Chapter 8

Question 1

What is a product? (3)

Answer 1

1. Anything that is of value to a consumer & can be offered through a marketing exchange
2. Goods, services, places, ideas, organizations, people, communities
3. Innovation adds value

Question 2

why do firms create new products?

Answer 2

New market offerings provide value to both firms & customers
Firms MUST innovate in order to stay in business & current
Innovation = transformation of ideas into new products and services

Question 3

explain market saturation

Answer 3

the longer a product exists in the market place, the more likely the market will become saturated.
Without new products or services, the value of the firm declines
Saturated markets also offer opportunities

Question 4

improving business relationships?

Answer 4

walmart??

Question 5

factors affecting product diffusion (4)

Answer 5

1. compatibility
2. observability
3. complexity and trial ability
4. relative advantage

Question 6

New products process (6)

Answer 6

1. idea generation
2. concept testing
3. product development
4. market testing
5. product launch
6. evaluation of results

Question 7

strategies for extending the product life cycle (7)

Answer 7

1. Develop new uses
2. Modify product
3. Increase frequency of use
4. Increase # of users
5. Find new users
6. Reposition product
7. Tweak marketing strategy