MKTG 345 - Chapter 9 Marketing
Controlled test market
A company develops a product and contracts its entire test program to an outside service that can guarantee a specified percentage of the product's potential distribution volume.
Simulated test market
A company develops a product and runs tests, often in a shopping mall, to get opinions on the product concept, attributes, and usage from qualified participants.
Standard test market
A company develops a product and then attempts to sell it through normal distribution channels in a number of select cities.
________ is the stage of the new-product process that results in a pool of concepts as candidates for new products.
Idea generation
Which of the following characteristics is not one that distinguishes services from other products?
Immobility
________ is the stage of the new-product process that internally and externally analyzes new-product ideas to eliminate those that warrant no further effort.
Screening and evaluation
________ can be classified according to whether they are delivered by people or equipment, or whether they are provided by business firms or nonprofit organizations.
Services
In the ________ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives.
new-product strategy development
good
nondurable and durable goods
idle production capacity
occurs when the service provider is available but there is no demand for the service
________ can be classified according to whether they are delivered by people or equipment, or whether they are provided by business firms or nonprofit organizations.
services
products
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies customer's needs and is received in exchange for money or something else of value
product line
a group of items that are closely related
product item
a specific product that has a unique brand, size, or price
A gap analysis focuses service providers on the difference between
consumer expectations and experiences of service quality dimensions.
feature fatigue
consumers choose overly complex products
Newness: The Consumer's Perspective
continuous innovation, dynamically continuous innovation, discontinuous innovation
types of consumer products
convenience, shopping, specialty, unsought
Although there are numerous stages in the new-product process, firms develop a strategy, then start ________ and continue the process through the final step of ________,
idea generation; commercialization
Services can be __________ because the real people who provide them may vary in their abilities and motivations, or even their moods, resulting in differences in perceived quality.
inconsistent
There may be a great deal of interaction between a service provider and a consumer in which they co-create value together. In such situations, the customer perceives a high degree of ________ between the service provider and the company he or she represents.
inseparability
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
unsought products
items that the consumer does not know about or knows about but does not initially want
specialty products
items that the consumer makes a special effort to search out and buy
convenience products
items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
new-product strategy development
the stage of the new development process that defines the role for a new product in terms of the firm's overall objectives
development
the stage of the new product development process that turns the idea on paper into a prototype
idea generation
the stage of the new-product development process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage's results
screening and evaluation
the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
commercialization
the stage of the new-product process that positions and launches a new product in full-scale production and sales
Services are generally considered to be intangible; that is,
they cannot be held, touched, or seen before purchase.
feature bloat
unnecessary features or functions
gap analysis
expectations vs experiences
The use of open innovation can be useful in the ________ stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers.
idea generation
services
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
The cost of paying the person used to provide the service along with any needed equipment is known as the cost.(one word)
inventory
The large difference in ______ costs between airlines and hair salons results from airlines having highly paid employees and expensive equipment to maintain.
inventory
The term ________ is difficult to define and apply to products, and one can think about it from an organizational, consumer, or even a legal perspective.
'new'
Newness in legal terms:
"New" term is limited to 6 months
market testing
- standard test markets - controlled test markets - simulated test markers (STMs) - when test markets don't work
organizational inertia in new-product failures:
-encountering "groupthink" in task force and committee meetings -avoiding the "Not-invented Here problem"
Marketing Reasons for New-Product Failures
1. Insignificant point of difference 2. Incomplete market and product protocol before product development starts 3. Not satisfying customer needs on critical factors 4. Bad timing 5. No economical access to buyers 6. Poor product quality 7. Poor execution of the marketing mix: brand name, package, price, promotion, distribution 8. Too little market attractiveness
Seven stages in the new-product process leading to success
1. New - product strategy development 2. idea generation 3. screening and evaluation 4. Business analysis 5. Development 6. Market testing 7. Commercialization
Intangible
A service cannot be held, touched, or seen before the purchase decision. The consumer cannot evaluate the quality of an airline flight before getting onboard.
protocol
A statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
Inconsistency
Because services depend on the people who provide them, their quality varies with each person's capability and day-to-day job performance. An opera performer may have a bad cold and give a worse-than-typical performance when you see her.
________ is the stage of the new-product process that positions and launches a new product in full-scale production and sales.
Commercialization
________ products are purchased by the ultimate consumer, whereas ________ products are purchased by organization to assist them in providing other products for sale.
Consumer; business
Which two of the following are types of tests available to organizations during the market testing stage of the new-product process?
Controlled test markets Standard test markets
Manufacturing the product efficiently and performing laboratory and consumer tests to ensure it meets protocol standards are part of which stage of the new-product process?
Development
________ is the stage of the new-product process in which an idea is turned into a prototype.
Development
The new-product process stage of market testing involves which two of the following?
Exposing actual products to prospective consumers Using realistic purchase conditions to see if consumers will buy
Inseparable
In most cases, the consumer does not view the deliverer of the service as distinct from the service itself. Students' evaluations of their education will be influenced primarily by their perceptions of instructors, counselors, librarians, and other people at the university.
Services marketing differs from the marketing of tangible goods in all of the following ways EXCEPT which of the following?
Inconvertibility
Which two of the following factors are unique with respect to services, and are part of the four I's?
Inseparability Inventory
________ is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
Market testing
In which stage of the new-product process does an organization use a SWOT analysis and develop a product protocol?
New-product strategy development
Which of the following are important points of view when considering a product's "newness"?
Newness in legal terms Newness compared with existing products Newness from the organization's perspective
Which of the following is not a stage in the new-product process
Problem definition
Which of the following are typical ways that a service can be classified?
Profit or nonprofit Delivery by person or equipment
Inventory
Services are often costly in that the firm must maintain the personnel and equipment necessary to provide the services at the time the consumer wants them. There are high costs associated with paying a physician to see patients but no one schedules an appointment.
Which of the following are types of consumer products?
Specialty products Shopping products Convenience products
Which of the following should be included in a protocol for new product development?
Specific customer needs, wants, and preferences What the product will be and do A well-defined target market
The new-product process stage of business analysis involves which two of the following?
Specifying the marketing strategy needed to bring a new product to market Making financial projections for a new product
business analysis
The stage of the new-product development process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.
product mix
all the product lines offered
Because services are intangible, they
are much more difficult for consumers to evaluate before the purchase.
Shopping product
briefcases or airline tickets
unsought product
burial insurance or thesaurs
While consumer products are purchased by the ultimate consumer, whereas ______ products are purchase by organizations to assist them in providing other products for sale.
business
While consumer products are purchased by the ultimate consumer, whereas __________ products are purchase by organizations to assist them in providing other products for sale.
business
The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's mission and objectives, from whether the product can be economically developed and manufactured to the marketing strategy needed to have it succeed in the marketplace.
business analysis
The new-product process stage of involves positioning and launching a new product in full-scale production and sales.
commercialization
newness:
compared to existing products 1. product is new if functionally different from existing products 2. revolutionary newness can create new industries
business products for organizations:
derived demand, components, and support products
The new-product process stage of screening and evaluation involves
determining which ideas should be eliminated from further effort.
product class (or industry)
different products forms exist within the product class
prototype
full-scale model
One of the most effective methods to assess how well an organization is delivering service to its consumers is use a(n) ________ analysis, questioning them on their expectations and experiences.
gap
Though some intangible attributes like delivery or a warranty may also be important for a product like a washing machine, a(n) ________ like this is defined by having tangible attributes.
good
Convenience product
hand soap or ATM withdrawal
One of the basic ways in which services differ from tangible goods is that the service and the deliverer of it are ________ from each other.
inseparable
support products
installations, accessory equipment, supplies, industrial services
Four I's of Services
intangibility, inconsistency, inseparability, inventory
A product ________ is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same group, are distributed through the same outlets, or fall within a given price range.
line
Nike's product ________ include shoes and clothing, whereas the Mayo Clinic's consist of inpatient hospital care and outpatient physician services.
lines
The use of a ______ allows a marketing manager to quickly identify areas where sales are lagging and begin to investigate why.
marketing dashboard
Comparing a new product's actual sales in various parts of the country to the goals set during new-product planning is an example of using
marketing metrics.
delivery by:
people or equipment, business firms or nonprofit organizations, and government agencies
open innovation
practices that encourage the use of external and internal ideas
Newness from the organization's perspective
product line extension, jump in innovation, and brand extension
A(n) __________ is a good, 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. (one word)
products
business products
products organizations buy that assist in providing other products for resale. Also called B2B products or industrial products
consumer products
products purchased by the ultimate consumer
A ________ is a predevelopment statement that identifies a target market, customer needs, and what the product will be or do.
protocol
Dimensions of service quality
reliability, tangibility, and repsonsiveness
specialty product
rolex watch or heart surgery
A product can be a good, ________, or idea and it must satisfy ________.
service; consumer needs
A good is a product that is defined as having ________ attributes.
tangible
new-product development process
the 7 stages an organization goes through to identify opportunities and convert them into salable products or services
The primary reason there is greater inconsistency in services than in tangible goods is because
the people who provide services vary in capability or daily performance.
