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54 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Product
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good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value
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Product Line
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a group of products that are closely related because they saitsfy a class of needs, are used together are sold to the same customer group, are distributed through te same types of outlets, or fall within a given price range
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Product Item
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a specific product as noted by unique brand, size or price
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Stock Keeping Unit (SKU)
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unique ID number that defines an item for ordering or inventory purposes
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Product Mix
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the number of product lines offered by a company
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1) effort the consumer spends on the decision
2) attributes used in making decision 3) frequency of purchase |
classifications of consumer products
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classifications of consumer products
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Consumer Product
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products purchased by the ultimate consumer
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Business Product
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products that assist directly or indirectly in providing products for resale
(B2B or Industrial products) |
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Degree of Tangibility
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Durable or nondurable good or services
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Durable
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one that lasts for multiple uses
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Non Durable
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single use like food
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Convenience Product
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items that consumer purchases frequently, conveniently and with a minimum shopping effort
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Shopping Product
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items for which the consumer compares several alternatives on criteria such as price quality or style
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Specialty Product
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items such as rolex watches that a consumer makes a special effort to buy
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Unsought Product
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items that the consumer does not know about or knows about but does not initially want
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Derived Demand
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Sales of business and industrial goods frequently result from the sale of consumer goods
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Production goods
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Items used in the manufactoring process that become part of the final product
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Support Product
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Second Class of goods which are items used to assist in producing other goods or services
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Installation, Accessory Equipment, Supplies, industrial services
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Types of Support Goods
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Newness Compared to Existing Products
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If its Functionally DIfferent
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Newness in Legal Terms
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Up to six months after regular distribution
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Newness from Org Prospective
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product line extension----significant jump in the innovation or technology---truly revolutionary new product
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Newness from Consumer perspective
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continuous, dynamically continuous, discontinuous innovation
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Continuous Innovation
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no new behaviors must be learned, like toothpaste
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Dynamically Continuous Innovation
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only minor changes are required. colored ketchups
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Discontinuous Innovation
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making the customer learn entirely new consumption patters in orderto use the product. Wireless routers
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Marketing Reasons for New Product Failures
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1) Insignificant point of difference
2) Incomplete market and product definition before product development starts 3) Too little market attractiveness 4) Poor execution of the marketing mix 5) poor product quality 6) sensitivity to customer needs on critical factors 7) Bad Timing 8) No economical access to buyers |
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Protocol
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A statement that, before the products starts, identifies a well defined target market, specific customer needs wants and preferences and what the product will be and do
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Organizational Problems with New Products
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Not listening to the voice of the consumer---Skipping Steps in the new products process---Pushing a poorly concieved product into the market to generate qucik revenue---Groupthink---Not learning critical takeaway lessons from past failures
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New Product Process
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the stages a firm goes through to identify business opportunities and convert them to a salable good or service
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Stage1:New Product strategy development
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The stage that defines the role for a new product in terms of the firms overall corporate objectives
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Stage 2: Idea Generation
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The Step developing a pool of concepts as candidates for new products
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Stage 3: Screening and Evaluation
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The stage that involves internal and external evalutaions of the new product ideas those that warrant no further effort
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Concept Test
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external evaluations that consist of preliminary testing of the new product idea rather than the actual product with consumers
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Stage 4: Business Analysis
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the stage that involves specifying product features and market strategy and making necessary financial projections needed to commercialize a product
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Prototype
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Full scale operating model
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Stage5: Development
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The stage that involves turning the idea on paper into the prototype
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Stage 6: Market Testing
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The Stage that involves exposing actual to prospectivve consumers under realistic purchase conditions to see if they will buy
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Simulated Test Markets (STM)
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A technique that simulates a full scale test market but in a limited fashion
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stage 7:Commercialization
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the stage that involves positioning and launching a new product in full scale production and sales
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Regional Rollouts
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Offering a product sequentially into graphical areas in the US
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Slotting Fee
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A fee supermarkets charge to place on their shelf
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Failure Fee
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penalty payment to compensate for sales valuable shelf space never made
If they fail you pay. salt on the wound |
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Time to Market (TtM)
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the length of time it takes from a product being conceived until its being available for sale
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parallel development
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cross functional team member who conduct the simultaneous development of both the product and the production process stay with the product all the way
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fast prototyping
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“do it, try it, fix it” approach–encouraging continuing improvements even after the initial design.
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New Product Strategy Development---Idea Generation---Screening and Evaluation---Business Analysis---Development---Market Testing---Commercialization
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Stages of the New Product Process
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intangibility, inconsistency, inseparability, inventory
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The 4 I's of Services
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idle production capacity
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when the service provider is availible but there is no demand
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good
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has tangible attributes that a customer's five senses can perceive.
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1) convenience
2) shopping 3) specialty 4) unsought |
4 types of consumer products
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Services
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are intangible activities or benefits that an organization provides to satisfy customer's needs in exchange for money or something else of value
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Components
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* Used in manufacturing process
* Become part of the final product. |
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Support products- ===assist in producing other goods and services.
Installations === Buildings and land Major Equipment === fixed equipment. Accessory equipment === Tools and office equipment. Services=== Intangible activities to assist the industrial buyer. Supplies === Similar to consumer convenience goods |
Examples of Support products
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