Summary chapter 10 and 11

The chapter number 10 is about product concepts, the author of the book
starts defining what is a product. A product everything, favorable or not favorable
that a person receives in exchange. This is the starting point in creating a
marketing mix. Products can be classified as either industrial or consumer in the
buyer’s intentions and another way they can be classified depending on hos much
effort it needs to buy it. The first classification is a convenience product: A relatively
inexpensive item that does not require a lot of effort to buy it for examples chewing
gums, sodas, car washes, etc. The next classification of a product is a shopping
one. A shopping product is a product that requires comparison shopping because it
is usually more expensive than a convenience product and is found in fewer stores
for example washers, dryers, refrigerators, etc. Another type is the specialty
product which is a product which costumer search extensively and are very
reluctant to accept substitutes. For example, a rolls Royce or the omega watchers.
And finally, there is the unsought product. A product that unknown to the potential
buyer for example an insurance or a burial plot.

The next section of the book is about product items, mixes and lines. A product
item is a specific version of a product that can be designated as a distinct offering
among the organization. An example given could orange Fanta of Coca cola. The
next concept is the product line. A product line is a group of product items that can
satisfy the same needs and wants, they have similar features. An example could
be all the sodas coca cola has. And lastly there is the product mix, Product mix of a
company is made of all product lines and items. It includes the total number of
varieties or models offered by the company. An example could be the all the
products of the coca cola company including juices, milk, etc.
The chapter number 11 talks about the developing and management of new
products. It says that products are important to sustain growth and increase
revenues and profits; For that reason, it is important to introduce new products to
the market. For this, there is a procedure that helps to make this process easier.
The steps are the next ones:

1. The new product strategy: It sharpens the focus and provides general
guidelines for generating screening
2. Idea generation: To generate a lot of ideas from many sources such as
costumers, providers, consultants, employees, etc.
3. Idea screening: Eliminating ideas that are inconsistent and don’t fit with the
new product strategy
4. Business analysis: The second stage of the screening where preliminary
figures for demand, cost, sales and profitability are calculated
5. Development: The stage in the product development process in which a
prototype is developed and a market strategy is outlined
6. Test marketing: the limited introduction of a product and a marketing
program to determine the reactions of potential costumers in a market
situation
7. Commercialization: introducing the new product to the market

For all this method, it’s necessary to have the next two key elements: Innovation,
which is a product perceived as new by a potential adopter, and diffusion which is
the process by which the adoption of an innovation spreads.