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Product Management

Terms in this set (41)

Product
Can be a good, service, people, places, cause or idea
Industrial Products
AKA B2B Products
Used in production of other products
Consumer Products
Sold to final consumers
Convenience (little effort, purchased frequently)
Shopping (Shop around, durable goods)
Specialty
Core Product
Basic Benefits
Actual Product
Features, package, brand, quality, appearance
Augmented Product
Warranty
After sale maintenance/ repair
Installation
Customer Service
Delivery
Credit
Product-Use Instruction
Product Mix
All products a company sells
Product Line
Related group of products, usually marketed to similar customers through same outlets
Product Width Dimensions
Width and Depth
Width
# of different types of products/product lines sold
Depth
Variety of choices within product line
Continuous Innovation
AKA New And Improved
Improved performance, new styling, replacing existing products
(smoother formula for chapstick)
New Product Lines
Supplement a company's existing products
New-to-World/True Innovations
Create entirely new market and way of doing things
AKA Discontinuous Innovation
(EX: Creating Microwave)
New Product Development Timeline
Idea Generation (Brainstorming & Customer Feedback)
Idea Screening (Feasibility testing for Commercial Success)
Project Planning (Budget and responsibilities)
Concept Development and Testing (Find Clear and distinctive positioning)
Product Development (prototype testing-technical)
Marketing Strategy Development
Test Marketing
Commercialization
Relative Advantage
Degree of improvement
Compatibility
Fit with existing practices
Complexity
Difficulty of using product
Trialability
Ease of demonstration or trial
Risk
Possible negative consequences
Adopter Categories
Innovators (2.5%)
Early Adopters (Socially integrated, may be affluent opinion leaders, 13.5%)
Early Majority (Less risk by now, must keep up with times, 34%)
Late Majority (middle/working class, product is easy to get and afford, 34%)
Laggards (older, poorer, anti-change, like the good ole days, 16%)
Product Life Cycle
Way Products go through distinct stages from birth to death
Introduction
Growth
Maturity
Decline
Introduction
Goal is to get first-time buyers to try product.
Firm does not make a profit during this stage
Growth
Product is accepted and sales rapidly increase.
Goal is to encourage brand loyalty
Profits peak
Maturity
Longest stage in product life cycle.
Sales peak and profit margins are narrow.
Competition most intense.
Firm resorts to price reductions and reminder advertising.
Decline
Sales decrease as customer needs change.
Market as a whole begins to shrink
Profuts decline
Fewer product variations exist
Suppliers pull out
Firms major decision is whether to keep product at all
Profits and Sales in Product Life Cycle
Growth Stage is most desirable, while the maturity stage is usually the longest for most products
Brand
Name, term, symbol, or any other unique element that identifies one firm's product and sets it apart from the competition
Trademark
Legal term for a brand name, brand mark, or trade character
A Good Brand Name is...
Memorable
Creates positive connotation
Positions a product by conveying image or personality or describing how it works.
Is easy to say, spell, read, and remember
Fits the target market, product benefits, customer's culture, and legal requirements
Brand Equity
Brand's Value to its organization over and above the value of the generic version of the product
Brand Image
The beliefs and associations a consumer has about the brand
Brand Personality
The idea that customers can connect with brands who have likeable personas
Brand Loyalty
When customers repeatedly buy a brand
Brand Insistence
No other brand will do
Functions of Packaging
Packaging is first thing customers see in the store.
Recognition, differentiation, convenience/ease of use, protection, containment, promotion, information, disposability
Effective Packaging Considers
Packaging of other brands in same product category.
Stackability/storage.
Choice of packaging material.
Environmental impact.
Shape and color.
Graphic Information.
Intangibility
Aspects of product that the customer cannot see, touch, or smell
Perishability
Product is impossible to store for later consumption
Variability
It is hard to standardize the product since providers and customers vary
Inseparability
It is impossible to separate the production of the product from its consumption
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