A good or service idea consisting of a bundle of tangible and intangible attributes that satisfies a consumers needs and is received in exchange for money or something else of value
Good
tangible attributes that consumer five senses
non durable good
an item consumed in one or a few uses
durable good
lasts over many uses such as a car
services
an intangible activity or benefit that an an organization provides to satisfy consumers needs in exchange for money or something else of value
Idea
a thought that leads to an action such as a concept for a new invention
Consumer products
products purchased by the ultimate consumer
Business products (B2B or industrial)
are products that organizations buy that assist in providing other products for resale
Convienence products
items that the consumer purchases frequently conviently and with minimum shopping effort
Shopping products
Items for which the consumer compares several alternatives on criteria such as price quality or style
Specialty products
Items that a consumer makes a special effort to search out and buy
Unsought products
Items that a consumer does not know about or knows about but does not initially want
Derived demand
Sales of business products frequently result or derived from the sale of a consumer product
Components
Items that become apart of the final product
support products
Items used to assists in producing other goods services
Installations
Buildings and fixed equipment
Accessory Equipment
tools and office equipment
supplies
stationary paper clips brooms
Industrial services
maintnence repair and legal services
Product item
a specific product that has a unique brand size price
Stock keeping unit
A unique identification number that defines an item for ordering inventory purposes
Product line
a group of a product or service items that are closely related because they satisfy a class of needs are used together are sold to the same customer group are distributed through some outlets and fall within a given price range
product mix
consists of all the product lines offered by an organization
continuous innovation
consumer dont need learn new behaviors
dramatically continious innovation
only minor changes in behavior required
discontinious innovation
makes consumer learn entirely new behavior required
protocol
a statement that before a product development begins identifies
a well defined target market
specific customers needs wants and prefrence
what a product will be and do
Marketing reasons for new product failures
insignificant point of difference
bad timing
to little marketing attraction
poor product quality
poor execution of marketing mix
no economic access to buyers
New product process
the seven stages an organization goes through to identify business opportunities and convert them to salable good or service
New product strategy development
is the stage the new product process that defines the role for a new product in terms of the the firms overall objectives
Idea generation
Is the stage of the new product process that develops a pool of concepts as candidates for new products building upon the previous stages results
Open innovation
in which an organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and organizations
screening and evaluation
Is the stage of the new product process that internally and exteranlly evaluates new product ideas to elimninate those that warrant not further effort
a process of managing the entire customer expierence within the firm
External approach - concept tests
external evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product
business analysis
specific the features of the products and the marketing strategy needed to bring it to the market and make finacial projections
Prototype
a full scale operation model of the product
Capacity management
Integrating the service compononet of the marketing mix with efforts to infulence consumer demand
Off peak pricing
to charge different prices for different times of the day to reflect the variations of demand for their services
Development
the stage of the new product process that turns the idea on paper into a prototype
Market testing
the stage in the new product process that involves exposing actual product to prospective consumers under realistic purchase conditions to see if they will buy
Test marketing
involves offering a product for sale on a limited basis in a defined area
stimulated test market
a technique that stimulates a full scale test market but in a limited fashion
Commercialization
the stage of the new product process that positions and launches a new product in a full scale production and sales
regional roll outs
introducing the product sequentially into geographical areas in the us to allow production levels and marketing activities to build up gradually to minimize the risk of new product failure
slotting fees
a payment manufactures makes to place a new item on retailers shelf
failure fees
a penalty payment a manufacturer makes to compensate a retailer for sales it's valuable self space failed to make
time to market
often vital in introducing a new product
parallel development
cross functional team members who conduct the
fast proto typing
uses to try an fix approach encouraging continous improvement even after the intial design
Product life cycle
describes the stages a new product goes through in the market place introduction growth maturity and decline
trial
the initial purchase of a product by a consumer
primary demand
the desire for a product class rather than for the specific brand since there are few competitors for the specific brand since there are few competitors with the same product
selective demand
the preference for a specific brand
skimming strategy
to help a company recover costs of development as well as capitalize on the price insensitivity ofearly buyers
penetration pricing
helps build the volume but a company must closely monitor costs
Growth stage- repeat purchasers
people who tried the product were satisfied and bought again
deletion
dropping the product from the company's product line is the most drastic strategy
harvesting
when a company retains the product but reduces marketing costs
four aspects of the product life cycle
length
shape
product level
life cycle and consumer
generalized life cycle
not all of the products have the same shape in their curve
high learning product
significant consumer education is required and there is an extended introductory period
low learning product
begin immeaditely because little learning is required by the consumer and the benefits of purcchase are readily understood
fashion product
is a style of the times
fad
experience rapid sales on introduction and then an equally rapid decline
product class
refers to the entire product category or industry
product form
pertains to variations within the product class
diffusion of innovation
product diffuses or spreads through the population
brand manager
manages the marketing efforts for a close knit family of products or brands
product modification
involves altering a products characteristics such as its quality performance or appearance to increasing the products value to customers and increase the sales
product building
the sale of two or more separate products in one package
marketing modification
a company tries to find new customer increase a products use among exsisting customers or create new situations
product repositioning
changes the place a product occupies in a consumers minds relative to competitive products
trading up
involves adding value to the product through additional features or higher quality materials
trading down
involves reducing the number of features quality or price
downsizing
reducing the package content without changing the package size and maintain or increasing package price
branding
an organization uses a name phrase design symbol or combination of those identify its product and distinguish them from those of competitors
brand name
any word device or combination of these used to distinguish a sellers goods or services
trade name
a commerical legal name under which the company does business
trademark
identifies that a firm legally registered its brand name of trade name so that the firm has exclusive use thereby preventing others from using it
product counterfeiting
involves low cost copies of popular brands not manufactured by the original producer
stop counterfeiting in manufactured goods act
make counterfeiters subject to 20 years in prison sentences and 15 million dollars in fines
brand personality
a set of human characteristics associated with brand name
brand equity
the added value a brand name gives to product beyond the functional benefits provided
creating brand equity
brand awareness
brand performance and brand imagery
consumer judgements and consumer feelings
consumer brand connection
brand licensing
a contractual agreement whereby once company allows its brand names or trademarks to be used with product or services offered another company for a royalty or fee
multi product branding
a company uses one name for all of its products in a product class
also called family branding or corporate branding
product line extensions
the practice of using a current brand name to enter a new market segment in its product class
sub branding
which combines a corporate or family brand to distinguish a part of its product line from others
Brand extension
the practice of using a current brand name to enter a different product class
co branding
the pairing of the two brand names of tow manufacturers on a single product
multi branding
which involves giving each product a distinct name
fighting brands
their chief purpose is to confront competitor brands
private branding - private labeling or reseller branding
when a manufacturer product bus sells them under brand name of a wholesaler or retailer
packaging
component of a product refers to any container in which it is offered for sale and on which label information is displayed
label
an integral part of the package and typically indentifies the product or brand who made it where and when it was made how it is to be used and package contents and ingredients
packaging and labeling challenges
the continiunng need to connect with consumers
enviormental concerns
health safety and security issues
cost reduction
warranty
a statement indicating the liability of the manufactuerer for product defiencicies
express warranties
written statements of liabillites
limited coverage warranty
specifaclly states the bounds of coverage and areas of non coverage
full warranty
no limits on coverage
implied warranties
assign responsibillties for product deficiency to manufacturer
services
intagible activities or benfits that an organization provides to satisfy consumers needs in exchange for money or something else of value
four i's of service
intagiblitly
inconsistency
inseprability
inventory
idle product capcity
when the service provider is available but there is no demand
service continum
when companies bring to the market ranges from the tangible to intangible or good dominant to service dominant offerings
non profift oraganizations
excesses in revenue over expenses are not taxed or distributed to share holders
expeirence properties
can be discrened only after purchase or during consumption
credence propetries
characterisics that the consumer may find impossible to evaluate even after consumption
gap anyalysis
difference between the consumers expectations and expeirence
customer contact audit
a flowchart of points of interaction between consumer and service provider
Eight p's of service
product
price
place
promotion
people
physical enviorment
process
productivity
internal marketing
based on the notion that service organization on its employees before succesful programs can be directed at consumers
customer ecperience managment
the process of managing the entire customer expeierence with the company
capacity management
the service component of the market mix must be integrated with efforts to ifluence cosumer demand