Marketing, Chapter 7

Define Product Lines and Product Mixes? Why should they coordinate within a company?

- product line: a group of products linked through usage, customer profile, price points, and distribution channels or needs of satisfaction (3M: post its, tape, paper, etc) - product mix: combining all the products offered by a company (hundreds of thousands of 3M products) - coordinate pricing and marketing communications (focus on single product item or brand product item?)

How are new Inventions received differently by various consumers?

- innovators- first to try product - early adopters- product opinion leaders seek out new products consistent with personal self-image - early majority- product watchers want to be convinced of the product's claims and value proposition before making commitment - late majority- product followers are price-sensitive and risk averse - laggards- product avoiders what to evade adoption as long as possible

From a company perspective, why might new products include "repositioning" or addendums or upgrades to a product line?

Because these additions can extend the product, target new markets, enhance current product, etc.

Business Case Analysis and Profitability analysis are needed prior to a new product launch. What are their purpose and what do they tell a company about the future product.

- business case analysis- overall evaluation o fa product and usually assess's the product's probability of success - profitability analysis- company will incur manufacturing, marketing, accounting, and the logistical costs of bringing the product to market (prior, costs were primarily research and development)

Why do new products succeed or fail?

- company- inadequate value proposition; poor marketing communications; product does not meet customer expectations; failure to fully develop product - customers- change in purchase priorities; higher expectations - competitors- aggressively attack new competition - environment- changes in government regulation or legislation; changes in societal demands; economic changes

Name the five steps in Consumer Product Adoption and how do they differ?

- consumer product adoption: new products come in various forms- consumer adoption process less concerned with the product definition and more concerned with the individual consumer's perception of the product - individual moves through five stages before adopting a product: 1) awareness: know of the product, but insufficient information to move forward through the adoption process 2) interest: receive additional information and motivated to seek out added information for further evaluation 3) evaluation: combine all information and evaluate the product for trial purchase 4) trial: purchase the product for the purpose of making a value decision 5) adoption- purchase the product with the intent of becoming a dependable user

What is "Product Discrimination" and give some examples.

- creating a point of differentiation: what makes this product different? - form (size, shape color), features, performance quality, conformance quality, durability, reliability, repairability, style

What makes "Test Marketing" successful and when should it be used? Describe in both the B2C and B2B environments.

1) Consumer product market tests: - where: most successful location? - how long: include several purchasing cycles (typically less than a year) - data: interview buyers, track products from manufacturing to sale, etc. - decision criteria: did product succeed or fail? launch or pull product? 2) Business product market tests: -tests are smaller in scope and involve fewer individuals and companies; trade shows

What are the steps in new product development process?

1) Identify product opportunities 2) Define the product opportunity 3) Develop the product opportunity

What is a "Product Life Cycle" and what caveats should one consider in doing a PLC analysis?

PLC- companies create, launch, and transform products as market conditions change over time (product evolution) -There are four stages: Introduction, growth, maturity, and decline. - PLC helpful conceptual tool that works best when viewed as a framework for studying a product category - difficult to know with certainty what stage a product is in, particularly at transition points in PLC - sooo... PLC enables marketing managers to assess historical trends in the category and track how the product has behaved over time; historical precedents