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