Marketing 310 chapter 10

product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumer’s needs and is received in exchange for money or something else of value
nondurable good
an item consumed in one or a few uses (ex. food)
durable good
an item that usually lasts over many uses
services
intangible activities or benefits that an organization provides to satisfy consumer’s needs in exchange for money or something else of value
idea
a thought that leads to a product or action
consumer products
products purchased by the ultimate consumer
business products (B2B products/industrial products)
products, organizations buy that assist in providing other products for resale
convenience products
items that the consumer purchases frequently, conveniently, and with minimum shipping effort
shopping products
are 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
product item
a specific product that has a unique brand, size, or price
stock keeping unit (SKU)
a unique identification number that defines an for ordering or inventory purposes
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
product mix
consists of all the product lines offered by an organization
continuos innovation
requires no new learning by consumers (ex. new shaver)
dynamically continuous innovation
disrupts consumer’s normal routine but does not require totally new learning
discontinuous innovation
requires new learning and consumption patterns by consumers
protocol
statement before product development begins identifies (1) target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers
new-product process
the seven stages an organization goes through to identify business opportunities and convert them into stable products or services
new-product strategy development
the first stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives
idea generation
the second stage of the new-product process involves developing a pool of concepts to serve as candidates
crowd-sourcing
involves generating insights leading to actions based on massive numbers of peoples ideas
screening and evaluation
the third stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
concepts tests
external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product
business analysis
fourth stage, specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
prototype
a full-scale operating model of the product
development
the fifth stage of the new-product process that turns the idea on paper into a prototype
market testing
the sixth stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
test marketing
involves offering a product for sale on a limited base in a defined area for a specific time period
standard test markets
a company develops a product and then attempts to sell it through normal distribution channels in a number of test markets
controlled test market
involves contracting the entire test program to an outside service
stimulated test markets (STM)
a technique that replicates a full-scale test market to a limited degree
commercialization
the seventh stage of new-product process that positions and launches a new product in full-scale production and sales
regional rollouts
introducing the product sequentially into geographical areas of the United States
slotting fee
a payment a manufacturer makes to place a new item on retailer’s shelf