Insufficient product protocolInsufficient product market research“Blinders” caused by biasOffer a product that there isn’t a demand for, just because you love it and maybe people in your family love it alsoInadequate competitive analysisDoesn’t meet consumer needsToo small a target marketInsufficient differentiationSame stuff that is in every other store like itPoor product quality/performancePoor positioningInadequate budgetInsufficient access to marketBad timingPoor execution of marketingSincerity: down-to-earth, honest, wholesome, cheerfulExcitement: daring, spirited, imaginative, cutting edge (cars, technology, clothing, sports/outdoor equip.)*Competence (most important): reliable, intelligence, successSophistication: elite, life well-livedRuggedness: outdoorsy, tough, durablePlanned obsolescence (contradiction of durability)Wear outNew fashionMarketing 305 Exam #3Chapter 9- Producto A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received I exchange for money or something else of value- Serviceso Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value- Consumer productso Products purchased by the ultimate consumero Convenience, shopping, specialty, unsought- Business productso Products that organizations buy that assist in providing other products for resaleo Passed onto consumer, raw products, tools that make raw products- Difference between convenience products, shopping products, specialty products and unsought productso Convenience Products: frequent purchases, little time and effort spent shopping-ex. Toothpaste, cake mix, hand soapo Shopping Products: Infrequent purchases, needs much comparison-shopping time-ex. Camera, TVs, airline ticketso Specialty Product: Infrequent purchases, needs extensive research and decision time-ex. Rolex watch, Rolls-Royce, heart surgeryo Unsought Products: Very infrequent purchases, some comparison shopping-ex. Burial insurance- Derived demand (when it comes to business demand)o Sales of business products frequently result from the sale of consumer productso Ex. consumer demand for Fords increasesthe company may increase its need for paint spraying equipment- Types of supports productso Installations – buildings and fixed equipmento Accessory equipment – tools and office equipmento Supplies – stationary, paper clips, broomso Industrial services – maintenance, repair, legal services- Classifying services: delivery by people/business, by non-profit, by government agencyo People/Equipment/Business: provide a product or service to customers ex. self-check in for airlines, skilled labor repair-people, security guardso Non-profit: Provide a service/product to the needyo Government Agency: Provide services/products to consumers (can be sought and unsought goods and services) USPS “Easy come. Easy go.”- How do our expectations change based on services provided by people/business, by non-profit, by government agencyo People/business – highest quality because getting paido Non-profit – next highest quality because not being paido Government – very low expectations- The uniqueness of services: intangibility, inseparability, inconsistency, inseparability, inventory (know what each of these are, know examples of each)o Intangibility: services can’t be touched or seen before purchase decision. Services tend to be a performance rather than an object – ex. plumber fixes sinko Inconsistency: services depend on people who provide them – ex. services at a restaurant may be awesome the first time and may suck the next timeo Inseparability: consumer cannot distinguish the service provider from the service itself – ex. lectures at college may be awesome but other services like counseling may but be as good. o Inventory: service provider is available but there is no demand for the service – ex. ifa doctor is being to see patients but no one schedules an appointment, the salary must be paid regardless of whether or not the service is performed- Be familiar with the five dimensions of services (definitions and examples)o Reliability: ability to perform the promised service dependably and accurately – ex. on-time flight. Do we deliver our promises?o Tangibility: appearance of physical facilities, equipment, personnel, and communication materials – clean gate, plane and baggage area Do we present a professional image/appearance?o Responsiveness: willingness to help customers and provide prompt service – ex. flight attendants answering questions Do we respond to our customers in a high quality manner?o Assurance: knowledge and courtesy of employees and their ability to convey trust and confidence – flight attendants and all involved know how to do their job well Do we know and do we appear to know what we are doing?o Empathy: caring, individualized attention provided to customers – ex. airline personnel assist people with special needs of any kind Do we listen, take customer needs/concerns seriously and really care about each customer?- Product lineo A group of product or service items that are closely related because they satisfy a class of needs, are used together, are soled to the same customer group, are distributed through the same outlets, or fall within a given price range- Product mixo Consists of all of the product lines offered by an organization- Reasons new products fail (from handout I used and posted to RamCT)o Insufficient product protocol Insufficient product market researcho “Blinders” caused by bias Offer a product that there isn’t a demand for, just because you love it and maybe people in your family love it alsoo Inadequate competitive analysiso Doesn’t meet consumer needso Too small a target marketo Insufficient differentiation Same stuff that is in every other store like ito Poor product quality/performanceo Poor positioningo Inadequate budgeto Insufficient access to marketo Bad timingo Poor execution of marketing- Organizational problems in new product failures (pg. 205 in 5th edition, pg. 219 in 4th)o Not really listening to the “voice of the consumer”o Skipping stages in the new-product processo Pushing poorly conceived product into the market to generate quick revenueo Encountering “groupthink” in task force and committee meetingso Not learning critical takeaway lessons from past failureso Avoiding the