LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
Recognize the various terms that pertain to products and services.
Identify the ways in which consumer and business products can be classified.
Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 10-3LO 10-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:LO 10-1Recognize the various terms that pertain to products and services.Identify the ways in which consumer and business products can be classified.Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved.10-*LO 10-5LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:LO 10-4Explain the purposes of each step of the new-product process.Describe the factors contributing to the success or failure of a new product or service.10-*APPLE: THE WORLD-CLASSNEW-PRODUCT MACHINE10-*APPLE: THE WORLD-CLASSNEW-PRODUCT MACHINEApple’s Innovation MachineiCloud: Where the Digital Lifestyle is Heading10-*WHAT ARE PRODUCTS AND SERVICES?A LOOK AT GOODS, SERVICES, AND IDEASLO 10-1GoodsServicesNondurableGoodsDurableGoodsProductsIdeas10-*WHAT ARE PRODUCTS AND SERVICES?CLASSIFYING PRODUCTSLO 10-2Consumer ProductsConvenience ProductsShopping ProductsSpecialty ProductsUnsought Products10-*FIGURE 10-1 How a consumer product is classified affects which products consumers buy and the marketing strategies used10-*WHAT ARE PRODUCTS AND SERVICES?CLASSIFYING PRODUCTSLO 10-2Business ProductsComponentsSupport ProductsDerived DemandSuppliesIndustrialServicesInstallationsAccessoryEquipment10-*WHAT ARE PRODUCTS AND SERVICES?CLASSIFYING SERVICESLO 10-2Delivery by People or EquipmentDelivery by Business Firms or Nonprofit OrganizationsDelivery by Government Agencies10-*WHAT ARE PRODUCTS AND SERVICES?PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXESLO 10-2Product ClassProduct Form10-*WHAT ARE PRODUCTS AND SERVICES?PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXESLO 10-2Product ItemProduct LineProduct MixStock Keeping Unit (SKU)10-*Crapola Granola What is its product class, form, item, line, and/or mix?LO 10-2CrapolaVideo10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHAT IS A NEW PRODUCT?LO 10-3Newness: Compared to Existing Products10-*MARKETING MATTERSFeature Bloat: Geek Squad To The Rescue!LO 10-310-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHAT IS A NEW PRODUCT?LO 10-3Newness: The Consumer’s PerspectiveContinuous InnovationDynamically Continuous InnovationDiscontinuous InnovationNewness in Legal Terms10-*FIGURE 10-2 The degree of “newness” in a new product affects the amount of learning effort consumers exert to use the product10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHAT IS A NEW PRODUCT?LO 10-3Newness: The Organization’s PerspectiveProduct Line ExtensionJump in Innovation10-*Purina (Fancy Feast) Elegant Medleys What are the benefits and dangers ofproduct line extensions?LO 10-310-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHAT IS A NEW PRODUCT?LO 10-3Newness: The Organization’s PerspectiveBrand ExtensionRadical Innovation10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHY PRODUCTS AND SERVICES SUCCEED OR FAILLO 10-4ProtocolFIGURE 10-A What it Takes to Launch a Commercially Successful New Product10-*FIGURE 10-B What separates new-product winners and losers10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHY PRODUCTS AND SERVICES SUCCEED OR FAILLO 10-4Marketing Reasons for New-Product FailuresInsignificant Point of DifferenceIncomplete Market and Product ProtocolBefore Product Development StartsNot Satisfying Customer Needs onCritical FactorsBad Timing10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHY PRODUCTS AND SERVICES SUCCEED OR FAILLO 10-4Marketing Reasons for New-Product FailuresPoor Execution of the Marketing MixNo Economical Access to BuyersPoor Product QualityToo Little Market Attractiveness10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHY PRODUCTS AND SERVICES SUCCEED OR FAILLO 10-4Organizational Reasons for New-Product FailuresAvoiding the “NIH” ProblemToo Little Market AttractivenessEncountering “Groupthink” in Task Forceand Committee Meetings10-*NEW PRODUCTS AND WHY THEYSUCCEED OR FAILWHY PRODUCTS AND SERVICES SUCCEED OR FAILLO 10-4Other Organizational Reasons for New-Product FailuresMarketing a Product too QuicklyNot Listening to the “Voice” of ConsumersSkipping New-Product Process StagesNot Learning from Past Failures10-*Fingo’s and Avert Why did these products fail?LO 10-410-*U.S. Auto Makers and Zune Why did these products fail?LO 10-410-*Thirsty Dog/Thirsty Cat and Garlic CakeWhy did these products fail?LO 10-410-*Monster in My Room and Life SaverWhy did these products fail?LO 10-410-*USING MARKETING DASHBOARDSWhich States are Underperforming?LO 10-4Annual Percent Change in Unit Volume by State> 10%0 to 10%< 0%Change in Growth10-*FIGURE 10-3 Seven stages in the new-product process leading to success10-*THE NEW-PRODUCT PROCESSSTAGE 1: NEW-PRODUCT STRATEGY DEVELOPMENTLO 10-5New-Product ProcessSWOT Analysis/Scanning ConductedNew-Product Strategy DevelopmentProtocol/Strategic Role DefinedDisruptive Innovation Can OccurStage Gate ProcessService Development Difficult10-*FIGURE 10-C Strategic roles of most successful new products10-*THE NEW-PRODUCT PROCESSSTAGE 2: IDEA GENERATIONLO 10-5Employee andCo-WorkerSuggestionsIdea GenerationOpen InnovationFordFusionAdCustomer andSupplierSuggestionsTidePods AdCrowdsourcing10-*THE NEW-PRODUCT PROCESSSTAGE 2: IDEA GENERATIONLO 10-5Research and Development LaboratoriesOutside Labs: IDEOIndustrial Design10-*THE NEW-PRODUCT PROCESSSTAGE 2: IDEA GENERATIONLO 10-5Competitive ProductsCrowdfunding:PebbleSmartwatchSmaller Firms, Universities, and Inventors10-*THE NEW-PRODUCT PROCESSSTAGE 3: SCREENING AND EVALUATIONLO 10-5Screening and EvaluationExternal ApproachInternal ApproachConcept TestsCustomer Experience Management (CEM)10-*THE NEW-PRODUCT PROCESSSTAGE 4: BUSINESS ANALYSISLO 10-5Business AnalysisCapacity ManagementPrototypeBusiness FitOff-Peak Pricing10-*THE NEW-PRODUCT PROCESSSTAGE 5: DEVELOPMENTLO 10-5Service EncountersEx: Google Driverless CarDevelopment10-*MARKETING MATTERSNetflix’s Wild Roller-Coaster RideLO 10-510-*THE NEW-PRODUCT PROCESSSTAGE 6: MARKET TESTINGLO 10-5Market TestingSimulated Test Markets (STMs)Test MarketingWhen Test Markets Don’t WorkStandard Test MarketsControlled Test Markets10-*THE NEW-PRODUCT PROCESSSTAGE 7: COMMERCIALIZATIONLO 10-5CommercializationBurger King French Fries:The Complexity ofCommercializationThe Boeing 787Dreamliner Experience10-*THE NEW-PRODUCT PROCESSSTAGE 7: COMMERCIALIZATIONLO 10-5Speed as a Factor in New-Product SuccessThe Risks withGrocery ProductsSlotting FeeFailure FeeTime to Market (TtM)Parallel DevelopmentFast Prototyping10-*X-1: BREAKING THE BARRIERS OF SOUND WITH NEW-PRODUCT DEVELOPMENTVIDEO CASE 1010-*