Marketing Ch. 9 & 10

are items that consumers purchase frequently, conveniently and with a minimum of shopping effort (Toothpaste or hand soap)

are items for which the consumer compares several alternative on criteria such as price, quality and style (Camera or TV)

are items that the consumer makes a special effort to search out and buy (Rolls-Royce or Rolex Watch)

are items that the consumer doesn't know about or knows about but does not initially want (burial insurance)

are services that can not be touched or seen before the purchase decision

Services depend on the people who provide them, so the quality varies from each persons capabilities

the consumer cannot distinguish the service provider from the service itself (University lectures are excellent but can't get questions answered so its poor)

handling costs that relate to their storage, perishability and movement.

is a specific product that has a unique brand, size or price.

is a group of product/service items that are closely related to each other because they satisfy the same need (Vitamin Water Flavors)

All product lines offered by an organization (Coke, vitamin water, Dasani)

Requires NO new learning by consumer (Improved toothpaste or detergent)

disrupts consumers normal routine but does not require totally new learning (electronic toothbrush or disk player)

Requires new learning and consumption patterns by customers (wireless router or electric car)

this term is limited to use with a product up to six months after it enters regular distribution

1. nothing new about it 2. not enough room on the shelf for it 3.

lack of explaining how you are going to satisfy customer wants and needs 4. not satisfying customers needs 5. bad timing 6. poor quality 7. tiny market segment 8. poor marketing mix execution

1.

not listening to voice of consumer 2. skipping steps in the new product process 3. poor quality 4. people are afraid to shoot down dumb ideas 5. not learning from past failures 6.

NIH (not invented here) problem

seven stages an organization goes through to identify business opportunities and covert them into salable products or services.

1. Strategy Development 2. Idea Generation 3.

Screening and evaluation 4. Business Analysis 5. Development 6. Market Testing 7.

Commercilization

defines the role for a new product in terms of the firms objectives. Use SWOT analysis and environmental scanning.

involves developing a pool of concepts to serve as candidates for new products

internally and externally evaluate new product ideas to eliminate those that suck

specifies the features of the product and the marketing strategy

the stage that turns the idea on paper into a prototype

exposing actual products to prospective buyers under realistic purchasing conditions to see if they will buy

positions and launches a new product in full scale production and sales.

describes the stages a new product goes throught in the marketplace: introduction, growth, maturity and decline

sales grow slowly and profit is minimal,

rapid increase in sales, competitors appear, repeat purchasers develop, improved version or new features added to the product to differentiate it from compitition

slowing of total industry sales, marginal competitors begin to leave the market, few new buyers enter the market. focused on holding market share and finding new buyers

when sales drop, consume disproportionate shore of management and financial resources relative to their future worht

company completely deletes the product line

when a company retains the product but reduces marketing costs.

significant customer education s required and there is an extended introductory period (graph)

being immediately because little learning is required by the consumer, and the benefits of purchase are easily understood

is a style of the times, frequently appear in men and women's apparel.

Introduced, decline and then return.

rapid sales on introduction and then an equally rapid decline. these products are typically novelties and have a short lifecycle.

venturesome, highly educated

leaders in social settings, sightly above average education

deliberate, many informal social contacts

skeptical, below average social status

fear of debt, neighbors and friends are information source

1.

Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards

manages marketing efforts for a close knit family of products. Responsible for managing existing products through the stages of the life cycle.

May be responsible for developing new products. Engage in extensive data analysis.

involves altering one or more of a products characteristics such as quality, performance or appearance to increase products value and increase sales

when a company tries to find new customers, increase a products use, or create a new use situation

set of human characteristics associated with a brand name

added value a brand name give to a product beyond the functional benefits provided

pyramid: brand awareness (who they are, what they do), brand performance/imagery (relay positive brand), consumer judgements/feelings (human centered) and consumer connection (harley davidson and ford)

multi-product, multi-brand, private label and mixed

companies use one name for all its products in a product class (ipod, iphone, ipad)

involves giving each product a distinct name (cheers, bold, tide)

when company manufacturers products but sells them under the brand name of a wholesaler or retailer (target owns archery farms, up and up, mossimo)

manufacturer markets its own brand but someone else can buy and resell it (heinz ketchup can be bought by target and rebranded to archer farms)

1. provided information to the customer 2. creates a perception in consumers mind 3. distinguishes it from competitors