Products contain both tangible and intangible components; predomi-nantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.
The Product Continuum
Product decisions also involve how much or how little to augment the core product with additional goods and services.
Augmenting the Basic Product
Everyday goods and services that people buy frequently, usually without much conscious planning
Fairly important goods and services that people buy less frequently with more planning and comparison
Particular brands that the buyer especially wants and will seek out, regardless of location or price
More expensive organizational products with a longer useful life, ranging from office and plant equipment to entire factories
Four stages through which a product progresses: introduction, growth, maturity, and decline
Product Life Cycle
Most products and product cate-gories move through a life cycle similar to the one represented by the curve in this diagram. However, the duration of each stage varies widely from product to product. Automobiles have been in the maturity stage for decades, but faxing services barely made it into the introduction stage before being knocked out of the market by low-cost fax machines that every busi-ness and home office could afford.
Product Life Cycle
A formal process of generating, selecting, developing, and commercializing product ideas
Product Development Process
The product development process is designed to identify the product ideas most likely to succeed in the marketplace.
The Product Development Process
Product development stage in which a product is sold on a limited basis to gauge its market appeal
A name, term, sign, symbol, design, or combination of those used to identify the products of a firm and to differentiate them from competing products
Brands that have been given legal protection so that their owners have exclusive rights to their use
Partnership between two or more companies to closely link their brand names together for a single product
Managers who develop and implement the marketing strategies and programs for a specific product or brand
Method of calculating the minimum volume of sales needed at a given price to cover all costs
Method of setting prices based on production and marketing costs, rather than conditions in the marketplace
Computer- based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives
Charging a high price for a new product during the introductory stage and lowering the price later
Selling one product at a loss as a way to entice customers to consider other products
Temporary price reductions to stimulate sales or lower prices to encourage certain behaviors such as paying with cash
Offering several products for a single price that is presumably lower than the total of the products' individual prices