Professional Documents
Culture Documents
Starting Part 3
"Build a better mouse trap"
Product- a good, service, or idea
Product Layers
• A product represents everything a customer
receives and is described in three "layers":
○ Core
○ Actual
○ Augmented
Quiz Questions and
answers:
Marketing JMU - Ch 8
What To Study:
Product Layers Defined
• Core Product: layer of basic benefits. For
example, a car provides transportation, and
possibly fun and image enhancement.
• Actual product: the good, service, or idea that
is delivered to the consumer. Includes direct
attributes. For a car: mileage, color, style,
accessories, etc.
• Augmented Product: the additional features and
benefits that are associated with the product.
In the car example, warranty, customer service,
financing, etc.
Terms
• Durable Goods- Consumed over relatively long
periods of time (months or decades)
• Nondurable "goods"- Consumed relatively quickly
and can include experiences (which is a service)
Decisions
From Chapter 6
tant decision)
low-cost product)
to environmental cues
ignage, or displays)
Perceived risk High Low
(expensive, complex (Simple,
product)
Information Careful processing Respond t
Processing information (Store si
(Search advertising,
magazines, car dealers, web
sites)
Learning Model Cognitive learning Behaviora
(Use insight and creativity (ad shows
to use information found in setting,
environment)
Needed Marketing Provide information via Provide e
Actions advertising, salespeople, of-purcha
brochures, Web Sites.
Educate consumers to
product benefits, risk of
wrong decisions, etc.
B2B Purchasing
• Marketers classify B2B products based on how
organizations use them.
• Knowledge of customer product use enables
marketers to:
○ Improve product designs.
○ Craft an appropriate marketing mix (usually
utilitarian value)
low-cost product)
to environmental cues
ignage, or displays)
al learning
s product in beautiful
creating positive attitude)
Consumer Notes
vence products to be low
idely available.
to compare alternatives
buy.
blem-solving and consumers
oyal.
od deal of advertising or
ling to interest buyers.
organizations use them.
• Knowledge of customer product use enables
marketers to:
○ Improve product designs.
○ Craft an appropriate marketing mix (usually
utilitarian value)
ly quickly. E-commerce
Example
• After clicking the Dash button, Amazon
automatically sends this notice and 30 minutes
later fulfills this order and emails you a
receipt.
• You can't accidentally order 100 (or 2) items as
Amazon won't allow new order until the first
order is delivered (you can change this.
Inventory Categories
Notes H
A
common form. Can suffer from R
koffs" where design changes D
arder to legally protect. E
R
res a modest amount of
ing for consumers to use. T
Continuous Modification to an Squeeze Ketchup Most c
innovation existing product bottle "knock
are ha
Dynamically Pronounced iPhone Requir
continuous modification to an learni
innovation existing product Includ
produc
Discontinuous Product creates Telephone, car, Rare.
innovation major change in the airplane, great
way people live personal effect
computer
Convergence
Convergence is the blending of two+ "technologies"
to create a new system. One of the most active areas
today.
Innovation dimensions
Costumer Asks
lture, social]
Trial- Is this easy/cheap to buy?
abliliy
Phase 2 & 3
2: Concept Screening
3: Strategy
Phase 4 & 5
4: Analysis
5: Development
Phase 6 & 7
6: Test Marketing
7: Commercialization
Product development:QDF
• An alternative process to what is shown in the
book is "Quality function Development" (QFD)
• QFD is an approach to identifying costumer needs
and translating those to an implemented product.
Business Action
Market Level
Market Level
Adoption Process
• Consumers go through stages to adoption
• Awareness must be present first
• Then the consumer will try the product
• Finally, if satisfied, the consumer will
purchase again.
• The boxes in this diagram show how you can
affect each stage
Adoption- actions
• Confirmation:
○ Reinforce the customer's choice through
advertising, sales promotion, and other
communications
• Adoption:
○ Make the product available.
○ Provide product use information
• Trail:
○ Demonstrations, samples, trail-size packages
• Evaluation:
○ Provide information to customers about how
the product can benefit them
• Interest:
○ May use teaser advertising
• Awareness:
○ Massive advertising
Diffusion Cycle
• Each stage of diffusion requires different
actions from the marketers. Here, we're mostly
concerned with innovators and early adopters.
Without these, the product will fail.