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27 Cards in this Set

  • Front
  • Back
Product
good, service or idea consisting of tangible and intangible features that satisfies consumer's needs
good
has tangible attributes that consumer's five senses can perceive
Durable good
usually lasts over many uses
nondurable
item consumed in one or a few uses
Service
intangible activities or benefits that an organization provides to satisfy consumers' needs
Idea
thought that leads to an action
Four types of consumer products
1.Convenience product
-item that the consumer purchases frequently, with little effort
2.Shopping product
-item a consumer compares several alternative on criteria
3.Specialty product
-items that consumer makes a special effort to search out and buy
4.Unsought product
-items that the consumer does not know about or knows about but does not initially want
Business products
products organizations buy that assist directly or indirectly in providing other products for resale
derived demand
sales of business products frequentyl result from the sale of consumer products
Business products are either: components
items that become part of the final product
Business products are either: support products
items used to assis in producing other goods and services (i.e. supplies, installations, buildings)
Product item
a specific produc thta has a unique brand, size or price
Product line
group of product or service items that are closely related because they satsify a class of needs, are used together, or are sold to the same customer group
Product mix
consist of all product lines offered by an organization
Services are classified by whether they are delivered by
1. people or equipment
2. business firms or non-profit orgs: privately owned firms must make profits to survive
3. government agencies
Uniqueness of service (4)
1. Intangibility: services can't be touch or seen
2. inconsistency: services depend on the people who provide them
3. Inseparability: consumer cannot distinguish between the service provider from the service itself
4. inventory: handling costs that relate to their storage, perishability, and movement
Organizational problems in new product failures
1. Not listening to voice of consumer
2. skipping stages in the new-product process
3. pushing a poorly conceived product into the market to generate quick revenue
4. enoucountering "group think" in task force
4. not learning from mistakes
5. avoiding the "NIH" problem (not invented here" problem
New product process
seven stages an organization goes through to identify business opportunities and convert them into salable products or services
Stages of new product process
1. New-product strategy development
2. idea generation
3. Screening and evaluation
4. business analysis
5. development
6. marketing testing
7. commercialization
Stage 1: new-product strategy development
defines the role for a new product in terms of the firm's overall objectives
Stage 2: Idea generation
developing a pool of concepts to serve as candidates for new products, building upon the previous stages's results
-Open innovation
-firms actively involve customers
-employees and co-worker suggestions
-research and development labs
-competitive products
-smaller firms, universities, inventors
Stage 3: screening and evaluation
internally and externally evaluates new-product ideas to eliminate those that warrant no future effort
-Customer experience management
-Concept test: external evaluations with consumers that consist of preliminary test of a new product idea rather than an actual product
Stage 4: business analysis
specifies the features of the products and the marketing strategy needed to bring it to market and make financial projections
-last checkpoint before resources are invented to create a prototype
Stage 5: development
turns idea on paper into prototype
Stage 6: marketing testing
exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
-test marketing: offering a product for sale on a limited basis in a defined area
-simulated test markets: technique that simulates a full-scale test market but in a limited fashion (shopping malls)
Stage 7:commercialization
-positions and launches a new product in full-scale productions and sales (most expensive stage)
-large companies use regional reollouts
-special risks in commercializing grocery products (shelf space is limited) (slotting fee: paying a manufacturer to place a new item on shelf)
Speed/time to market (TtM)
vital in introducing a new product: helps determine profitability when a products comes to the market
-parallel development: cross-functional team members conduct simultaneous development of both tht eproduct and the production process
-fast prototying: "do it, try it, fix it" approach, encouraging continuing improvement even after initial design