McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc All Rights Reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO1 Recognize the various terms that pertain to products and services Identify the ways in which consumer and business goods can be LO2 classified LO3 Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved 10-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO4 Describe the factors contributing to a new product’s or service’s success or failure LO5 Explain the purposes of each step of the new-product process 10-3 NEW PRODUCT REVOLUTIONS: APPLE AND ITS INNOVATION MACHINE 10-4 NEW PRODUCT REVOLUTIONS: APPLE AND ITS INNOVATION MACHINE Apple’s Innovation Machine How the iPhone Came About What the iPhone Can Do 10-5 THE VARIATION OF PRODUCTS LO1 PRODUCT, PRODUCT LINE, AND PRODUCT MIX Product Product Line • Product Item • Stock Keeping Unit (SKU) Product Mix 10-6 3M’S NEW GREPTILE GRIP GOLF GLOVE: HOW TO GET TO THE TOP OF THE LEADER BOARD • The Product? • The Target Market? • The Special Marketing Task? Slide 10-5 THE VARIATIONS OF PRODUCTS • Product • Product Line and Product Mix Product Line • Product Item • Stock Keeping Unit (SKU) Product Mix Slide 10-6 PRODUCT Any physical good, service, or idea that satisfies a want or need; plus anything that would enhance the product in the eyes of the consumers, such as the brand PRODUCT LINE & PRODUCT MIX ●Product Line ●Group of products that are physically similar or are intended for a similar market Specialty Goods Specialty goods are items that a consumer makes a special effort to search out and buy 10-99 Unsought Goods Unsought goods are items that the consumer either does not know about or knows about but does not initially want 10-100 Production Goods Production goods are items used in the manufacturing process that become part of the final product 10-101 Support Goods Support goods are items used to assist in producing other goods and services 10-102 Protocol A protocol is a statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and 10-103 New-Product Process The new-product process consists of the stages a firm goes through to identify business opportunities and convert them to a salable good or service 10-104 New-Product Strategy Development New-product strategy development is the stage of the new-product process that defines the role for a new product in terms of the firm’s overall corporate objectives 10-105 Idea Generation Idea generation is the stage of the new-product process that involves developing a pool of concepts as candidates for new products 10-106 Screening and Evaluation Screening and evaluation is the stage of the new-product process that involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort 10-107 Business Analysis Business analysis is the stage of the new-product process that involves specifying the product features and marketing strategy and making necessary financial projections needed to commercialize a product 10-108 Development Development is the stage of the new-product process that involves turning the idea on paper into a prototype 10-109 Market Testing Market testing is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy 10-110 Commercialization Commercialization is the stage of the new-product process that involves positioning and launching a new product in full-scale production and sales 10-111 Slotting Fee A slotting fee is a payment a manufacturer makes to place a new item on a retailer’s shelf 10-112 Failure Fee A failure fee is a penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make 10-113 ... Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved 10-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE... OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO1 Recognize the various terms that pertain to products and services Identify the ways in which consumer and business goods can be... contributing to a new product’s or service’s success or failure LO5 Explain the purposes of each step of the new- product process 10-3 NEW PRODUCT REVOLUTIONS: APPLE AND ITS INNOVATION MACHINE 10-4 NEW PRODUCT