Term
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Definition
The entire bundle of benefits within the product:
Core product, Tangible product, Augmented product |
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Term
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Definition
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Term
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Definition
What makes a product a product
Includes: Brand name, packaging, features, quality, styling |
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Term
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Definition
Provides the rest of what is needed to the customer for them to have a reason to buy it
Includes: Installation, after-scale service, warranty, delivery, credit |
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Term
| Who makes industry decisions? |
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Definition
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Term
| Who makes product class or category decisions? |
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Definition
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Term
| Who makes product type or form decisions? |
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Definition
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Term
| Who makes brand decisions? |
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Definition
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Term
| What kind of goods are preference goods? |
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Definition
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Term
| What is the difference between low and high involvement behavior? |
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Definition
Low involvement pertains to putting no effort into making a purchase and you learn about the product afterwards
High involvement pertains to spending lots of time researching and deciding the right purchase. Learn first, buy after. |
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Term
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Definition
| The total set of all products a firm offers for sale |
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Term
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Definition
The number of different product lines the firm produces
ie. bar soap, laundry detergent, shampoo |
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Term
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Definition
The number of separate items within the same category
ie. Family soap, industrial soap, allergenic soap |
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Term
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Definition
The number of products in a company's specific product line
i.e. Everyday soap, fancy soap, soap with cream/oils |
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Term
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Definition
| Refers to how closely related the products that make up that line are. |
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Term
| What 4 things does product policy bear upon? |
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Definition
1. Management of existing products
2. Nature, timing and management of new products
3. Removal of existing products from the product line
4. Amount of resources to be allocated to each product |
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Term
| How does product policy work? |
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Definition
1. Provides a frame for the collection of info
2. Increases forecasting accuracy by including other perspectives
3. Focuses organizational activities
4. Communicates organization's position |
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Term
| What is product bundling? |
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Definition
| When several products are incorporated into a bundle |
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Term
| When is bundling preferred? |
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Definition
1. Scale/scope economies are present
2. Consumers gain increased value
3. Fixed costs are high, variable costs are low |
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Term
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Definition
1. Pure bundling
2. Mixed bundling |
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Term
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Definition
Cable (local and national networks)
Restaurants (beverage, entree, dinner, dessert) |
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Term
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Definition
Autos (extended warranties, services)
Cable (TV, high speed internet, pay per view) |
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Term
| Rationale of brand extension strategies |
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Definition
1. Growth is limited in existing products
2. Defensive action to fill product line gaps
3. Offensive action to protect against competitors |
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Term
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Definition
| Broadening the uses and users of a product |
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Term
| What are 5 branding strategies |
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Definition
1. Family line Extension (Pepsi's)
2. Family Brand Extension (Black and Decker irons)
3. Multibrands (Laundry Detergent)
4. Private Label Brands (President's Choice)
5. Generic Brands (Bulk items, random things) |
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Term
| What is significant about packaging? |
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Definition
For protecting product, communicating information and adding value to the product.
Should deliver a customer, consumer or trade benefit |
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Term
| What is significant about labelling? |
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Definition
For protecting product, communicating information and adding value to the product.
Distinctive formats that enable customers to learn quickly and should be eye catching for promotion |
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Term
| What are the stages of the inflection points in sales history of a product? |
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Definition
| Introduction, growth, maturity, decline |
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Term
| What is significant about the life of a product? |
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Definition
| It has a limited life but that life may be extended by marketing efforts |
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Term
| What takes place in the introduction stage of a product's life? |
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Definition
| No profits because the company is recovering R&D costs |
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Term
| What takes place in the growth stage of a product's life? |
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Definition
| Profits increase and peak |
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Term
| What takes place in the maturity stage of a product's life? |
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Definition
| Sales peak, Profit margins narrow |
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Term
| What takes place in the decline stage of a product's life? |
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Definition
| Market shrinks, sales fall, profits fall |
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Term
| What are the different types of innovation adopters and what is their distribution? |
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Definition
Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%) |
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Term
| What is significant about innovators? |
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Definition
| They are the first to buy, even at high prices |
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Term
| What is significant about early adopters? |
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Definition
| Are opinion leaders, adopt new ideas early and are risk takers |
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Term
| What is significant about the early and late majority? |
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Definition
| They want proven established products and make deliberate/skeptical decisions |
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Term
| What is significant about the laggards? |
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Definition
| They do not buy unless they are forced to |
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Term
| 5 determinants of the rate of diffusion of innovation |
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Definition
1. Relative Advantage
2. Compatibility
3. Complexity
4. Divisibility
5. Communicability |
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Term
| What are the strategic marketing options in maturity? |
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Definition
Usage Gap: creating many uses
Distribution Gap: creating convenient locations
Product Line Gap: creating extended products
Competitive Gap: why you're better than your competitor |
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Term
| Market Harvesting and what is it accompanied by? |
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Definition
Occurs when a market leader decides to remain in the market
- increased marketing expenditures at the beginning
- offer of incentives to competitors to exit market
- decreased marketing expenditures and high prices toward the end |
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Term
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Definition
| Occurs when a new product or technology supersedes the old due to new technology, even though the old product is still functional |
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Term
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Definition
When items do not function in the manner than they did when they were created
i.e. parts become unavailable, price to fix exceeds price to replace |
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Term
| What is significant about obsolescence |
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Definition
| It is planned to increase demand for replacement products |
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Term
| What are the costs of a problem product? |
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Definition
1. Diverts attention and resources away from other products
2. May harm organization's reputation or relationship with channel members
3. Diverts resources away from new product development |
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Term
| What is the general process for managing problem products? |
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Definition
Step 1: Develop key criteria to "flag" problem products
Step 2: Subject flagged products to in-depth analysis
Step 3:Take action
(Maintain status quo, abandon, retain and modify)
Step 4: Monitor outcomes |
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