Chapter 8
Myth of product development
More features create a better prodcut
Two broad product categoeis, related to the type of user, that are widely used in marketing
Business products, Consumer products
A convenience product is one that the consumer
Buys frequently and with little effort
Time to makret, ROI, and new product fit within the company's portfolio of products are all criteria used to
Prioritize new product ideas
Develop the new product opportunity
Test the market, launch the product
Shopping goods
clothes, furniture, major appliances
Two product classifications that define nature of product
durability, tangability
Unsought goods
life insurance or funeral services
Speciality goods
luxury cars or rolex watches
Equipment either fully asssembled or in smaller pieces that will be assembled into larger components, and, again, used in the production processes are called ___
parts
__ refers to the physical aspect of products
Tangability
In general, an industry that introducted a new product starts the PLC by
Incurring losses
A new-to-the__ product has not been available before
World
The rate at which products become accepted is known as the __ process
Adoption
Stages of innovation diffusion process
Awareness, Interest, Evaluation, Trial, Adoption
___ goods are major purchases in support of a signifcant business function
Capital
Major purchases in support of a significant business function are called
Capital Goods
Innovation Diffusion Process: Evaluation
Combined all information (word of mouth, reviews, advertising) and evaluate the product for trial pruchase
Match reason for new-product failure with its corresponding category
Company: inadequate value proposition, Customers: change in purchase priorities, Competitors: aggressively attack new competition, Environment: Economic change
Which of the following are characteristics that differentiate one product from another
Conformance quality, features, performance quality, form, repairability, style durability
What are the two broad categories, related to the type of user, that are widely used in marketing
Consumer Products, Business Products
frequently purchased, relatively low-cost products for which customers have little interes in seeking new information or considering other options and rely heavily on prior brand experience and purhcase behavior are called ___ goods
Convenience
Define the new product opportunity in the market
Define and test the product concept, analyze the new product's business case
3 tasks involved in the product potential and market opportunity
Define and test the product idea, create a marketing strategy for the product, analyze the products business case
Product opportunity process
Define and test the product idea, create a marketing strategy for the product, analyze the products business case
What three tasks are involved in defining the product potential and market opportunity
Deinfe and tes the new product concept, create a marketing strategy for the new product, analyze the new product's business case
Which of the following are activities in the new-product development process?
Develop the product opportunity, identify prodcut opportunities, define the product opportunity
Products that have a long product life are called ____ products
Durable
___ products have a long product life and are often more expensive
Durable
Diffusion-of-innovations groups in order based on time of adoption:
Innovators, early adopters, early majority, late majority, laggards
Which of the following are common sources of new-to-the-world product ideas?
External, distributors, internal, customers
T/F: The best product is always the most successful product
FALSE; best product technically is not always the most successful product; people look for the product that delviers the best overall product expereince
____ come and go quickly, often reaching only a limited number of individuals but creating a lot of buzz in the marketplace
Fads
A sales decline almost always means the death of the product
Fales; companies may create new products, or market conditions may change, which can reinvigorate the product and start a new growth phase
A __ is any product attribute or performance characteristic
Feature
An ____ is any product attribute or performance characteristic
Feature
A company must balance the ___ of product with what customers are willing to pay at a given quality level
Features
Product attributes or performance characteristics that are often added to or subtracted from a product to differentiate it from competitors is referred to as a products
Features
While delivering consumer value is the primary driver in marking product decisions, a company must balance the ___ desired by customers with what they will pay at a given quality level
Features
__ is the size, shape, color, and other physical elements of a product
Form
Identify new production opportunities
Generate new product ideas, screen and evaluate product ideas
A __ is a type of product that has tangible attributes that a consumer's five senses can perseive
Good
Major activities in the new-product development in proper order
Identify product opportunities, define the product opportunities, develop the product opportunity
Which of the following are reasons for new-product failure?
Inadequate value proposition,change in purchase priorities,competitors aggressively attack new competition,change in societal demands
The two key groups at the beginning of the adoption process are ___ and ___
Innovators, Early adopters
New products are created either through acqusition or ____
Internal Development
__ sources of new product ideas include employees from R&D, manufacturing, and marketing
Internal Development
___ are the single best source for new product ideas
Internal Sources
Product ideas are generated in one of two ways: ____ or ___ to the firm
Internal/External
Innovation Diffusion Process: Awareness
Knowledge of the product, but insuffieicint information to move forward through the adoption process
Everyday items that a company needs to keep running are called ___
MRO Supplies
Supplies that keeps an office running such as paper, pens, calculators, tape, and the like are called
MRO supplies
Natural products (lumber, minerals such as copper) or farm products (corn, soybeans) that become part of the final product are called __
Materials
For business goods, ___ become part of a final product while ___ are used in producting other goods and services
Materials, Parts
What are the two classifications of business goods
Materials, Parts
No matter how good a company's current products are, long-term growth depends on ___ products
New
A __ can be defined as anything that delivers value to satisfy a need or a want
Offering
__ consist of equipment either fully assembled or in smaller pieces that will be assembled into larger components, and, agign, used in the production process
Parts
Anything that delivers value to satisfy a need/want
Product
The essential component in delivering value is the ___ experience, which is why its is considered the heart of marketing
Product
A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction is called
Product Line
The _____ defines the life of a product in four basic stages: introduction, growth, maturity, and decline
Product life cycle
Innovation Diffusion Process: Trial
Purchase the product for the purpose of making a value decision
Innovation Diffusion Process: Adoption
Purchase the product with the intent of becoming a dependable user
Innovation Diffusion Process: Interest
Receive additional information (advertising, word of mouth) and motivated to seek out added information for further evaluation
___ is the percentage of the time the product works without failure or stoppage
Reliability
Which product discriminator references the dependability of the product
Reliabliity
Products that require customers to do more research and compare across product dimensions such as color, size, features, and price are called ____ goods
Shopping
___ are products that require consumers to do more research and compare across product dimensions, such as color, size, features, and price
Shopping Goods
Four categories of consumer goods classification
Shopping, Speciality, Convenience, Unsought
Unique purchases made based on a defining characteristic for the consumer are calleed __ goods
Specialty
__ goods are a unique purchase made based on a defining characteristic for the consumer
Specialty
T/F: Since the 1990s, companies now screen new prodcuts much earlier in the devleopment process
TRUE
The product life cycle is described as ____
The evolution a product goes through in the marketplace, from introduction to devline
Which of the following criteria are often used to prioritize ideas
Time to market (how long it will take to develop and get the product to market), ROI (what the expected return is for the dollars invested in the project), New product fit wihtin the overall company product portfolio
__ goods are products that consumers do not seek out and often would rather not purchase at all
Unsought
Products that consumers do not seek out and would rather not purchase at all are called ____
Unsought goods
Convenience
toiletries, gasoline, paper products