Marketing Management (Chapter 7)

Actual product
The physical good or the delivered service that supplies the desired benefit
Augmented product
The actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale
Cannibalization
The loss of sales of an existing product when a new item in a product line or product family is introduced
Capacity mangament
The process by which organizations adjust their offerings in an attempt to match demand
Component parts
Manufactured goods or subassemblies of finished items that organizations need to complete their own products
Continuous innovation
A modification of an existing product that sets one brand apart from its competitors
Convenience product
A consumer good that is usualluy low-priced, widely available, and purchased frequently with a minimum of comparison and effort
Core product
All the benefits the product will provide for consumers or business customers
Diffusion
The process by which the use of a product spreads throughout a population
Discontinuous innovation
A totally new product that creates major changes in the way we live
Disintermediation
The process of eliminating interaction between customers and service providers
Durable goods
Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances
Dynamically continuous innovation
A change in an existing product that requires a moderate amount of learning or behaviour change
Early adopters
Those who adopt an innovation early in the diffusion process but later than the innovators
Early majority
Those whose adoption of a new product signals a general acceptance of the innovation
Embodying
The inclusion of a service with a purchase of a physical good
Emergency products
Products we purchase when we’re in dire need
Equipment
Expensive goods that an organization uses in its daily operations that last for a long time
Fast-moving consumer goods (FMCG)
Products that exhibit consistently high velocity of sales in the consumer marketplace
Goods
Tangible products we can see, touch, smell, hear, or taste
Impulse product
A product people often buy on the spur of the moment
Innovation
A product that consumers perceive to be new and different from existing products
Innovators
The first segment (roughly 2.5%) of a population to adopt a new product
Knock-off
A new product that copies with slight modification the design of an original product
Laggards
The last consumers to adopt an innovation
Late majority
The adopters who are willing to try new products when there is little or no risk associated with the pruchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase
Maintenance, repair and operating (MRO) products
Goods that a business customer consumes in a relatively short time
New product failure
A new product that does not reach expectations for success, failing to reach sales objectives set
Nondurable goods
Consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers)
Processed materials
Products created when firms transform raw materials from their original state
Product adoption
The process by which a consumer or business customer begins to buy and use a new good, service, or ideas
Product line
A firm’s total product offering designed to satisfy a single need or desire of target customers
Product mix
The total set of all products a firm offers for sale
Raw material
Products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products
Service encounter
The actual interaction between the customer and the service provider
Services
Intangible products that are exchanged directly from the producer to the customer
Shopping product
A good or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase
Speciality products
A good or service with unique characteristics that are important to the buyer and for which the buyer will devote significant effort to acquire
Staples
Basic or necessary items that are available almost everywhere
Test marketing
Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter
Tipping point
In the context of product diffusion, the point when a product’s sal
Unsought products
Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention