16 Questions
What is the main reason for purchasing a product according to the text?
The benefit that a consumer can gain from using the product
How do services differ from products as mentioned in the text?
Products are tangible, while services are intangible and directly delivered to customers
What do industrial goods refer to based on the information provided?
Goods used in the creation of a new product which will be sold to others
What is the process of conceptualization and creation of innovative products called as per the text?
Idea generation
What are consumer goods based on the information provided?
Products and services purchased by customers for their own use
What does the augmented product level refer to according to the text?
Service-based add-ons that customers are entitled to upon purchasing the product
What is the purpose of test marketing in the new product development process?
To test the marketability with a specific group of customers in a specific location
What is the next step after idea screening in the new product development process?
Market and business planning
What is involved in the concept development and screening stage in the new product development process?
Carefully scrutinizing ideas to retain only those with potential for successful sales performance
What is a product line according to the provided text?
A group of similar products offered by the same company under the same brand
What is the stage when the product is launched in the market called?
Introduction
What is the purpose of commercialization in the new product development process?
To make the final decision on launching the product
What occurs during the growth stage in the new product development process?
The product gains acceptance in the market and company profits start to increase
What does idea screening involve in the new product development process?
Carefully scrutinizing ideas to retain only those with potential for successful sales performance
Which step involves expanding and testing the concept of a new product with a group of customers?
Concept development and screening
What does market and business planning involve in the new product development process?
Identifying target market, characterizing it, planning profit objectives, and identifying 4Ps components
Study Notes
Product and Services
- The main reason for purchasing a product is to satisfy a need or want.
Products vs Services
- Services differ from products in that they are intangible, perishable, and cannot be stored or transported.
Product Classification
- Industrial goods refer to products used for business or industrial purposes, such as machinery, equipment, and raw materials.
New Product Development Process
- The process of conceptualization and creation of innovative products is called innovation.
- The new product development process involves several stages, including:
Idea Generation and Screening
- Idea screening involves evaluating and selecting promising ideas from a pool of potential ideas.
Concept Development and Screening
- Concept development and screening involve refining and evaluating product concepts to determine their feasibility and potential.
Product Testing and Validation
- Test marketing aims to test the product with a small group of customers to gather feedback and refine the product.
Product Launch and Commercialization
- The next step after idea screening is concept development and screening.
- The stage when the product is launched in the market is called commercialization.
- Commercialization involves the launch and promotion of the product to the target market.
Product Life Cycle
- During the growth stage, the product gains popularity, and sales increase rapidly.
Additional Stages
- Business analysis involves evaluating the feasibility and profitability of a product idea.
- Market and business planning involve creating a detailed plan for the product's launch and marketing strategy.
- Concept testing involves expanding and testing the concept of a new product with a group of customers.
Test your knowledge of the differences between products and services, and the concept of core product in marketing. Explore how companies deliver intangible services to satisfy customers' needs and wants.
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