1. DEVELOPING NEW PRODUCTS AND SERVICES CHAPTER
Slide 10-2

2. What are the core, actual, and augmented product benefits of the Converse Chuck?

3. The core benefit— success on the basketball court like Magic Johnson, Dr. J, Kareem Abdul Jabbar, and Larry Johnson.
Actual product, features, and design– Rubber covered toes; canvas tops; high tops; Highly identifiable shoe.
Packaging—shoe boxes that continue the color theme. Quality —not as good as the shoes from Nike, Reebok.
Brand Name—well-known brand due to long history, being the first major basketball shoe and associations with famous players.
Augmented Product: Warranty—little to none. Delivery and credit—function of where sold, but as market share declined, it became harder and harder to find Chucks. After-sales service and installation are not major concerns here.

4. Products Services Goods Ideas
WHAT ARE PRODUCTS AND SERVICES? A LOOK AT GOODS, SERVICES, AND IDEAS
Products
Services
Goods
Nondurable Goods
Ideas
Durable Goods
9-4

5. Product Item Product Line Product Mix
WHAT ARE PRODUCTS AND SERVICES? PRODUCT ITEMS, LINES, MIXES, CLASSES AND FORMS
Product Item
Stock Keeping Unit (SKU)
Product Line
Product Mix
9-5

6. Product Class Product Form
WHAT ARE PRODUCTS AND SERVICES? PRODUCT ITEMS, LINES, MIXES, CLASSES AND FORMS
Product Class
Product Form
9-6

7. THE VARIATIONS OF PRODUCTS
The Uniqueness of Services
Intangibility
Inconsistency
Inseparability
Inventory
Idle Production Capacity
Slide 10-14

8. Types of Consumer Products
Frequent purchases bought with minimal buying effort and little comparison shopping
Low price
Widespread distribution
Mass promotion by producer
Types of Consumer Products
Convenience
Shopping
Specialty
Unsought

9. Types of Consumer Products
Less frequent purchases
More shopping effort for comparisons
Higher than convenience good pricing
Selective distribution in fewer outlets
Advertising and personal selling
Types of Consumer Products
Convenience
Shopping
Specialty
Unsought

10. Types of Consumer Products
Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity
High price
Exclusive distribution
Carefully targeted promotions
Convenience
Shopping
Specialty
Unsought

11. Types of Consumer Products
Little product awareness and knowledge (or if aware, sometimes negative interest)
Pricing varies
Distribution varies
Aggressive advertising and personal selling by producers and resellers
Types of Consumer Products
Convenience
Shopping
Specialty
Unsought

12. Newness: The Consumer’s Perspective
NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT?
Newness: The Consumer’s Perspective
Continuous Innovation
Dynamically Continuous Innovation
Discontinuous Innovation
Newness in Legal Terms
9-12

13. Product “newness,” as defined by the degree of consumer learning needed to use the product
Slide 10-29

14. NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL
Insignificant Point of Difference
Incomplete Market and Product Definition Before Product Development Starts
Too Little Market Attractiveness
Poor Execution of the Marketing Mix
Poor Product Quality or Insensitivity to Customer Needs on Critical Factors
Bad Timing
No Economic Access to Buyers
Slide 10-30

15. On computers and chips:
“There is no reason anyone would want a computer in their home.”
–Ken Olson, President, Chairman and Founder of Digital Equipment Corp., 1977
“I think there is a world market for maybe five computers.” –Thomas Watson, Chairman of IBM, 1943.

16. Stages in the new-product process
Slide 10-42

17. Product
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.
Slide 10-92

18. Consumer goods are products purchased by the ultimate consumer.
Slide 10-95

19. Business Goods
Business goods are products that assist directly or indirectly in providing products for resale.
Slide 10-96

20. Idle Production Capacity
Idle production capacity is when the service provider is available but there is no demand.
Slide 10-97