Marketing chapter 10a developing new products and services
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McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
LO1
Recognize the various terms that pertain to products and services.
Identify the ways in which consumer and business goods can be
LO2
classified.
LO3
Explain the significance of “newness” in new products and
services as it relates to the degree of consumer learning involved.
10-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
LO4
Describe the factors contributing to a new product’s or service’s
success or failure.
LO5
Explain the purposes of each step of the new-product process.
10-3
NEW PRODUCT REVOLUTIONS:
APPLE AND ITS INNOVATION MACHINE
10-4
NEW PRODUCT REVOLUTIONS:
APPLE AND ITS INNOVATION MACHINE
Apple’s Innovation Machine
How the iPhone Came About
What the iPhone
Can Do
10-5
THE VARIATION OF PRODUCTS
LO1
PRODUCT, PRODUCT LINE, AND PRODUCT MIX
Product
Product Line
•
Product Item
•
Stock Keeping Unit (SKU)
Product Mix
10-6
3M’S NEW GREPTILE GRIP GOLF GLOVE: HOW TO GET TO THE
TOP OF THE LEADER BOARD
•
The Product?
•
The Target
Market?
•
The Special
Marketing Task?
Slide 10-5
THE VARIATIONS OF PRODUCTS
•
Product
•
Product Line and Product Mix
Product Line
•
Product Item
•
Stock Keeping Unit (SKU)
Product Mix
Slide 10-6
PRODUCT
Any physical good, service, or idea that satisfies a want
or need; plus anything that would enhance the product
in the eyes of the consumers, such as the brand
PRODUCT LINE & PRODUCT MIX
●Product Line
●Group of products that are
physically similar or are
intended for a similar market
PRODUCT LINE & PRODUCT MIX
●Product Line
●Product Item – a specific product as noted by a unique brand,
size, or price
●Stock Keeping Unit (SKU) – a unique identification number that
defines an item for ordering or inventory purposes
Little Remedies
How does an extensive product line benefit
both consumers and retailers?
Slide 10-7
PRODUCT LINE & PRODUCT MIX
●Product Mix
●Combination of
manufacturer’s product lines
MICKEY MOUSE’S PRODUCT MIX
Theme parks & resorts
ABC Television Network
Video programs &
licensing
TV & radio stations
Film studios &
Consumer products
production
Publishing
PRODUCT DIFFERENTIATION
●Creation of real or perceived differences
● Actual product differences are sometimes quite small
● Marketers must create a unique, attractive image
Little Remedies
LO1
How does an extensive product line benefit
both consumers and retailers?
10-16
THE VARIATION OF PRODUCTS
LO1
CLASSIFYING PRODUCTS
I. Type of User
•
Consumer Goods
•
Business Goods
10-17
I.
Type Of User
●Consumer
●Purchased by the ultimate consumer
●Sometimes called B2C Goods
I.
Type Of User
●Business
● Purchased for use in production of other goods and
services
● Sometimes called business goods, B2B goods,
industrial goods, organizational or commercial
goods
● Some products can be considered both consumer
and business items
CLASSIFYING CONSUMER AND BUSINESS GOODS
•
Classification of Consumer Goods
Convenience Goods
Shopping Goods
Specialty Goods
Unsought Goods
Slide 10-9
Convenience Goods
Convenience
Convenience goods
goods –– items
items that
that
the
the consumer
consumer purchases
purchases frequently,
frequently, conveniently,
conveniently, and
and with
with aa
minimum
minimum of
of shopping
shopping effort.
effort.
Slide 10-87
Shopping Goods
Shopping
Shopping Goods
Goods –– items
items for
for which
which the
the consumer
consumer compares
compares
several
several alternatives
alternatives on
on criteria,
criteria, such
such as
as price,
price, quality,
quality, or
or style.
style.
Slide 10-88
Specialty Goods
Specialty
Specialty Goods
Goods –– items
items that
that aa consumer
consumer makes
makes aa special
special
effort
effort to
to
search
search out
out and
and buy.
buy.
Slide 10-89
Unsought Goods
Unsought
Unsought Goods
Goods –– items
items that
that the
the consumer
consumer either
either does
does not
not
know
know about
about or
or knows
knows about
about but
but does
does not
not initially
initially want.
want.
Slide 10-90
FIGURE 10-1 How a consumer good is classified affects what products
consumers buy and the marketing strategies used
10-25
