Marketing Exam 2 Notes

Marketing Exam 2 Notes - What Is A Product a product is a...

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What Is A Product? a product is a good, a service, or an idea received in an exchange a good is a tangible physical entity (iPod) a service is intangible; it is the result of the application of human and mechanical efforts to people or objects (performance by Nelly) an idea is a concept, philosophy, image, or issue o the total product is a combination of three interdependent elements: the core product, its supplemental features, and its symbolic or experiential value the core product consists of a product's fundamental utility or main benefit usually addresses a fundamental need of the consumer a product's supplemental features provide added value or attributes in addition to its core utility or benefit can provide installation, delivery, training, and financing they help differentiate one product brand from another Customers also receive benefits based on their experiences with the product. many products have symbolic meaning for buyers Product Line and Product Mix a product item is a specific version of a product that can be designated as a distinct offering among an organization's products (LL Bean flannel shirt) a product line is a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations ("shampoo" product line) a product mix is the composite, or total, group of products that an organization makes available to customers the width of product mix is measured by the number of product lines a company offers the depth of product mix is the average number of different products offered in each product line Stages of the Product Life Cycle a product life cycle has four major stages: introduction, growth, maturity, and decline o the introduction stage of the product life cycle begins at a product's first appearance in the marketplace, when sales start at zero and profits are negative o during the growth stage, sales rise rapidly and profits reach a peak, then start to decline
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o during the maturity stage, the sales curve peaks and starts to decline and profits continue to fall three general objectives can be pursued during the maturity stage: generate cash flow, maintain share of market, increase share of customer o during the decline stage, sales fall rapidly Adopter Categories consumers fall into one of five major adopter categories: innovators, early adopters, early majority, late majority, and laggards o innovators are the first to adopt a new product; they enjoy trying new products and tend to be venturesome o early adopters choose new products carefully and are viewed as "the people to check with" by those in the remaining adopter categories o early majority adopt a new product just prior to the average person; they are deliberate and cautious in trying new products o late majority are quite skeptical of new products but eventually adopt them because of economic necessity or social pressure o
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