Exam 2 - ch 8

Which of the following is the phase in the new product development process in which companies launch a new​ product, and it requires​ full-scale production,​ distribution, advertising, and sales​ promotion?

Commercialization

A company is likely going to use a media blitz in which step of the adoption​ pyramid?

Awareness

When it comes to creativity and​ innovation, marketers engage in​ R&D activities.​ R&D are initials that stand for​ _____.

research and development

Which of the following refers to a consumer product that is usually​ low-priced, widely​ available, and purchased frequently with a minimum of comparison and​ effort?

Convenience product

What are convenience products and give examples.

Convenience products are typically nondurable goods or services bought with minimal effort. Staples (e.g., milk, bread) Consumer packaged good (CPG) or fast-moving consumer good (FMCG) Impulse products Emergency products Consumers expect convenience products to be low priced and widely available.

Which the following refers to all the benefits the product will provide for consumers or business​ customers?

Core product

Many innovative technology products are released as​ a(n) _____ test to allow usage and feedback from a small number of users who are willing to test the product under​ normal, everyday conditions of use.

beta

Marketers estimate technical success when they decide whether a new product is technologically feasible and​ a(n) _____ success when they decide whether anyone is likely to buy the product.

commercial

​A(n) ________ is a modification to an existing​ product, such as when Samsung and others reinvigorated the television market by offering thinner sets that featured high definition viewing. This type of modification can set one brand apart from its competitors.

continuous innovation

The​ ________ consist(s) of all the benefits the product will provide for consumers or business customers.

core product

What is dynamically continuous innovation?

ex: record, CD, iPod

We are more likely to purchase durable goods under conditions of​ ________.

high involvement

A​ _____ is a new product that​ copies, with slight​ modification, the design of an original product.

knockoff

Tablet computers are an example of​ a(n) ________ because the consumer spends considerable time and effort gathering information and comparing alternatives before making a purchase.

shopping product

Which of the following terms refers to​ features, functions,​ benefits, and uses of a​ product?

Attributes

Which of the following product layers might include a​ warranty, credit,​ delivery, installation, and repair service after the sale because marketers know that adding these supporting features to a product is an effective way for a company to stand out from the​ crowd?

Augmented product

How do marketers classify products?

Based on how consumers feel about, purchase, and consume products How long products last How consumers buy products How businesses buy products

What does categorizing B2B products help marketers do?

-develop better new products -improved marketing mixes

What is a product and its three layers?

A product represents all that a customer receives in an exchange. Marketers distinguish among three distinct "layers" of the product: Core product Actual product Augmented product

What are the 6 B2B products classified as and explain each.

1) Equipment, often called installations or capital equipment, is used in daily operations. -Examples might include a conveyor system used in a warehouse or as part of a production line, or the robotics used by Ford in the manufacturing of their vehicles. Computers, copy machines, and water fountains are examples of light or accessory equipment. Normally these types of items are more portable, cost less, and do not last as long as heavy equipment. Regardless of the type of equipment, marketers commonly rely heavily upon personal selling of equipment in B2B situations. 2) Maintenance, repair, and operating (MRO) goods are consumed relatively quickly. -Maintenance items include light bulbs, mops, etc., in comparison to repair products, which include small tools, nuts, bolts, and the like. Operating supplies include paper, toner, and the oil that keeps machines running smoothly. 3) Raw materials are products of fishing, lumber, agricultural, and mining industries used to in the final product. -Milk, soybeans, trees, and ore would be considered examples of raw materials. 4) Processed materials: produced by firms when they transform raw materials from their original state 5) Specialized services: services which are essential to the organization but are not a part of the actual production of a product 6) Component parts: manufactured goods or subassemblies of finished items an organization's needs to complete their own goods

Which of the following refers to a product innovation that requires consumers to learn a great deal to be able to effectively use the product because no similar product has ever been on the​ market?

Discontinuous innovation

What are durable goods and give examples.

Durable goods are consumer products that provide benefits over a period of months, years, or even decades. Cars Furniture Appliances

Which of the following adopters are concerned about social​ acceptance, so they tend to gravitate toward products they believe will make others think they are​ cutting-edge or​ fashionable?

Early adopters

​________ refer(s) to the products an organization uses in its daily​ operations, and might include items such as the sophisticated robotics Ford uses to assemble automobiles.

Equipment

Which of the following refers to the stage of the product adoption pyramid in which consumers weigh the costs and benefits of the new​ product?

Evaluation

What is discontinuous innovation?

Ex: buggy to a car

Which of the following is a question a firm would ask when evaluating the​ firm's strategy on an innovation​ scorecard?

How aware are organization members of the firm's goals for innovation?

Describe the stages of adoption.

Innovators adopt something simply because it is new. They love exploring for the sake of exploring and are willing to take risks, even if those risks result in failure. Early adopters are often opinion leaders. They are similar to innovators in how quickly they adopt, but they are more concerned about the coolness factor and maintaining their reputations as being ahead of the curve on new ideas. Early majority and late majority are the critical mass that ensures adoption. The early majority looks for productivity and practical benefits more than coolness or reputation. The late majority is similar but also expects a lot of help and support before they are willing to commit. Laggards, as the term implies, are slow to adopt. They are the most resistant to change and do so only when forced to adopt because everyone else has.

What is continuous innovation? What is a knockoff?

Knockoff falls under continuous innovation

What are nondurable goods and give examples.

Nondurable goods are consumed over the short term. Magazines Sushi

Which of the following refers to products that organizational customers purchase to use in their finished​ products?

Raw materials

What are shopping products?

Shopping products are goods and services for which consumers will spend time and effort to gather information on price, product attributes, and product quality. Computers TVs Appliances Consumers are more likely to compare alternatives before they buy.

What are specialty products?

Specialty products have unique characteristics that are important to buyers at almost any price. Generally, an extended problem-solving purchase that requires a lot of effort to choose Marketers have to go to a lot of effort to make their products stand out. Customers tend to be very loyal.

What are unsought products?

Unsought products are goods and services for which a consumer has little awareness or interest until a need arises. Retirement plans Life insurance Often require a good deal of advertising or personal selling to interest buyers