MKT 291 Chapter 10

good, service or idea consisting of tangible and intangible features that satisfies consumer's needs

has tangible attributes that consumer's five senses can perceive

usually lasts over many uses

item consumed in one or a few uses

intangible activities or benefits that an organization provides to satisfy consumers' needs

thought that leads to an action

1.Convenience product
-item that the consumer purchases frequently, with little effort
2.Shopping product
-item a consumer compares several alternative on criteria
3.Specialty product
-items that consumer makes a special effort to search out and buy
4.Unsought product
-items that the consumer does not know about or knows about but does not initially want

products organizations buy that assist directly or indirectly in providing other products for resale

sales of business products frequentyl result from the sale of consumer products

items that become part of the final product

items used to assis in producing other goods and services (i.e. supplies, installations, buildings)

a specific produc thta has a unique brand, size or price

group of product or service items that are closely related because they satsify a class of needs, are used together, or are sold to the same customer group

consist of all product lines offered by an organization

1. people or equipment
2. business firms or non-profit orgs: privately owned firms must make profits to survive
3. government agencies

1. Intangibility: services can't be touch or seen
2. inconsistency: services depend on the people who provide them
3. Inseparability: consumer cannot distinguish between the service provider from the service itself
4. inventory: handling costs that relate to their storage, perishability, and movement

1. Not listening to voice of consumer
2. skipping stages in the new-product process
3. pushing a poorly conceived product into the market to generate quick revenue
4. enoucountering "group think" in task force
4. not learning from mistakes
5. avoiding the "NIH" problem (not invented here" problem

seven stages an organization goes through to identify business opportunities and convert them into salable products or services

1. New-product strategy development
2. idea generation
3. Screening and evaluation
4. business analysis
5. development
6. marketing testing
7. commercialization

defines the role for a new product in terms of the firm's overall objectives

developing a pool of concepts to serve as candidates for new products, building upon the previous stages's results
-Open innovation
-firms actively involve customers
-employees and co-worker suggestions
-research and development labs
-competitive products
-smaller firms, universities, inventors

internally and externally evaluates new-product ideas to eliminate those that warrant no future effort
-Customer experience management
-Concept test: external evaluations with consumers that consist of preliminary test of a new product idea rather than an actual product

specifies the features of the products and the marketing strategy needed to bring it to market and make financial projections
-last checkpoint before resources are invented to create a prototype

turns idea on paper into prototype

exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
-test marketing: offering a product for sale on a limited basis in a defined area
-simulated test markets: technique that simulates a full-scale test market but in a limited fashion (shopping malls)

-positions and launches a new product in full-scale productions and sales (most expensive stage)
-large companies use regional reollouts
-special risks in commercializing grocery products (shelf space is limited) (slotting fee: paying a manufacturer to place a new item on shelf)

vital in introducing a new product: helps determine profitability when a products comes to the market
-parallel development: cross-functional team members conduct simultaneous development of both tht eproduct and the production process
-fast prototying: "do it, try it, fix it" approach, encouraging continuing improvement even after initial design