BU362 Chapter 8: Chapter 8 Marketing
Document Summary
This chapter will define the first p in the marketing mix: product (specifically new products) and how firms add value through product innovation. Product strategies are essential to create value for the consumer. Product: is anything of value to a consumer and can be offered through a marketing exchange: products can be goods, services, places, ideas, communities or organizations. Industries that rely on fashion trends have short product lifecycles. The speed in which the products will be adopted. Compatibility: a diffusion process may be faster or slower depending on various consumer features. Licensing: firms buy the rights to use the technology or ideas from other research intensive firms through a licensing agreement, saves in house costs of r&d. Outsourcing: turn to outside firms such as ideo, offers stellar service that helps clients generate new product and service ideas. Ideo employs anthropologists, graphic designers, engineers and psychologists who help foster creativity and innovation.
