Product
is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and its received in exchange for money or something else of value. Ccan be physical goods, services and ideas as well.
A Good
has tangible attributes that a consumer's five senses can perceive
Nondurable good
is an item consumed in one or a few uses, such as food products and fuel
Durable good
is one that usually lasts over many uses, such as appliances, cars, and mobile phones
Services
are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
An Idea
is a thought that leads to an actions usch as a concept for a new invention, or getting people out to vote.
Consumer Products
are products purchased by the ultimate consumer
Business Products (also called B2B products or industrial products)
are products that organizations buy that assist in providing other products for resale
Convenience Products
are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.
Shopping products
are items for which the consumer ccompares several alternatives on criteria such as price, quality, or style
Specialty Products
are items that the consumer makes a special effort to search out and buy
Unsought Products
are items that the consumer does not know about or knows about but does not initially want.
Derived Demand
sales of business products frequently result (or are derived) from the sale of consumer products.
Components
are items that become part of the final product.
Support Products
are items used to assist in producing other goods and services. These include: Installations, Accessory equipment, Supplies, Industrial Services
Installations
such as buildings and fixed equipment
Accessory Equipment
such as tools and office equipment
Supplies
such as stationery , paper clips, ect
Industrial services
Maintenance, repair, and legal services
Product Item
is a specific product that has a unique brand, size, or price
Stock Keeping Unit (SKU)
is a unique identification number that defines an item for ordering or inventory purposes
Product Line
is a group of product service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.
Product Mix
that consists of all of the product lines offered by an organization.
Newness in Legal Terms
The US FTC advises that the term 'new' be limited to use with a product up to siex months after it enters regular distribution. Difficulty with this suggestions is in the interpretation of the term regular distribution
Continuous innovation
Consumers don't need to learn new behaviors.
Dynamically Continuous Innovation
only minor changes in behavior are required
Discontinuous innovation
involves making the consumer learn entirely new consumption patterns to use the product.
Protocol
a statement that, before product development begins, identifies: (1) a well defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do
1) Insignificant Point of Difference (Marketing Reasons for new-Product Failures)
is the single most important factor for a new product to defeat competitive ones- having superior characteristics that deliver unique benefits to the user
2.)Incomplete market and product protocol before product development starts (Marketing Reasons for new-Product Failures)
without this protocol, firms try to design a vague product for a phantom market.
3.)Not satisfying a Customer needs on critical factors(Marketing Reasons for new-Product Failures)
overlapping somewhat with point 1(Insignificant point of difference), this factor stresses that problems on one or two critical factors can kill the product, even though the general quality is high.B58
4.) Bad Timing (Marketing Reasons for new-Product Failures)
this results when a product is introduced too soon, too late, or when consumer tastes are shifiting dramatically
5.) Too little market attractiveness (Marketing Reasons for new-Product Failures)
The ideal is a large target market with high growth and real buyer needs
6.) Poor Product Quality (Marketing Reasons for new-Product Failures)
This factor often results when a product is not thoroughly tested
7.) Poor execution of the marketing mix: brand name, package, price, promotion, distribution (Marketing Reasons for new-Product Failures)
somewhere in the marketing mix there can be a showstopper that kills the product
8.) No economical access to buyers (Marketing Reasons for new-Product Failures)
Grocery products provide and example.
Not really listening to the "voice of the consumer.
Product managers may believe they "know better" than their customers or feel they "can't afford" the valuable marketing research that could uncover problems.
Skipping stages in the new-product process
Althought details may vary, the seven-stage new-product process discussed in the next section is a sequence used in some form by most large organizations
Pushing a poorly conceived product into the market to generate quick revenue.
This focuses on speed often results in overlooking the network of services needed to support the physical product.
Encountering "groupthink" in task force and committee meetings
someone in the new-product planning meeting knows or suspects the product concept is a dumb idea
Not learning Citical takeaway lessons from past failures
The easiest lessons are from "intelligent failures" - ones that happen early in the new-product process.
New Product Process
the seven stages of organization goes through to identify business opportunities and convert them to a salable good or service
Stage 1: New-Product strategy development (one of seven stages of the new-product Process)
is the stage of the new product process that defines the role for a new product in terms of the firm's overall objectives.
Stage 2: Idea Generation (one of seven stages of the new-product Process)
is the stage of the new product process that develops a pool of concepts as candidates for new products, building upon the previous stage's results.
Open Innovation
in which an organization finds and executes creative new-product ideas by developing strategic relationships with outside individuals and organizations. (Customer and supplier suggestions, Employee and CO-worker suggestions, research and development Labra
Industrial Design
an applied art that improves the aesthetics and usefulness of mass-produced products for users.
Stage 3: Screening and Evaluation (one of seven stages of the new-product Process)
is the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warant no further effort. (ex: Internal Approach, External Approach)
Internal Approach
a firm's employees evaluate the technical feasibility of a proposed new-product idea to determine whether it meets the objectives defined in the new-product strategy development step.
Customer experience management (CEM)
which is the process of managing the entire customer experience within the firm.
External Approach
firms use concept tests, external evaluations with consumers tht consist of preliminary testing of a new-product idea rather than an actual product.
Stage 4: Business Analysis (one of seven stages of the new-product Process)
specifies the features of the product and the marketing strategy needed to ring it to market and make financial projections.
Prototype
a full scale operating model of the product
Capacity Management
Integrating the service component of the marketing mix with efforts to influence consumer demand.
Off-Peak Pricing
to charge different prices for different times of the day or week to reflect the variations in demand for their services.
Stage 5: Development (one of seven stages of the new-product Process)
is the stage of the new-product process that turns the idea on paper into a prototype.
Stage 6: Market Testing (one of seven stages of the new-product Process)
is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. (Includes: offering a product for sale on a limited basis in a defined area, Simulated tes
Simulated test Markets
a technique that simulates a full scale test market but in a limited fashion
When Test Markets Don't Work
Test marketing a service is very difficult because it is intangible and consumers can't see what they are buying.
Stage 7: Commercialization (one of seven stages of the new-product Process)
the stage of the new-product process that positions and launches a new product in full-scale production and sales
Regional rollouts
introducing the product sequentially into geographical areas of the US, to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure.
Slotting Fee
a payment a manufacturer makes to place a new item on a retailer's shelf
Failure Fee
a penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make.
Time to Market (TtM)
is often vital in introducing a new product
Parallel Development
cross-functional team members who conduct the simultaneous development of both the product and the production process stay with the product from conception to production.
Fast Prototyping
uses a "do it, try it, fix it", approach encouraging continuing improvement even after the initial design