MKTG 360 1nd Edition Lecture 10 Outline of Last Lecture 1. Steps in Target Marketing Process2. Creating the Brand Personality3. 5 Major Dimensions of Brand Personality Outline of Current Lecture 1. Product2. Quality as a product objective3. Product Development steps4. Consumer Adoption Stages5. Product lines6. Issues at different stages of lifecycles Current Lecture1. Producta. Anything tangible/intangible that, through exchange process, satisfies consumer/business customerb. Products can bei. Physical goods (tangible),ii. Services,iii. Ideas,iv. People, or v. Placesc. Layers of a producti. Core Product1. All benefits provided by productii. Actual Product1. Physical good or service iii. Augmented ProductThese 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.1. Actual prod. + features supporting product (e.g. warranty, repair, service after sale)d. Classifying productsi. Durable1. Provide benefit over long term2. High involvement in decisionii. Nondurable 1. Provide benefit over short time2. Low involvement in decisione. Convenience productsi. Convenience Products1. Low price, purchased often, widely available2. Not much time in decision makingii. Types1. Staplesa. Necessary items widely available2. Emergencya. Buy in a situation of dire need3. Fast Moving Consumer Goodsa. Consistently high turnoverf. Other product categoriesi. Shopping Products1. High involvement decisionii. Specialty Products1. Provide unique benefitiii. Unsought Products1. Consumer not aware needs2. Often impulse buys2. Quality as a product objectivea. Product qualityi. Overall ability of product to satisfy a needb. Quality dimensionsc. Innovationi. Innovation1. Something new or different2. Typically purchased by a few, then spreads through populationii. Types1. Continuousa. Modify existing product to set it apart2. Knockoffsa. Copies existing product with a few changesiii. Dynamically Continuous1. Innovation that requires a fair amount of relearningiv. Convergence1. When 2 technologies come together to create > than the sum of its partsv. Discontinuous Innovation1. New product changes way we live3. Product Development Stepsa. Idea Generation – how can we meet needs?b. Product Concept Development/Screeningi. Evaluate technical/commercial success potentialc. Develop Marketing Strategyd. Business Analysis (viability of product)e. Technical Development (refined/perfected)f. Test Marketing in Limited Marketsi. Some top test markets (Rochester, Greensboro)g. Commercialization (launch new product)4. Consumer Adoption Stagesa. Awareness (media blitz)b. Interest (start to see benefits, search info)c. Evaluation (+, -)d. Trial (before purchasing)e. Adoption (buy product)f. Confirmation (good experiences = loyalty)i. What impacts rate of adoption 1. Relative advantage2. Compatibility with Other Products3. Complexity4. Trialability5. Observability5. Product Linesa. Product linei. A company’s complete collection of product offerings to meet a single need.b. Managing Product Linesi. Limited Line Strategy1. Meet need of a smaller target segmentii. Full Line Strategy1. Attempt to meet needs of broad consumer marketiii. Strategies for Product Line Extension6. Issues at different stages of lifecyclesa. Introduction Stagei. Get first-time buyers to adopt productb. Growth Stagei. Encourage loyalty, expand offerings, increase market sharec. Maturity Stagei. Increased competition, price competition, reminder advertisingd. Decline Stagei. Should I Stay or Should I Go