Chapter 8: Create the Product:
Core product: All the benefits the products will provide for consumers or business customers
Actual product: The physical good or the delivered service that supplies the desired benefit
Augmented product: The actual product plus other supporting features such as a warranty, credit, delivery, installation and repair service after the sale
Durable goods: Consumer products that provide benefits over a long period of time, such as cars, furniture and appliances
Nondurable goods: Consumer products that provide benefits for a short time because they are consumed (such as good) or are no longer useful (newspaper)
Convenience product: A consumer good or service that is usually low-priced, widely available and purchased frequently with minimal comparison and effort
Staples (milk)
Impulse products (candy bar)
Emergency products (drain opener)
Shopping products: Goods or services which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase
Intelligent agents: Computer programs that find sites selling a particular products (Compare.com)
Specialty products: Goods or services that have unique characteristics and are important to the buyer and for which he will devote significant effort to acquire
Unsought products: Goods or services for which a consumer has little awareness or interest until he product or need for the product is brought to their attention
Equipment: Expensive goods that an organization uses in its daily operations that last for a long time
Maintenance, repair and operating (MRO) products: Goods that a business consumes in a relatively short time
Innovation: A product that consumers perceive to be new and different from existing products
Continuous Innovation: A modification of an existing product that sets one brand apart from its competitors
Dynamically continuous innovation: A change in an existing product that requires a moderate amount of learning or behavior change.
Discontinuous innovation: A totally new product that creates major changes in the way we live
Convergence: the coming together of two or more technologies to create a new system with greater benefits that its separate parts
New Product development:
Idea generation: the first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with company mission
Product screening: Marketers test product ideas for technical and commercial success
Develop Marketing Plan: Determining target market
Business analysis: Marketers assess a product's commercial viability
Technical development: Company engineers refine and perfect a new product
Test Marketing: Testing the complete marketing plan in a small geographic area that is similar to the larger market the firms hopes to enter
Commercialization: New product is launched into the market
Product adoption: The process by which a consumer or business customer begins to buy and use a new good/service
Tipping point: Point at which product sales spike from a slow climb to an unprecedented level, often accompanied by a steep price decline
Media blitz: Massive advertising campaign in a short period of time
Adopter Categories: Innovators --> Early adopters --> Early majority --> Late majority --> Laggards
Factors that affect adoption rate/Main product characteristics:
Relative advantage: Degree to which a consumer perceives a new product superior benefits
Compatibility: Extent to which product is consistent with existing culture, values and customs
Complexity: Degree to which consumers find a product or its use difficult to understand
Trialability: Ease of sampling a new product and its benefits
Observability: How visible a new product and its benefits are to those who may adopt it
Chapter 9: Manage the Product
Product management: Systematic and usually team based approach to coordinating all aspects of a product's marketing initiative including all elements of the
