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Transcript of Product Concepts
A product is a good, a service, or an idea.
It is tangible or intangible and includes functional, social, and psychological utilities or benefits.
They include support services, such as installation, guarantees, product information, and promises of repai maintenance
Without a product, there is nothing to sell.
is the products main use.
Supplemental features are not required to make the core product operate.
or attributes of the product; the other stuff.
They are nice though
Personal wants Business goals
These classifications will affect how the marketing mix, PPPD,
is altered to cater to a select target market
Click this for cool music
Make selection at top
Every retail store carries them. Product sells itself.
Shoppers expend considerable effort in buying these. Purchased less frequently.
Shoppers see these as one-of-a-kind and will accept nothing else.
Consumers are presented with a sudden problem requiring a purchase i.g., Flat tire, fire damage, laptop stolen.
- Product will be purchased even thought consumer does
- Seeks out closest and cheapest in area.
office buildings, factories, product line, large machines
not part of product, used in making it.
Tools, storage lockers, two –way radios
parts used in making the finished product. Easily identified.
What the product eventually becomes.
product. Cannot readily identify these.
Cleaners, rags, paper, pens, buffer equipment.
Departments. Marketing, advertising, accounting,
a group of closely related product items
Rubber rain coat
a specific version of a product
Rubber Fireman’s coat
All groups of products a company makes
Width and depth
of product mix
number of product
W i d t h
D e p t h
average number of products contained within a
Product Life Cycle
Product is unknown as introduced to market
Advertising expenses are high
Sales = 0
profits = -negative
Manufacturing expenses are high
Consumers now aware of product
or caught off guard
Sales = high
competition = 0
Products price dropping as initial manufacturing cost is recouped and better manufacturing methods are discovered
Consumers very knowledgeable about product
Sales = decline
Product’s quality improves to make different from competition
Laptop computer can now be used as cat bed.
Alternative uses for product.
Consumers lose interest in product.
Sales and profits returning to initial level = 0
Dust in the wind. All we are is dust in the wind….
Inventory sold to outlets at cheaper prices to consumer
Companies stop promotions, advertising, customer support.
Harvesting – slowly withdraw support
Divesting – stop all support at once – “Off with its head!”
Marketers must keep track of new, intermediate, and declining products all at once.
Product adoption process by consumer
Acceptance of new products
Buyer sees product
Product seeks information about product
Buyer considers purchasing; examines benefits
Consumer tries a free sample or trial size
Product is purchased and will be done so again when need arises
Business products – used to resell or make other products
Consumer products – personal and family needs
(always in pairs)
Few retail outlets.
Advertising is required to sell.
A reward for much
Shopper must hunt for a store selling these
Argh, my leggg!
Treated as expense Items rather than as capital items
parts, or substance, using in making the finished
??? WTF is that, mate ???
D e p t h
D e p t h
D e p t h
Initial product's cost are high
At end of this stage, competition
in the buying: Diet Cola + candy bar.
Relatively inexpensive, frequently purchased, no thought
are the added value
“Might shop at Best Buy, Circuit City, Home Depot, Sears”
Mont Blanc Pens
Advertising is in very select mediums
Purchased on the basis of an organization's goals and objectives
Product purchased for its functional aspects
a.k.a. no fun
into 7 categories
CEO loves Legal
Juices / Juice Drinks
Tea and Coffee
coca-cola soft drinks > 500 in 200 countries
Enjoy new things. Very eager to be the first in the neighborhood
Choose new products carefully.
Guy in the office who knows things.
A little ahead of most. Deliberate and cautious of new things.
Skeptic of new things. Buys them because of
economic or social pressure;
old one broke – duct tape only goes so far
Last to buy new products. Always thinking of the “good-old days”.
When makes purchase, it is usually the next version of the new product.
What we have here is a failure to succeed.
Consumer producs fail much more than business products.
First in market does not mean most successful in market.
1 out of 3 new products fails each year. This can cause US firms 100 Billion each year.
Main reason in company not matching product’s function to customer’s needs or poor timimg.
Relative product failure
Makes a profit
Does not met companies profit or market-share objective
Never recover development, production,
and marketing costs
1975 - RCA
2000 - Apex
In the style of
Tag Cloud Art
A Prezi slide-show
This book published in 2010
not want to do so.
New products that succeed
have perceivable advantages over similar products.
provIde sIgnificant and benefits to customers