Lecture Marketing (12/e): Chapter 10 – Kerin, Hartley, Rudelius
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
LO 10-1
Recognize the various terms that
pertain to products and services.
LO 10-2
Identify the ways in which consumer
and business products can be
classified.
LO 10-3
Explain the significance of “newness”
in new products and services as it
relates to the degree of consumer
learning involved.
102
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
LO 10-4
Describe the factors contributing to the
success or failure of a new product or
service.
LO 10-5
Explain the purposes of each step of
the new-product process.
103
APPLE: THE WORLD-CLASS
NEW-PRODUCT MACHINE
104
APPLE: THE WORLD-CLASS
NEW-PRODUCT MACHINE
Apple’s Innovation Machine
iCloud: Where the Digital
Lifestyle is Heading
105
LO 10-1
WHAT ARE PRODUCTS AND SERVICES?
A LOOK AT GOODS, SERVICES, AND IDEAS
Products
Goods
• Nondurable
Goods
Services
Ideas
• Durable
Goods
106
LO 10-2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING PRODUCTS
Consumer Products
• Convenience Products
• Shopping Products
• Specialty Products
• Unsought Products
107
FIGURE 10-1 How a consumer product is
classified affects which products consumers
buy and the marketing strategies used
108
LO 10-2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING PRODUCTS
Business Products
• Derived Demand
• Components
• Support Products
Installations
Supplies
Accessory
Equipment
Industrial
Services
109
LO 10-2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING SERVICES
Delivery by People or Equipment
Delivery by Business Firms or
Nonprofit Organizations
Delivery by Government Agencies
1010
LO 10-2
WHAT ARE PRODUCTS AND SERVICES?
PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES
Product
Class
Product Form
1011
LO 10-2
WHAT ARE PRODUCTS AND SERVICES?
PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES
Product Item
• Stock Keeping Unit (SKU)
Product Line
Product Mix
1012
Crapola Granola
LO 10-2
What is its product class, form, item, line, and/or mix?
Crapola
Video
1013
LO 10-3
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: Compared to Existing Products
1014
LO 10-3
MARKETING MATTERS
Feature Bloat: Geek Squad To The Rescue!
1015
LO 10-3
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: The Consumer’s Perspective
• Continuous Innovation
• Dynamically Continuous Innovation
• Discontinuous Innovation
Newness in Legal Terms
1016
FIGURE 10-2 The degree of “newness” in a
new product affects the amount of learning
effort consumers exert to use the product
1017
LO 10-3
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: The Organization’s Perspective
• Product Line Extension
• Jump in Innovation
1018
Purina (Fancy Feast) Elegant Medleys
LO 10-3
What are the benefits and dangers of
product line extensions?
1019
LO 10-3
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: The Organization’s Perspective
• Brand Extension
• Radical Innovation
1020
LO 10-4
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHY PRODUCTS AND SERVICES SUCCEED OR FAIL
Protocol
FIGURE 10-A What it Takes to Launch a
Commercially Successful New Product
1021
FIGURE 10-B What separates new-product
winners and losers
1022
LO 10-4
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHY PRODUCTS AND SERVICES SUCCEED OR FAIL
Marketing Reasons for New-Product
Failures
• Insignificant Point of Difference
• Incomplete Market and Product Protocol
Before Product Development Starts
• Not Satisfying Customer Needs on
Critical Factors
• Bad Timing
1023
LO 10-4
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHY PRODUCTS AND SERVICES SUCCEED OR FAIL
Marketing Reasons for New-Product
Failures
• No Economical Access to Buyers
• Poor Product Quality
• Poor Execution of the Marketing Mix
• Too Little Market Attractiveness
1024
LO 10-4
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
WHY PRODUCTS AND SERVICES SUCCEED OR FAIL
Organizational Reasons for New-Product
Failures
• Encountering “Groupthink” in Task Force
and Committee Meetings
• Avoiding the “NIH” Problem
• Too Little Market Attractiveness
1025
