Summary: Product Concepts

Read the summary and the most important questions on Product Concepts

• 0 Product Conceptss

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• Classify consumer products:Name all three that were named in the presentation, define them and give an example.

  • Convenience Goods
    
  • Inexpensive
  • Little effort
  • Impulsive Goods
  • Ex. Milk

  
  

  • Shopping Goods
  • Requires comparison
  • Needs effort
  • Ex. Shoes

  
  

  • Specialty Goods
  • Sought for
  • Ex. Rolex Watch

• Define the terms product item, product line and product mix:

  • Product Item
  • Distinct offering

  
  

  • Product Line
  • Group of closely related product items

  
  

  • Product mix
  • All the production that a company sells

• Describe marketing uses of branding:What does branding do for consumers?Give the example too.

  • Includes names, terms, symbols and designs
    
  • Branding positions consumers to have feelings
  • Branding positions consumers to more likely understand the product
  • Distinguishes product from others 
  • (Ex. Nike "Just do it")

• Describe marketing uses of packaging and labelling:

  • Packaging contains and protects the product
    

  
  

  • Labelling is persuasive, required by law and in different languages

• Describe global issues in branding and packaging:

  • Brand
    
  • One brand name everywhere
  • Adaptations
  • Different brand names in different markets

  
  

  • Package
  • Extreme climates
  • Packaging aesthetics (Conflict with culture)

• Describe how and why product warranties are important marketing tools.

  • Protects the buyer and provides essential info on the product.
    

• 1 Chapter 11

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• Explain the importance of developing new products and describe the six categories of new products:

  Importance:
  
  

  • Sustain Growth
    
  • Increase Revenue and profits
  • Meet new consumer wants
  • With new tech

  
  

  1. New to the world
  2. New product lines
  3. Additions to product lines
  4. Improvements / Revisions to Existing products
  5. Repositioned products
  6. Lower price products

• Explain the diffusion process through which new products are adapted

  (Think of Apple Products)
  
  

  • Innovators - - Eager to try products

  
  

  • Early Adapters - - Opinion leaders

  
  

  • Early Majority - - Friends of opinion leaders

  
  

  • Late Majority - - Skepticism

  
  

  • Laggards - - Love tradition

• Explain the concept of product life cycles:

  1. Introduction - - High fail rate /  Limited distribution
     
  2. Growth - - Sales grow at increasing rate
  3. Maturity - - Sales increasing at decreasing rate
  4. Decline - - Significant and long decline

• 2 Chapter 12

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• Discuss the importance of services to the economy:

  Services have unique qualities
  
  

  • 79% of services in the economy is all full employment

  
  

  • About 75% of Canadian GDP

  
  

  • 76% of hours for the service sector