Exam 3

• buyers of goods and services to be used in the production of goods and services, used in daily operations, or goods resold to someone else
• Not private use

producer, re-seller, government, and institutions

• Unprocessed
• Typically few large producers
• Little product differentiation
• Little advertising, only for refined product
• ie: Crude Oil

• Office buildings, factories, machinery, large tools
• Significant impact on product

• Help in production
• Ie: Word processor

• Incorporated directly into the physical product being produced
• Can be seen
• Ie: Spark plugs

• Directly incorporated in manufactured products, but cannot be identified
• Ie: Corn syrup in soda

• Maintenance, repair, operating supplies
• Ie: pens, computer paper

Ie: legal accounting, marketing research

• Demand based upon or derived from the demand for consumer goods
• Ie: Steel demand derived from demand for cars

• Demand for two or more products are interdependent
• Ie: More machines, more demand for lubricants

• Not responsive to changes in price
• In business, demand tends to be inelastic
• Consumers can make a switch to other products

• Greater in business market
• Reciprocity very important in business environment

• is the people within an organization who make business purchase decisions
• 5 roles

• User
• Influencer
• Buyer
• Decider
• Gatekeeper

• Person using the product
• Ie: students using books

Make purchase decision

Decides which supplier to use

Controls flow of information

• Straight Rebuy
• Modified Rebuy
• New Task Buying

ie: If you own a restaurant and coke is doing well, would not switch to Pepsi

• Not so happy
• Ie: Looking into a different travel agency if they mess up your flight

Easier to sell something they've never bought before

• 20% of GDP
• Many things done on bidding

Ie: Retailers, wholesales, institutions (churches, sororities)

Using only one supplier

A bundle of tangible and intangible attributes that a seller offers

Based on consumer search characteristics (4 categories)

• Convenience Product
• Shopping Product
• Specialty Product
• Unsought Product

Something you buy w/ minimum effort

• Something you're willing to shop around for
• Ie: GAP

Product you're willing to make a special effort to find and purchase

• Product you don't want because you don't know they exist
• Ie: Life insurance for 20 year old

Total set of products a company sells

• The inter-relatedness of product lines
• Ie: Pepsi buying out Quaker Oats

The number of different product lines in the product mix

The number of items w/in each product line

Represents the stages a product moves through from its introduction to the market to its disappearance

• Want products in growth stage longest
• Get present customers to buy more
• Find new uses
• Find new customers
• Profits peak in growth, Sales peak in maturity

Regularly scheduled evaluation of the existing products in the product mix

• A product that is closely related to existing products in the line, but meets different customer needs
• Ie: different types of colgate

• Changing one or more characteristics of the product
• The original product does not stay on the line
• Ie: Designing thunder bird car over the years

Process of deleting a product from the product mix when it no longer satisfies a sufficient number of customers

• Phase-out Approach
• Run-out Policy
• Dropping

let the product decline

Exploits any strengths left in the product

Taking it off the market bc losses are that great

Responsible for a product, product line, or several distinct products

Responsible for a single brand

• 2 bosses, a product, & something else
• consider 2 concepts of a product

• Idea Generation
• Screening
• Concept Development
• Business Analysis
• Product Development
• Test Marketing
• Commercialization

Come up w/ ideas

Get rid of ridiculous ideas

Asking people what they think of the concept

Actually making the item

• Introducing your product before going nationwide
• Pioria, IL used, representative of US

Product introduced nationwide, full scale marketing

Offsetting new competitor products w/ promotions or other products

5 series of steps a buyer goes through in deciding to try and then regularly use a new product

• Awareness
• Interest
• Evaluate
• Trial
• Adoption

• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards

• 2.5%
• Young, educated
• Use scientific sources to reach

• 13.5%
• Use sales force more than any other group

• 34%
• Get information from mass media

• 34%
• Older People

• 16%
• Often oriented to the past
• Hard to get people to switch

a symbol, design, name or term that uniquely identifies a seller's product

The part of the brand that can be voiced

• Part of a brand that can be seen but not voiced
• ie: Nike swoosh

Brand name and/or brand mark that the seller has exclusive legal right to use

Legal name of an organization

ie: Levi, Guess

Owned by a retailer or wholesaler

• Give each item a separate brand name
• Each product in product mix different brand name

• Using a single brand name for many products
• Ie: Coke, Diet Coke, Cherry Coke...

• Putting product name on a different product category
• Ie: Ivory soap to ivory shampoo
•      Bic pens to Bic lighters

The marketing and financial value associated with a brand's strength in a market

Over $50 billion industry

Packing that will be reused

• Packaged in line w/ packaging practices associated with a certain product category
• Ie: Mustard container

• Product packaging is unique
• Ie: No drip laundry detergent

Ie: Pepsi Cube