29 Cards in this Set
| Front | Back |
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Essential benefit
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the fundamental need met by a product
*have to understand the benefit first
EX car-provides transportation
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core product
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how the essential benefit is delivered to meet expectations
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augmented product
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extends the core product with features that exceed expectations
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Product (goods and services)
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tangibility, separability, perishability, uniformity)
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durables
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microwaves, furniture, washers, telephones, etc
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non-durables
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shampoo. toothpaste, paper, office supplies
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convenience product
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inexpensive and merits little shopping effort (ex: advil)
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shopping product
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requires comparison, more expensive, found in fewer stores (laptops)
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specialty products
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unique, willing to search extensively, customers are reluctant to accept substitutes (ex: paintings)
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unsought products
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don't actively seek out, usually would not want to purchase at all (ex divorce decrees)
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product line depth
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the number of product items in a product line
(attracts buyers with different preferences, increases sales by serving multiple market segments, capitalizes on economies of scale)
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product lines offer:
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advertising economies, package uniformity, standardized components, efficient sales and distribution, equivalent quality
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Product Width mix:
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the number of product lines offered by a firm (risk management, makes the most of established company reputation, spread fixed costs over many more products)
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Product Line Adjustments:
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Product modification, repositioning, extensions
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branding
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a name, term, symbol, design that identifies a seller’s product
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brand equity
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how much the nam is worth
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Manufacturers’ brand
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“national brand” (LG, Maytag, Whirlpool)
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Private label/house brand
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Owned by a retailer, “store brand” (Sears, Wegmans)
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brand image
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reinforced by marketing communications, promotions, pricing, etc. -- brand promise to create satisfaction and loyalty
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4 components of brand value
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1. experiential value (one key benefit)
2. reputation value (perceived quality)
3. relationship value (long term partner)
4. symbolic value (self expression, badge)
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When branding works best
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solving problems for manufacturers and customers
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2 different branding approaches
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house of brands (Procter & Gamble) ; branded house (BMW)
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New Products: many are introduced, most fail
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Poor concept
Poor technology
Poor use of research data
Poor commercialization
Inadequate company capabilities
Management biases in decision-making
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Success factors for new products
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Matches customer need; perceived high value
Technical superiority
Fits internal company strengths
Has top management support
Enthusiastic product champion
Good communication between functions
Fast cycle time: short time-to-market
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NEW PRODUCT DEVELOPMENT PROCESS
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Ideation (conceptualization, fuzzy front end)
Development funnel (market research, prototyping, market testing)
Commercialization (pricing, positioning, branding, promotion)
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Source of new-product ideas
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Customers
Employees
Distributors
Vendors
Competitors
R&D
Consultants
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Simultaneous Product development:
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Team oriented approach to new product development in which all relevant functional areas participate in the development process. Cross functional team
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Considerations in business analysis stage
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Determine costs
Forecast demand
Estimate profitability
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Product line Architecture:
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Product generation map, a visual representation of the planned rollout of new products over several years.
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MAR 301