16 terms

Chapter 12 - managing products

line extension
develop a product that's related to 1+ products in existing product line
designed to meet somewhat diff needs
more common than new products b/c less expensive, lower-risk
may focus on diff market segment
if unsuccessful, can hurt core product
product modification
changing the firm's product
diff from line extension b/c this replaces orig. product
1) customer must be able to notice a change has been made
2) should better match customer needs
quality modification
changing dependability & durability
reducing quality can lower P and direct at a diff target market
functional modification
change in effectiveness, convenience, etc.
can be done to fill in current product shortcomings
aesthetic modifications
changes appeal, can differentiate from competitors
new products
1) expensive & risky
2) failure to intro new products is risky
new-product development process
1) idea generation
2) screening
3) concept testing - sample of potential buyers is presented w/ idea
4) business analysis
5) product development - feasible to produce?
6) test marketing
7) commercialization - fullscale manuf & marketing
product design
how product is conceived, planned, & produced
physical characteristics
product features
characteristics, what product can do/perform
customer services
any human/mech. effort to add product value
delivery, installing, financing, etc
requires changes in perception
to avoid cannibalization
can be accomplished by changing any part of marketing mix
product deletion
a weak product drains profitability and time & resources
3 ways:
1) phase-out - let it decline w/o changing marketing strategy
2) run-out - increased marketing efforts, P reductions, to exploit ANY strengths left in the product
3) immediate drop - best when losses are too great to prolong its life
brand manager
responsible for single brand
market manager
responsible for managing the marketing activities that serve A PARTICULAR group of customers
product manager
resp. for product, product line, or several products
venture team
creates entirely new products aimed at new products