MKTG 3650 Exam 2 Study Guide
MKTG 3650 Exam 2 Study Guide MKTG 3650
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This 14 page Study Guide was uploaded by Alora Lornklang on Monday April 4, 2016. The Study Guide belongs to MKTG 3650 at University of North Texas taught by David Strutton in Spring 2016. Since its upload, it has received 94 views. For similar materials see Foundations of Marketing in Marketing at University of North Texas.
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MKTG 3650 Foundations of Marketing Practice Exam 2 Study Guide (Covers chapters 6A, 7, 9, 10, 11) Chapter 6A: Appendix Propositional Knowledge Is abstract and generalized in nature A threepart principle is always in play in business, marketing, or life. It is this: o The more diverse and broader one’s base of knowledge becomes, the more interesting and valuable are the connections (intersections) that one can make. Prescriptive Knowledge More narrowly focused Referred to as techniques and knowhows Highly subjectspecific bodies of leadingedge knowledge must be understood and enacted by marketing researchers if they are to perform adequately and effectively. Marketing Research An ongoing process that generally involves collecting and analyzing information usually related to a specific problem or opportunity that is facing the firm The marketing research process itself unfolds in two general stages: o The first stage involves describing/diagnosing the problem or opportunity that is facing the Firm more accurately o The second stage involves developing prescriptive inferences regarding how best to strategically address the problem or opportunity through betterinformed, more effective management of the Firm’s marketing mix Customers, operating in either B2C or B2B domains, are impressionable, emotional, and irrational —at times, predictably irrational. Marketing researchers understand that customers are often so illogical that they believe price determines the value of something rather than the other way around. Marketing research is grounded in statistics and probability assessments. Statistics allow massive amounts of information to be compressed into a few meaningful numbers. Probability equips managers to make more reasonable decisions in contexts featuring imperfect information and substantial uncertainty. o Probability allows managers to quantify the level of uncertainty or risk embedded in a given decision. Better (marketing) information = better (marketing) decisions = better (marketing) performance Marketing Research entails three specific infosearchrelated activities: o Asking specific questions o Gathering valid and reliable information Reliable information comes first o Analyzing that info Descriptive vs. Prescriptive Descriptive: describes changing trends which represent either threats or opportunities to the firm that is conducting and supposedly benefitting from the research information that is generated Prescriptive: Information a firm generates is capable of prescribing the strategic actions that should be taken next by the firm. Descriptive comes before Prescriptive Sustainable Competitive Advantage The three ways through which any Firm can create sustainable competitive advantages or enduring points of differentiation in route to more power and greater wealth are through: o Achieving customer intimacy advantages o Achieving technological advantage o Achieving costbased advantages Information is Power Firms should collect information about: o Competitors o Customers o Relevant Trends Marketing information systems A well designed MIS: o Determines exactly what sort of info is needed by the Firm o Develops precisely that info to the extent possible the exact info and only the info that is actually needed to make superior marketing solutions Chapter 7: Consumer Decision Making and Behavior Almost anyone can make better consumption decisions once they understand: o The forces that influence their choices o How much the consumer decisions they make impact their physical, emotional, and economic wellbeing. o How they frequently use consumer choice to create and express their selfidentities. DEFINING CONSUMER BEHAVIOR (commonly known as “CB”) – CB – refers to the buying behavior of final consumers. CB also refers to the factors that influence the buying behavior of final consumers. o Final consumers are best described as individuals and households who buy products or services for personal consumption. Marketers study CB: Ideally, marketers should also study CB through ways and for reasons that ichthyologists study fish. That is, to understand them (fish/consumers) better so as to serve their needs better; to help fish, as least endangered fish (better) solve their problems. Decisions Made Inside Consumer Minds When studying consumers, Firms should answer the following 6 questions: o What consumers buy o Where consumers buy o How and how much consumers buy o When and why consumers buy The Why is more challenging to answer accurately because the primary reason why consumers do or buy anything is locked away inside the “black boxes” of their minds. Decisions made routinely by consumers include: o Product choices o Brand choices o Dealer/store/website choice o Purchase timing o Purchase amount Consumers also have to decide whether to: o Pay attention to or ignore what marketers are saying o Like or dislike any product, value, or anything that marketers are saying or offering o Evangelize, or spread the good or bad news, to others about their positive or negative experience with products, brands, or stores. Marketing stimuli – generally consist of the four P’s (i.e., the marketing mix), a strategic marketing tool that delivers hopefully differentiating value to consumers or other customers (– through Positioning). o These controllable marketing stimuli can shape/influence consumer perceptions about products or brands. And they are controllable, by marketers. Remember: the “Law of Perceptions.” o Marketing is a battle of perceptions about the value of products or brands. Various consumer characteristics (i.e., their demographics, attitudes, beliefs, lifestyles (activities, interests and opinions), family life stage, etc.) influence how consumers perceive and react to marketing stimuli that enter consumers’ black boxes as inputs. Factors that Influence Consumer Behavior 1) Culture (sociocultural factor) a. Defined as the most basic cause of a person’s wants and behaviors (not a person’s needs, mind you, which remain constant and consistent regardless of cultural circumstance) – 2) Social Factors (sociocultural factor) a. Social classes are society’s relatively enduring and ordered divisions. b. Consumers residing within particular social classes typically share relatively similar values, interests and behaviors. 3) Personal factors (sociocultural factor) a. Your age, familylifecycle status, occupation, economic circumstances, lifestyle, personality and selfconcept influence your CB. 4) Psychological factors a. Four major factors play a role: motivations, perceptions (old friend from day 1), learning, and beliefs & attitudes. i. Motives needs that are sufficiently important and pressing to direct the individual consumer to seek satisfaction ii. Perceptions the process by which people select, organize and interpret (attempt to make sense of) information, in an effort create a meaningful and useful picture of their surrounding world. iii. Learning – Learning describes the changes that arise in our behaviors as a result of experiences. iv. Beliefs and attitudes 1. A belief is a descriptive thought someone has about something. (Less deeplyheld that attitudes) 5. Purchase Situation Factors a. Economic Factors b. Time constraints c. Purchase Reason or Task d. Purchasing Environment 6. Marketing Activities a. Product/Service b. Promotion c. Pricing d. Distribution The Consumer (Buyer) Decision Process – Features five stages what follows below combines the extensive and limited consumer decision making processes into one model. Steps of the decisionmaking process: o Problem recognition, or the realization that purchasing need exists. o Information search, or seeking relevant info about products that may satisfy the need. o Alternative evaluation, or assessing alternative product solutions to determine which one appears most likely to do the best job of satisfying the aroused need. o Choice, and subsequent purchase of one or more products based on the prior evaluation process. o Postpurchase processes, or the cognitive and behavioral responses initiated by consumers as their expectations about the value delivered by the product they selected are exceeded, met, or unmet. Low involvement vs. High Involvement Low Involvement Search Processes Little prior thought is given to the purchase choice because the risks associated with the product or selecting the wrong alternative are very low. Marketers of convenience goods should initiate measures to ensure that their brands are among the first to be recalled from memory. Those brands that are recalled first are generally more frequently purchased, underscoring the power of promotional strategies designed to create topofmind brand awareness (TOMA) via repeat advertising across a wide range of media. High Involvement Search Processes Consumers possess high levels of expertise and confidence about the product and how to use it. Brand loyalty reduces the likelihood and degree of external search and is one of the strongest assets any marketer could hope to possess Consumers do engage in external info searches for most highinvolvement purchase decisions. Self Concept Selfconcept is a multidimensional construct that captures how consumers feel about and see themselves. Selfconcept reflects consumers’ personal identity. Idealprivate self encapsulates how consumers would prefer to see themselves. Idealsocial self captures how consumers would like others to see them. Ch. 9 Segmentation, Target Marketing, and Positioning Market Segmentation: Definition Entails a process of division, from … o Larger groupings of potential customers to smaller groupings of potential customers, o More heterogonous to more homogenous groupings of potential customers, o Larger masses of potential or actual customers who are less alike into smaller collections of potential or actual customers who are more alike. Firms should realize: o They cannot successfully appeal to all consumers or all segments at the same time. Various Bases and factors Examples of variables/factors (i.e., the bases or criterion) on which markets should be segmented include: Geography – nations, states, regions, cities or even neighborhoods (or zip codes). A Firm may elect to focus on only one geographic area, or emphasize one or two areas more than others. Demographics – one reason this particular base is used so much is its “ease of measure”. Moreover, “demographics are destiny.” o Age o Gender – male/female o Family size or life cycle stage Psychographics – dividing buyers into different segments based on their social class status, their [preferred] life styles (Activities, Interests, & Opinions; i.e., AIOs), their personality characteristics. Behavioral segmentation – dividing buyers based on their: 1. level of knowledge about products, 2. attitudes toward products, 3. usage rates with respect to given products. Requirements for Effectively Segmenting Markets Homogeneous Within, Heterogeneous Between Consumers within segments should share similar wants and needs that are germane to the targeted product. (Homogeneous within) By contrast, these customers should be distinctly different from customers who populate other segments on these dimensions. (Heterogeneous between) Large, Measurable, and Profitable Enough The size, purchasing power, and customer profiles associated with the market segment must be large enough and measurable. Market potential is a function of both the number of potential customers and their product purchase rates. Sales potential, by contrast, is a bestcase estimate of the Firm’s possible share of the market potential. Profit potential estimates readily follow from the initial two estimates. Accessible through Communications and Distribution Channels Firms must be able to effectively and efficiently reach those segments it has chosen to target. o Firms must assure the existence of the appropriate distribution and communications channels required to reach customers in their target markets. Marketers must identify the right media to communicate with customers in market segments Actionable Firms must have adequate resources and expertise to ensure segments are properly served; ideally in a manner superior to their competitors. This might entail possessing the resources making it possible to gain access to the right supply chains, logistics systems and financial services. Target Marketing Target marketing entails evaluating each of the various segments that the Firm has identified and then deciding, based on these evaluations, which segments to pursue. Marketers should target segments that are most likely to respond favorably to the values offered by their existing marketing mix. Or, marketers should target the market segment most likely to respond favorably to a Firm’s revised marketing mix – and its values that a Firm can specifically create Marketers can evaluate target segment ‘attractiveness’ by examining three factors: o Current Size & Future Growth Prospects (of the Segment). o Structural Attractiveness Related to the Existence or Absence of: Powerful competitors; Potential or actual substitute products; The degree to which is it necessary to contract with powerful suppliers or vendors who exercise extreme control in the market? o The degree to which the Firm’s current Objectives & available Resources (i.e., its Time, Talent, and Treasures; the 3 “T’s” [resources]) align – matchup with what would be required (“value” or “value proposition wise”) to pursue this segment effectively. Firms can target at one of four different levels. Firms can use: o Undifferentiated Targeting Target very broadly—Firms assume no segments exist o Differentiated Targeting Targets multiple segments, wherein each segment is targeted with a specific market segment o Concentrated Target narrowly—Firms focus on one segment only Target niche segments o Custom/ MicroMarketing Treat each customer as unique with a dedicated marketing mix Target extremely narrowly Only one segment is targeted but this segment is extremely narrowly defined Positioning Create a unique and uniquely desirable position in the minds of the customers/prospects comprising the respective targeted segments. Firms can achieve positioning through managing (their) marketing mixes... o The values solutions that the Firm builds into its products; that the firm says (messages) about its products in terms of promotions; what others say about the Firm’s products; how the Firm prices the product; how the firm distributes its product; i.e., where it sold (retaillevel, brought to market). Developing Positioning Strategies: The Process The ability to develop, manage, and strengthen the brand positioning process if critical to any Firm’s success, survival, and longevity. Step 1: Determine Brands in the Competitive Set Step 2: Determine Position Relative to Competing Brands Step 3: Identify Important Areas of Competitive Differences o Image differences, which imply the existence of distinct or unique brand personalities that may result from the use of brand marks, logos, or trade characters. o Benefit or attribute differences of the sort that would confer functional superiority to the particular brands that featured them o Service differences of the sort that create a total service package, one that is uniquely superior to services provided by competitors o People differences can be emphasized when a Firm’s human resources constitute a distinct asset that can leveraged to create a superior position. Step 4: Develop the Marketing Mix to Convey the Desired Position Step 5: Reevaluate the Position over Time Positioning Methods CompetitiveBased Positioning o Entails using customers’ existing perceptions of the Firm’s competitors’ brands as the basis from which to build and to eventually differentiate the brand’s image. BenefitBased Positioning o Emphasizes the brand’s ability to satisfy specific needs that customers may have. LifestyleBased Positioning o Seek to establish or exploit relationships that already exist between the desirable lifestyle and targeted consumer’s ideal or actual selfconcept. UsageBased Positioning o Usagebased positioning requires that an image be created for the brand that strongly suggests when the brand should be used. Price and ValueBased Positioning o Price positioning Usually means establishing a low price image for the brand . o Value positioning Can result in prices that are higher than the prices charged by competitors. The key to positioning on value is to maximize the ratio of benefits received to the total cost of the brand. Two Perspectives on Positioning The Customer Perspective From the customer’s perspective, positioning may be described as how customers or potential customers define a product/brand based on its most important attributes. The Marketer Perspective The act of positioning entails the art of implanting their products’ unique benefits and differences; i.e., the brand’s differentiating value, in the collective minds of targeted customers. The Firm’s primary positioning goal is to differentiate a brand by building unique bundles of benefits that differentially and favorably appeal to a substantial portion of the prospects or customers who makeup a targeted segment. Customers Are Doing It For Themselves Marketers should “do positioning to customers” before customers “do positioning to them.” Broad Positioning Strategy And only three ways exist to differentiate (or position) any brand, company, or product: Customer intimacy – which is relationshipbased. Product leadership – which technologicallybased. Cost leadership – which is resource advantage and/or business modelbased. Ch. 10 Products, Services, And Life Cycle Management What are Products? Products are anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. The total product includes the product’s benefits, the product’s physical characteristics that embody or deliver these benefits, and service dimensions added to the product that delivers supplementary value. Three Levels of a Product: 1) The “Core Benefit” – what the customer is really buying – true problem solving benefits. 2) The “Actual Product” – the Product’s a) features, b) design, c) level of quality, d) brand, e) packaging 3) The “Augmented Product” other services, Features, Attributes, Benefits (i.e., FAB) & ultimately solutions attached to/associated with the product. Quality, Style and Design Quality can be defined as freedom from flaws. Quality’s presence in products is also always directly proportional to those products’ efficiency. Style speaks more fundamentally to the physical product’s appearance o The physical product’s fit, feel, and finish Great design should strengthen the product’s brand, contribute to its perceived or actual usefulness, and make the product more appealing. Innovations are “new things” that are also “useful” Good design features a perfect marriage of performance & purpose to suggest meaning (in a product). Products (usually) should be designed in ways that make them appear or be as simple as possible. So marketers should design products in ways that simplify them to their fundamental natures. Classifying Consumer Products Convenience goods are usually purchased with very little effort Specialty goods require the most effort during the purchase process. Shopping goods generally reside in the middle of this amountofeffortexpended continuum. Convenience Goods Convenience goods include most products that we buy in grocery stores, convenience stores, hardware stores, drug stores and the like. Characteristics of Convenience Goods o Relatively inexpensive; their purchase entails little financial risk. o Purchased on regular or recurring bases for daytoday lifestyle maintenance Marketing Strategies for Convenience goods o Convenience goods should be distributed and advertised at an extensive level. Specialty Goods Uses “exclusive distribution” Any product can earn a specialty status in the eyes of certain consumer segments. Specialty goods are associated with strong brand preferences and thus brand loyalty. Marketing Strategies for Specialty Goods o Marketing programs for specialty goods should attempt to develop and emphasize strong brand preferences. o The advertising themes should focus on status and prestige Shopping Goods Shopping goods generally include clothing, jewelry, automobiles, computers, homes, major appliances, small appliances, recreational equipment and gifts. Consumers will more likely demonstrate, or express some feelings of brand loyalty for shopping products. Marketing strategies for Shopping Goods o Uses “selective distribution” o Characteristics such as a product’s basic functionality, reliability, and durability—along with quality—become substantially more important to consumers. Branding A name (words), sign, symbol, or design, or combination of these dimensions, that identifies and distinguishes the marketer of a product/service. Send Messages and Tell Stories, o To send messages and tell stories effectively, the messages and story must be consistent and clear, authentic (real/genuine), benefitdriven and appropriate to the specific market being targeted. Exist in the minds of customers Key Characteristics of Services Intangibility o Services have no physical presence. They are actions, activities and experience Inseparability o Services are produced and delivered by the same service provider—usually at the location where the service is consumed. Variability o The inseparability of services from service providers often results in degrees of variability in the extent and the quality of the service provided to different customers. Perishability o Products can be stored until they can be sold The Services Marketing Mix The Service Offering (“Product”) Service offerings should be designed to satisfy the identified needs of targeted customers and to differentiate the offering from those offered by competitors. Three primary pathways exist through which effective differentiation can be achieved: o Continuous Services Innovation Providers can differentiate service offerings via innovation o Consistent delivery Service providers can differentiate their brand values based on the quality of their service delivery by recruiting and training capable, expert service providers. o Branding A well branded product offers a promise of consistent quality. Pricing the Service (Price) Price is variously labeled, in service domains, as rates, fees, charges, and fares. Price influences consumers’ preconceptions of service quality. Service Distribution (Place) Most consumer services providers operate out of brick and mortar. In today’s convenienceoriented societies, locating these facilities is just as important to service providers as it is for traditional retailers. Services Promotion (Promotion) Wellplanned and effective promotion programs are absolutely essential for services to overcome their fundamental “intangibility,” “variability,” and “inseparability.” Most services must rely heavily on promotion to communicate the promise of a quality service experience. Products Have Life Cycles Products progress through four life cycle stages: Introduction, growth, maturity, and decline. The product life cycle was intended to depict how sales revenues typically change through time for a given product category, rather than for individual brands. First, the life cycles of products and brands should be actively managed. Secondly, formerly new and successful products and brands can trend into, out of, and back into style or high demand. Third, technology always has its say and exercises its influence. The Introduction Stage The initial promotional goal should be build awareness of and demand for this new product class (create primary demand), rather than the specific brand, through messages designed to educate and inform. The Growth Stage Primary promotional goals include creating brand preference (selective demand) and sustaining perceptions of differentiation. Requires that Firms establish, within the collective mind of targeted segments, the notion that this stillnew product remains different and better from all others. The Maturity Stage Firms may add or delete features from the original product to support differentiating efforts. Promotional efforts also might pointedly remind current customers why they once loved the product. (Don't you forget about me Breakfast Club) The Decline Stage Firms can keep marketing the product. They might opt to reposition the old by rejuvenating and upgrading old value by adding new features or finding new uses. Firms can divest and discontinue the product. o Divesture might entail liquidating leftover inventory, selling mature products outright, or licensing rights to other Firms who continue to market mature items. Ch. 11 Developing New Products—And Your Creativity What is a New Product? The allure of “new” always has and always will be desirable and a driver of sustainable marketing success. NewToWorld Products “Discontinuous innovations” because they dramatically changed the solutions to existing consumptionrelated problems. NewToFirm Products NewtotheFirm products can be derived from or based on continuous innovations. o Simple improvements, revisions, upgrades, etc. to existing products already produced by other Firms o Most private label products added to retailers’ product portfolios are derived from existing brands already produced by other Firms. Improvements, Revisions, Upgrades, Subtractions, Deletions to Existing Products Product additions or deletions could be initiated to create new or added value for existing or newly targeted customer segments. AKA “Continuous innovation”, this sort of less intense, but still useful creative endeavor is actually the most common type of NPD. Repositioning is also called retargeting: Occurs when existing products are repositioned for new uses, new applications, or new market segments. Cost reductions: Firms develop newer but less expensive versions of current products Rebranding One’s personal values When one purposefully adds new skills or experiences, improves skills or abilities one already possessed, or refrains from behaviors or activities that had detracted or distracted others from one professional’s or personal value, NPD has transpired. Why Study and Understand NPD? NPD is a key component contributing to ongoing business success Creativity, and the successful NPD that the existence and existence and execution of creative ideas can inspire and deliver, permits to earn sustainable advantage Three factors contribute materially to successful NPD processes: o 1) Planning o 2) Execution o 3) “Creativity” Two Basic NPD Strategies “Buy” strategy o Firms may acquire entire company or more simply purchase the rights to a patent or license to produce another organization’s product “Make” strategy o Developing original products, product improvements, product modifications, and new brands through the Firm’s internal efforts The NPD Process *This is the NPD Process from the textbook. The Process from the class notes does not include Step 4. Stage 1: Develop Tentative “GotoMarket” Strategies Goal is to identify and to rankorder attractive market opportunities Firms should conduct SWOT and environmental analyses Stage 2: Develop Initial Concepts (Ideas) Most important stage Many more ideas should be cultivated at this stage than could ever be used. Stage 3: Evaluate and Screen Initial Concepts The purposes is to identify the one or two ideas, from an entire collection of concepts, that appear most likely to generate desirable new products. Stage 4: Strategic Business Analysis The features, attributes, and benefits, along with the associated manufacturing, and marketing costs associated with the proposed new product are now defined with great specificity More detailed marketing strategies regarding how best to bring the new product to market, including designation of exactly which target markets to pursue Stage 5: Move from Paper to Prototype (Development) A prototype is a demonstrable and reproducible version of the actual product. A live marketing plan is also developed during this stage. Stage 6: Taking It to the Street (Commercialization) NPD Tests The Concept Test The concept test is conducted to determine whether intended new product users are likely to either want or need the proposed product that would result were the idea carried through to its logical conclusion The Product Use Test The product use test is conducted to reveal whether the prototypical product, once developed, will actually satisfy the customer want or need that it is supposed to satisfy. The Marketing Commercialization Test (Test Market) Determines whether the Firm already possesses or could acquire the resources to create an effective marketing mix plan. How to Fail at NPD (Innovation) Overestimate Demand for the New Product Launch Products That Don’t Deliver Sufficient Value Launch Poorly Designed Products Execute Marketing Mixes Poorly Launch New Products Despite Disappointing Research Selling Dog Food Dogs Won’t Eat Targeting Segments Where Competitors Struck Back, BigTime Creativity Is… The ability to produce things—ideas—that are novel and also useful or adaptive Creative managers excel at recognizing relationships, creating new associations and connections, seeing things others don’t see, and seeing those things in original ways. Creative people are often polymaths, more venturesome and exploratory, and are more willing to take risks o Possess broadly intersectional interests across multiple disciplines Growing Creativity You should: o Create intersections o Develop multiple perspectives o Lower associative barriers o Avoid creativitydefeating traps, and o Respond properly to failure Other ways to become creative “Capturing” for Yourself Capturing require that you nonjudgmentally preserve any new ideas whenever and wherever they happen to occur. Write down your ideas “Challenging” Yourself You should leanintoward rather than awayfrom the challenge of taking on the task of solving the toughest, most important or most pressing problems. “Broadening” Yourself Entails the choice to mindfully expose oneself to more intersections As one’s base of knowledge broadens and becomes more diverse, one should be able to create more interesting, and potentially more useful, interconnections. Elevate your creativity by learning new stuff. “Surrounding” Yourself Surround yourself with people, new ideas, and things that force you to step up your game or change the quality of your thinking on a continuous, goingforward basis “Einsteining” Yourself “You cannot solve problems by using the same sort of thinking that created them” Invention Vs. Innovation Invention Refers to an aspect of uniqueness and/or something that is new. Uniqueness is reflected in the unique form, formulation, or function of the new thing Inventions may address either practical (genuine) or merely salable (perceptual) customer problems. Innovation Refers to an overall process whereby inventions are transformed into commercial products that can be sold profitably. Innovations must be capable of delivering practical or perceptual value that benefits some targeted segment Must be new and useful. Discontinuous Innovations Are new products that require customers to learn new things, acquire new experiences, and adapt their current consumption behaviors before they can be properly used Degree of Consumer Learning or ReLearning for Innovation o Continuous Innovation Dynamically continuous innovation Discontinuous innovation Dynamically Continuous Innovations This class of innovation generally arises when two or more concepts or product ideas are combined. Ideas must be combined in such a way that customers face gentle learning curves because they can still easily understand the new product and how it should be used. DCIs must deliver at least one significantly new benefit to the market. Continuous Innovations Include modest or ongoing upgrades of existing products, and include the lion’s share of innovations. Continuous innovations do not fundamentally change customer behavior nor do they change the dynamics of what the marketers are doing CIs are based on the same idea, with minor tweaks or upgrades Keys To New Product (Innovation) Success Relative Advantage over Existing Products Innovations must supersede the value of existing products in the minds of targeted segments. Comparatively Low Complexity A reflection of the relative ease or difficulty associated with: o Using the new product o Personally understanding the benefits and value delivered by the innovation once it’s used. o Communicating the value and benefits of the new product to others. Compatibility Compatibility with the existing ways in which consumers were already using the existing product as well with the consumers’ existing attitudes, beliefs, likes, and preferences. Divisibility or Trialability Captures the ease with which new products can be tried out on a limited basis. Creating Art, Managing Science NPD processes entail more “science” than “art” Artistic efforts are grounded in intuition, emotions, or gut feelings. Risks must be taken Science is empirically based/tested and is based on established concepts: principles, laws and processes. Successful NPD demands greater mastery of science and tests than of art and creativity
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