Marketing Test 3 Chapter 8

Front 1

Video: What's clearasil's core benefit?

Back 1

Confidence

Front 2

Core product

Back 2

car: Transportation

Front 3

Generally, products are either consumer products or B2B products, although:

Back 3

sometimes the same products are bought by both consumers and business

(Pens)

Front 4

The reason a product is purchased determines:

Back 4

which category a product is placed in any particular purchasing scenerio

Front 5

durable goods

Back 5

consumer products that provide benefits over a long period of time with a greater information search

(cars, appliances)

Front 6

convenience products

Back 6

a consumer good or service that is
-low price
-widely available
-purchased frequently with no effect

Front 7

staples

Back 7

basic or necessary items that are available almost anywhere (milk)

Front 8

emergency products

Back 8

those products that we purchase when we are in dire need (plunger)

Front 9

Note on bread

Back 9

Bread is BOTH a staple and a convenience product

Front 10

shopping products

Back 10

a good or service for which consumers spend considerable time and effort gathering information and comparing alternatives (computers)

Front 11

attribute-based shopping products

Back 11

involve finding the best possible product selection (prom dress)

Front 12

price-based shopping products

Back 12

lowest price (price + quality does not always correlate)

Front 13

specialty products

Back 13

unique characteristics + important to the buyer

(Scooba floor washing robot $400)

Front 14

maintenance, repair, and operating (MRO) products:

Back 14

goods that a business customer consumes in a relatively short time (nuts, washers)

Front 15

specialized services

Back 15

services purchased from outside suppliers that are essential to the operation of an org, but are not part of the production of the product

(marketing research or legal service)

Front 16

FTC can call a product NEW if (2)

Back 16

1. the product must be entirely new or changed significantly
2. the product may be called new for only 6 months

HOWEVER: from a marketing perspective, an innovation is anything that customers PERCEIVE as new

Front 17

continuous innovations

Back 17

a modification of an existing product that sets one brand apart from its competitors

Front 18

knockoffs

Back 18

a new product that copies with slight modification the design of an original product

Front 19

dynamically continuous innovations

Back 19

a change in an existing product that requires a moderate amount of learning or behavior change
(audio equipment)

Front 20

convergence

Back 20

the coming together of two or more technologies to create a new system with greater benefits than its parts

(camera phone)

Front 21

discontinuous innovations

Back 21

a totally new product that creates major changes in the way we live

(internet)

Front 22

samsung (3)

Back 22

1. acting upon customer preferences
2. growing commitment to employing product designers
3. forgoing cost cuts to drive up the value of its brand

Front 23

Know HOW samsung continues to reinvent itself (6)

Back 23

1. pipleline to the top
2. design - led innovation
3. question authority
4. back to school
5. global reach
6. beyond hardware

Front 24

new product development is growing in importance for marketers(2)

Back 24

technology is changing at an even increasing rate so that products are developed, get adopted, and then are replaced by better products fast and faster
2. competition in global marketplace makes it essential for firms to continually innovate to offer new choices to consumer worldwide
NOTE: the Wal*Mart effect is NOT one of these

Front 25

Phases in Development(7)

Back 25

1. idea generation
2. product concept development and screening
3. marketing strategy development
4. business analysis
5. technical development
6. test marketing
7. commercialization

Front 26

Product adoption

Back 26

the process by which a consumer or business customer begins to buy and use a new good, service, or idea

Front 27

diffusion

Back 27

the process by which the use of a product spreads throughout a population

Front 28

tipping point

Back 28

in the context of product diffusion, the point when a products sales spike from a slow climb to an unprecedented new level, often accompanied by a steep price decline

Front 29

media blitz

Back 29

massive advertising

Front 30

adoption pyramid (6)

Back 30

1. confirmation
2. adoption
3. trial
4. evaluation -- impulse purchase
5. interest
6. awareness - media blitz

Front 31

Curve thing

Back 31

1. innovators
2. early adopters
3. early majority
4. late majority
5. laggards

Front 32

innovators

Back 32

2.5%

Front 33

early majority

Back 33

those whose adoption of a new product signals a general acceptance of the innovation 34%

Front 34

researches have identified 5 characteristics of innovations that affect rate of adoption

Back 34

1. relative advantage
2. compatibility
3. complexity
4. trialbility
5. observability

NOTE: price is NOT one

Front 35

relative advantage

Back 35

the degree to which a consumer perceives that a product provides superior benefits

Front 36

compatibility

Back 36

the extent to which a new product is consistent with existing cultural values, customs, and practices

Front 37

complexity

Back 37

the degree to which consumers find a new product or its use difficult to understand

Front 38

trialbility

Back 38

is the easy of sampling a new product and its benefits

Front 39

observability

Back 39

how visible a new product and its benefits are to others who might adopt it