MKT 350 Exam 3 Review - CHAPTER 11: Product Concepts I....

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CHAPTER 11: Product Concepts I. Product—everything buyer receives in an exchange; good, service, or idea. A. Consumer Products—purchased to satisfy personal & family needs (classified by consumer shopping behavior): 1. Convenience Products—relatively inexpensive, frequently purchased, require minimal effort; very brand substitutable 2. Shopping Products—buyers willing to expend considerable effort in planning and making purchases (comparison shopping); purchased less often, durables 3. Specialty Products—items with unique characteristics that buyers are willing to expend considerable effort to obtain; expensive, non-substitutable 4. Unsought Products—purchased to solve sudden problem, speed most important B. Business Products—to use in an organization’s operations, to resell, or to make other products (classified by functional aspects): 1. Capital Products—installations and major equipment 2. Production Products—raw materials, component parts 3. Facilitating Products—accessory equipment, business services II. Product Mix—total group of products that an organization makes available to customers A. Width—number of product lines a company offers B. Depth—average number of different products in each product line III. Product Life Cycle A. Introductory Stage—sales start at zero, profits are negative and increasing, heavy promo costs to build product awareness B. Growth Stage—sales rise rapidly, profits peak then decline, strengthen market share, more aggressive pricing C. Maturity Stage—sales peak then decline, profits continue decline, intense competition, defend market share D. Decline Stage—sales/profits decline rapidly, brand switching consumers, cut promotion expenditures IV. Product Adoption Process—stages buyers go through in accepting a product A. Awareness B. Interest- seeks info and is receptive to learning C. Evaluation- considers benefits and decides whether to try D. Trial- examines, tests, tries the product E. Adoption- purchases product and expected to buy again V. Product Adopter Categories A. Innovators- 2.5% -- risk takers
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B. Early Adopters- 13.5% -- opinion leaders
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This note was uploaded on 09/27/2011 for the course FINANCE 350 taught by Professor Chin during the Spring '10 term at Missouri State University-Springfield.

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MKT 350 Exam 3 Review - CHAPTER 11: Product Concepts I....

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