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9 Cards in this Set
- Front
- Back
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Product line vs. product mix |
Product line: group of products that are 1) closely related 2) satisfy a similar need 3) used together 4) for the same group of customers 5) distributed through the same type of outlets and 6) fall within the same price range (ie. Old Spice line of beauty products)
Product mix: the number of product lines offered by a company |
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4 classifications of consumer goods |
1) convenience: cheap, bought frequently, don't mind switching brands, company must stress availability price and awareness (toothpaste, soap)
2) shopping: more expensive, bought infrequently, depends on personal tastes, prefers specific brands but will accept substitutes, requires more personal selling and companies must stress differentiation (clothes, appliances)
3) specialty: very infrequent purchases, very expensive, very brand loyal, will not accept substitutes, companies must stress uniqueness and status (rolex watches and special cars)
4) unsought: infrequent purchases, not brand loyal, companies must stress awareness and do personal selling to convince customers this is something they need (insurance, tombstones) |
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Production good vs. support good |
Production good: goods that are included at the final stage
Support good: goods that are brought together to create the final product |
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What are the different levels of newness? |
Compared with existing products In legal terms From customer's perspective From company's perspective |
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3 levels of newness innovation |
Continuous innovation: make it better little by little, requires no new learning, bring awareness to the product (lotion kleenexes)
Dynamically continuous innovation: disrupts consumer's normal routine but does not require completely new learning, advertise benefits & stress differentiation & advantages (electric toothbrushes)
Discontinuous innovation: establishes new consumption practices among consumers (reeducate them on how they should act: product trial&personal selling) ie. poopourri) |
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What are some marketing reasons for new product failures? |
insignificant point of difference incomplete market/product definition too little market attractiveness poor execution of the marketing mix poor product quality bad timing no economic access to buyers |
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What are some organizational reasons for new product failures? |
not listening to the voice of the consumer skipping steps in the new product process pushing poorly developed product into market to generate quick revenue groupthink in committee meetings not learning lessons from past failures |
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What are the 7 stages of the new product process? |
1) New product strategy development 2) Idea generation 3) Screening and evaluation 4) Business analysis 5) Development 6) Market testing 7) Commercialization |
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What is a slotting fee? |
Slotting fee: retailers asking to be prepaid a certain fee in case the product doesn't sell and just takes up shelf space
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