MKT 100 Lecture Notes - Fabric Softener, Banana Republic, Product Classification

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Francescucci

Document Summary

Helps manage risk through diversity (problem with one product, fallback with second) Product adoption cycle: innovators: risk-takers, not price sensitive. Early majority: wait for reviews, price drops late majority: risk averse, skeptical (market potential) lagers: avoid change, prefer old products (sales have fallen) Adoption: relative advantage and compatibility: fits with customer lifestyle. Observability: easy to observe and customers see potential benefits complexity/trainability: ease of use, simple. How firms develop new products: idea generation concept testing. Sources of product innovation: customer feedback competitors supplier innovation innovation in foreign markers research and development. Existing industrial products improving on competitors" innovations simplification of existing products. Product life-cycle: introduction: sales start off slow (profits here are often negative due to start-up) Growth: sales are rising and so do profits (competitors entering in market) Product classification: tangibility: non-durable goods: few uses and require another purchase, durable goods: one time purchase intangible: services.