Marketing Final Exam Notes

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Final Exam Notes
The classifications of products are:
* Business products:
* A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers. * Consumer products:
* Product bought to satisfy an individual’s personal wants. The types of consumer products:
* Convenience products:
* Are relatively inexpensive and require limited shopping effort. * Shopping products:
* Are of two types: homogeneous and heterogeneous. Because of the similarity of homogenous products, they are differentiated mainly by price and features. In contrast, heterogeneous products appeal to consumers because of their distinct characteristics. * Specialty products:

* Possess unique benefits that are highly desirable to certain customers. * Unsought products:
* Are either new products or products that require aggressive selling because they are generally avoided or overlooked by consumers.
Chapter 11. Developing and Managing Products:
New product categories include:
* New-to-the-world
* These are products that are entirely new. The new-to-the-world category is the smallest category of new products. These products include penicillin, polio vaccine, transistor radio, microwave over, Arpanet (the groundwork for the Internet), etc. * New product lines

* Products that were not previously offered are allowed to enter new or established markets by the firm. * Product line additions
* Includes new products that supplement a firm’s established line. For example, each new Wii game Nintendo produces, it is adding to an existing product line. * Improvements/revisions
* A product is concentrated so that packaging materials are reduced would be an improvement or revision. For example, by not requiring hot water, Tide Coldwater requires less energy to wash a load of clothes. * Repositioned products

* These are existing products that are targeted at new markets or market segments, or are repositioned to change the current market’s perception of the product. * Lower-priced products
* This category refers to products that provide performance similar to competing brands at a lower price. By combining a scanner, copier, printer, and fax machine into one product, HP has developed a product that has a lower price than what it would cost to buy all four products separately.

The new-product development process has seven stages: new-product strategy, idea generation, idea screening, business analysis, development, test marketing, and commercialization.
The new product success factors are long-term commitment, new-product strategy, capitalize on experience, and establish an environment. New-product strategy:
* Links the new-product development process with the objectives of the marketing department, the business unit, and the corporation. * Provides guidelines for generating, screening, and evaluating new-product ideas. * Specifies the roles that the new products must play in the organization’s overall plan and describes the characteristics of products the organization wants to offer and the markets it wants to serve. * For each successful new product introduced, a company needs between 50 to 60 other new-product ideas. Idea generation:

New-product ideas come from many sources, including customers, employees, distributors, competitors, vendors, research and development, and consultants. Brainstorming: The process of getting a group to think of unlimited ways to vary a product or solve a problem. Idea screening:

This stage eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason. Concept tests are used during the idea screening process to rate concept (or product) alternatives. Concept tests evaluate new-product ideas, usually before and prototype has been created. Researchers...
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