Products Pt2 - Real People Real Choices - Ch 8

Front 1

What % of new products fail?

Back 1

65~95%

Front 2

Diffusion

Back 2

The process which use of a product spreads throughout population

Front 3

Product Adoption

Back 3

Process which a customer begins to buy and use a new good, service, or idea

Front 4

What are the four types of Innovation Adoptors?

Back 4

Early Adoptors, Early majority, Late Majority, Laggards

Front 5

What kind of innovation adoptor are opinion leaders? Concerned about social acceptance?

Back 5

- Innovators
- Early majority

Front 6

What is the individual adoption process? (6)

Back 6

Awareness, Interest, Evaluation, Trial, Adoption...Confirmation

Front 7

What influences adoption rate? (5)

Back 7

relative advantage: superior benefits
compatibility: consistent with existing behaviour
complexity: difficult to undestand?
trialability: difficult to try?
Observability: benefits visible to others

Front 8

Tipping point

Back 8

point where a product's sales spike from a slow climb to an unprecedented new level, often with a steep price decline

Front 9

media blitz

Back 9

massive advertising campign that occurs over a relatively short time frame

Front 10

impluse purchase

Back 10

purchase made without any planning or search effort

Front 11

innovators

Back 11

first segment, roughly 2.5% of a population that adopts a new product

Front 12

early adoptor

Back 12

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

Front 13

early majority

Back 13

those who adopt a new product and signals general acceptance of innovation

Front 14

late majority

Back 14

adoptors willing to try new products when there is little or no risk associated with the purchase (social pressue or economic necessity)

Front 15

laggards

Back 15

Last consumer to adopt an innovation

Front 16

relative advantage

Back 16

degree which a consumer perceive that a new product gives superior benefits

Front 17

compatibility

Back 17

extent to which a product is consistent with existing cultural values, customers, and practices

Front 18

complexity

Back 18

degree which a consumer finds a new product or its use difficult to understand

Front 19

trialability

Back 19

ease of sampling a new product and its benefits

Front 20

observabilitiy

Back 20

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

Front 21

What should you keep in mind when introducing a new product?

Back 21

Position new products with respect to existing products

Front 22

Cannibalization

Back 22

loss of sales of an existing product when a new item in a product line is introduced because customers switch to the new product

Front 23

customer alienation

Back 23

loss of existing customers when a product is modified or repositions

Front 24

Product Management

Back 24

systematic and usually team based approach to coordinating all aspects of a product's marketing inintiative including all elements of the marketing mix

Front 25

product line

Back 25

firm's total product offering designed to satisfy a single need or desire of target customers
eg. P&G's line of cleaning products

Front 26

product line length

Back 26

determined by the number of separate items within the same category

Front 27

upward line stretch

Back 27

adding new items that claim better quality or better features

Front 28

downward line stretch

Back 28

add items in the lower end

Front 29

two-way stretch

Back 29

adding items in both upper and lower ends

Front 30

filling-out strategy

Back 30

adding sizes or styles not previously available in a product category
eg. bite sizes versions of oreos

Front 31

product mix

Back 31

total set of all product lines which a firm offers to sell

Front 32

product mix width

Back 32

number of different product lines which the firm produces

Front 33

product quality

Back 33

overall ability of a product to satisfy customer's expectations

Front 34

Total Quality Management (TQM)

Back 34

management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

Front 35

ISO 9000

Back 35

criteria by International Organization for standardization to regular product quality in Europe

Front 36

ISO 14000

Back 36

Standards of the International Organization for Standardization concerned with "environmental management' aimed at minimizing harmful effects on the environment

Front 37

six Sigma

Back 37

where firms work to limit product defects to 3.4 per million or fewer

Front 38

DMAIC

Back 38

5 step quality control process. Define, measure, analyze, improve, control

Front 39

Introduction Stage
Competition:
Objective:
Tactics:

*GR is dependent on?

Back 39

slow growth follows the launch of a new product in the marketplace & low/no profits

Nonexistent if this is a really new product
Acquire new customers
increase awareness and encourage trial by consumers; secure distribution

*Product Adoption factors (rel. adv, compatibility, etc.)

Front 40

Growth Stage
Competition:
Objective:
Tactics:

Back 40

the product is accepted and sales and profitability rapidly increase

growth attracts intense competitor entry
retain customers while capturing new customers
differentiate from competition

Front 41

Stage of the Product Life Cycle

Back 41

Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

Front 42

Maturity Stage
Competition:
Objective:
Tactics:

Back 42

sales peak. Profit margins may narrow depending on competitive intensity.

Many competitors
Retain customers and create niches in the marketplace
Be responsive to competition look for new uses and users

Front 43

Decline Stage
Competition:
Objective:
Tactics:

*tip

Back 43

sales, profits decrease due to obsolescence or changing customer needs

companies exit; decreasing competitive intensity
maintain profitability as long as feasible
cut costs, “harvest”
*monitor closely to see when to exit

Front 44

Conditioning

Back 44

Associate target stimulus with the desired responses

Front 45

Observational Learning

Back 45

Associate causes and effects by observing other's behaviours

Front 46

What made Mattel's Barbie so successful in 1959?
How did they build the barbie brand?

Back 46

Aimed advertising to children instead of adults
Uses effective product placement, TV commercials, retail, direct and indirect experience to market to children. Cafeful Product, place, and promotion

Front 47

Who are some companies on Canada's top ten brands?

Back 47

Disney, Lego, J&J, Rolex, Nestle, MS, Google, BMV, Sony, Tim Hortons

Front 48

Brand

Back 48

a name, term, symbol of an element that identifies a firm's products and sets it apart from competition

Front 49

trademark

Back 49

legal term for brand name, brand mark, or trade character; can be legally registered

Front 50

brand equity

Back 50

value of a brand to an organizaion

Front 51

How do brands resonate with customers?

Back 51

Self-concept attachment - helps establish user's identity
Nostalgic attachment - serves as a link with a past self
Interdependence - part of the user's daily routine
love - emotional attachment

Front 52

brand meaning

Back 52

beliefs and associations that a customer has about a brand

Front 53

brand storytelling

Back 53

marketers seek to engage customers with stories about brands

Front 54

brand extension

Back 54

new product sold with the same brand name as a strong existing brand

Front 55

sub-branding

Back 55

creating a secondary brand within a main brand that can differentiate the product line to a desired group
eg. Dodge and Ram

Front 56

family brand/umbrella brand strategy

Back 56

a brand that a group of products share
eg. Microsoft Zune, PC, Xbox while P&G has individual brands

Front 57

National or manufacturer brands

Back 57

brands that the product manufacturer owns

Front 58

private-label brands

Back 58

brands that a certain retailer or distributor owns and sells

Front 59

generic branding

Back 59

products are not branded and sold at the lowest possible price

Front 60

licensing

Back 60

agreement where one firm sells another firm the right to use a brand name for a specific purpose and a specific period of time

Front 61

cobranding

Back 61

agreement between two brands to work together and market a new product

Front 62

ingredient branding

Back 62

branded materials become component parts of another product
eg. Bryer's Ice cream with M&M flavours

Front 63

Package

Back 63

cover or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication.

Very important to the product identity

Front 64

Universal Product Code

Back 64

black bars printed on the bottom or side of most items.

Front 65

Who structures organizations for new and existing product management?

Back 65

Brand Manager, Product Category Manager, Market Manager manage products depending on the firm and market situation

Front 66

Brand Manager

Back 66

Individual responsible for developing and implementing marketing plan for a single brand

Front 67

product category manager

Back 67

individuals who are responsible for developing and implementing the marketing plan for all the brands and products within a product category

Front 68

venture team

Back 68

group of people in an organization who work together to focus exclusively on development of a new product

Front 69

what are different strategies that a firm may choose for their products

Back 69

Strategies: Stretching, Filling, Contracting