Marketing Notes ch.8

multiple choice 100 Questions, scantron, midterm march 19
200 choices questions, no more than 50 will appears on the test.

Products-creating & managing products

fig 8.2
Core product?
underline basic functionality or value of that product or services
what is underline value of an ipod? store & play music or basically personal music
anything else related with core value are not core concepts
encompass w/ boombox, mini dvd players.. anything that store music and allow u to play it, its got the basic core value, very broad basic core value
because that what is what ppl really buying.

Actual product- encompassed the core product
ex. actuall product store and record music for personal consumption.
what made ipod so popular? 1 hand 1 finger, ez to operate, store, play, small.
features- size play weight control functionality, quality of sounds,
did it differ from sony walkman?
it didn't do anything diff from pior mp3 player, it just did better.
diff features along with the core princible.

Augmented Product - Ipod, think about apple. apple quality, images, services,
numerous location, warranty, discounting, personality.. all these augment the product
added to product, its not physical feature, tend to me emotional feature.
basically augmented feature are things intangible,

Competitive Analysis, start with core product, then differentiation. based on augmented features & the actual features. Ppl say they want a mp3 player, then all the features based on augmented.

Most consumer looks beyond better mouse trap.
built better mouse trap, the market will beat it to u, only go so far

MOUSE TRAP!!
poison bait - most effective mouse trap
most ppl do not like poison bait, even thought its most efficient and least cost means.

-Product Testing, Why?
got an idea, made a basic product, test it.
mechanical test, usage test,
Marketing is about Controlling Perception
product testing is what we telling people is what it is. walk the talk.
ex. Mc Donnald, no1 think its a product of quality
Marketer classified products on how they purchased or used
one of the major classification is how long will it last? durable or non durable
durable 5-10,15 yrs, refrig, stove, oven, water heater, air conditioner
Power tools are not durable,

Category - How ppl search for product
Convienience, searh for, specialty, products, Unsought of product.
ex. Funeral services, surgery except cosmetic, Dental work, Insurance, lawyer
Internet - good way to sell unsought goods. Dentist, DUI, Funeral parlor.

Specialty product - specially unique to buyer, ex. hot sauces indian food. Sporting goods, salt water fishing gears.
Convenience product - buy regularly, common

Biz 2 Biz world.
parts needed, materials are diff from what u built in-house

3 TYPES OF INNOVATIVE PROCESS
continuous, dynamic, & dynamically innovation continuously.
Almost all Innovation are Continuous. We almost don't see it. ex. Laptop.
Dynamic- Noticeable change, u can see appearance, ex. Run Flat tire.
Discontinued dyanimc change. ex. Nuclear Power plan, Original Telephone

INNOVATION & CREATIVITY
every company wanted creative problems solver, "that's bullshit"
ppl who want to do things differently are ppl who are unhappy and disrupted and are not team players. ALL biz want team players. Really Creative = Unemployed. Tend to be entrepreneur. Great artist, scientist, inventors. Driven by certain dissatisfaction, which make them weird. 1-3 in scale of team players and creative.
very few 3-3
Specific telesys, exeptional rule. "In the Zoo"
Running a Biz and having creative ppl is 2 diff things.
Cannot have both.
Creativity vs Team Player.
Successful on first product, fail miserable on the following product
due to lack of touch to market, become manager. Maintain market innovation but lack keeping up the business. "Bean counter" to handle business.

New Product Processes--
the model that company used to market new product. ex. Procter & gamble models.
Setup matrix - what u wanted in the new product. low entrance fee, high returns..etc defined characteristic. Criteria for evaluation. sit down & evaluating those Ideas.
define core benefit, augmented, actual product, develop a mark up.
next - Engineering and manufacturing product developing, analysis, based on analysis it is a go or no go Idea. Then Test Market. go/nogo => commercialization
A process will result about 80% success rate when a product introduced.

The Other Approach - OVER THE WALL approach. *throw over the wall and hope it work*
quick cheap, may maybe have 25% to reach customer.

Exploratory Approach - diff from other two, develop product -> take product then selectively test it, listen to output from listener. Then Adapt the product and changed immediately.

Adoption pyramid, fig 8.3
Stage of consuming adoptiong. almost identical to consumer process.

Diffusion of Innovation grouping.--
INNOVATOR broke into 2 category > bloody edge or Cutting edge.
Bloody Edge - technology innovator, if new and might work, u'll take the chance. take risk. Have something no one have. PPL wait in lines for new products
Cutting Edge - ppl who said once I believe it likely to work, I am willing to take my risk. still high risk group, still want to know some possibility for returns.

Early adopter, ppl who looking to be leader, they look at company, product life cycle. Willing to take the risk to buy it for early advantage.

Early Majority, ppl looking at this as low risk purchases, I am willing to pay a little bit more for the benefits.

Late Majority, Not willing to take the risk but willing to take the product.

Lagger, Its not about risk, its about cost. If u can sell it to me cheap and improved product, i'll buy it. The last generation of laptop. Lagger is the person you dump your old products. They're the ppl you planed all along to dump u'r products. know who and when at what price when needed. W/ strategy. Ex. Outlet store, sells to lagger.

Factors effect Relative advantage. user perceive advantage of product.
Compatibility, -> lower the cost of adoption.
Complexity, -> the less learning the faster it get adopt.
try-ability -> can you try the product before use it
Observability -> can you identify benefits from other ppl use? some1 use gasoline additive.

Perceptions, Values, Needs, Risks -> terms that are inherent to marketing @ business.
Adoption, rate, product life cycle, benefits using research.