Shopping products less frequently purchased consumer products services that

Shopping products less frequently purchased consumer

This preview shows page 3 - 5 out of 18 pages.

Shopping products:less frequently purchased consumer products & services that shoppers compare carefully on suitability, quality, price, & styleoConsumers spend much time & effort gathering info & making comparisons Specialty products:consumer products & services w/unique characteristics or brand identification for which significant group of buyers is willing to make special purchase effort oEx: specific brands of cars, high-priced photographic equipment, designer clothes, & services of medical or legal specialists Unsought products: consumer products that he consumer either does not know about or knows about but does not normally think of buying oEx: life insurance, preplanned funeral services, & blood donationsoRequire a lot of advertising, personal selling, & other marketing efforts Industrial ProductsIndustrial products: those purchased for further processing or for use in conducting a business oEx: if a consumer buys a lawn mower for use around home, lawn mower is consumer product. If same consumer buys same lawn mower for use in landscaping business, lawn mower is industrial product Three groups of industrial products & services: materials & parts, capital items, & supplies & services oMaterials & partsinclude raw materials & manufactured materials & parts Raw material consists of farm products & natural productsManufactured materials & parts consist of component materials & component parts oCapital itemsare industrial products that aid in buyer’s production or operations, including installations & accessory equipment Installations consist of major purchases such as buildings & fixed equipment
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Accessory equipment includes portable factory equipment & tools & office equipment oSupplies include operations supplies & repair & maintenance items oSupplies are convenience products of industrial field because they aretypically purchased w/minimum effort or comparison New Product DevelopmentCanadians have long history as inventors of new productsNew Product Development StrategyA firm can obtain new products in two ways: oAcquisitionBuying a whole company, a patent, or a license to produce someone else’s productoOther way is through firm’s own new-product developmenteffortsDevelopment of original or “new to the world” products, product improvements, product modifications, & new brands through firm’s own product development effortsNew products are typically new to the world only onceoEx: first mouse & keyboard New products are important to both customers & marketers who serve them oFor customers, they bring new solutions & variety to their lives oFor companies, new products are key source of growth Why New Products Fail Many new beers are launched on market every year and most fail Major soft drink companies launch new products every year and most are destined for failure oPepsi Blue lasted less than 6 months because it looked like window cleaner Biggest problem w/most new products is that they lack differentiation oAnother reason can be explained by diffusion of innovations theory
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