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Marketing chapter 10a developing new products and services

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


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