Term
| FTC definition of a new product |
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Definition
| a new product is a product that is entirely new or significantly changed (only new for 6months) |
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Term
| Marketing definition of a new product |
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Definition
| a new product is anything consumers perceived to be new or different |
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Definition
| continuous,dynamically continuous, discontinuous |
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Definition
little change-modification to an existing product, doesn't require a lot of new learning
EX: Knock offs |
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Definition
more pronounced modification. Require new learning or behavior.
ex: moving from cassettes to CD players |
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Definition
Totally new product. Creating major changes in the way we live. require great deal of learning
ex: First car or computer |
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Definition
Sources of new ideas
-customers
-salespeople
-service providers
-anyone with direct customer contact |
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Term
| Product Concept Development |
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Definition
Expand ideas, describe features and benefits, evaluate chance for success
-Technical- is the product feasible
-Commercial-is anyone going to buy it |
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Term
| Marketing Strategy development |
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Definition
How to introduce the product to the marketplace.
-identify target market
-estimate size
-determine position
-plan pricing, distribution, and promotion
-expenditure necessary for roll out |
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Definition
Asses- how the new product firs in our total product
Evaluate-whether there will profitable contribution to our product mix
-cannibalize- will the new product take away from our existing sales |
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Definition
| work w/engineers on design and production process, develop several prototype, evaluate prototypes, if applicable apply for patent |
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Definition
try complete market plan in a smaller area
-traditional test markets- in the past very expensive and give competitors a chance to see marketing mix
-simulated test markets-online, cheaper,and eliminate competitors viewing your marketing mix |
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Definition
not guaranteed
Launch the product
-full scale production
-Distribution
-advertising
-Sales promotion
-and more |
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Term
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Definition
| a process by which a customer begins to use a new product, service, or idea. (one person) |
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Definition
| how the use of a product spreads through a population (adoption by many people) |
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Definition
Awareness- providing the customer with info.
Interest- the customer want to know more
Evaluation-the customer weighs the cost and benefits
Trial-trying the product on a small scale
adoption-customer buys the product
Confirmation-customer determines satisfactions |
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Definition
| the spreading of innovations |
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Definition
| 2.5% of the population, the first to accept a new idea, venturesome-willing to take risk, cosmopolites-will seek social relationships outside their local peer groups |
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Definition
| 13.5% of the population, 2nd to adopt an innovation, get info from the media,cautious when it comes to risks,Opinion leader |
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Definition
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Definition
| 34% of the population- older more conservative, rely heavily on word of mouth, wait to product is necessity, or their peers pressure them to adopt |
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Definition
| 16% of the population, lower in social class, last to adopt |
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Term
| Factors affecting rate of adoption |
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Definition
| Relative Advantage, Observability,Compatibility,Complexity and Trialability |
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Definition
is it better than what is already out there better performances, increase comfort,save time or effort,immediate reward
*positively correlated with adoption rate |
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Definition
an innovations is perceived to fit into a person's way of doing things
* the greater the compatibility the more rapid a product rate of adoption
overcome the perception of incompatibility through advertising |
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Definition
how easy or difficult is it to understand
Overcome through demonstration and personal selling |
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Definition
can it be used on a limited basis
-reduce risk for consumer
-without it you can have unsatisfied customers with unrealistic expectations |
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Definition
observe the new product
higher visibility higher rapid adoption rate |
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Definition
all the benefits the product will provide for the consumer or business customer
-clean clothes |
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Term
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Definition
| is about supplying benefits not a product |
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Definition
The physical good or the delivered service that supplies the desired benefits
-includes unique features-such appearances, styling,the package,and the brand name
washer machine |
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Definition
| Consists of the actual product plus other supporting features, such as warranty,credit,delivery,installation,and repair service after the sale |
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Term
| Classifying Business Products |
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Definition
By how they are used
By how long they last
By how they are bought |
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Definition
-Equipment-Capital equipment (building), accessory equipment (computer terminals),
-Maintenance, Repair,and Operating Products-light bulbs, mops,nuts bolts,paper oil
-Raw materials-iron, ore
-Processed materials-sheets of steel
-Specialized service-legal service
-Component Parts-Car water pump |
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Definition
durable goods- consumer products that provides benefits over a period of months, years, decades
-cars,furniture,and appliances.
Non-durable goods-consumed for a short period of time
-food, newspapers |
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Term
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Definition
convenience
Shopping
Specialty
Unsought |
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Definition
non-durable good consumer purchase frequently with a minimum comparison and effort.
low priced and widely available
milk,bread,
P |
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Definition
convenience products that are necessary items and are available almost everywhere
-milk,bread,gasoline |
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Definition
| convenience product bought often on the spur of the moment |
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Definition
convenience product we purchase when in dire need
-umbrella,bandages, something to unclog the bathroom sink |
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Term
| Fast-moving Consumer goods |
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Definition
| Convenience product that exhibit consistently high velocity of sales in the consumer marketplace |
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Term
| Types of convenience products |
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Definition
| Staples, Impulse products, emergency products, fast-moving consumer goods. |
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Definition
goods and services for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase
Ex. laptops |
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Term
| Types of shopping Products |
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Definition
Attributes based shopping Products-party dress, pair of designer jeans
Pricing based Shopping Products-determine will visit many stores to try to save money |
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Term
| Shopbots or intelligent agents |
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Definition
| computer programs that find sites selling a particular product |
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Definition
Goods or services bought with much consumer effort in an extended problem solving situation
Consumer will not accept substitutes |
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Definition
Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention
Require a great deal of advertising or personal selling |
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