Principles of marketing section 2

Motivation
Motivation refers to the processes that cause people to behave as they do. Motivation is an inner drive that reflects goal-directed arousal.
Drive
the desire to get a want or need
Need
basic functions and material benefits required for life
Want
products desired that are nor needed, e.g a television
Utilitarian need
functional or practical benefit. Consumers will emphasize the tangible attributes of an object
Hedonic need
needs motivating consumers to go shopping for pleasure
Drive theory
Physiological needs arouse tension that motivates people to satisfy the need. This can be affected by internal and bilogical forces
Expectancy theory
A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome.
Maslow’s hierarchy
(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization
Involvement
A person’s perceived relevance of the object based on their inherent needs, values and interests.
flow state
entered when consumers are truly involved with a product, an ad, or a Web sight
Inertia
(physics) the tendency of a body to maintain is state of rest or uniform motion unless acted upon by an external force
Values
Beliefs of a person or social group in which they have an emotional investment (either for or against something).
Attitudes
Patterns of feelings and beliefs about other people, ideas, or objects that are based on a person’s past experiences, shape his or her future behavior, and are evaluative in nature.
Enculturation
the adoption of the behavior patterns of the surrounding culture
Acculturation
the modification of the social patterns, traits, or structures of one group or society by contact with those of another; the resultant blend
Augmented product
add-on extras that do not form an integral part of the product but which might be used, particularly by retailers, to increase the product’s benefits or attractiveness.
Branding
An organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.
Convenience goods
The consumer usually purchases these goods frequently, immediately, and with minimal effort. (Examples include soft drinks, soaps, newspapers, staples, toothpaste)
Core product
The main product that the customer is buying
Durable product
A product that lasts for a long period of time and continues to be available to the consumer for more than a single use.
Manufacturer brand
Initiated by producers to ensure that producers are identified with their products at the point of purchase
Non-durable products
Lasts LESS than one year and is not available generally for more than one use
Own-label brand
Retailers create their own brand name and identity for a range of products.
Potential product
all the possible augmentations and transformations the product or offering might undergo in the future.
Product items
specific model, brand, or size of a product within a line
Product line length
the amount of products within the group of products closely related by production or marketing considerations.
Product lines
Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
Product mix
The particular assortment of goods and services that a business offers to meet the needs of its market(s) and its company goals.

all products that a organisation sells

Service products
defined and consistent “bundle of output”, supported by supplementary services
Shopping goods
Products that require consumers to do research and compare across product dimensions like color, size, features, and price.
Speciality goods
goods that are not mass-produced but rather assembled individually or in small quantites,

consumer goods with unquie characteristics or brand identification for which enough buyers are willing to make a special purchasing effort

Tangible product
Unsought goods
items that the consumer either does not know about or knows about but does not initially want, for example insurance
Diffusion of innovation
a concept suggesting that customers first enter a market at different times, depending on their attitude to innovation and new products, and their willingness to take risks.
Eurobrand
a brand which is marketed and sold with a standardised offering across a number of different European countries.
Extending the product line
adding further product items into a product line to extend coverage of the market, for instance introducing a bottom of the range cut-price version of a product, or developing a premium quality product to extend the top end of the range.
Filling the product range
adding further product items into a product line to fill gaps within the range, for instance introducing additional flavours, pack sizes or packaging formats.
Product lifecycle (PLC)
4 phases: intro, growth, maturity, and declin
Product manager
the person within an organization who is responsible for a product, a product line, or several distinct products that make up a group
Product portfolio
The range of products offered by a company. Companies will want to ensure that they have a full and balanced range.
Product positioning
Placing a product in a certain market to get a desired customer response.
Product repositioning
Changing the place a product occupies in a consumer’s mind relative to competitive products
Collaborative R&D
pooling resources and expertise with one or more other organisations to undertake a research and development project jointly.
Concept testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Continuous innovation
A modification of an existing product that sets one brand apart from its competitors.
Discontinuous innovation
A totally new product that creates major changes in the way we live.
Dramatically continuous innovation
ongoing upgrades or enhancements of existing technologies or products; continuous innovation generally does not fundamentally change the dynamics of an industry, nor does it typically require end users to change behavior. The opposite of continuous innovation is discontinuous innovation, also known as disruptive innovation.
New product development (NPD)
1) establish price goals, 2) estimate demand, costs, profits, 3) choose a price strategy, 4) fine-tune with pricing tactics
Outsourcing New product development
when you hire another organisation to develop your product
Rolling launch
to launch a new product in certain areas, rolling to (launching in) new areas as support personnel are trained and ready
test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation