C HAPTER. DEVELOPING NEW PRODUCTS AND SERVICES. Product Item. A specific version of an organization’s products. Product Line. A group of closely-related product items. Product Mix. All products that an organization sells. Product Items, Lines, and Mixes. (SKU).
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DEVELOPING NEW PRODUCTS AND SERVICES
A specific version of an organization’s products.
A group of closely-related product items.
All products that an organization sells.
Product Items, Lines, and Mixes
Each has a unique number and bar code
Services that cannot be touched, seen, tasted, heard, or felt in the same manner as goods.
A characteristic of services that allows them to be produced and consumed simultaneously.
A characteristic of services that makes them less standardized and uniform than goods.
A characteristics of services that prevents them from being stored, warehoused, or inventoried.
like stock out costs and holding costs for goods
THE VARIATIONS OF PRODUCTS
Can be reduced by using commission and part time workers
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
A particular item that consumers
search extensively for and are reluctant to accept substitutes.
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
CLASSIFYING GOODS AND SERVICES
FIGURE 10-DWhat it takes to launch one commercially successful new product
Screening and Evaluation
The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason.
Considerations in Business Analysis Stage
THE NEW-PRODUCT PROCESS-
The limited introduction of a product
and a marketing program to determine
the reactions of potential customers
in a market situation.
Six important U.S. test markets “demographics winner”: Wichita Falls, Texas, metropolitan statistical area
THE NEW-PRODUCT PROCESS-
Most expensive stage
A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.
A product line is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.
The product mix is the number of product lines offered by a company.
Consumer goods are products purchased by the ultimate consumer.
Business goods are products that assist directly or indirectly in providing products for resale. Also called as B2B goods, industrial goods, or organizational goods.
Services are intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value.
Idle production capacity occurs when the service provider is available but there is no demand.
The new-product process consists of seven stages a firm goes through to identify business opportunities and convert them to a salable good or service.