Chapter 8 Flashcards
Product
Anything that can be offered to a market that satisfy and want or a need
Service
Activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Consumer Product
Products purchased by consumers for their personal use
Convenience Products
Products and services that customers usually buy frequently, immediately and with a minimum of caparison and buying effort
Shopping Products
Less frequently purchased consumer products and services that shoppers compare carefully on suitability, quality, price, and style
Specialty Products
Consumer products and services with unique characteristic or brand identification for which a significant group of buyers is willing to make a special purchase effort
Unsought products
Consumer products that the consumer either does not know about or knows about but does not normally think of buying, ex life insurance, blood donations
Industrial Products
Purchased for further processing or for use in conducting a business
Three groups of industrial products
1) Materials and parts
2) Capital items
3) Supplies and services
New-Product Development
The development of original products, product improvements, product modifications, and new brands through the firms own product development efforts
Diffusion of innovations theory
a social sciences theory that divides members of a social group into segments according to how likely they are to adopt a new idea
Technology Adoption Life Cycle
Marketing theory that proposes that when marketing a technology product, marketers must cross a chasm, or significant gap, between members of the early adopters segment and members of the early majority segment before a new product will become successful
Idea Generation Stage
The systematic search for new ideas
- Companies now get new ideas from a variety of sources such as employees, distributors, suppliers, consumers, and competition
Crowdsourcing
Inviting broad communities of people such as customers, employees, independent scientists and researchers and even the public into the new product innovation process
Idea Screening
Screening new product ideas to spot good ideas and drop poor ones as soon as possible
- Look at things such as customer value proposition, target market, and the competition
RWW Question
Real, Win, Worth it
Concept Development and Testing
Detailed version of the new product idea stated in meaningful consumer terms
Market Strategy Development
Designing an Initial Marketing strategy for a new product based on the product concept
- Answer questions about how, where, and to whom the product will be introduced
Business Analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives
Product Development
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
- Involves more investment and rigorous testing and R&D
Test Marketing
The product and marketing program are tested in realistic marketing settings
Commercialization
Full scale introduction of the new product into the market
- Heavy investment into advertising and promotion
Product Life cycle
Course that a products sales and profits take over time
5 Stages of the Product Life Cycle
1) Product Development
2) Introduction
3) Growth
4) Maturity
5) Decline
