Term
What is a product?
(key concept and definition) |
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Definition
key*: know that overall a product is a bundle of attributes than just the product itself (the way they package it, brand name etc)
DEFN: anything tangible/intangible that, through the exchange process, stasfies consumer/business costumer needs. this can be:
=physical goods
-services
-ideas
-people or places |
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Term
Classifying products: 3 types
Core/Actual/Augmented |
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Definition
Core product: the benefits product will provide a customer ( ex. the benefit of a car is transportation)
Actual product: Physical good/ Delivered service. Can include parts
(EX. the car, or engine size, color, options)
Augmented Product: actual product plus supporting features ( warranty, dealer parts and repair, owner manual, toll free customer service) |
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Term
Business to Consumer Products:
Durable vs non-durable |
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Definition
Durable: long-term benefits/ high involvement (e.g. car/appliances)
non-durable: short term benefits because they are consumed/ LOW involvement (e.g. newspaper, food) |
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Term
Convenience Product
- characteristics and 3 types |
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Definition
- non durable
- frequent purchase
- low priced/ handy easy to obtain
TYPES:
Staple: milk, bread
Impulse: spur of the moment (magazines)
Emergency: bandages, umbrella |
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Term
Shopping product
- characteristics and examples |
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Definition
- substantial time/effort in selection
- moderately brand loyal
- comparison shop (prices/quality)
EX. clothes, appliances, service |
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Term
Specialty Products
- characteristics |
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Definition
- unique characteristics important to buyer at almost any price
- significant purchase efforts
- brand loyalty/luxury goods
ROLEX, BIG BERTHA GOLF CLUBS |
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Term
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Definition
- little awareness/interest in product until need arises
- requires much advertising/personal setting
EXAMPLE: when college kids look for jobs the unsought products would be the retirement plan or disability insurance... we wouldn't really factor those in our decision until we need them |
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Term
Understanding Innovators
(concept of perceiving products)
why is this critical?
( this is not on study guide but in lecture notes ) |
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Definition
- products are marketed to be PERCEIVED to be new and different from existing products
(example iPhone 4S vs. iPhone 4)
Critical because:
- technological products that are introduced can become obsolete quickly
- high cost of new product development/higher risk of product failure
- its contributions to society |
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Term
TYPES OF INNOVATIONS (3 types)
- do not need to define |
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Definition
Discontinuous
Dynamically continuous
Continuous |
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Term
| What is a Discontinuous innovation? |
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Definition
- totally new product requires much learning
(airplane, car, PC, internet)
- must create major changes in the way we live |
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Term
| What is a Dynamically Continuous innovation? |
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Definition
- pronounced modification to an existing product, decent amount of learning to use it
- usually a significant change
(tapes, CD, DVD, modifications since the original iPod) |
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Term
| What is a Continuous Innovation? |
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Definition
- modification to an existing product (knockoffs)
- does not have to learn anything new to use it
- we receive benefits and already know how to use it
(old box TV vs HDTV)
( Volvo and continuous safety features added ) |
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Term
| Why is developing a new product becoming more difficult? |
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Definition
- costs of Research and Development are huge
- Development is limited |
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Term
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Definition
| process which consumer or business begins to buy and use a good/service/idea |
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Term
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Definition
Process which use of a product spreads throughout population.
- how it spreads throughout consumers
( like a computer and how a virus spreads) |
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Term
5 Category of Adpoters
- know the name and percentage of adoption |
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Definition
Innovators- 2.5%
Early adopters: 13.5%
Early Majority: 34%
Late Majority: 34%
Laggards: 16% |
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Term
| Who are innovators (first of adopters) |
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Definition
- young well educated, adventurers and willing to take risks
- first people to adopt |
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Term
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Definition
- 2nd to buy innovation
-products that are cutting edge/fashionable
- advertisers target these people |
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Term
| Who are the early majority? |
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Definition
- avoid being first or last in trying innovation
- wait because of the bugs, make sure they figure out some issues before buying |
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Term
| Who are the Late Majority? |
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Definition
- older and consrvative
- avoid trying new product until they know its not risky
-have to because of work, or peer pressure to cave in, wait as long as they can |
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Term
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Definition
- lower in social class
- by the time they adopt there is probably a new idea out
-refuse to adopt, basically have to force them to do it |
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Term
Product Life cycle stages and definitions
(4 stages- what is there BCG partner/decisons to make) |
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Definition
Introduction stage: no profits, heavy advertising
BCG PARTNER: question mark
Growth Stage: profits increase/ competitors enter market
lower price to compete/increase advertising
BCG PARTNER: STAR
Maturity Stage: sales peak, attract new users
- BCG partner: CASH COW
Decline Stage: market shrinks/ lower advertising to remain profitable
BCG PARTNER: DOG |
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Term
Test Marketing
what is it?
why do most (80-90%) of products fail? |
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Definition
- take an entire marketing plan and launch it in a small geographic area
- determine whether national launch is desirable
Why do most new products fail?
- wrong representatives of the market
( drug/ candy blood thinner) WSU is a bad market for this
- cost still have to develop product
- may reveal plans to competitors |
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Term
Trademark
( where does it apply ) |
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Definition
legal term for a brand name
- only applies to individual countries |
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Term
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Definition
Value of a brand to an firm or a consumer
- does my brand have competitive advantage? |
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Term
elaboration likelihood model
***** |
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Definition
elaboration likelihood model
- central route to persuasion (req facts/info)high involvement a lot on info to find out about
- peripheral route to persuasion (req aesthetics music/pictures) low involvement |
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Term
consumer involvement and Hemispheral Lateralization (extra info covered in class)
****** |
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Definition
brain is split in half
left: cognitive info/ fact/ thinking (central route)
right: emotion/pictural/non-verbal (peripheral route) |
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Term
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Definition
types of shoes
- set of brands ill consider buying, anything else I wont
you have an evoked set of brands you will consider buying |
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Term
JFK consumer bill of rights
(4 things)
***** |
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Definition
- JFK identified 4 basic rights we should have
1.right to choose
2.right to information/to be informed
3.right to safety
4.right to be heard |
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Term
memory and resource allocation
***** |
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Definition
- we have only a certain amt of cognitive resources around us.
- we pay attention to things that are personally relevant |
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Term
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Definition
so extreme that a rational human being know its not true
- cant false advertise, but so extreme that they can use it
"redbull gives you wings"- obviously it doesnt, but so extreme its allowed to advertise that way |
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