Marketing 300 Chapter 10

Steps of New-Product Process

1. New-Product Development 2. Ideas Generation 3. Screening and Evaluation 4. Business Analysis 5. Development 6.Market Testing 7. Commercialization

Step 5 of New-Product Process

Development: is the stage that turns the idea on paper into a prototype.

Step 2 of New-Product Process

Idea Generation: involves developing a pool of concepts to serve as candidates for new products, building upon the pervious stage's results.

Shopping Products

are items for which the consumer compare several alternatives on criteria such as price, quality, or style. Ex: Furniture, Cars, Appliances.

Unsought Products

are items that the consumer does not know about or knowns about but does not initially want. Ex: Life insurance, Funeral services, Blood donations.

Specialty Products

are items that the consumer makes a special effort to search out and buy. Ex: Medical services, Designer clothes, High-end electronics.

Convenience Products

are items that the consumer purchases frequently, conveniently, and with a minimum shopping effort. Ex: Newspapers, Candy, Fast food.

Consumer Products

are products purchased by the ultimate consumer

Organization Marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.

Person Marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.

Place Marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places.

Product Mix

consists of all of the product lines offered by an organization.

Business Products (B2B)

products that organizations buy that assist in providing other products for resale. A major characteristic is that their sales are often the result of derived demand, that is, sales of business products frequently result from the sale of consumer products. Ex: Capital items, Raw Materials, Supplies and Service.

Acquisition

refers to the buying of a whole company, patent, or a license to produce someone else's product.

New Product Development

refers to the original products, product improvements, product modifications, and new brands developed from the firms own research development.

New-Product Process

the seven stages an organization goes through to identify opportunities and convert them into salable products or services.

Protocol

A statement that, before product development begins, identifies: a well-defined target market, specific customer needs, wants, and preferences, what the product will be and do to satisfy customers.

Step 7 of New-Product Process

Commercialization: the stage that positions and launches a new product in full-scale production and sales.

Step 6 of New-Product Process

Market Testing: stage that involves exposing actual products to prospective buyers under realistic purchase conditions to see if they will buy.

Step 1 of New-Product Process

New-Product Development: is the stage of the new product process that defines the role for a new product in terms of the firms overall objectives.

Step 3 of New-Product Process

Screening and Evaluation: is the stage that internally and externally evaluates new product ideas to eliminate those that warrant no further effort.

Product

a good or service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Marketing Reasons for Failure

insignificant point of difference no economic access to buyers incomplete market and product protocol before product development not satisfying needs on critical factors bad timing poor product quality too little market attractiveness poor execution of marketing mix

Business Analysis

involves a review of the sales, costs, and profit projections to find out whether they satisfy the company's objectives.

Product Line

is a group of product or service items that are closely related because they satisfy a class of needs are used together, and sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

Product Item

is a specific product that has a unique brand, size, or price.

Customer Experience Management (CEM)

is the process of managing the entire customer experience whiten a company.

Idea Generation

is the systematic search of new product ideas including sourcing from: employees and co-workers customers (crowdsourcing) and suppliers research and development labs competitive product smaller firms, universities, inventors

Social Marketing

is the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.