Product Concepts

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Product Concepts

• Chapter 10

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• Consumer Product or Business Product?

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Product

• Anything the customer receives in
  _______________________.
  
• Products are classified as being _______________
  (__________) or _______________ products
  depending on the buyers intended use of the
  product.

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• Consumer Products products purchased to satisfy
  __________ and ______________________.

• Business Products products those bought to use
  in a firms __________, to _________, or to make
  other products.

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Consumer Products Classification based on
characteristics of consumer purchasing behavior.

• I. Convenience Products relatively ____________,
  ________________ purchased items for which buyers
  exert only _____________ purchasing effort.

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• Note Consumers tend to feel that the most
  desirable retail facility for convenience
  products is the ____________ __________.

• Marketing of convenience products requires
  __________ exposure in as many stores as
  possible.

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• II. Shopping Products Items for which buyers are
  willing to expend ___________ effort in
  __________ and _____________ purchases.

Features
Price
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• III. Specialty Products They require purchase
  _________, and the buyer _____ ________ accept
  _________________.

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• IV. Unsought Products Products purchased to
  solve a _________ problem, products of which
  customers are ____________ and products that
  people ___________ necessarily think about
  buying.
• i.e., _________________________
  __________________________

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Business or industrial products

• they are traditionally classified according to
  their __________________ and _____________________
  __.

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Product Line Product Mix

• Product ______ _______ version of a product.
  i.e., A 16oz. Jar of Thibodauxs Hot Sauce
  
• Product _________ A group of closely related
  product items that are considered to be a unit
  because of _________________________
  ___________________________.

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• Product ______ all products offered by a firm.
• Product Mix Width and Depth

Laundry Detergents
Shampoos
Bar Soaps
Camay Zest Coast Ivory
Prell Pantene Ivory Pert
Oxydol Tide Cheer Bold
______
______
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• Product Mix _____ it is measured by the _______
  number of different products offered in each
  product _____________.
  
• i.e., the fact that Procter Gamble makes at
  least eight different detergents.

• Product Mix __________ it is measured by the
  _________ of product ________ a company offers.

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Product Life Cycle
__________ Stage
________ Stage
_______ Stage
_______ Stage
Industry ___________
__
Industry _______
0
______________
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• Introduction Stage during this stage of a
  successful product, profits are usually
  _________________________________.
  
• Growth State
• - Managing a product in this stage might include
  ________________ prices after developmental costs
  have been recovered.
  
• - ___________ peak and start to decline.
• - During this stage the marketer should fortify
  the _______________________.

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• Maturity Stage
• - It is characterized by ______ competition.
• - ___________________ pricing is typical.
• - ______________ usually start to decline.
• - Some competitors are _______________.
• - Price strategies become more _________.
• Decline Stage
• - ___________________ on advertising
  expenditures to minimum levels.
  
• - ______ the number of channel members.

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Product Adoption Process

• I. _________________________
• - Individual knows that the product exists.
• - Ind. has ________________ information
  regarding the product.
  
• - Ind. _______________ seek additional
  information.
  
• II. _______________________
• - The buyer __________________ and is receptive
  to learning about the product.

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• III. __________________________
• - The individual considers whether the product
  will meet __________________ that are critical
  for meeting his/her needs.
  
• IV. __________________
• - The buyer __________, __________, or takes the
  product to determine if it meet his/her needs.
  
• i.e., test drive a car, Minute Main mailed out
  free 4oz samples of its new lemon juice product.

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• V. _______________________
• - When the individual begins using that
  ______________ product when the need for that
  _____________ type of product arises.
  
• Groups for Adopting a New Product
• 1. __________ 1st to adopt a new product
• - tend to ___________________

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• 2. Early ________ ______________ They are
  viewed as the people to check with by persons
  in the remaining adopter categories.

3. Early _____________ Adopt just prior to the
____________________.
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• 4. Late __________ _____________ who adopt new
  products when they feel __________________________
  .

5. ____________ _________ group to adopt a new
product. - when they finally adopt the innovatio
n, it may already have been replaced by a new
product.
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Why New Products Fail

• New product failure rate is as high as ____ -
  _____________ percent.
  
• Failure to match product offerings to
  _________________________________
  
• Had poor _________ i.e., ___________
• Overestimated ___________________.
• ________________________ poorly
• ____________________ insufficiently

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Absolute vs Relative Product Failure

• Absolute Product Failure it results in a
  _____________ on the investment and is
  _____________________ the product mix.

• Relative Product Failure it results in a
  __________ profit and ______________ or
  _______________ can create success later.