Mkt 305 1st Edition Exam # 2 Study GuideProduct-What a company is in business to provide to its customers -Product quality is the product’s ability to satisfy a customer’s needs throughout the entirety of their buying experience. Goods vs. Services-Goods are tangible usually physical items usually produced in large quantities away from the customer-Services are intangible things such as a vacation or a ticket to a show and are usually produced directly in the presence of the consumerProduct Line-a set of individual products that are closely related Ex. Dell makes laptops, desktop PCs, tablets, and more-Items in a product line meet similar needs, are distributed on the SAME channels and target similar if not the same consumers Branding- names, terms, symbols, designs, color schemes, or some combination of those things to identify a product or company-Brand recognition is important-Brand familiarity -Customers associate brands with experiences and will usually pay more for a familiar brand overa non-familiar one -Good brand names can be pronounced in different languages, are easy to spell and read1. Rejection – customers won’t buy the brand unless its image is changed 2. Non-recognition – customers don’t recognize the brand (ex. Ticonderoga)3. Recognition – customers are familiar with the brand (ex. Gatorade)4. Preference – customers will generally choose this brand when available (ex. HP LaserJet)Insistence – customers insist on this brand and will search for it instead of buying substitutesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Types of Brands1. Individual2. Family3. Generic Roles of packaging 1. Passive Promotion2. Protection3. Enhancement (presentation is everything) Warranty-What a company promises about its productProduct Life Cycle-The stages a product goes through from beginning to end1. Introduction2. Growth 3. Maturity4. DeclinePioneers vs. Followers Pioneers come up with a new idea to take into productions and fast followers quickly try to replicate it.Stages of New Product Development 1. Idea generation2. Screening3. Idea evaluation4. Development5. CommercializationCustomer Involvement in NPD1. Co-Creation2. Alpha testing3. Beta Testing4. Usability Testing Market Research -mimics the scientific methodMarket Research Process1. Define a problem2. Analyze the current situation 3. Gather problem specific data4. Analyze/interpret the data5. Test Solutions 6. Solve the problem Primary vs. Secondary DataPrimary data is data you gather from your own experiments and secondary data is data that already existed Confidence Interval-your level of certainty about the variation between actual behavior and predicted behavior Consumer Product Classes1. Convenience Products-Products that customers need but don’t require much time or effort to buy2. Shopping Products- Customers have time to shop around with competitors to find the best price3. Specialty Products- Customers desire a very specific product and will wait to get the right one from the right place4. Unsought Products- Products customers aren’t even aware they want yet or they don’t knowit even exists Homegeneous vs Heterogeneous shopping productsHomegeneous products- the customer will view as all the same and they just want o lowest priceHeterogeneous products- the customers sees as different and they will want to inspect and examine before buying*Specialty Products are any product a customer will spend time looking to obtain.Channels of Distribution How the final purchaser ends up with the product-This can be Direct Channel: Straight from the Producer-Indirect Channel: From an Intermediary -Hybrid: BothChannel conflict occurs when multiple entities have the same product and are competing for the same customerVertical Channel Conflict-Occurs when firms at different levels in the channel of distribution are competing for the same customers (producer vs. Intermediary) Horizontal Channel Conflict- Occurs when firms at the same level in the channel are competing for the same customers (intermediary vs intermediary)Managing Channel Conflicts 1. Product exclusivity 2. Territory exclusivity 3. Market exclusivity4. Profit sharing5. Ignore it Intensive Distribution-You allow as many intermediaries as possible to sell you productSelective Distribution-Only intermediaries who give your product special attention can sell itExclusive Distribution- Only one intermediary can sell your