Review Notes Exam II

Review Notes Exam II - ReviewNotesExamII CHAPTER11...

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Review Notes Exam II 02/04/2008 10:44:00 CHAPTER 11 What is a product? Good Service Idea The total product Product Characteristics Fundamental utility Supplemental features o Installation o Delivery o Training o Financing Symbolic meaning Convenience Products Relatively inexpensive, frequently purchased items for which buyers exert  only minimal purchasing effort Strategy implications: o Retail outlets o Low per-unit gross margins o Little promotion effort
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o Packaging important Shopping Products Items for which buyers are willing to expend considerable effort in planning  and making purchases Marketing implications: o No brand loyalty o Fewer retail outlets than convenience o Lower inventory turnover o Higher gross margins o Personal selling o Channel member cooperation Specialty Products Items with unique characteristics that buyers are willing to expend  considerable effort to obtain. Marketing implications: o Limited retail outlets o Lower inventory turnover o High gross margins Unsought Products Products purchased to solve a sudden problem, products of which customers  are unaware, and products that people do not necessarily think of buying Marketing implications : o Build trust with consumer by: Recognizeable brand
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Superior performance Product line and product mix Item –  specific version of product Line  -  closely related items viewed as a unit Mix –  total group of products Width of mix –  number of lines Depth of mix –  number of different products in line Product life cycle The progression of a product through four stages: o Introduction o Growth o Maturity o Decline Introduction o The initial stae or a product’s life cycle; its first appearance in the  marketplace when sales start at zero and profits are negative o Introductory stage Risk of failure high Buyers must be made aware of: Features Uses Advantages
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Sellers lack Resources Technological knowledge Marketing know-how Growth Stage o The product life cycle stage when sales rise rapidly and proftis reach a  peak, then start to decline. Competitors react Maturity stage o The stage of a product’s life cycle when the sales curve peaks and  starts to decline, and profits continue to fall. Intense competition Emphasize improvements and differences Advertising and dealer-oriented promotion Global expansion Decline stage o The stage of a product’s life cycle when sales fall rapidly Eliminate/repostion items Cut promotion Eliminate marginal distributors Plane for phase out Approaches Harvesting
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Divesting Product adoption process The five-stage process of buyer acceptance of a product
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This note was uploaded on 11/28/2010 for the course BADM 066 taught by Professor Bailey during the Spring '07 term at GWU.

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Review Notes Exam II - ReviewNotesExamII CHAPTER11...

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