Now that you've read about the process leading up to General Motors' introduction of the first electric-powered production vehicle (see p. 191), it's time to take a look at how this product is being marketed to the general public. First, check out GM's EV1 Website:

GM's EV1 http://www.gmev.com

a) How would you characterize GM's overall marketing strategy for the EV1? How does this differ from the way they market their traditional vehicles? How has GM anticipated the market's resistance to the inherent drawbacks of this new product? What is the strategic advantage of advertising a new product or technology which is potentially "ahead of its time"?

b) The decision to design and produce electric-powered cars can be viewed within the broader context of developing alternative fuel technologies. That is, electricity is not the only alternative to gasoline. Take a look at how two other automakers are addressing this issue:

Ford Motor Co. http://www.ford.com

Toyota http://www.toyota.com

What are the similarities and differences among the alternative fuel development programs undertaken by Ford, Toyota, and GM? In general, how should automakers approach the question of which alternative fuel technologies (if any) to invest in? How is this different from answering the question, "Should we build electric cars?"

For this exercise, you will need to prepare two different definitions for the primary product(s) offered by each of the following organizations:

Toro http://www.toro.com

Aetna Life Insurance http://www.aetna.com

National Basketball Association http://www.nba.com

Jiffylube http://www.jiffylube.com

NOW http://www.now.org

First, how would these products have been characterized according to the narrower, outmoded paradigm described on p. 192? Next, create a modern, broad-based marketing definition for each product using the framework described on p. 193 (you may find Figure 8-1 especially useful). Use these contrasting definitions to explain the strategic importance of viewing "product" in a broader marketing context.

How would you classify the primary consumer goods produced by each of the following companies? That is, are they convenience, shopping, specialty, or unsought goods? Explain your answers.

Birkenstock Footwear http://www.birkenstock.com

Snapple http://www.snapple.com

SmarTVision (Texas Instruments) http://www.ti.com/research/docs/smartv.htm

Hamilton Beach http://www.hambeach.com

How would you classify the primary business goods offered by each of the following companies? That is, are they raw materials, fabricating materials/parts, installations, accessory equipment, or operating supplies? Explain your answers.

Toner Store https://www.tonerstore.com

Applied Specialties, Inc. http://www.waterdoc.com

Crescent Corporation http://www.crescentco.com

Feldspar Corporation http://www.zemexcorp.com/feldspar/

Pitney Bowes http://www.pitneybowes.com

As you read in previous chapters, many companies sell the same or similar goods to both consumer and business users. Drawing on the Black & Decker case study (see Chapter 7), the B&D homepage, and your own response to Exercise 7-1, draw up a concise list that distinguishes between the business goods and consumer goods produced by this company.

Black & Decker http://www.blackanddecker.com

Once you have delineated these primary product areas, further classify these goods per the instructions for Exercises 8-3 and 8-4 above.

You may have noticed that many of the homepages you've visited contain links labeled "What's New!" and "New Products." As these names imply, this is where companies typically promote the latest additions to their marketing mix of goods and services. But how do these so-called "new products" conform to the modern marketing definition of this term as outlined in the main text?

For the first part of this exercise, you will need to find one company homepage that features a "New Products" or similar link. You can find dozens - if not hundreds - of these simply by performing an AltaVista keyword search using the phrase "new products." Note: Be sure to enter this phrase in quotation marks for best results. (You'll find the AltaVista search engine at http://www.altavista.digital.com.) If you have trouble finding an appropriate homepage, you may want to try the keywords "what's new."

From the resulting URL list, choose a site that represents the original producer of so-called "new products." That is, don't choose a reseller homepage or one of the many product review sites. These "new products" should originate with the company that maintains your chosen homepage.

Choose one of the products under this heading and determine which of the three new product categories (if any) it falls into. Explain your answer. For each of the categories not relevant to this product, give an example of related products (real or hypothetical) that would meet the stated categorical requirements.

Following the search procedure described in Exercise 8-6 above (or an alternative process of your own choosing), find a new product being promoted on the Web.

a) First, describe the product and explain how it conforms to the authors' definition of "new product." Which of the three new product categories does it fall into?

b) Describe the company goal and new-product strategy that most likely led to the development and introduction of this product.

The video game industry provides an interesting backdrop for a discussion of the adoption process and adopter categories. To familiarize yourself with this market, take a few minutes to peruse the following sites:

Sega http://www.sega.com

Nintendo http://www.nintendo.com

Sony PlayStation http://www.playstation.com

a) Major new products from video game producers tend to fall into two categories: 1) new games designed to run on platforms and systems already commonly in use, and 2) new platforms requiring users to purchase major (i.e., expensive) new system components. From any of the above homepages, give an example illustrating each of these product categories. How would you expect the adoption/diffusion process to differ between these two categories?

b) Consider the fact that in many cases the ultimate consumer of a video game product is not the same person who actually purchases it. Describe a common scenario in which this happens and explain how this is played out vis-à-vis the adoption process. Why is it important for video game producers to understand this aspect of the market?

c) In general, which innovation adopter category do you think most video game enthusiasts fall into? How is this reflected in the above homepages? Based on your answer, how might the video game adoption/diffusion process differ from that of other industries such as household appliances or fast food restaurants?