Know the stages that new products move through as the new enter, get established in and
leave the marketplace.
Introduction stage: Starts with a single firm. Characterized by initial losses to the firm due to its
high start up costs and low levels of sale
Q: Understand the dynamics of the diffusion of innovationhow new products are
adopted, how firms develop, test and launch new products
Innovation is the process by which IDEAS are transformed into new products and services that
will help firm
-voice of customer program A market research system that collects customer inputs and
intgregates them into managerial decisions.
Zone of tolerance- The difference between what the customer really wants and what he or she
will accept before going elsewher
Involves taking apart a competitors product, analyzing it, and creating an improved product that
does not infringe on the competitors patents, if any exist.
Innovative product users who modify existing products according t
Choosing global entry strategy once the firm has made an assessment analysis of markets for its
products and services
Exporting: least financial risk
Franchising: agreement between franchisor and franchisee thats allows franchisee to
use business name
Evaluating real income
Creating products for developing market by dropping prices
Mexico: do not sell the giants head n shoulders bottles but rather sell cheap packets for 19 cents
Analyzing infrastructure and technological capabilities
Chapter 12 Services: The Intangible Product
Questions that should indentified:
How does the marketing of services differ from the marketing of products?
The marketing of services differs from product marketing because of the four fundatmental
Developing New Products
Brief written descriptions of a product of service; its technology, working principles and forms;
and what customers needs it would satisfy.
Consumers who like to avoid change and rely on
Set of techniques and principles for systematically collecting, recording, analyzing and
interpreting data that can aid decision makers
Marketing information systems MkIS set of procedures and methods that apply regular,
Globalization is the process by which goods, services, capital, people, information, and ideas
flow across national borders
Changes in communication technology is the driving forces for global markets growth
Globalization of production (offshori