question

avoiding the "NIH" problem (organizational problems causing new product failure)

answer

NIH= not invented here problem a great idea is a great idea regardless of source but in large organizations, ideas from the outside often get rejected simply because they come from the outside

question

using ______ marketers measure actual market performance vs. the goals set in new-product planning

answer

marketing dashboards

question

new product process

answer

the 7 stages an organization goes thru to identify business opportunities and convert them into salable products/services

question

list the 7 stages in the new product process

answer

1. new-product development strategy 2. idea generation 3. screening and evaluation 4. business analysis 5. development 6. market testing 7. commercialization

question

Step 1 in the new product process : new-product development strategy

answer

stage that defines the role for a new product in terms of the firms overall objectives -firm uses SWOT analysis and environmental scanning to assess its strengths and weaknesses relative t the trends it identifies as opportunities and threats

question

what step is this? the outcome not only defines the vital protocol for each new product idea but also identifies the strategic role it may serve in the firm's business portfolio

answer

Step 1 in the new product process : new-product development strategy

question

stage 2 in the new product process: Idea generation

answer

this stage involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results

question

open innovation

answer

an organization finds and executes creative new product ideas by developing strategic relationships with outside individuals or organizations -it helps organizations overcome the not-invented-here barriers (part of stage 2: idea generation)

question

customer and supplier suggestions employee and co-worker suggestions research and development laboratories competitive products smaller firms, universities and inventors are all part of what stage in the new product process?

answer

stage 2: idea generation

question

P&G gave ______"look outside the company for solutions to the problem rather than insisting on P&G knows best

answer

revolutionary thought

question

how is crowdsourcing an idea generation method?

answer

it involves generating insights leading to actions based on massive numbers of people's ideas -it requires a precise question to focus the idea-generation process

question

the idea for nature valley bars from general mills came when one of the managers observed a co-worker bringing granola in a plastic bag to work. what does this illustrate?

answer

employee and co-worker suggestions that led to idea generation

question

industrial design

answer

an applied art that improves the aesthetics and usefulness of mass produced products for users

question

professional R&D labs that are outside the walls of large corporations are sources of _____

answer

open innovation and provide new-product ideas (Step 2: idea Generation)

question

analyzing competition can lead to

answer

new product ideas ex= marriot sent a 6 person intelligence team to travel and stay at economy hotels around the country --the team assessed the competition's strengths and weaknesses on everything

question

3 sources of open innovation strategy (firms looking for outside visionaries that have inventions or innovative ideas that can become products)

answer

1.smaller, nontraditional firms -small nontraditional firms in adjacent industries provide creative advances ex- General Mills partnered with weight watchers to develop progresso light soup 2. Universities -many universities have technology transfer centers that often partner with business firms to commercialize faculty inventions ex-GoGurt Fizzex was launched after the partnering of General Mills and Bingham University 3. Inventors Ex-Schwartzberg sold his idea for tube-shaped bagel filled with cream cheese to Kraft foods which now markets its Bagel-Fuls

question

Stage 3 in the new product process: Screening and Evaluation

answer

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

question

a firm's employees evaluate the technical feasibility feasibility of a proposed new product idea to determine whether it meets the objectives defined in the new product strategy development stage

answer

internal approach (part of stage 3:screening and evaluation)

question

an internal assessment showed that 3M could use technology to improve the gripping of gold or work gloves. what step is this in the new product process?

answer

internal approach (part of stage 3:screening and evaluation)

question

organizations that develop service-dominated offerings need to ensure that employees have the commitment and skills to meet customer expectations and sustain customer loyalty is the essence of _________

answer

customer experience management (CEM)

question

customer experience management (CEM)

answer

the process of managing the entire customer experience within the company -marketers must consider employees' interactions with customers so that the new services are consistently delivered and experienced

question

firms use _____ in an external approach (stage 3:screening and evaluation)

answer

concept tests -external evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product -rely heavily on written descriptions of the product

question

Stage 4 in the new product process: Business Analysis

answer

this stage assesses the total "business fit" of the proposed new product with the company's mission and objectives-from whether the product can be economically developed and manufactured to the marketing strategy needed to have it succeed in the market place -process requires detailed financial projections and also assessments of the marketing and product synergies related to the company's existing operations

question

what is the last checkpoint before significant resources are invested to create a prototype?

answer

Business Analysis

question

prototype

answer

a full-sclae operating model of the product

question

what is a business analysis?

answer

specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections

question

will the new product require a lot of new machinery to produce it? will the new product cannibalize sales of existing products or will it increase revenue by reaching new market segments? can the new product be protected with a patent or copyright? these are all questions asked in what stage of new product process

answer

stage 4: business analysis

question

financial projections of expected profits require estimates of expected prices per unit, and units sold, as well as detailed estimates of the costs of R&D, production and marketing. what stage would this be in of the new product process?

answer

stage 4: business analysis

question

capacity management

answer

integrating the service component of the marketing mix with efforts to influence consumer demand -service provider must manage the availability of the offering so that demand matches capacity over the duration of the demand cycle ex= mobile phone service providers use off peak pricing to charge different prices for different times of the day or week to reflect the variations in demand for their services

question

Stage 5 of the new product process: Development

answer

the stage that turns the idea on paper into a prototype -results in a demonstrable, producible product that involves not only manufacturing the product but also performing lab or consumer tests to ensure it meets the standards established for it in the protocol

question

stage 6 of the new product process: Market Testing

answer

the stage that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy

question

often a product is developed, tested, refined, and then tested again to get consumer reactions thru either____ __________ or simulated test markets

answer

test marketing (stage 6-market testing)

question

_____ involves offering a product for sale on a limited basis in a defined area

answer

test marketing

question

why is test marketing done (stage 6 of the new product process)

answer

to determine whether consumers will actually buy the product and to try different ways of marketing it -can also be used to check other elements of the marketing mix, such as price, level of advertising support, and distribution

question

why do some firms skip test markets?

answer

because they are time consuming and expensive can also alert competitors to a firm's plans

question

simulated test markets (STM)

answer

a technique that simulates a full-scale test market but in a limited fashion -firms use this because of the time, cost, and confidentiality problems of test markets

question

_____ are often run in shopping malls where consumers are questioned to identify who uses the product class being tested. next, participants are questioned on usage, reasons for purchase, and important product attributes. they are shown in TV commercials for the test product AND the competitors product. they are given money and introduced to a real or simulated store environment in which they ay choose to buy either the firm's product or the competitors product

answer

Simulated Test Markets (STM)

question

why is test marketing a service very difficult?

answer

because it is intangible and consumers can't see what they're buying

question

Stage 7 of the new product process: Commercialization

answer

stage that positions and launches a new product in full scale production and sales -most expensive stage for most new products

question

large companies use _______,introducing the product sequentially into geographic areas of the U.S to allow production levels and marketing activities to build up and gradually minimize the risk of new product failure

answer

regional rollouts

question

BK worked and developed new fry and certified employees on the new frying procedures but after it launched new fry proved too complicated to get right day after day. this is an example of what can go wrong in the ______ stage

answer

commercialization (stage 7)

question

why do new grocery products pose special commercialization problems?

answer

because shelf space is so limited many supermarkets require a slotting fee (payment a manufacturer makes to place a new item on a retailer's shelf) if new product doesn't achieve predetermined sales target, some retailers require a failure fee (penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell)

question

slotting fee

answer

payment a manufacturer makes to place a new item on a retailer's shelf

question

failure fee

answer

penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell

question

companies have discovered that speed or ________ is often vital in introducing a new product

answer

time to market (TtM)

question

parallel development

answer

cross-functional team members who conduct the simultaneous development of both the product and the production process stay with the product from conception to production

question

fast prototyping

answer

used in software development "do it, try it, fix it" approach encouraging continuing improvement even after the initial design

question

pharmaceutical companies putting a lot of money toward research for diabetes is an example of what stage in the new product process?

answer

stage 1: new product development strategy

question

mcdonalds was looking for ways to fill in the afternoon time slot (snacks that would have people come in) chefs came up with 85 possibilities for food items to get between 2 and 4 in the afternoon. what stage in the product process is this?

answer

stage 2: idea generation

question

______ is about numerics, how much will it cost; how much can we sell it for (money must work out)

answer

business analysis

question

what stage should you look at the time of development--> if length of time to develop product will miss our demand window its not a good matchup

answer

screening and evaluation

question

what stage do you do have production scheduling and figure out what the procedure is (is it but city, by region, etc)

answer

stage 7: commercialization

question

80% of consumer packaged products will fail of the 20% that hand around only 40% are around after ____ years of introduction

answer

5

question

household cleaners= __a___ for clorox and pinesol and softscrub= ___b___ for clorox

answer

a) product mix b) product lines

question

hidden valley is the product line in the dressing and sauces product mix for clorox. the hidden valley 8 oz bottle of the buttermilk dressing is what?

answer

product item

question

consumer products are those purchased by the ultimate consumer, whereas _______ are products that assist directly or indirectly in providing products for resale

answer

business products

question

toothpaste is an example of what kind of product?

answer

convenience

question

you decide to buy a new car. you talk to friends about it, research mechanical specifications in consumer reports, test drive different makes and models, and compare prices at several dealerships. into which classification of consumer products would your new car purchase fall?

answer

shopping products

question

burial insurance is something that most american adults don't like to think about. for these people, burial insurance would be classified as a ______

answer

unsought product

question

the mayo clinic's inpatient hospital care, outpatient physician services, and medical research is an example of what?

answer

product lines

question

a young musician goes on tour to promote his newest songs. the concerts are a huge success, but due to technical problems, the musician's songs are not posted to iTuns until six weeks after the tour. why did song's fall short of plans?

answer

poor execution of the marketing mix

question

sara burns is the owner of a company called the spice is right and was looking for a new product to go with her company's line of food condiments when a customer suggested combining spices with tea. this is an example of?

answer

idea generation

question

a 3M researcher worked with university students to develop the post it flag highlighter. his team evaluated the technical feasibility of the proposed design and whether the idea met the new product objectives. in which stage of the new product process was this product?

answer

screening and evaluation

question

at mattel, barbie is child tested to be sure the doll cant be easily broken during the _______ stage in the new product process

answer

development

question

a new beverage by snapple is currently being sold only in the western U.S. over the next year, snapple plans to introduce the beverage sequentially into the U.S from west to east this is called

answer

regional rollout

question

factors such as specifying product features and marketing strategy and necessary financial projections are a part of which stage in the new product process?

answer

business analysis

question

a warehouse purchasing an automated storage and retrieval system is an example of a purchase of a _____ product

answer

industrial

question

a printing company buying paper is an example of a purchase of a _____ product

answer

industrial

question

an accounting firm buying a new computer system is an example of a purchase of a _____ product

answer

industrial

question

newman's own is a company that gives all of its profits to charities.the company produces popcorn, salsa, pasta sauce, and salad dressings under the newman's own brand name. these product lines are the company's _____

answer

product mix

question

burberry makes fine raincoats, clothing, and other items, many featuring the company's distinctive plaids. Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. burberry is selling which classificaiton of consumer products?

answer

specialty products

question

developing pool of concepts as candidates for new products is the _____ stage of the new product process

answer

idea generation

question

when general foods introduced post cereals with freeze dried fruits people found that by the time the fruit had absorbed enough milk the flakes were soggy. why did this product fial?

answer

poor product quality

question

cosmetic dentistry is what kind of product (buyer may not initially want)

answer

unsought

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