Term
| why do companies not always want to introduce new products? |
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Definition
| New Product Development or (NPD) is risky |
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Term
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Definition
| Product developed is closely related to one or more products in existing product line but specifically designed to meet somewhat different need |
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Term
TYPES OF LINE EXTENSIONS:
Brand Extension |
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Definition
| Apply a popular brand to a related product. |
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Term
TYPES OF LINE EXTENSIONS:
Down Market Extension |
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Definition
| Make a product that is positioned at a LOWER PRICE than the already popular product. |
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Term
TYPES OF LINE EXTENSIONS:
Up Market Extension |
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Definition
| Make a product that is positioned at a HIGHER PRICE than the already popular product. |
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Term
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Definition
Changes to one or more characteristics of a product.
(the old version usually does not stay in the line) |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
1.Idea Generation |
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Definition
The activity of seeking product ideas to achieve organizational objectives.
Ideas can come from several sources:
-Internally through department or franchisees
-Externally through customers, competitors, advertising agencies, consultants or even outsourcing. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
2. Screening |
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Definition
Means selecting the ideas with the greatest potential for further review.
-Ideas are analyzed to determine whether they match the organizations objectives and resources.
-Keeping the product idea in focus and on track by understanding consumer needs and wants is the key to success.
-Most new products are REJECTED during this phase. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
3. Concept Testing |
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Definition
| Seeking a sample of potential buyers' responses to a product idea. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
4. Business Analysis |
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Definition
| Involves evaluating the potential impact of a product idea on the firm's sales , cost and profits. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
5. Product Development |
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Definition
This is determining if producing a product is technically feasible and cost effective.
-To test acceptability, the idea is converted into a "prototype" or "working model"
-The prototype is tested for overall functioning both in the lab and in the field.
-This phase is lengthy and expensive so a small number of product ideas are put into development. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
6. Test Marketing |
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Definition
Is a limited introduction of a product in geographic areas chosen to represent the intended market.
-The aim is to determine if potential customers will buy the product and use to lessen the risk of product failure
-Selection of test areas is important to provide accurate representation of the intended market. |
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Term
7 STAGES OF NEW PRODUCT DEVELOPMENT:
7. Commercialization |
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Definition
| A plan for full scale release. |
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Term
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Definition
Is creating and designing products so customers perceive them as different from competing products.
**customer perception is critical.
3 aspects of product differentiation companies must consider:]
1. Product Quality
2. Product Design and Features
3. Product Support Services |
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Term
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Definition
| Eliminating a product. This is sometimes necessary and there are three methods to do so. |
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Term
3 METHODS OF PRODUCT DELETION:
1. Phase Out |
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Definition
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Term
3 METHODS OF PRODUCT DELETION:
2. Run Out |
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Definition
| Increase marketing efforts in core markets. |
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Term
3 METHODS OF PRODUCT DELETION:
3. Immediate Drop |
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Definition
| When product generates big losses. |
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Term
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Definition
A "deed, process, or performance".
- 80% of GDP
- 82% of total U.S. employment |
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Term
| Services exist in ALL Physical Goods! |
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Definition
-"customer service" in support of manufactured goods
- distribution of physical goods
- return of defective goods |
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Term
| Why are services growing as a percentage of our economy? |
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Definition
-Aging population: "baby boomers", longer life expectancies
-Increase leisure time
-Higher per capita income
-Changing social and cultural values |
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Term
WHAT SEPARATES SERVICES FROM PRODUCTS?
THE BIG FOUR.
1. Intangibility |
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Definition
| Lack of tangible assets which can be seen, touched, or smelled prior to purchase. |
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Term
WHAT SEPARATES SERVICES FROM PRODUCTS?
THE BIG FOUR.
2. Perishability |
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Definition
| Inability of a service to be inventoried or stored. |
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Term
WHAT SEPARATES SERVICES FROM PRODUCTS?
THE BIG FOUR.
3. Inseparability |
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Definition
| Simultaneous production and consumption of a service. involves employees and the environment where the service is provided |
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Term
WHAT SEPARATES SERVICES FROM PRODUCTS?
THE BIG FOUR.
4. Heterogeneity |
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Definition
| Variability of service levels ( good and bad) |
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Term
3 OTHER CHARACTERISTICS ALSO RELATED TO QUALITY:
1. Search Qualities |
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Definition
Product/services attributes that can be evaluated before purchase.
-test drive, sampling, packaging |
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Term
3 OTHER CHARACTERISTICS ALSO RELATED TO QUALITY
2. Experience Qualities |
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Definition
Product/ services attributes that can be evaluated only after purchase.
-movie, hair cut, maid service |
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Term
3 OTHER CHARACTERISTICS ALSO RELATED TO QUALITY
3. Credence Qualities |
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Definition
Product/ Services attributes that cannot be evaluated, even after purchase.
-Healthcare, funeral services, legal advice |
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Term
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Definition
Functional quality
-employees and customers
-appearance, belonging
-sometimes people are the service (consulting) |
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Term
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Definition
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Term
3 NEW "P'S"
3. Physical Evidence |
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Definition
the tangible aspects
-servicescape
-repair, service people (UPS)
-provide competitive advantages |
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Term
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Definition
an attitude about:
-performance
-process
-the core product
-peripherals |
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Term
| What is Service Recovery ? |
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Definition
strategies firms use to recover from service failures:
-zero defects
-act quickly
-encourage complaints
-contingency planning
-empowerment
-learn from lost customers |
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Term
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Definition
| A name, term, design, symbol, or other feature that identifies the marketer's product as distinct from those other marketers |
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Term
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Definition
| The part of a brand that is not made up of words such as symbols or design. |
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Term
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Definition
| A legal designation of exclusive use of brand. |
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Term
LEVELS OF BRAND LOYALTY:
Recognition |
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Definition
| Buyer aware that a brand exist and considers it as an alternative it the preferred brand is unavailable. |
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Term
LEVELS OF BRAND LOYALTY:
Preference |
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Definition
| Buyer prefers products over competitive offerings. |
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Term
LEVELS OF BRAND LOYALTY:
Insistence |
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Definition
Product is strongly preferred; buyers will accept no substitute .
(smokers, cleaning products, beer?) |
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Term
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Definition
The marketing and financial value associated with a brand's strength in a market.
-sometimes measured as the differences in price associated with a brand versus unbranded products. |
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Term
BRANDING POLICIES (3)
1. Family |
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Definition
| brand can help new products succeed |
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Term
BRAND POLICIES (3)
2. Individual |
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Definition
| A poor brand will not hurt the overall brand. |
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Term
BRAND POLICIES (3)
3. Private Label |
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Definition
70% in the UK stores
25% in the US stores (publix) |
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Term
5 TYPES OF BRAND STRATGIES:
1. Product Line Extension |
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Definition
same product category
-new flavors, colors, ingredients, package size |
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Term
5 TYPES OF BRAND STRATGIES:
2. Brand Extension |
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Definition
different product category
-81% of new products in the 90s were extensions |
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Term
5 TYPES OF BRAND STRATGIES:
3. Brand stretching |
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Definition
using an established brand in an unrelated market.
-success depends on the strength of the original brand and the consumers pre-existing brand associations. |
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Term
5 TYPES OF BRAND STRATGIES:
4. Co- Branding |
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Definition
when two brands are presented together.
-sometimes from different companies
-are often from the same company |
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Term
5 TYPES OF BRAND STRATGIES:
5. Genericized Brands |
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Definition
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Term
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Definition
the development of a container and graphic design for a product.
-gets attention and sends signals about the product attributes and quality
-induces trial |
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Term
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Definition
-attention grabbers
-luxury appeal
-clever
-green washing
-branding
-utility
-brand story |
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Term
DIFFERENT TYPES OF RETAILERS:
Specialty |
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Definition
limited scope aimed at one market
-deep product mix
(jewelry, fabrics, computers) |
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Term
DIFFERENT TYPES OF RETAILERS:
Super Store |
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Definition
wide variety of items at discount prices
-general merchandise
(Target, Wal-Mart, K-mart) |
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Term
DIFFERENT TYPES OF RETAILERS:
Category Killers |
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Definition
a specialty "BIG BOX" retailer that focuses on one or a few product categories
-makes it hard for general merchandiser to compete
(Dick's, Lowe's, Best Buy) |
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Term
DIFFERENT TYPES OF RETAILERS:
Value Retailers |
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Definition
"Extreme Value Retailers"- small, full line discount store with limited assortment at deep discount prices.
(dollar store)
"Off Price Retailers"- use second, inventory overages, off season merchandise
(TJ Max, Stein Mart, Big lots.) |
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Term
| RETAILER MANAGEMENT STRATEGIC ISSUES: |
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Definition
-consumers shop for various reasons
-retailers must make desired products available, create stimulation shopping environment and delevelopment marketing strategies that increase patronage
-retailers strategically use store location, retail positioning store image and category management "location, location, location" |
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Term
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Definition
| refers to using/leasing/buying the business model of a successful firm |
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Term
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Definition
-increase lingering time in retail store
-alleviate stress
-increase leisure time and increase spending
-color: influences customers perception |
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Term
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Definition
| one aspect of retail management is "slotting fees" or a charge to manufactures to have their products placed on shelves |
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Term
| non traditional retailers |
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Definition
purchasing via mail, telephone, the internet, or other means
-vending machines |
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