What is a product
• Product Line
o A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations
• Product Item
o A specific version of a product
• Installations
o Facilities and non portable major equipment
Laggers
the last adopters, who distrust new products.
• Process Materials
o Materials that is not readily identifiable when used directly in the production of other products such as screws, knobs, and handles.
• Unsought Products
o Products purchases to solve a sudden problem, products of which the customers are unaware, and products that people do no necessary thing about buying
• Convenience Products
o Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort.
Product Adopting Process
Aware, Interest, evaluate, trial Adoption
Adoption
the buyer purchases the product and can be expected to use it again when the needs for this types of product arises
early majority
those adopting new products just before the average person
• Depth of a product mix
• The average number of different products in each product line
• Width of product mix
• The number of product lines a company offers
Early adopters
careful choosers of new products
Late majority
skeptics who adopt new products when they feel it is necessary
Innovators
first adopters of new products
Categories of Product Adopters
Innovators, Early Adopters, Early majority, late majority, laggers
The Four Stages of the Product Life cycle
Introduction, Growth Stage, Maturity stage, declines
Evaluate
The buyer considers the product benefits and decides wherter to try the product
Trial
The buyer examines, tests or tires the product to determine if it mets needs
Interest
The buyer seeks information and is receptive to learning about he product
Aware
The byer becomes more aware of the product
• Introduction stage
The initial stage of a product life cycle Its first appearance in the market place When sales start at zero and profits are negative Why new products fall Lack of resources, knowledge, and marketing skills to successfully launch the product High pricing to recoup research and development cost. Loss of money Growth of ales relatively slow
Declines
The stage of a products life cycle when sales fall rapidly Pruning items from the products line Cutting promotion expenditures Eliminating marginal distributors Planning to phase out the products Strategic Choices Harvesting the products remaining value Divesting the products when losses re sustained and a return to profitability is unlikely
Growth Stage
The stage of a products life cycle when sales rise rapidly and profits reach a peak and then start to decline More competitors ente the market Product pricing is aggressive Brand loyalty becomes important Gaps in market coverage are filled Promotion expenditures moderate Production efficiencies lower cost Rapid growth Nock of compitors come into play
Maturity Stage
The stage of a products life cycle when the sales curve peak and flatten and started to decline and profits continue to fall Intense competition Emphasis on improvements and differences in competitors products Weaker competitors lose interest and exit the market Advertising and dealer-oriented promotions predominate Distribution sometimes expands to the global market Profits will start to decline because of price compition
Product
o A good, a service, or and idea received in an exchange. o It can be tangible (a good) or intangible (a service or an idea) or a combination of both. o It can include functional, social and psychological utilities or benefits.
• Raw Materials
o Basic natural materials that become part of a physical product such as ores, water, lumber, grains and eggs
• Accessory Equipment
o Equipment used in production or office activities
• Shopping Products
o Items for which buyers are willing to expend considerable effort in planning and making purchases
• Component Parts
o Items that become part of the physical products
• Specialty Products
o Items with unique characteristics that buyers are willing to expend considerable effort to obtain
• MRO (Maintences, Repair and operating items
o Maintenances, repair and operating items that facilitate production and do not become part of the finished product such as cleaners, rubber bands and stables.
• Business services
o The intangible products that many organizations use in their operations such as cleaning, legal consulting and repair services.
• Product Mix
o The total group of products that an organization make available to customers
