Mkt Exam 3 Ch 8

Front 1

Layers of the Product

Back 1

the basic benefit, or core product is transportation.

Front 3

Augmented Layer

Back 3

The actual product PLUS other supporting features such as warranty, credit, delivery, installation, and repair services after the sale.

Front 4

Actual Layer

Back 4

The physical good or the delivered service that supplies the desired benefit supplies the desired benefit

Front 5

Core Layer

Back 5

Consists of all the benefits the product will provide for consumers or business customers consumers or business customers. Marketers deliver benefit, not products!

Front 6

What’s Clearasil’s core benefit?

Back 6

Confidence!

Front 7

Generally, products are either:

Back 7

consumer products or business-to-business products, although sometimes the same products are bought by both consumers and businesses

Front 8

The reason a product is purchased determines:

Back 8

which category a product is placed in any particular purchasing scenario.

Front 9

Durable goods

Back 9

consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances. We tend to see greater information search, cognitive investment, and comparative evaluation then with nondurable goods.

Front 10

Convenience Products

Back 10

a consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum o f comparison and effort.

Front 11

Staples

Back 11

include basic or necessary items that are available almost anywhere (e.g., milk, bread, or gasoline).

Front 12

Emergency products

Back 12

those products that we purchase when we are in dire need (e.g., bandages, umbrellas, or sink uncloggers).

Front 13

Shopping Products

Back 13

a good or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase (e.g., laptop computers).

Front 14

Attribute-based shopping products

Back 14

involve finding the best possible product selection (e.g., prom dresses).

Front 15

Price-based shopping products

Back 15

based on lowest price.

Note: price and quality are not always correlated!

Front 16

Specialty products

Back 16

e.g., college, weddings, or AIBO robot dogs

Front 17

Maintenance, Repair, and Operating (MRO) Products

Back 17

goods that a business customer consumes in a relatively short time (e.g., nuts, bolts, washers).

Front 18

Specialized Services

Back 18

services purchased from outside suppliers that are essential to the operation of an org but are not part of the production of a product (e.g., marketing research or legal services).

Front 19

The FTC states that marketers may call a product “New” only under the following conditions:

Back 19

1. The product must be entirely new or changed significantly.
2. The product may be called “new” for only six months.

Front 20

However, from a marketing perspective, an innovation is:

Back 20

anything that customers PERCEIVE as new.

Front 21

Continuous Innovations

Back 21

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

Front 22

Knockoffs

Back 22

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

Front 23

Dynamically Continuous Innovations

Back 23

a change in an existing product that requires a moderate amount of learning or behavior change (e.g., audio equipment advances, pda’s).

Front 24

Convergence

Back 24

the coming together of 2 or more technologies to create a new system with greater benefits than its parts (e.g., pda/computers/cell phones).

Front 25

Discontinuous Innovations

Back 25

a totally new product that creates major changes in the way we live (e.g., computers, the Internet).

Front 26

How Samsung continues to reinvent itself in terms of leading edge product designs

Back 26

1. acting upon consumer preferences
2. growing commitment to employing the product designers, and
3. forgoing cost cuts to drive up the value of its brands

Front 27

The text identifies the following reasons that new-product development is growing in importance for marketers:

Back 27

1. Technology is changing at an ever increasing rate so that products are developed get adopted, and then are replaced by better products faster and faster.
2. Competitions in global marketplaces makes it essential for firms to continually innovate to offer new choices to consumers worldwide.

***The Wal-Mart Effect is NOT one of these!

Front 28

Phases in New-Product Development

Back 28

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 29

Product Adoption

Back 29

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

Front 30

Diffusion

Back 30

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

Front 31

Tipping Point

Back 31

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

Front 32

Adoption Pyramid (highest to lowest)

Back 32

• Confirmation
• Adoption
• Trial
• Evaluation
• Interest
• Awareness --> Massive advertising (Media Blitz!)

***Please note that impulse purchases tend to occur during evaluation phase.

Front 33

Early Adopters

Back 33

those who adopt an innovation early in the diffusion process, but after the innovations

Front 34

Researchers have identified five characteristics of innovations that affect the rate of adoption:

Back 34

1. Relative advantage
2. Compatibility
3. Trialability
4. Observability

***Price is NOT one of these!

Front 35

Relative Advantage

Back 35

the degree to which a consumer perceives that a new 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

Trialability

Back 37

the ease of sampling a new product and its benefits

Front 38

Observability

Back 38

how visible a new product and its benefits are to others who might adopt it. Ex: Sierra Mist commercial