MKT 291 Chapter 10 – Flashcards

a good, service, or idea consisting of tangible and intangible features that satisfies consumer's needs and is received in exchange for money or something else of value

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

products purchased by the ultimate customer

(B2B products or industrial products) products organizations buy that assist directly or indirectly in providing other products for resale

four types of consumer products: convenience products, shopping products, speciality products, and unsought products differ in terms of (1) effort the consumer spends on the decision (2) attributes used in making the purchase decision (3) frequency of purchase each type of consumer product stresses different marketing actions, degrees of brand loyalty, and shopping effort how each consumer product is classified depends on the individual

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

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

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

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

sales are often result of derived demand...sales of business products frequently result from the sale of consumer products classifies as components or support products

items that become part of the final product raw materials, assemblies or parts

items used to assist in producing other goods and services include: -installations-buildings and fixed equipments -accessory equipment-tools and office equipment -supplies-stationery, paper clips, and brooms -industrial services-maintenence, repair and legal services

a specific product that has a unique brand, size or price stock keeping unit(SKU)-unique identification number that defines an item for ordering or inventory purposes

group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices

all the product lines offered by a company

services can be classified to whether they are delivered by (1) people or equipment (2) business firms or nonprofit organizations (3) government agencies

the four unique elements that distinguish services from goods: intangibility, inconsistency, inseparability, and inventory

services can't be touched or seen bore the purchase decision services tend to a performance rather than an object

services depend on the people who buy them so their quality varies with each person's capabilities and day to day job performance

the consumer cannot distinguish the service provider from the service itself

costs are more subjective and are related to idle product capacity inventory cost involves paying the service provider along with the needed equipment

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

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

if product is functionally different from existing products it can be defined as new

US Federal Trade Commission advises that the term new be limited to use with a product up to six months after it enters regular distribution

organizations view newness and innovation in their products at three levels: -lowest level involves the least risk and is a product line extension -next level-jump in the innovation or technology -third level-true innovation, truly revolutionary product

classifies products according to the degree of learning required by consumer -continuous innovation-consumers don't need to learn new behaviors...marketing depends on generating awareness -dynamically continuous innovation-only minor changes in behavior are required...marketing strategy is to advertise points of difference and benefits to consumers -discontinuous innovation-requires new learning and consumption patterns by consumers...marketing strategy: educate consumers through product trial and personal selling

statement that before product development begins identifies (1) well defined target market (2) specific customers' needs, wants, and preferences (3) what the product will be and do

1. insignificant point of difference 2. no economical access to buyers 3. incomplete market and product protocol before product development starts 4. not satisfying customer needs on critical factors 5. bad timing 6. poor product timing 7. too little market attractiveness 8. poor execution of the marketing mix: brand name, package, price, promotion, distribution

1. not really listening to the "voice of the consumer: 2. skipping stages in the new product process 3. pushing a poorly conceived product into the market to generate quick revenue 4. encountering "groupthink: in task force and committee meetings 5. not learning critical takeaway lessons from past failures 6. avoiding the "NIH problem" (not invented here problem)

The seven stages an organization goes through to identify business opportunities and convert them into salable products of services

defines the role of a new product in terms of the firm's overall objectives uses environmental scanning and SWOT analysis to assess its strengths and weaknesses relative to the trends

developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results open innovation-organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and organizations -customer and supplier suggestions -employee and coworker suggestions -research and development laboratories -analyzing the competition -smaller firms, universities, and inventors

internally and externally evaluates new product ideas to eliminate those that warrant no further effort internal approach-evaulate the technical feasibility of the proposed new product idea to determine whether it meets the objective defined in the new product strategy development stage; customer experience management external approach -concept tests(external evaluations with consumers that of preliminary testing of a new product idea rather than an product )

the process of managing the entire customer experience within the company need to ensure that employees have the commitment and skills to meet customer expectations and sustain customer loyalty

business analysis specifics the features of the product and the marketing strategy needed to bring it to market and make financial projections last checkpoint before prototype(full scale operating model of the product) assess the total business git 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 need to have it succeed in the marketplace for services, business analysis must consider capacity management, integrating the service component of the marketing mix with efforts to influence consumer demand

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

involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy -test marketing-offering the product for sale on a limited basis in a defined area...done to determine whether consumers will actually buy the product and to try different ways of marketing it -stimulates test markets-stimulates a full scale test market but in a limited fashion, ofter run in malls where customers are questioned to identify who uses the product class being tested

positions and launches a new product in full scale production and sales regional rollouts-introducing product sequentially into geographical areas of the US to allow production levels and marketing activities to build up gradually to minimize the risk of new product failure slotting fee-payment a manufacturer makes to place a new item on a retailer's shelf failure fee-penalty payment a manufacturers makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell parallel development-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 fast prototyping-do it, try it, fix it, encouraging continuing improvement even after initial design