BU352 Chapter Notes - Chapter 8: Ipad, Test Market, Marketing Mix
Document Summary
Product: anything that is of value to a consumer and can be offered through a marketing exchange. Ex. good, service, place, idea, organization, people or communities. Lo1: identify the reasons firms create new products. Changing customer needs: satisfying the changing needs of their current and new customers or simply keeping customers from getting bored with the current product/ service, ex- dove beauty bar: extended the brand into hair, face and skin care. Managing risk through diversity: firms often crate a broader portfolio of products which help them diversify their risk and enhance firm value better than a single product can, ex- special k: offers many variations of special k products. In industries that rely on fashion trends and experience short product life cycles- including apparel, arts, books and software- most sales come from new products: ex- movie generates most of its revenues in one year of release.
