Details Title: Chapter 8 Description: Marketing Final Total Flash Cards: 47 Created: 06/08/2009 19:45:43		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Marketing Flashcards
Cards in this set: Term FTC definition of a new product Definition a new product is a product that is entirely new or significantly changed (only new for 6months) Term Marketing definition of a new product Definition a new product is anything consumers perceived to be new or different Term Types of innovations Definition continuous,dynamically continuous, discontinuous Term continuous Definition little change-modification to an existing product, doesn't require a lot of new learning EX: Knock offs Term dynamically continuous Definition more pronounced modification. Require new learning or behavior. ex: moving from cassettes to CD players Term discontinuous Definition Totally new product. Creating major changes in the way we live. require great deal of learning ex: First car or computer Term Idea Generation Definition Sources of new ideas -customers -salespeople -service providers -anyone with direct customer contact Term Product Concept Development Definition Expand ideas, describe features and benefits, evaluate chance for success -Technical- is the product feasible -Commercial-is anyone going to buy it Term Marketing Strategy development 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 Term Business Analysis 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 Term Technical Development Definition work w/engineers on design and production process, develop several prototype, evaluate prototypes, if applicable apply for patent Term Market Testing 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 Term Commercialization Definition not guaranteed Launch the product -full scale production -Distribution -advertising -Sales promotion -and more Term Adoption Definition a process by which a customer begins to use a new product, service, or idea. (one person) Term Diffusion Definition how the use of a product spreads through a population (adoption by many people) Term 6 Stages of Adoption 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 Term Diffusion Process Definition the spreading of innovations Term Innovators 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 Term Early Adopters Definition 13.5% of the population, 2nd to adopt an innovation, get info from the media,cautious when it comes to risks,Opinion leader Term Early Majority Definition 34% of the population, Term Late Majority 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 Term Laggards Definition 16% of the population, lower in social class, last to adopt Term Factors affecting rate of adoption Definition Relative Advantage, Observability,Compatibility,Complexity and Trialability Term Relative Advantage 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 Term Compatibility 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 Term Complexity Definition how easy or difficult is it to understand Overcome through demonstration and personal selling Term Trialability Definition can it be used on a limited basis -reduce risk for consumer -without it you can have unsatisfied customers with unrealistic expectations Term Observability Definition observe the new product higher visibility higher rapid adoption rate Term The core Product Definition all the benefits the product will provide for the consumer or business customer -clean clothes Term Marketing Definition is about supplying benefits not a product Term Actual Product 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 Term Augmented Product Definition Consists of the actual product plus other supporting features, such as warranty,credit,delivery,installation,and repair service after the sale Term Classifying Business Products Definition By how they are used By how long they last By how they are bought Term How products are used 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 Term By how long they last 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 Term How consumers buy them Definition convenience Shopping Specialty Unsought Term Convenience Definition non-durable good consumer purchase frequently with a minimum comparison and effort. low priced and widely available milk,bread, P Term Staples Definition convenience products that are necessary items and are available almost everywhere -milk,bread,gasoline Term Impulse Products Definition convenience product bought often on the spur of the moment Term Emergency Product Definition convenience product we purchase when in dire need -umbrella,bandages, something to unclog the bathroom sink Term Fast-moving Consumer goods Definition Convenience product that exhibit consistently high velocity of sales in the consumer marketplace Term Types of convenience products Definition Staples, Impulse products, emergency products, fast-moving consumer goods. Term Shopping Definition goods and services for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase Ex. laptops Term Types of shopping Products 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 Term Shopbots or intelligent agents Definition computer programs that find sites selling a particular product Term Specialty Products Definition Goods or services bought with much consumer effort in an extended problem solving situation Consumer will not accept substitutes Term Unsought Products 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