Term
| What are Line Extensions? |
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Definition
| – the development of product that is closely re3lated to one or more products in the existing product line but designed specifically to meet somewhat different customer needs. |
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Term
| What are some aspects of a Line Extension? |
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Definition
o More common than new products because they are less expensive, lower risk alternatives
o Line extensions are also used to take market share from competitors (ex. Ford fusion made to compete with Toyota Prius) |
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Term
| What is a Product Modifications? |
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Definition
| – changing one or more characteristics of a product |
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Term
| How does a line extension differ from a product modification? |
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Definition
| that the original product does not remain in the line |
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Term
| Product modification can improve a firm’s _____________, but only under certain conditions. |
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Definition
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Term
| What are the conditions under which a firm can improve it's marketing mix? |
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Definition
-The product must be modifiable
-Customers must be able to perceive that a modification has been made
-The modification should make the product more consistent with customer’s desires so it provides greater satisfaction |
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Term
| What is a disadvantage of Product Modification? |
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Definition
| The consumer who had experience with the original version of the product may view a modified version as a riskier purchase |
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Term
| What are the 3 main types of product modification? |
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Definition
-Quality modifications – changes relating to a product’s dependability and durability
-Functional – changes that affect a products versatility, effectiveness, convenience, or safety
--Usually require redesign of the product
-Aesthetic – change the sensory appeal o0f a product by altering its taste, texture, sound, smell or appearance |
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Term
| What are the 7 stages of developing a new product? |
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Definition
-idea generation
-screening
-concept testing
-business analysis
-product development
-test marketing
-commercialization |
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Term
| What is Product Development? How is the idea tested? |
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Definition
– the phase in which the organization determines if it is technically feasible to product the product and if it can be produced at cost low enough to make the final price reasonable.
-To test the idea, a prototype or model is made |
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Term
| What are product benefits? What stage are they perceived under in the new product development cycle? |
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Definition
-lets marketers expose a product in a natural marketing environment to measure it’s sales performance. Also allows marketers to experiment with variations in advertising, pricing and packaging in different test areas and to measure the extent of brand awareness, brand switching, and repeat purchases resulting from these alterations in the marketing mix
-Test Marketing stage |
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Term
| What are the risk associated with Test Marketing? |
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Definition
| Risks – expensive, competitors may try to interfere by saturating the market area with their own promotion and pricing, competitors may rush to make similar products |
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Term
| What are alternatives to Test Marketing? |
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Definition
| -Simulated Test Marketing – consumers at shopping centers are asked to view an advertisement for a new product and are given a free sample to take home. They are later interview either by phone or online. |
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Term
| What is Simulated Test Marketing? |
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Definition
| -consumers at shopping centers are asked to view an advertisement for a new product and are given a free sample to take home. They are later interview either by phone or online. |
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Term
| What are the Major advantages to Simulated Test Marketing? |
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Definition
| – greater speed, lower costs, and tighter security |
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Term
| What is Commercialization? |
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Definition
| – plans for full scale manufacturing and marketing must be refined and finalized and budgets for the project prepared |
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Term
| What are the things that marketers could change after test marketing? |
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Definition
-Include more retail outlets
-Alter promotional efforts
-Change the product’s price |
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Term
| What phase in the New Product development cycle deals with decisions about warranties, repairs and replacement parts? |
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Definition
| The Commercialization phase |
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Term
| What is a Roll Out and what are the stages? |
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Definition
-a product is introduced in stages, starting in one set of geographic areas and gradually expanding into adjacent areas
-Stage 1 test release cities are chose
-Stage 2 the states those test cities are in are now targeted
-Stage 3 marketing may be targeted at adjacent states
-Stage 4 all remaining states are targeted |
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Term
| What are the reasons for a Gradual Introduction of a new product? |
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Definition
•It reduces the rusks of introducing a new product
•A company cannot introduce a product nationwide overnight because a distribution system of retails and wholesalers does not exist
•If the product is successful, the number of units needed to satisfy demand for it may be too large for the firm to produce in a short time
•It allows for fine tuning of the marketing mix to better satisfy target customers |
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Term
| What are the problems with a Gradual Introduction of a new product? |
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Definition
•Allows competitors to observe what the firm is doing and monitor results just as the firm’s own marketers are doing
•As a product is introduced region by region, competitors may expand their marketing efforts to offset promotion of the new product |
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Term
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Definition
| – refers to the overall characteristics of a product that allow it to perform as expected in satisfying customer needs |
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Term
| What does Level of Quality mean? |
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Definition
| – the amount of quality a product possesses |
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Term
| What is Consistency of Quality? |
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Definition
| – refers to the degree to which a product has the same level of quality over time |
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Term
| What does Product Design mean? |
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Definition
| – refers to how a product is conceived, planned and produced |
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Term
| What are the types of design in Product design during differentiation? |
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Definition
o Styling – the physical appearance of the product
o Product Features – specific design characteristics that allow a product to perform certain tasks |
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Term
| What is Perceptual Mapping? |
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Definition
| A product’s position is the result of customer’s perceptions of the product’s attributes relative to those of competitive brands. |
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Term
| What is the primary basis for Product Positioning? |
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Definition
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Term
| What are the two types of positioning with competitors? Which one is best when features do not differ significantly? |
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Definition
-Going head to head with competitors
-Avoiding competitors (best when features do not differ significantly from competing brands) |
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Term
| What does a Product Manager do? |
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Definition
| – is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization |
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Term
| What does a Brand Manager do? |
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Definition
| – is responsible for a single brand |
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Term
| What does a Market Manager do? |
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Definition
| – is responsible for managing the marketing activities that serve a particular group of customers |
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Term
| What does a Venture Team do? What are they responsible for? |
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Definition
–creates entirely new products that may be aimed at new markets
-Responsible for developing all aspects of a product |
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