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Definition
| a relatively inexpensive item that merits little shopping effort. 711, water |
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Definition
| requires comparision shopping, because it is usually more expensive and found in fewer stores. Tvs |
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Definition
| consumers search extensively for and are reluctant to accept subsitutes, only found in a few places. Ex. Ferarri |
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Definition
| - a product unkown to the potential buyer or a known product that the buyer does not actively seek. Ex: Vacuum |
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Term
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Definition
| Add new product line to portfolio |
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Definition
| many product lines that solve similar problems. Sony Measure in terms of depth, |
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Term
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Definition
deepen product line. Bring out improved version of new product. Ex: Pepsi adds new Gateroaid flavor
Improvement, new colors |
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Term
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Definition
| company moves into entirely new product category. Ex: Apple with Iphones |
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Term
| Discontinuous-(innovation continuum) |
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Definition
| first product of it’s kind. Ex. Telephone, computer |
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Term
| Dynamically Continuous (innovation continuum) |
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Definition
| created new version or product category of previous versions. Ex: Laptop |
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Term
| Continuous-(innovation continuum) |
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Definition
| products that retain a similar form but add new features to do better job at solving problems |
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Term
| New Product Development Process- |
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Definition
critical to long term success, but costly and 46% goes right to failures. 1/3 products that make it to the store shelves are done within 3 months
Idea generation, idea screening, concept development, business analysis, market testing, commercialization |
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Term
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Definition
| sales volume low, product features basic, retail outlets limited, marketing goal trial |
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Term
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Definition
profits usually peak here – enter next stage when growth happens at slower rate
• Sales volume growing, product features increasing, retail outlets increasing, marketing goal preference |
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Term
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Definition
competitors and prices have been driven down, sales highest, go to next stage from increasing declining rate
• Sales volume flat, product features new, retail outlets max, marketing goal preference |
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Term
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Definition
| • Sales volume declining, product features reduced, retail outlets reduced, marketing goal survival |
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Term
| • Diffusion of Innovations |
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Definition
| products that do a good job at solving consumer problems will stick around |
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Term
| • Characteristics that Influence Diffusion |
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Definition
1. Relative Advantage- perceived as superior to existing substitutes-cell phones
2. Complexity-degree of difficulty to use/understand Ipods
3. Compatibility- matches consumer needs
4. Trialability- degree to which product is capable of being tried on limited basis Ex: AOL or Costco
5. Observability- products benefits can be observed, imagined, or described |
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Term
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Definition
1. Reliability- right the first time
2. Responsiveness- timeliness
3. Assurance- trust, knowledge
4. Empathy- compassion, indivualize |
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Term
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Definition
| Product, promotion, price, place, participants, process, physical evidence |
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