Chapter 13: Developing and Managing Products Flashcards Preview

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Flashcards in Chapter 13: Developing and Managing Products Deck (31)
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1

Good

tangible product

2

Service

intangible product

3

purchased to satisfy personal and family needs (convenience, shopping and specialty)

consumer product

4

bought for resale, for making other products

business product

5

where buyers want to expert only minimal effort

convenience product

6

item where buyers are willing to put lots of effort on planning and making purchase

shopping product

7

item that possesses uniqueness where buyers are willing to spend considerable purchasing effort

specialty product

8

product that is not actively sought out until a significant event occurs

unsought product

9

basic material that actually becomes part of a physical product

raw materials

10

large tools and machines used for production

major equipment

11

equipment used in a business' production or office activities

accessory equipment

12

item that becomes part of a physical item or a product and is a fixed item

component part

13

used directly in production of another product but not identifiable in the finished product. ex: glue

process material

14

facilitates production but doesn't become part of finished product. ex: paper, pencil

supply

15

intangible product that an organization uses in its operation

business service

16

- any product improvement that customers value over existing choices
- includes entirely new products or adaptations of existing products

innovation

17

Idea generation

1st phase of product development process

18

2nd phase of P.D. process. Screen ideas to select the best one

Product Analysis

19

3rd phase of P.D. process. Build prototypes of the product to test on a small scale

Development and testing

20

Final phase of P.D. Take all you've learned from previous phases and make final improvements before launching to the market

Commercialization

21

4 phases of Product Development Process

idea generation, product analysis, development and testing and commercialization

22

4 stages of Product Life Cycle

introduction stage, growth stage, maturity stage and decline stage

23

few competitors, sales low, profits low

introduction stage

24

customers begin to adopt product, sales and profits increase, competitors take notice and enter product category

growth stage

25

sales peak, profits decline as market becomes saturated and competitors lower prices

maturity stage

26

helps marketers maximize profitability of their products over time

product life cycle

27

collection of all the company's products

product mix

28

group of similar products that are related in how they work or their target audience

product line

29

Decisions about product mix changes may be based on: (4)

1. changes in customer preference
2. challenges from competitors
3. stage of product life cycle
4. simplify product mix

30

Benefits of grouping by product line: (3)

1. create clarity for consumers
2. better management of the company's product mix
3. simplify branding decisions