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Flashcards in marketing ch.10 Deck (37):
1

Product

a good,service or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is recieved in exchange for money or something else of value

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Good

has tangible attributes that a consumer can sense

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nondurable good

consumed in one or few uses

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durable good

usually lasts over many uses

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services

intangible activities/benifits that an org provides to satisfy consumer's needs in return for money/something of value

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consumer products

purchased by ultimate consumer

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convenience products

items that consumers purchase frequently with little shopping effort

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shopping products

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

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unsought products

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

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business products

products/organizations buy that assist in providing other products for resale

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components

items that become part of the final product

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support products

items used to assist other goods and services

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product item

specific product that has a unique brand

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product line

is a group of products or service items that are

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product mix

consists of all of the product lines offered by an organization

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Newness in terms of existing products

if a product is functionally different from existing products

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Newness from consumers perspective

defined by degree of learning required

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continuous innovation

only minor changes in behavior are required

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discontinuous innovation

involves making the consumer learn entirely new consumption pattern to use the product

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Newness in legal terms

FTC(federal trade commsission) advises that the term new be limited to use with a product up to 6 months after it enters regular distribution

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3 levels of new

Lowest: least risk. Product line extension

Middle:
significant jump in tech
brand extension involving putting an established brand name on a new product in a new market

High: a radical invention

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protocol

a statement that before product development begins identifies:
A wellds-defined target market
specific customer needs/wants
what the product will do to satisfy consumers

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Stage 1: New Product Strategy Development

defines the role of the new product in terms of the firms overall objectives

Uses SWOT analysis
Environmental Scanning
Defines protocol

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Stage 2: Idea Generation

involves developing a pool of concepts to serve as candidates for the new prodcuts

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Open innovation

organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and orgs

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crowdsourcing

involves generating insights leading to actions based on massive numbers of peoples ideas

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Stage 3: Screening and Evaluation

Internally and externally evaluates new product ideas to eliminate thos e that warrant no further effort

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Internal approach

firms employees evaluate the technical feasibility of a new product idea to see if it meets objectives

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external approach

uses conspet tests-external evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product

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Step 4: Business Analysis

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

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Step 5: Development

stage of the new product process that turns teh idea on papaer into prototype

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step 6: Market testing

test to see if prospective consumer would buy

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test marketing

offering a product for sale on limited bases in a defined are a for specific period

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standard test markets

company develops product then attempts to sell it through normal distribution channels in a number of test market cities.

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controlled test markets

contracting the entire test program to outside service. Service pays retailers for shelf space

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Simulated Test Markets

replicates full scale test markets to a limited degree

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Stage 7: Commercialization

the stage of the new product process that positions and launches a new product in full-scale production and sales. Most expensive stage