Chapter 11
Shopping products
buyers willing to expend considerable effort in planning and making purchases - comparison shopping based on store, price, brand, quality, features, service - purchased less frequently/durables, selective distribution, strong personal selling and advertising, higher margins, lower turnover, servicing and promoting supported by both roducer and channel members, do not have brand loyalty appeal
idea
concepts, philosophies images or issues
good
tangible, physical entity
facilitating products
accessory equiment, mro supplies, business services
early majority
adopt just prior to average person but seldom lead the market deliberate consumers cautious in trying new products
Depth of product mix
average number of different products in each product line
Classifying Business Products
categorized by characteristics or intended use
early adopters
choose new products carefully opinion leaders/viewed as the "people to check with" by others
consumer products
classified by consumer shopping behavior - convenience products, shopping products, specialty products, unsought products
Product
everything buyer receives in an exchange - tangible and intangible, functional social psychological utility
Distribution Strategies - INTENSIVE
everywhere
Innovators
first adopters of new products, atypical consumers, adventuresome, risk takers, pay skimming prices
product line
group of closely related product items - viewed as a unit because of marketing technical or end-use considerations
Capital products
installations and major equipment
service
intangible result of the application of human or mechanical efforts
specialty products
items with unique characteristics that buyers are willing to expend considerable effort to obtain - unique characteristic/non-substitutable - bran insistence or style conviction, special purchasing effort, expensive/price is non-issue, exlusive distribution, professional selling, high margins/low turnover
laggards
las to adopt a new product/distrust new prodcuts, suspicious of change/oriented toward the past/tradition-bound
The total product
mix of core product, supplemental features, symbolic and experimental benefits
Width of product
number of product lines a company offers
exclusive
one per geographic area
Introductory stage of product life cycle
product's first appearance in market, sales start at zero , prfits are negative and increasing, one- few sellers, basic prodcut model/build primary demand, high distribution costs, price skimming to recoup development costs, heavy promo costs to build product awareness and reseller support, informative advertising
Promotion
public relations, personal selling, advertising - remind inform persuade sales promotion - consumer and trade
Consumer Products
purchased to satisfy personal and family needs - categorized according to consumer behavior
unsought products
purchased to solve sudden problem products of which customers are unaware and do not necessarily think about buying - speed and problem resolution most importance, price/other features not considered, no consideration of subsitutes or alternatives, purchased infrequently, requires aggressive selling`
production products
raw materials, process materials, component parts
Convenience Products
relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort - brand substitutable, intensive distribution, low gross margins, high inventory turnover, minimum promotional effort at retail level, packaging important
Decline Stage
sales fall rapidly/declining profits, stronger competitors survive, price sensitive buyers brand switinchng prune prodcut oline or reposition eliminate unprofiable outlets cut promotion expenditures plan for phase out: harves of divest
Maturity Stage
sales peak then decline profits continue to decline intense competition industry shake-out defend market share differentiate with product modifications dealer oriented promotions price wars gobla ditrbution
Growth Stage
sales rise rapidly profits peak then declin increasing competition strenthen market share selective demand/emphasize brand benefits, correct weak product attributes fill gaps in distribution production efficiences lower costs and prices substantial promitonal expenses persuasive advertising
late majority
skeptics who adopt new products when the feel it is necessary adopt after majority of the market has purchased
selective
some retail outlets
product item
specific version of a product
awareness
the buyer becomes aware of the product
evaluation
the buyer considers the prodcut's benefits and decides whether to try the prodcut
trial
the buyer examines test or tires the prodcut to determine if ti meets his or her needs
adoption
the buyer purchases the product and can be expected to use it again whever the need for this general type of product arisies
interest
the buyer seeks information and is receptive to learning about the prodcut
product adoption process
the stages buyers go through in accepting a product
business products
to use in an organization's operations, to resell, or to make other products - categorized according to characteristics and intended use
Product Mix
total group of products that an organization makes available to customers
Classifying Prodcuts
ultimate use/buyer's intent determines classification of product