Marketing 409 // Exam 3
Product is introduced starting in one geographic area or set of areas and gradually expands in adjacent ones.
Rollout
Selecting the ideas with the greatest potential for further review. *checklist so you don't overlook something
Screening
Intangible results of the application of human and mechanical efforts to people or objects
Service
Items for which buyers are willing to expend considerable effort in planning and making purchases ( appliances, bikes, stereos, iPhone, camera, shoes)
Shopping products
Which of the following products is an example of a manufacturer brand?
Sony TVs
Items with unique characteristics that buyers are willing to expend considerable effort to obtain. *Most expensive category of products *fine jewelry or collector items
Specialty products.
Supports the core service and is used to differentiate the service bundle from those of competitors.
Supplementary services
Trendy brand names
Symbolic benefits
A limited introduction of a product in geographic areas chosen to represents the intended market *Not extension of development, rather sample of the entire marketing mix
Test marketing
A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product?
Accessory equipment
____________: equipment that does not become part of the final physical product but is used in production or office activities. *File cabinets, horsepower motors, calculators, and tools
Accessory equipment
Changes related to the sensory appeal of a product.
Aesthetic modifications
Core product, supplement features, symbolic benefits
Independent elements of a product
First adopters of the new product
Innovators
The quality of being produced and consumed at the same time *airline flights *a shared responsibility between the customer and provider
Inseparability
____________: Facilites and nonprofitable major equipment *expensive and used for a long time *decisions made by high-level management *Marketers provide training, repairs, maintenance assistance, and financing aid
Installations
The initial stage or a product's life cycle; it's first appearance in the market place, when sales start at zero and profits are negative
Introduction stage
The last adopters who distrust new products
Laggards
Skeptics who adopt new products when they feel it is necessary.
Late majority
The amount of quality a product possesses *ACSI
Level of quality
The development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs. *new introduced products *more common than new products because less cost
Line extension *Nestle launched a Girl Scout Cookie Crunch candy bar as a line extension of it's Crunch Bars.
Maintenance, repair, and operating items that facilitate production and operations but do not become part of the final product *paper, pencil, cleaning supplies, and paints
MRO supplies
The annual Consumer Reports magazine rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the product's convenience and safety attributes.
Make functional modifications to the product.
A brand initiated by producers to ensure that producers are identified with their products at the point of purchase
Manufactured brands
Sales curve peaks and starts to decline, and profits continue to decline.
Maturity stage
Idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization.
New product development process
The full legal name of an organization
Trade name
Legal designation of executive use of a brand
Trademark
Manufactured, private distributor, and generic
Types of brands
Installations, accessory equipment, raw materials, component parts, process materials, MRO supplies, and business services...
Types of business products
products purchased to solve a sudden problem, products of which customers are unaware of, and products that people do not necessarily think of buying.
Unsought products
A _________ works outside established organizational divisions and has greater flexibility to apply innovative approaches to new products and markets.
Venture team
The number of product lines the company offers
Width of product mix
The three major ways to modify a product include
aesthetic, quality, and functional changes.
According to the text, a product is defined as
anything the customer receives in an exchange.
Convenience products, shopping products, specialty products, and unsought products....
categories of consumer products
MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
ideas
Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)
immediate-drop decision.
When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable handle, it designed the package to become the cooking utensil. After cooking, the handle was removed and the package became the popcorn bowl. Jiffy-Pop's popcorn in this case is an example of _____ packaging.
innovative
Unlimited texting, wide range high spend internet access, and apps on a cell phone represent....
supplemental features
Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.
test marketing
Arm & Hammer would probably not want to use multiple packaging for its baking soda because
the product is used infrequently.
Consumer products and business products
two categories for classifying products
Seeking product ideas to achieve organizational objectives. *Internet and social media are great tools *Customer input valued and sought after
Idea generation
Innovator, early adopter, early majority, late majority, and laggards.
5 adopter categories
____________ can be accomplished by physically changing the product, it's price, or it's distribution.`Or change the image on promotional pictures
Repositioning
A name, term, design, symbol, or other feature that identifies one sellers product from the others
Brand
The marketing and financial value associated with a brand's strength in the market
Brand equity
Evaluating the potential impact of a product idea on the firm's sales, cost, and profits *Ask questions about how the new product fits into organization *Makes sure you have the necessary resources to create the product *seek market information
Business analysis
As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a
Business product
Products bought to use in firm's operations, resell, or make other products.
Business products
Intangible products that many organizations use in their operations. *Financial, legal, marketing research
Business services
People who adopt new products early, choose new products early, choose new products carefully, and are viewed as "the people to check with" by late adopters.
Early adopters
Individuals who adopt a new product just prior to the average person
Early majority
Service v. Customer service
CS adds value
Developing and managing products
Chapter 12
Service marketing
Chapter 13
Intangibility, insuperability of production and consumption, perishability, heterogeneity, client-based relationships, and customer contact.
Characteristics of services
Interactions that result in satisfied customers who use a service repeatedly over time. * Lawyers, accountants, financial advisors
Client-Based Relationships
Refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product. *product enters market *Rollout
Commercialization
__________________: Items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly. *Spark plugs, tires, clocks, brakes, headlights are all components of a car
Competent parts
Seeking a sample of potential buyers' responses to a product idea *Testing the product
Concept testing
The degree to which a product has the same level of quality over time.
Consistency of quality
Products purchased to satisfy personal and family needs
Consumer products
Relatively inexpensive, frequently purchased items for which the buyer exerts minimal purchasing efforts. (gum, gas, bread, coffee)
Convenience products
A products fundamental utility or main benefit (A cell phone)
Core product
basic service experience or commodity that a customer expects to receive.
Core service
Level of interaction between provider and customer needed to deliver the service. *satisfied employees=satisfied customers
Customer contact
Changes affecting a product's versatility, effectiveness, convenience, or safety. *increase number of users *eg. Iphone 5
Functional modifications
a brand indicating only the product category *Sugar, salt, aluminum foil
Generic brands
Tangible physical entity
Good
Sales rise rapidly, profits reach a peak, and then they start to decline.
Growth stage
Variation in quality *human behavior doesn't have consistent quality *increases as the degree of labor intensiveness increases. *Customize service for individual customer
Heterogeneity
a practice whereby customer contact jobs are outsourced into workers homes. *US worlds first service economy
Home sourcing
A concept, philosophy, image, or issue
Idea
When are marketers least likely to change a product's design, style, or other attributes?
Decline
Sales rapidly fall.
Decline stage
The average number of different products offered in each product line.
Depth of product mix
the inability of unused service capacity to be stored for future use *Empty seats on an airline flight can't be sold for later dates
Perishability
A brand initiated and owned by a reseller
Private distributor brands
Materials that are used directly in the production of other products but are not identifiable. *Vinegar as an ingredient in salad.
Process material
The five stage process of buyer acceptance of a product: awareness, interest, evaluation, trial, and adoption.
Product adoption awareness
The process of deleting products from the product mix because they no longer satisfy customers
Product deletion
Determining if producing a product is technically feasible and cost effective. *prototype // working model phase *How much quality should be built into product?
Product development
Creating and designing products so that customers see them as different from competing products
Product differentiation
A specific version of a product that can be designated as a distinct offering among firms products.
Product item
The progression of a product through four stages: introduction, growth, maturity, and decline.
Product life cycle
A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations. *These reflect the desire of different target markets
Product lines
The composite, or total, group of products that an organization makes available to customers.
Product mix
Changes in one or more characteristics of a product. *Original product does not remain in the line *Makers of runners shoes
Product modification *Best to use when: 1. Modifiable // 2. Consumer perception is good // 3. consistent=satisfaction
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds.
Product positioning
The overall characteristics of a product that allow it to perform as expected in satisfying customer needs. *Varies between consumer and business markets *Higher quality, higher price
Quality
Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?
Quality
Changes relating to a product's dependability and durability. *Higher quality: charge higher cost, creates customer loyalty and lowers customer sensitivity to price
Quality Modifications
___ _______: Basic natural materials that become part of the physical product. *Corn
Raw materials
Product deletion can best be described as the process of deleting a product from the product mix when it
no longer satisfies a sufficient number of customers.
Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.
not introducing new products.
A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.
product manager
When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.
product modification; line extension
Minerals, chemicals, timber, and agricultural products are considered
raw materials