Marketing Chapter 10
Marketing Chapter 10 MAR 250
Popular in Principles of Marketing (20335)
Popular in Marketing
verified elite notetaker
This 5 page Class Notes was uploaded by Melanie Guerrero on Sunday February 28, 2016. The Class Notes belongs to MAR 250 at Pace University taught by Harvey Markowitz in Winter 2016. Since its upload, it has received 10 views. For similar materials see Principles of Marketing (20335) in Marketing at Pace University.
Reviews for Marketing Chapter 10
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/28/16
Chapter 10 Marketing Vocabulary: Business analysis – the features of the product and the marketing strategy needed to bring it to market and make financial projections Business products – products organizations buy that assist in providing other products for resale Commercialization – the stage of the new-product process that positions and launches a new product in full-scale production and sales Consumer products – products purchased by the ultimate consumer Convenience products – items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort Customer Experience Management (CEM) – the process of managing the entire customer experience within the company Development – the stage of the new-product process that turns the idea on paper into a prototype Idea Generation – the second stage of the new-product process, involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage’s results Market testing – stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy New-product process – the seven stages an organization goes through to identify opportunities and convert them into salable products or services New-product strategy development – the stage pf the new-product process that defines the role for a new product in terms of the firm’s overall objectives Product – 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 Product item – a specific product that has a unique brand, size, or price Product line – 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 customer group, are distributed through the same outlets, or fall within the a given price range Product mix – consists of all the product lines offered by an organization Protocol – a statement that identifies a well-defined target market, specific customers’ needs, wants, and preferences; and what the product will be and do to satisfy consumers 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 Services – intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value Shopping products – items for which the consumer compares several alternatives on criteria such as price, quality, or style Specialty products – items that the consumer makes a special effort to search out and buy Unsought products – items that the consumer does not know about or knows about but does not initially want I. What are products and services? A. Product – vocab** B. A look at goods, services, and ideas 1. Good – tangible attributes that a consumer’s five sense can perceive 2. Nondurable good – an item consumed in one or a few uses, such as food products and fuel 3. Durable good – one that usually lasts over many uses, such as appliances, cars, and smartphones 4. Services – vocab** 5. Idea – a thought that leads to a product or action, such as concept for a new invention or getting people out to vote C. Classifying products 1. Consumer products – vocab** *4 types of consumer products* a. The effort the consumer spends on the decision b. The attributes used in decision making the purchase decision c. The frequency of purchase d. Convenience products – vocab** e. Shopping products – vocab** f. Specialty products – vocab** g. Unsought products – vocab** 2. Business products – vocab** a. Derived demand – sales of business products frequently result from the sale of consumer products b. Components – items that become part of the final product c. Support products – items used to assist in producing other products and services i. Installations ii. Accessory equipment iii. Supplies iv. Industrial services D. Classifying services 1. People or equipment 2. Business firms or nonprofit organizations 3. Government agencies E. Product classes, forms, items, lines, and mixes 1. Product item – vocab** 2. Product line – vocab** 3. Product mix – vocab** II. New products and why they succeed or fail A. What is a new product? 1. Newness compared with existing products a. If a product is functionally different from existing products, it can be defined as new 2. Newness from the consumer’s perspective a. Continuous innovation – consumers don’t need to learn new behaviors b. Dynamically continuous innovation – only minor changes in behavior are required c. Discontinuous innovation – the consumer learn an entirely new consumption patterns to use the product 3. Newness in legal terms a. The term new is to be limited to use with a product up to six months after it enters regular distribution 4. Newness from the organization’s perspective *3 Levels* a. Level 1 – lowest level – product line extension b. Level 2 – a significant jump in innovation or technology or a brand extension involving putting an established brand name on a new product in an unfamiliar market c. Level 3 – highest level – involves a radical invention, a truly revolutionary new product B. Why products and services succeed or fail 1. Protocol – vocab** a. Well-defined market b. Specific customers’ needs, wants, and preferences c. What the product will be and do to satisfy consumers 2. Marketing reasons for new-product failures a. Insignificant point of difference b. Incomplete market and product protocol before product development starts c. Not satisfying customer needs on critical factors d. Bad timing e. No economical access to buyers f. Poor product quality g. Poor execution of the marketing mix: brand name, package, price, promotion h. Too little market attributes 3. Organizational inertia in new-product failures a. Encountering “groupthink” in task force and committee meetings b. Avoiding the “NIH problem” – Not Invented Here problem C. How marketing dashboards can improve new-product performance III. The New-product Process A. New product process – vocab** B. Stage 1: New-product strategy development 1. Vocab** 2. Uses SWOT analysis and environmental scanning C. Stage 2: Idea Generation 1. Vocab** 2. Employee and co-worker suggestions 3. Customer and supplier suggestions 4. Research and development laboratories 5. Competitive products 6. Smaller firms, universities, and inventors a. Smaller, nontraditional firms b. Universities c. Inventors 7. Crowdfunding sources a. Crowdrise – charitable causes b. Crowdrift – anything c. Fundable – early-stage financing for start-up businesses d. Rally – nonprofits, artists, musicians, entrepreneurs e. GiveForward – medical causes D. Stage 3: Screen and Evaluation 1. Vocab** 2. Internal approach a. Customer experience management (CEM) – vocab** b. A firm’s employees evaluate the technically feasibility of a proposed new- product idea to determine whether it meets the objectives defined in the new- product strategy development stage 3. External Approach a. Concept tests – external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product E. Stage 4: Business Analysis 1. Vocab** 2. The last checkpoint before significant resources are invested to create a prototype 3. Prototype – a full-scale operating model of the product F: Stage 5: Development 1. Vocab** 2. This result in a demonstrable, producible product that involves not only manufacturing the product efficiently but also performing laboratory and consumer tests to ensure the product meets the standards established for it in the protocol G. Stage 6: Market Testing 1. Vocab** *3 main kinds of test markets* 2. (1) Standard Test Markets a. A company develops a product and then attempts to sell it through normal distribution channel in a number of test-market cities 3. (2) Controlled Test markets a. Involves contracting the entire test program to an outside service 4. (3) Simulated test markets a. A technique that somewhat replicates a full-scale test market 5. When test markets don’t work a. Reactions of potential buyers to mockups or on-of-a-kind prototypes are all that is feasible H: Stage 7: Commercialization 1. Vocab** 2. The Boeing 787 Dreamliner experience 3. Burger King’s French fries: the complexities of commercialization 4. The special risks in commercializing grocery products 5. Speed as a factor in New-product success a. Time to Market
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'