MKT300 Exam 2 Notes.docx

Test Two Material: Chapters 9, 11, 12, 13, 14, 151. Product Life Cycle Chart2. Price Discrimination- definition/understanding3. Differences between a service and a good4. Elasticity of Demand- calculate and understand5. The Adoption Pyramid- Inform all the way to commit 6.Break-even point in pricing- how to calculate 7. Branding- value, extension, licensing, etc.8. Know how to draw supply and demand for a normal product9. Types of Innovation10. The Marketing Process- STPSegment TargetPosition 11.Pricing Strategies and tactics along with examples know what it is and give an example12. Layers of a Product

The Advent of Target Marketing Late 1800s and Early 1900s- The best way to make money was to sell everything to everyone Macys Dry Goods Store Lord and Taylor Marshall Fields Generals Stores become department stores General Electric General Motors General Motors Late 1900s- 2000s- Need for marketing to certain segments emerges Department stores consolidating, filing for bankruptcy protection ESPN CNN Starbucks

Target Marketing Strategy Market Fragmentation The creation of many consumer groups due to the diversity of their needs and wantsYour first cousin, an Auburn graduate, has woken up after playing beer pong and we will play everything for everyone (hip hop, news, violin, talk). How would you explain to her that this is not a good idea? The market is fragmented and you cant appeal with one station to everyone. In order to make a profit you must target one segment and position yourself to appeal to that segment by playing everything. Target Marketing StrategyDividing the total market into different segments based on customer characteristics, selecting one or more segments, and developing products to meet those segments needs

Segmenting, Targeting, Positioning Process

http://highered.mcgraw-hill.com/sites/dl/premium/007745099x/student/gre28833_1001.jpg

Segmentation Step 1- Strategy or ObjectivesEstablish overall strategy or objectives Develop strategy based on mission and current state Step 2- Segmentation MethodsWays to Segment the Market

Geographic- continent, region, etc. Demographic - age, gender, incomeMost common why to segment the market Generational Marketing is an example of Demographic Segmentation The Greatest Generation Born before 1946 Major Events: Great Depression/ WWII Baby Boomers Born between 1946 and 1964 Result of soldiers coming home Generation X Born between 1965- 1976 Teenagers around the time of technological growth and began using technology in their daily life Generation Y Born between 1977- 1994

Psychographic - lifestyle, self concept, self-values

Geodemographic - urban, established, town-houses Benefits - convenience, economy, prestige Behavioral - occasion, loyaltyExamples of Behavioral Segmentation: Occasional Segmentation (focusing on certain occasions- like weddings), Loyalty SegmentationPrice Elasticity- Measures by the demand curve, measures consumers sensitivityCheck Up: Commercial and residential real estate buyers respond differently to marketing communication messages in many markets. They represent different ______________. Market SegmentsIn Target Marketing what does STP stand for? Segmenting, Targeting and PositionThe first step in the STP process is to _________Clearly articulate the firms vision or marketing strategy objectives The most common segmentation method is ___________________ segmentationDemographic Delta airlines segments its markets by frequency of travel, an example of which segmentation method? BehavioralThe University of Alabama has student ticket packages, season-ticket packages, the Zone and sky boxes allowing it to use with segmentation method for football ticket sales? Benefits

Targeting Step 3- Evaluate Segment Attractiveness

A viable target segment should: have members with similar product needs/wants be measurable in size and purchasing power be large enough to be profitable be reachable by marketing communications have needs the marketer can adequately serve

For a Market Segment to be attractive it should:Be Identifiable Who is in the market? Know the ideal consumer Are the segments unique? Segment shouldnt be common Does each segment require a unique marketing mix? Be Substantial Too small and its insignificant and will not generate profits Too big an the segment is too spread out Be Reachable- reached (or accessed) through persuasive communications and product distribution Consumer should know that the product exists Consumer should understand what the product does Consumer should be able to reckognize how to buy it Be ResponsiveBe Profitable

Step 4- Select Target Market (Magazines are a great way to find out about market segments and how to target these segments and relate/position to these segments)Four Way to Target Market Segment1. Undifferentiated/ Mass MarketingBig BoxWalmart2. DifferentiatedAmheuris BushThree Squares3. Concentrated- Several Products all focused on one segmentTurbo Tax/ Quicken/ etc. 4. Micromarketing Progressive Customizable Insurance

Check Up: For products like pencils and paper clips, which provide the same benefit for all consumers, marketers should probably use an Undifferentiated Marketing StrategyFriendlys is a family-friendly resturant with an ice-cream parlor atmosphere, located in eastern US. Which segmentation does Friendlys use? Geographic, Demographic, Psychogenic

Exam 2: Thursday March 8th, 2012 Material Covered: 8-12

The Value PropostionProduct- Tangible good, service, or idea that satisifies customer needsTangible Good:I-PadService:BabysittingIdea:Voting for a Candidate

Complexity of Products/Layers of the Product Concept

Core Customer Value- All the benefits the product will provideCore Product- The need that the product satisfies Example: Need a Phone/ Communication/ Organization/ EntertainmentActual Product-Physical good or delivered service that supplies the desired benefits-Brand Name-Quality Level-Packaging-Features and DesignExample: The actual i-phoneAssociated Services- Actual product plus supporting features such as warrant, credit, delivery, installation, and repair after the service of the sale-Financing- Product Warranty-Product SupportAugmented Product is another name for the Associated Service

Layers of the Product ConceptAutomobile InsuranceCore Customer Value: Security, Peace of MindActual Product:Liablility, Collision, and Theft Auto CoverateAssociate Service/Augmented Product:Claims center, personal agent, roadside assitance, etc.

Product Categories1. ConsumerUsed for Personal Use and ConsumptionDurable GoodsProvide benefits over a period of months, years, decadesexamples: automobile, printerNondurable GoodsGoods that are consumed in the short termexamples: gas/oil, price cartariagesTypes of Consumer Products (Grouped by level of involvement in buying) Speciality- Products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers. Road bike enthusiasts, like those interested in the Trek Madone 6 Series, will devote lots of time and effort to selecting just the right one. Other examples might include luxury cars, legal or medical professionals, or designer apparel. Shopping- Products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives. When people need new sneakers, for instance, they will go from store to store shoppingtrying shoes on, comparing alternatives, and chatting with salespeople. Convenience-Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase. They are frequently purchased commodity items, usually purchased with very little thought, such as common beverages, bread, or soap. Unsought-Products consumers either do not normally think of buying or do not know about. Because of their very nature, these products require lots of marketing effort and various forms of promotion. When new-to-the-world products, like GPS systems, are first introduced, they often represent unsought products2. BusinessUsed to Advance the Mission of the Business Classified by where they show up on the financial statement ex. operating expenses, inventory, fixed assets, etc.

Check Up: Entertainment and escapism offered by movies are examples of the ____________ product.CoreThe _______________ for a guest paying for a nights stay at a hotel is a bed, bathroom, towes, dresser, light and closet.ActualWhich of the following types of products are most likely to purchases under low-involvement conditions?Convenience Goods When the washing machine finally broke down, Tom was looking for what kind of item?Unsought Product, Durable Good, Shopping Product (all three)DVD players would be considered a non-durable good, because technology changes very rapidly.FalseMarketign reaserach would be classifed as a ___________Specialized Services

Types of Individual Product Expansion

Types of Product Line Extensionsproduct lines Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.Stretch- Adding new items to the product lineUpward Stretch-Going to a luxury product (Honda Acrua)Downward Stretch- Going to a budget product(Honda Smart Car)Two Way Stretch-Going to luxury and Budget(Acura Honda Smart Car)Filling- Adding Sizes or StylesContracting a Product Line- Dropping Items

Change Product Mix Breadthbreadth Number of product lines offered by a firm; also known as variety.Increase BreadthAdd Product LinesAdd to Stars and Questions MarksReduce BreadthReduce Product LinesGet rid of dogs and question marks

Formula for adding a dose of quality to the marketing mix:Value= Quality/PriceThe value of the good increases as the price of the good decreases while the quality remains constant The value of the good increases as the quality of the good increases while the price reamins constant Your uncle from Auburn went into the infinity dealer and after looking at the cars said theres no value in these cars, how would you respond to your uncle?He is thinking in price only, but value is in terms of the quality divided by the piceProduct QualityOverall ability of the product to provide the benefits the customers want Level of quality Consistency of QualityQuality is the composite of: Product Durability Degree of Pleasure that the Product Provides Product Relability Product Precision Product Versatility If the Product Satisfies Needs Product Ease of Use Product Safety Degree of Pleasure Product Provides

BrandingA Brand is a name, symbol, or any other unique element that identifies one firms product and sets it apart from the competition A Brand is a Composite of the Following: Brand Name Creates a Positive, memorable connotation Positions product by conveying an image or personality (Ford Mustang) or by describing how it works (Weed Eater) Logo Symbols Alabama Symbol URLs Google Characters Mickey Mouse Slogans Jingles Distinctive Packages

Value of Branding for the Customer and Marketer

The Importance of Branding Brand Equity: Creates Brand Awareness, provides competitive advantage Brands with strong brand equity capture and hold on to a larger share of the marekt Brands with strong equity sell at prices with higher profit margins Brand Extensions: Crest with Scope, Crest Kids, Crest Whitening New Products sold with the same brand name Must have a strong brand in order to use a brand expansion Tab v. Diet Coke- Coke introduce Tab as the first Diet Coke to avoid Brand Dillution Brand Dillution is the Concern with Brand Extension -refrain from extending the brand name ot too many products, is the brnad distanced enough from the core brandBrand LoyaltyNaming Brands and Product LinesCorporate or Family BrandThe GapCorporate and Product Line BrandsKellogs Corn FlakesIndividual LinesMr. Clean (Owned by Proctor and Gamble)Branding StrateigiesLicensing:One firms sells the right to another to use a legally protected brand name for a specific purpose and for a specific period of timeCo-branding: Two brands combine to create a new brand creating an overall higher brand recognition Ingreedient Branding: Saying you use oreos in your famous mud pie Packaging and LabelPackage: ADD DEFINITION Universal Product Code: ADD DEFINITION Most famous packaging in the world: Coke Bottle Designing Effective Packaging: Know for Exam Effective Packaging Considers: Use these and formulate the package so that it fits the image and the market segment you are targeting and then consider the cost 1. Packaging of brands in same category (similar)2. Choice of packaging material and imagine its projects3. The Environmental Impact4. The Image you are trying to convey5. Shape and Color influences on image6. Graphic Image to be portrayed Test Two Material:The Advent of Target Marketing Late 1800s and Early 1900s- The best way to make money was to sell everything to everyone Macys Dry Goods Store Lord and Taylor Marshall Fields Generals Stores become department stores General Electric General Motors General Motors Late 1900s- 2000s- Need for marketing to certain segments emerges Department stores consolidating, filing for bankruptcy protection ESPN CNN Starbucks

Target Marketing Strategy Market FragmentationThe creation of many consumer groups due to the diversity of their needs and wantsYour first cousin, an Auburn graduate, has woken up after playing beer pong and we will play everything for everyone (hip hop, news, violin, talk). How would you explain to her that this is not a good idea? The market is fragmented and you cant appeal with one station to everyone. In order to make a profit you must target one segment and position yourself to appeal to that segment by playing everything. Target Marketing StrategyDividing the total market into different segments based on customer characteristics, selecting one or more segments, and developing products to meet those segments needs

Segmenting, Targeting, Positioning Process

http://highered.mcgraw-hill.com/sites/dl/premium/007745099x/student/gre28833_1001.jpg

Segmentation Step 1- Strategy or ObjectivesEstablish overall strategy or objectivesDevelop strategy based on mission and current state Step 2- Segmentation MethodsWays to Segment the Market Geographic- continent, region, etc. Demographic - age, gender, incomeMost common why to segment the marketGenerational Marketing is an example of Demographic Segmentation The Greatest Generation Born before 1946 Major Events: Great Depression/ WWII Baby Boomers Born between 1946 and 1964 Result of soldiers coming home Generation X Born between 1965- 1976 Teenagers around the time of technological growth and began using technology in their daily life Generation Y Born between 1977- 1994 Psychographic - lifestyle, self concept, self-values Geodemographic - urban, established, town-houses Benefits - convenience, economy, prestige Behavioral - occasion, loyaltyExamples of Behavioral Segmentation: Occasional Segmentation (focusing on certain occasions- like weddings), Loyalty SegmentationPrice Elasticity- Measures by the demand curve, measures consumers sensitivityCheck Up:Commercial and residential real estate buyers respond differently to marketing communication messages in many markets. They represent different ______________.Market SegmentsIn Target Marketing what does STP stand for?Segmenting, Targeting and PositionThe first step in the STP process is to _________Clearly articulate the firms vision or marketing strategy objectivesThe most common segmentation method is ___________________ segmentationDemographicDelta airlines segments its markets by frequency of travel, an example of which segmentation method?BehavioralThe University of Alabama has student ticket packages, season-ticket packages, the Zone and sky boxes allowing it to use with segmentation method for football ticket sales?Benefits

Targeting Step 3- Evaluate Segment Attractiveness

A viable target segment should: have members with similar product needs/wants be measurable in size and purchasing power be large enough to be profitable be reachable by marketing communications have needs the marketer can adequately serve

For a Market Segment to be attractive it should:Be Identifiable Who is in the market? Know the ideal consumer Are the segments unique? Segment shouldnt be common Does each segment require a unique marketing mix?Be Substantial Too small and its insignificant and will not generate profits Too big an the segment is too spread outBe Reachable- reached (or accessed) through persuasive communications and product distribution Consumer should know that the product exists Consumer should understand what the product does Consumer should be able to reckognize how to buy itBe ResponsiveBe Profitable Step 4- Select Target Market(Magazines are a great way to find out about market segments and how to target these segments and relate/position to these segments)Four Way to Target Market Segment1. Undifferentiated/ Mass MarketingBig BoxWalmart2. DifferentiatedAmheuris BushThree Squares3. Concentrated- Several Products all focused on one segmentTurbo Tax/ Quicken/ etc.4. MicromarketingProgressive Customizable Insurance

Check Up:For products like pencils and paper clips, which provide the same benefit for all consumers, marketers should probably use anUndifferentiated Marketing StrategyFriendlys is a family-friendly resturant with an ice-cream parlor atmosphere, located in eastern US. Which segmentation does Friendlys use?Geographic, Demographic, Psychogenic

Exam 2: Thursday March 8th, 2012 Material Covered: 8-12

The Value PropostionProduct- Tangible good, service, or idea that satisifies customer needsTangible Good:I-PadService:BabysittingIdea:Voting for a Candidate

Complexity of Products/Layers of the Product ConceptCore Customer Value- All the benefits the product will provideCore Product- The need that the product satisfiesExample: Need a Phone/ Communication/ Organization/ EntertainmentActual Product-Physical good or delivered service that supplies the desired benefits-Brand Name-Quality Level-Packaging-Features and DesignExample: The actual i-phoneAssociated Services- Actual product plus supporting features such as warrant, credit, delivery, installation, and repair after the service of the sale-Financing- Product Warranty-Product SupportAugmented Product is another name for the Associated Service

Layers of the Product ConceptAutomobile InsuranceCore Customer Value: Security, Peace of MindActual Product:Liablility, Collision, and Theft Auto CoverateAssociate Service/Augmented Product:Claims center, personal agent, roadside assitance, etc.

Product Categories1. ConsumerUsed for Personal Use and ConsumptionDurable GoodsProvide benefits over a period of months, years, decadesexamples: automobile, printerNondurable GoodsGoods that are consumed in the short termexamples: gas/oil, price cartariagesTypes of Consumer Products (Grouped by level of involvement in buying) Speciality-Products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers. Road bike enthusiasts, like those interested in the Trek Madone 6 Series, will devote lots of time and effort to selecting just the right one. Other examples might include luxury cars, legal or medical professionals, or designer apparel. Shopping- Products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives. When people need new sneakers, for instance, they will go from store to store shoppingtrying shoes on, comparing alternatives, and chatting with salespeople. Convenience-Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase. They are frequently purchased commodity items, usually purchased with very little thought, such as common beverages, bread, or soap. Unsought-Products consumers either do not normally think of buying or do not know about. Because of their very nature, these products require lots of marketing effort and various forms of promotion. When new-to-the-world products, like GPS systems, are first introduced, they often represent unsought products2. BusinessUsed to Advance the Mission of the BusinessClassified by where they show up on the financial statement ex. operating expenses, inventory, fixed assets, etc.

Check Up:Entertainment and escapism offered by movies are examples of the ____________ product.CoreThe _______________ for a guest paying for a nights stay at a hotel is a bed, bathroom, towes, dresser, light and closet.ActualWhich of the following types of products are most likely to purchases under low-involvement conditions?Convenience GoodsWhen the washing machine finally broke down, Tom was looking for what kind of item?Unsought Product, Durable Good, Shopping Product (all three)DVD players would be considered a non-durable good, because technology changes very rapidly.FalseMarketign reaserach would be classifed as a ___________Specialized Services

Types of Individual Product Expansion

Types of Product Line Extensionsproduct lines Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.Stretch- Adding new items to the product lineUpward Stretch-Going to a luxury product (Honda Acrua)Downward Stretch- Going to a budget product(Honda Smart Car)Two Way Stretch-Going to luxury and Budget(Acura Honda Smart Car)Filling- Adding Sizes or StylesContracting a Product Line- Dropping Items

Change Product Mix Breadthbreadth Number of product lines offered by a firm; also known as variety.Increase BreadthAdd Product LinesAdd to Stars and Questions MarksReduce BreadthReduce Product LinesGet rid of dogs and question marks

Formula for adding a dose of quality to the marketing mix:Value= Quality/PriceThe value of the good increases as the price of the good decreases while the quality remains constantThe value of the good increases as the quality of the good increases while the price reamins constantYour uncle from Auburn went into the infinity dealer and after looking at the cars said theres no value in these cars, how would you respond to your uncle?He is thinking in price only, but value is in terms of the quality divided by the piceProduct QualityOverall ability of the product to provide the benefits the customers want Level of quality Consistency of QualityQuality is the composite of: Product Durability Degree of Pleasure that the Product Provides Product Relability Product Precision Product Versatility If the Product Satisfies Needs Product Ease of Use Product Safety Degree of Pleasure Product Provides

BrandingA Brand is a name, symbol, or any other unique element that identifies one firms product and sets it apart from the competitionA Brand is a Composite of the Following: Brand Name Creates a Positive, memorable connotation Positions product by conveying an image or personality (Ford Mustang) or by describing how it works (Weed Eater) Logo Symbols Alabama Symbol URLs Google Characters Mickey Mouse Slogans Jingles Distinctive Packages

Value of Branding for the Customer and Marketer

The Importance of BrandingBrand Equity: Creates Brand Awareness, provides competitive advantage Brands with strong brand equity capture and hold on to a larger share of the marekt Brands with strong equity sell at prices with higher profit marginsBrand Extensions: Crest with Scope, Crest Kids, Crest Whitening New Products sold with the same brand name Must have a strong brand in order to use a brand expansion Tab v. Diet Coke- Coke introduce Tab as the first Diet Coke to avoid Brand DillutionBrand Dillution is the Concern with Brand Extension-refrain from extending the brand name ot too many products?-Is the brnad distanced enough from the core brand?Brand LoyaltyNaming Brands and Product LinesCorporate or Family BrandThe GapCorporate and Product Line BrandsKellogs Corn FlakesIndividual LinesMr. Clean (Owned by Proctor and Gamble)Branding StrateigiesLicensing:One firms sells the right to another to use a legally protected brand name for a specific purpose and for a specific period of timeCo-branding:Two brands combine to create a new brand creating an overall higher brand recognitionIngreedient Branding:Saying you use oreos in your famous mud piePackaging and LabelPackage: ADD DEFINITIONUniversal Product Code: ADD DEFINITIONMost famous packaging in the world: Coke BottleDesigning Effective Packaging: Know for ExamEffective Packaging Considers:Use these and formulate the package so that it fits the image and the market segment you are targeting and then consider the cost 1. Packaging of brands in same category (similar)2. Choice of packaging material and imagine its projects3. The Environmental Impact4. The Image you are trying to convey5. Shape and Color influences on image6. Graphic Image to be portrayedCheck Up:To legally protect their brand names, firms acquiretrademarksPrivate Label/Store Brands generally make less profits for retain stores than the national brands that retailers put on their shelvesFalseWhen Brinttney got a character from Disneys latest movie in a McDonalds happy meal, she knew Disney must have ____________ its brand to McDonaldslicensedThe primary considereation in developing a package desin for a new product is to minimize thecost of packaging materials usedFalse

Exam Review:Chapters 8-12Multiple Choice, True/False, Short AnswerKnow The STP, The Process, The StrategiesKnow Market Segmentation VariablesKnow and show understanding of Market Segmentation AttractivenessKnow Layers of Product, Product Life CycleKnow Value of Branding to Product (5 ways brands add value)Know Package Development ConsiderationsKnow Product Adoption Pyramid

Product Life CycleIntroductory Period- No profits becasue company is recovering R&d CostsGrowth Period: Profits increase and peak, Profit Margins Peak (Question Marks and Stars) Maturity:Sales Peak, Profit Margins LowDecline: Market Shrinks/Sales Fall (Cash Cows and Dogs)

Exam Review:Chapters 8-12Multiple Choice, True/False, Short AnswerKnow The STP, The Process, The StrategiesKnow Market Segmentation VariablesKnow and show understanding of Market Segmentation AttractivenessKnow Layers of Product, Product Life CycleKnow Value of Branding to Product (5 ways brands add value)Know Package Development ConsiderationsKnow Product Adoption Pyramid Product Life CycleIntroductory Period- No profits because company is recovering R&D CostsGrowth Period: Profits increase and peak, Profit Margins Peak (Question Marks and Stars) Maturity: Sales Peak, Profit Margins Low Decline: Market Shrinks/Sales Fall (Cash Cows and Dogs)Take note of the PLC and Marketing Matrix Marketing Mature ProductsMarketers NEED TO KEEP GIVING CONSUMERS NEW REASONS TO BUY PRODUCTS IN THE MATURE STAGEThis may be accomplished by finding new uses for an existing product, moving into a new market, or changing the products attributes Check Up:In which state of the product life cycle does a firm attempt to expand in as many outlets and countries as possible? Maturity The failure rate for products in the introduction of the product life cycle is insignificant? False, it is huge The Process of InnovationInnovation A PRODUCT THAT CUSTOMER PERIECES TO BE NEW AND DIFFERENT FROM EISTING PRODUCTTHE FEDERAL TRADE COMMISSIONS SAYS YOU CAN ONLY CALL A PRODUCT NEW FOR SIX MONTHS Continuous Innovation: A modification to an existing product Most common form of innovation Consumers dont need to learn anything few, change is minimal New flavors, new sizes, new colors are all types of continuous innovation Example: Telephone Old Version Rotary Style WirelessDynamically Continuous Innovation A pronounced modification to an existing product Requires a modest amount of learning or behavior change Convergence: The coming together of two or more technologies to create a new system with greater benefits to the userExample: Phonograph Record 8 Track Cassette CD I-PodDiscontinuous Innovation A completely new product Creates a major change in the way we life Consumers must engage in a great deal of new learning Example: Computer Desktop Computer Laptop Check Up:Legally the FTC says a product can only be called new for __? 6 Months When first introduced, the microwave oven would have been considered an innovation Dynamically ContinuousThe first phase of new product development is ___________________ Idea Generation Adoption and DiffusionProduct AdoptionProcess by which consumers begin to use a productDiffusionProcess by which the use of a product spreads throughout a populationTipping PointThe point where a products sales spike from a slow climb to new level

Diffusion of Innovation Time of Adoption of the Innovation Innovators 2.5% (Introduction Stage) Early Adopters 13. 5% (Introduction Stage) Early Majority 34% (___ Stage) Late Majority 34% Laggards 16% Check Up: Diffusion refers to ___________ How the use of a product spreads throughout a populationJoe does not like to buy a product without first touching, holding, or sampling the product. He finds the ___________________ stage of adoption critical to his purchase of a new product. Evaluation Marketers are least likely to spend time and effort marketing to __________ LaggardsInnovative technical products should be particularly concerned that _________ of products may hinder sales and growth Complexity How Firms Develop New Products: Idea Generation Development of viable new product ideas Look for Gaps through the Source of Ideas:- R&D Consortia- Internal R&D- Consumer Input- Competitors Products- Brainstorming- Licensing Concept Testing Testing the new product idea among a set of potential consumersProduct DevelopmentDevelopment of prototypes and/or the productMarket Testing Testing the actual products in a few test markets Product Launch blah Revaluation blah New Product Marketing Mix

Chapter 12:What is a Service?Services are acts, efforts, or performances exchanged from producer to user without ownership rightsServices Share Several Characteristics: Intangibility: Cant see, touch, or smell a service Perishability: Services cant be stored fro a later sale or consumption Variability: Service can vary as a result of people serving youInseparability: It is impossible to separate the production of a service from its consumptionMarketing Intangibles: Market so the service seems like a product because most offerings lie somewhere in the middle Fan Experience, TV Exposure, etc.