Marketing 321 Chapter 12

aesthetic modifications

change the sensory appeal of a product by altering its taste, texture, sound, smell, or appearance

functional modifications

changes affecting a product's versatility, effectiveness, convenience, or safety; they usually require the product to be redesigned

quality modifications

changes relating to a product's dependability and durability, usually executed by altering the materials or the production process

venture team

cross-functional team that creates entirely new products aimed at new markets, responsible for all aspects of a product's development, works outside the established organizational divisions and have greater flexibility to apply innovative approaches to new products and markets

customer services

include any human or mechanical efforts or activities a company produces which add product value... include delivery, installation, financing, customer training, warranties, and repairs.. potentially the only way an organization can differentiate its products when all products in a market have essentially the same quality, design, and features

product modification

means changing one or more characteristics of a firm's product; it differed from a line extension in that the original product is removed from the line

styling

one component of design, the physical appearance of a product; most consumers seek out products that look good and function well

screening

phase two of the development process, the most promising ideas are selected for further review and analyzed to determine whether they match the organization's objectives/resources/abilities (more ideas are rejected during this phase than during any other phase)

run-out

product deletion that calls for increased marketing efforts in core markets, deletion of some marketing expenditures, or price reductions to exploit any strengths left in the product

immediate drop

product deletion that is the best strategy when losses are too great to prolong its life

phase out

product deletion that lets the product decline without changing the marketing strategy

product design

refers to how a product is conceived, planned, and produced; it involves the total sum of a product's physical characteristics

brand manager

responsible for a single brand, operates cross-functionally with a product manager to coordinate the activities, information, and strategies involved in marketing an assigned product

market manager

responsible for managing the marketing activities which serve a particular group of customers

product features

specific design characteristics which allow a product to perform certain tasks, also used to differentiate products within the same company

product development

stage five, when the firm finds out if it is technically feasible to produce the product and if it can be produced at costs low enough to make the final price reasonable. the idea is converted into a prototype, and the prototype is tested. lengthy and expensive

business analysis

stage four, in which the product idea is evaluated to determine its potential contribution to the organization's sales, costs, and profits. marketers evaluate how well the product fits with the existing product mix, etc.

commercialization

stage seven, planning for full-scale manufacturing and marketing as well as preparing finalized budgets

test marketing

stage six, a limited introduction of the product in geographic areas chosen to represent the intended market to gauge the extent to which potential customers buy

concept testing

stage three, in which a sample of potential buyers is presented with a product idea to determine attitudes of initial buying intentions regarding the product. include a brief written or oral description of the concept followed by a series of questions on the product's advantages, disadvantages, and price

level of quality

the amount of quality possessed by a product

product positioning

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds, relative to competitive brands.

consistency of quality

the degree to which a product quality is the same over time, can also be compared across competing products

line extension

the development of a product closely related to one or more products in the existing product line but specifically designed to meet somewhat different needs

idea generation

the first step in the development process, occurs when organizations seek product ideas to achieve organizational objectives

quality

the overall characteristics of a product that allow it to perform as expected in satisfying customer needs

product manager

the person within an organization that is responsible for a product, product line, or several distinct products which make up a group

product differentiation

the process of creating and designing products so customers perceive them as different from competing products. the three aspects of this are product quality, product design and features, and product support services

product deletion

the process of eliminating a product from the product mix when it no longer satisfies a sufficient number of customers

new-product development process

the seven-phase process before a product is introduced.. a product may be dropped at any stage of the process. (idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization)