principles of marketing chapter 10-11

What is a product?
everything, both favorable and unfavorable that a person receives in an exchange
-tangible good
-service
-idea
Convenience product
a relatively inexpensive item that merits little shopping effort
Shopping product
a product that requires comparison shopping, because it is usually more expensive and found in fewer stores
Specialty product
a particular item for which consumers search extensively and are reluctant to accept substitutes
Unsought product
a product unknown to the potential buyer or a known product that the buyer does not actively seek
Product item
a specific version of a product that can be designated as a distinct offering
Product line
a group of closely-related product items
Product mix
all products that an organization sells
-inhibits WIDTH and DEPTH
Width
number of product lines in the organization
Depth
average number of products in each line
Brand
a name, term, symbol, design or combination there of that identifies a seller’s products and differentiates them from competitors’ products
Branding Startegies
-Generic brand
-Manufactures Brand
-Private Brand
-Individual Brand
-Family Brand
-Co-branding
Generic Brand
A no-frills, no-brand-name, low-cost product that is simply identified by it’s product category
Manufactures Brand
The brand name of a manufacturing, or manufacturer
Private Brand
a brand name owned by a wholesaler or retailer.
also known as a private label or store brand
Individual Brand
using different Brand names for different products
Family Brand
Marketing several different products under the same brand name
Co-Branding
two established brand names of different companies are used on the same products
Brand equity
refers to the value of the company name of its brands
brand with strong equity is a strong asset
measure of a brands equity is the extent to which customers are willing to pay more for the brand
Functioning of packaging
-contain and protect
-promote
-facilitate storage, use, and convenience
-facilitate recycling
Persuasive labeling
-Focuses on promotional theme
-Consumer info is secondary
Informational labeling
-Helps make proper selections
-Lowers cognitive dissonance
-Includes use/care
Warranty
A conformation of the quality of performance of a good or service
Express warranty
a written gaurentee
Implied warranty
an unwritten guarantee that the good or service is fit for the purpose for which it were sold
New product
a product new to the world, the market, the producer, the seller, or some combination of these
Pioneering advantage
-Its better to be first than it is to be better
-consumers expectations are usually shaped by the first encountered brand
New product development process
1) idea generation
2) idea screening
3) concept development and testing
4) Business analysis
5) product development
6) test marketing
7)commercialization
Reasons for product failure
-no competitive point or difference
-rapid change in the market or economy after product introduction
-poor quality of product
-no delivery of promised benefits of product
-too little marketing support or poor execution of the marketing mix
Categories of adopters
-Innovators
-Early Adopters
-Early Majority
-Late Majority
-Laggards
Product modification
changing one or more of a products characteristics
Brand name
the part of the brand that can be spoken, including letters, words, and numbers
product line
a group of closely related product items
product
everything favorable and unfavorable, that a person receives in an exchange
family branding
marketing different products under the same name
Product life cycle
The biological metaphore that traces the life of a product from birth to death
diffusion of innovation
the process by which the adoption of an innovation spreads
concept test
a test to evaluate a new product idea, usually before any prototype is created
idea screening
the first filter in the product development process
maturity
the third stage of the product life cycle during which sales increase at a decreasing rate
Test marketing
the limited introduction of a product and a marketing program to determine the reaction of potential customers in a market situation
Business analysis
the stage where preliminary figures for demand, cost, sales, and profitability are calculated
Innovation
a product perceived as new by the potential user
Commercialization
the decision to market a new product