Marketing 304: Chapter 9 – Flashcards
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What does the life of an organization depend on?
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How it conceives, produces, and markets new products
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Products
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- goods, services, or ideas - consist of a bundle of tangible and intangible attributes that satisfies consumers' needs - is received in exchange for something of value
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goods
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Have tangible attributes that a consumer's five senses can perceive
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durable goods
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A good that lasts over many uses
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Appliances, cars, and mobile phones are an example of what?
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They are durable goods
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Nondurable goods
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An item consumed in one or a few uses
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Gas and fuel are examples of what?
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They are nondurable goods
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Services
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Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for something of value
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What percentage of GDP does the service industry take up?
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40%
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consumer products
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Products purchased by the ultimate consumer
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business products
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- B2B products, industrial products - products organization buy that assist in providing other products for resale
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What are the four types of consumer products?
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- convenience product - shopping product - specialty product -unsought product
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Consumer products differ in the following four ways -the effort the consumer spends on the decision - the frequency of prurchase
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- the attributes used in making the decision
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The 6 different basis of comparison for consumer products are: -product -price -place/distribution -promotion -brand loyalty
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- purchase behavior of consumers
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convenience products
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Items that consumers purchase frequently, conveniently, and with minimum shopping effort.
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Shopping producs
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Items for which the consumer compares several alternatives on criteria such as price, quality, or style
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Specialty products
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Items that consumer makes a special effort to search out and buy
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Unsought products
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Items that the consumer doesn't know about or knows about initially but doesn't want
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Derived demand
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Sales of business products frequently result from the sale of consumer products
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What is a major characteristic of business products?
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Their sales are often the result of derived demand
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Classifications of business products
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- components - support products
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Components
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Raw materials or items that become part of the final product
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Support products
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Items used to assist in producing other products or services
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Examples of support products
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- installations - accessory equipment - supplies - industrial services
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Cameras, Tvs, Ipods, and airline tickets are an example of what?
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Shopping products
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Toothpaste, hand soap, and ATM cash withdrawals are an example of what?
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Convenience products
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Rolls-Royce cars, Rolex watches, heart surgery are an example of what?
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Specialty products
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Burial insurance and thesuarus' are an example of what?
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Unsought products
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Classification of services
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- equipment based - people based
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What are the four i's of services
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- intangibility - inconsistency - inseparability - inventory
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Inconsistency in services refers to the fact that: A) there is no regulation of service industries in terms of basic standards of quality. B) the quality of service provided by a firm is often inconsistent with its image. C) services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee. D) training and standardization of service delivery procedures cannot be accomplished. E) there is too much idle production capacity.
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Because services depend on the people who provide them, their quality varies with each person's capabilities and day-to-day job performance.
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Idle production capacity
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a situation in which a service provider has available production capacity, but there is no demand.
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Gap analysis refers to the differences between: A) a firm's projected sales and the actual revenue generated for the service. B) the perceptions of service quality among different age groups of consumers. C) consumers' expectations about a service and their experiences with it. D) the tangible and intangible aspects of a service based on dimensions of service quality. E) the service expectations of organizational buyers and ultimate consumers.
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consumers' expectations about a service and their experiences with it.
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Empathy
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Caring, individualized attention provided to customers as a dimension of service quality
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Five dimensions related to the quality of service
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- Reliability - Tangibility - Responsiveness - Assurance - Empathy
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Product item
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A specific product that has a unique brand, size, or price
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stock keeping unit (sku)
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A unique identification number that defines an item for ordering or inventory purposes
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A product line is a group of product or service items that are closely related because they __________, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. A) satisfy a class of needs B) developed by the same product manager C) are sold to all types of consumers, business firms, and governmental units D) all require high levels of research and development E) all have the same brand equity
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Satisfy a class of needs
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Effective marketing for a product that is considered to be a continuous innovation depends on: A) completely reeducating customers to learn new behaviors. B) generating awareness of the product. C) reducing price to that of the lowest-priced competitor. D) educating consumers through product trial and personal selling. E) reducing the number of channels of distribution.
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generating awareness of the product.
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Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user. A) market attractiveness B) a distinctive point of difference C) good execution of the marketing mix D) a complete market and product protocol E) economical access to buyers
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- a distinctive point of difference
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The new product process
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The seven stages an organization goes through to identify business opportunities and convert them into salable products or services
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The seven stages of the new product process are 1. New product strategy development 2. Idea generation 3. 4. Business analysis 5. Development 6. Market testing 7.
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- Screening and evaluation - commercialization
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In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market. A) idea generation B) screening and evaluation C) business analysis D) development E) commercialization
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Business analysis
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continuous innovation
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- Consumers don't need to learn new behaviors. - add new attributes to the product or service
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dynamically continuous innovation
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- only minor changes in behavior are required - educate prospective buyers on the product's benefits, advantages, and proper ise
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discontinuous innovation
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- Making the consumer learn entirely new consumption patterns to use the product - gain new customer awareness - educate consumers on the benefits and proper use
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Three levels of newness and innovation
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- product line extension - brand extension - radical invention
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Newness Level 1: Product line extension
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- least risk -incremental improvement of an existing product line the company already sells
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What are the benefits of product line extension?
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Potential of adding new customers
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What are the dangers of product line extension?
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Increasing expenses and cannibalizing its existing line
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Newness Level 2: Brand extension
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-Putting an established brand name on a new product in an unfamiliar market
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Newness Level 2 Part 2: Innovation
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A significant jump in innovation or technology
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Newness Level 3: Radical invention
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A revolutionary new product
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The following are what type of reasons for new product failures? - insignificant point of difference - No economical access to buyers - Incomplete market and product protocol before product development starts - Poor execution of the marketing mix
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Marketing reasons
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The following are what type of reasons for new product failures? - Pushing a poorly conceived product into the market to generate quick revenue - Not learning critical takeaway from past failures - Avoiding the NIH problem -Not really listening to the voice of the consumer
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Organization problems
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NIH
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Not invented here problem
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marketing mix
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- brand name - price - promotion - distribution
