A product that does an existing function in a new and better way
What is a Knock off new product?
A new brand, like Dr. Pepper 10
What is an upgrade new product
taking a single product and breaking it into two or more products like a camera phone
What is an downgrade new product?
taking a single product and breaking it into two or more products, like a home theater
What is a restyling of a new product?
New model of a honda civic
What are the main reasons for the importance of new products?
What is the replacement importance of new products?
Important because current products eventually go into decline, so if a business never developed new products the business would eventually fail, VCRs
What is Profit sustaining?
new products to keep profits high, because new products after they become popular can be very profitable
What is Growth fueling?
New products that can make a business larger.
What are the steps in new product development?
1. Generate ideas
3. Business analysis
5. Test Marketing
What is the generation of ideas in the new Product development?
try to come up with ideas for a new product, can use word matching, get as many ideas as possible
what is the screening part of the new product development?
pick out which ideas are best
what is the Business analysis of the new product development?
run some number to see if the product would be profitable
What is the development of the new product development?
Prototype, working model, make one
What is the test marketing of the new product development?
try to sell the product in a limited market, because it is less risk if the product does not sell well, testing to see if the product will sell
What is the Commercialization of the new product development?
Introduce the product to all markets
What is a new product committee?
take employees from many areas of the company and put them on a temporary committee that meets part-time to develop new product ideas
What are the advantages of a new product committee?
cost effective, don't have to hire more people, provides wide range of expertise, as current employees the members of the committee are familiar with the company
What are the disadvantages of a new product committee?
get insider opinion only, some employees might be too careful about what they suggest, could have too much product focus, low motivation because people won't view the committee as their 'real job'
What is a new product department?
Permanent full-time jobs, flips some of the advantages and disadvantages of the committee, like better motivation is now an advantage but we lost the wide range of expertise
What is a product or brand manager?
One person in charge of each brand from idea beyond commercialization, idea to have clear responsibility and authority.
What is the venture team?
Best of A and B tries to capture the advantages of both a committee and a department, take people from different departments in the company and assign them full-time to the venture team which disband at commercialization
What is new product adoption?
How a new product gets accepted by the market
Define adopter categories
place consumers into groups based on their willingness to try new products
What are the adopter categories?
9% of the market who will try a new product first
Define early adopters
13% of the market, next group to try the new product
Define Early majority
34%, immense growth
Define late majority
34%, the curve plateaus off
16%, the last group to try the new product
What is the demographic of an innovator
higher income, urban, younger, more educated, costal... these are just averages
Define what product characteristics impacting on adoption rate
things that would be true about the product that would impact on how fast the product gets accepted by the market
What is relative advantage
how much better the new product is than existing products, the better it is the faster the adoption
what is compatibility
how compatible the new product is with existing products, greater compatibility speeds adoption, new gaming systems with a current TV
What is complexity
how easy the product is to use, less complexity, faster adoption
What is the trialability
can the product be tried, if the product can be tried =faster adoption
What is observablity
can the advantage of the product be easily detected, yes = faster adoption
what is the product mix
all the products offered by a business
what is the product line
a group of similar products
What is the breadth
narrow or wide, number of product lines in the product mix, versus depth, shallow or deep, number of products in a product line, walmart has a lot of different lines so it is wide but not much choice in each line so it is shallow, payless shoes has only one product line so it is narrow but lots of choices so it is deep
what is the expansion product mix strategy
add product lines to the product mix, more than just adding a product
what is the contraction in the product mix strategy
drop product lines from the product mix
what is the alteration in the product mix strategy
add or drop products but not lines
what is the positioning of the product mix strategies
define your product mix in terms of the competition, like being cheaper
what is trading up in the product mix strategy
add higher end, more expensive, products to the mix
what is trading down in the product mix strategy
add lower end, less expensive products to the mix.
What is a product life cycle?
key tool in managing products, model of how sales for a product change over time
What is the model for the product life cycle?
the graph of sales versus time, origin is commercialization, when you sell the first one
name the stages and strategies of the product life cycle
1. preintroduction strategy
What happens in the preintroduction stage
test feasibility, show sales as negative because money is going out but not coming in
what is the introduction of the product life cycle
don't have much competition, strategy, build primary demand = demand for the product
what is the growth of the product life cycle
building secondary demand = demand for brand
what is the maturity
this is maintenance marketing, defense and brand awareness
what is decline in the product life cycle
two strategy choices, dives, product has no future or remarket
what are variations of the product life cycle
come from successful remarketing, it can have a cycle, recycle patter or a scalloped pattern
what is the cycle-recycle pattern
extend the life of the product a little, remarket could be a special offer or a major price cut
what is a scalloped pattern
could be a new model that adds features or a new use, either way it must be something that increases the demand for the product
what is planned obsolescence
makes the product become obsolete so you can sell a replacement
what is the planned functional obsolescence
withhold new improvements until the next model or version of the product
what is planned material obsolescence
uses cheaper less durable inputs so product actually wears out, example, thinner soles on shoes
what is planned style obsolescence
change the style, look or fashion
What are the fashion life cycles?
popular for a short period of time, patchwork denim
what are fashions
popular for several seasons
what are styles
Popular for at least 6 seasons
what are staples
popular for generations, trench coats
what are the fashion lifecycle stages
3. mass fashion
What is the trickle up of adoption pattern
starts as street wear, hoodies
what is the trickle down adoption pattern
starts on a runway, polo shirts
What is the trickle across adoption pattern
a fashion become popular across society at once, often driven by movies
What is a brand?
anything that identifies a product
what is a brand name
word like nike
what is a brand mark
symbol like nike swoosh
what is a trademark
legal protection for a bran
what is a copyright
legal protection for a creative work, used to protect ads or packages
what are the three qualities for successful branding
the brand is a tool to be a tool to increase sales
1. must be promoted
2. output must be consistent
3. product must be differentiated
What is must be promoted?
You have to get the brand out there, must create awareness
Why must the output be consistent?
So the customer knows what to expect
Why must a product be differentiated?
Can't be just like other brands, the brand must stand for something.
what are the three types of brand
what is a national brand
what is a private brand
Weis, or giant
what is a generic
What are the Acceptance Stages
Describe brand recognition
Knowing the brand exists, build awareness
what is brand preference
Brands that are favored, brands the consumer would buy
what is brand insistence
the consumer will buy only one brand
What are the brand name selection tests
tests for prospective brand names, tests that would be used in screening of a list of brand names, association test, leaning test, memory test, preference test
define the association test
try to find out what the name reminds people of
define the learning test
find out if people can pronounce the brand name
define the memory test
how easy is the brand name to remember
define the preference test
find out if people like the brand name
What is family packaging?
place a lot of products in a similar looking package, campbell's soup; strategy is to get consumer's to try other versions of the product
What is reuse packaging
by consumer, like welch's jelly, strategy is it serves as a brand reminder
what is Multiple packaging
more than one unit in the package, like the 12 can fridge packs of soda, strategy is to sell more
What is returnable packaging
refillable, used to be a lot more common, but killed by handling costs of the empties, propane tanks for outdoor grills
What is Recyclable packaging
package is marked for recycling like triangles with numbers for plastics
What is the goods to services continuum?
shows that products range from 100% services up to 100% good
what is the intangibility
nothing physically there
what is inseparability
cannot be separated from the provider
what is heterogeneity
it is more difficult to make a service the same every time because of the human element.
what is perishability
will lose value if not sold when available, a service can't be saved and sold later
what is fluctuating demand
the demand swings more widely with services than most goods
describe the quality maintenance of a service
difficult because of heterogeneity, human element
why would supply of a service increase
to match the fluctuating demand, getting extra employees when demand is higher.
What is consumer participation
Have consumer do some of the work, customers filling own drinks
what are complementary services
extra services offered to keep the consumer busy while they are waiting, like a restaurant seating people at a bar until a table is ready
what is industrialization
have a machine do some of the service, like a car wash
Why are reservations or appointments used
to spread the demand
Why are services packaged priced
Combine some less popular service with some more popular service sold as a package, like season tickets that include preseason or opening act at a concert
What is differential pricing
have different prices at different times, used to spread demand, like early bird specials, out of season prices at resorts
What is the importance of location
important because of the inseparability, must be located near customer
what are franchises
popular way to expand services into new territories, advantage is a franchise provides on site owner which increase quality
What is a developed tangible promotion representative
the need for something to represent the service, credit card
What is something associated with the tangible object
pairing in a promotion with a slogan
nationwide is on your side
focus on the before and after
Maaco car repairs
focus on provider-customer relationship
we care, state farm ads
who owns a public nonbusiness
what is a private non business
YCP, united way
name a nonprofit business
what are the markets of nonbusiness
contributor and client
What is the market analysis for nonbusinesses?
use of marketng research, reasons for giving, feel it is a worthy cause, organization does something worthwhile, to show off, tax advantage, part of religion like tithing or alms
how can a non business expand their product line
YCP adding courses or majors
what is the pricing of a non business
usually cost plus, base price on the cost of running the organization, like dues in a club or greek organization. May not be one price, like non profits that charge based on ability to pay
what is the distribution of non businesses
few middlemen, location is key, located in the client market, food bank
What is the promotion of a non business
uses all types of promotion that a business would
What are the steps of the public relations methodology
1. determine the current image
2. determine desirable image
3. develop plan
What is a survey instrument?
use marketing research, measure both visibility and favorability
how well known the entity is, easier to fix poor visibility than to fix poor favorability
What is the semantic differential, or bipolar continuum?
a tool to measure favorability, scale with the ends being opposites
What are the parts to develop a plan with the public relations methodolgy
easy to increase visibility
difficult to change favorability
if favorability very negative then reduce visibility
basic concepts of celebrity marketing
agent takes %, career life cycle, visibility is important favorability is not
What is political candidate concept development.
create a platform, this is what you market
what is a political candidate negative compaigning
instead of promoting positives about your candidate you promote negatives about the opposing candidate, used if you can't increase favorability