Term
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Definition
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Term
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Definition
| a tangible physical entity |
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Term
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Definition
| an intangible result of the application of human and mechanical efforts to people or objects |
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Term
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Definition
| a concept, philosophy, image, or issue |
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| What is involved in a Total Product Offering? |
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Definition
-The Core Product itself
-It's supplemental features
-It's symbolic or experimental value |
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| What is are a products supplemental features? |
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Definition
| provide added value or attributes in addition to its core utility or benefit |
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Term
| What is a Consumer Sensory Preference Map? |
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Definition
| – helps a company understand the preferences of consumers across the world |
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| What is Consumer Product Classification based on? |
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Definition
| based on consumer buying behavior |
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| What are the types of Consumer Product Classification? |
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Definition
-Convenience
-Shopping
-Specialty
-Unsought Products |
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Term
| What is a Convenience product? What are examples? Who provides promotional support? |
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Definition
– relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. (Ex. Bread, soft drinks)
-Producers must provide for most of the promotional aspects of their products in this category |
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| What is a Shopping product? What are examples? How is inventory turnover? |
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Definition
– items for which buyers are willing to expend considerable effort in planning and making the purchase (Ex. Appliances, bicycles, furniture, stereos)
-lower inventory turnover |
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| What is a Specialty product? How is inventory turnover? |
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Definition
– possess one or more unique characteristics, and generally buyers are willing to expend considerable effort to obtain them.
-lower turnover, but not less profitable |
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Term
| What are Unsought products? |
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Definition
| – purchases that must be made due to necessity and not due to desire |
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Term
| What are the categories of business products? |
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Definition
-Installations
-Accessory Equipment
-Raw Materials
-Component Parts
-Process Materials
-MRO Supplies
-Business Services |
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Term
| What is a Installation business product? |
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Definition
| – purchases that must be made due to necessity and not due to desire |
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Term
| What is a Accessory Equipment product? What are some examples? |
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Definition
| – does not become a part of the final physical product but is used in production of office activities (Ex. File cabinets, fractional horsepower motors, calculators and tools.) |
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| What is a Raw Materials product? What are some examples? |
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Definition
| – basic natural materials that become part of physical product (Ex. Minerals, chemicals, agricultural products, materials from forest and oceans) |
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Term
| What is a Component Parts product? |
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Definition
| – become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly |
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Term
| What is a Process Materials product? |
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Definition
| – used directly in the production of other products. Unlike component parts, process materials are not readily identifiable. |
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Term
| What is a MRO Supplies product? What are some examples? |
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Definition
| - Maintenance, Repair, Operating Items that facilitate production and operations but do not become part of the finished product (Ex. Paper, pencils, oils, cleaning agents) |
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| What is a Business Services product? What are some examples? |
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Definition
| – intangible products that many organizations use in their operations (Ex. Financial, legal, market research, information technology, janitorial services) |
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Term
| What is a Product Item? What are some examples? |
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Definition
| – a specific version of a product that can be designated as a distinct offering among an organization’s products (Ex. An Abercrombie and Fitch polo shirt) |
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Term
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Definition
| – a group closely related products items that are considered to be a unit because of marketing, technical, or end use considerations |
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Term
| Firms with high market shares are likely to... |
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Definition
| expand their product lines aggressively, as a are marketers with relatively high pr9ices or limited product lines. |
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Term
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Definition
| – the composite, or total, group of products that an organization makes available to customers |
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Term
| What is a Width of Product mix? |
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Definition
| – is measured by the number of products lines a company offers |
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Term
| What is a Depth of Product Mix |
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Definition
| – the average number of different products offered in each product line |
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Term
| What are the 4 major stages of the product lifecycle? |
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Definition
-Introduction stage
-Growth stage
-Maturity stage
-Decline |
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Term
| What is involved in the Growth Stage of a product lifecycle? |
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Definition
| – sales rise rapidly, profits reach a peak and then they start to decline. |
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Term
| To maintain a growth stage for a product, management must do what? What is the goal? What does the goal require? |
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Definition
-support the momentum by adjusting the marketing strategy.
-Goal is to establish and fortify the product’s market position by encouraging brand loyalty.
-This requires developing product variations –a deeper marketing mix- to satisfy the needs of people in several different market segments. |
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Term
| Promotion expenditures may be slightly _______ than during the introductory stage but are still quite substantial. As sales increase, promotion costs should _____ as a percentage of total sales. |
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Definition
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Term
| What is involved with the Maturity Stage of a product's lifecycle? |
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Definition
| – during this phase, the sales curve peaks and starts to decline and profits continue to fall |
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Term
| What are the finer points that take place in the Maturity phase of a product? |
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Definition
-intense competition exist
-competitors emphasize improvements and differences in their versions of the product
-customers are highly knowledgeable of the product |
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Term
| What are Three General Objectives to be pursued during the Maturity Stage? |
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Definition
-Generate Cash Flow – essential for recouping the initial investment and generating excess cash to support new products.
-Maintain Share of Market
-Increase share of customer – relates to the percentage of each customer’s needs that the firm is meeting |
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Term
| What happens in the Decline stage of a products lifecycle? |
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Definition
-Sales fall rapidly which prompts marketers to prune items from the product line.
-Promotional efforts may be cut, elimination of marginal distributors and finally plan to phase out the product |
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Term
| What are the stages of the product adoption process? |
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Definition
-awareness
-interest
-evaluation
-trial
-adoption |
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Term
| Can rejection in the adoption process be temporary or permanent? |
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Definition
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Term
| What are the categories based on the Time it takes for types of people to adopt a product? |
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Definition
o Innovators – first adopters of new products
o Early adopters – people who adopt new products early, choose new products carefully and are viewed as “the people to check with” by later adopters
o Early majority – individuals who adopt a new product just prior to the average person
o Late majority – skeptics who adopt new products when they feel it is necessary
o Laggards – the last adopters |
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Term
| What is the biggest reason for failure of a company's product? |
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Definition
| the company’s failure to match product offerings to customer needs. |
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Term
| What are other reasons that a company's product fail? |
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Definition
| technical design problems, poor time, overestimation of market size, ineffective promotion and insufficient distribution |
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Term
| What are the types of product failures and what do they entail? |
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Definition
o Absolute failure – when an organization loses money on a new product because it is unable to recover development, production and marketing costs.
o Relative Product failure – occurs when a product returns a profit but does not meet a company’s profit or market share objectives. |
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Term
| What is an Absolute failure? |
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Definition
| – when an organization loses money on a new product because it is unable to recover development, production and marketing costs. |
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Term
| What is a Relative Product failure? |
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Definition
| – occurs when a product returns a profit but does not meet a company’s profit or market share objectives. |
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Term
| What is specific about the Dimensions of the marketing mix? What are it's characteristics and some examples of each? |
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Definition
– no one is better than the other. (width, depth, consistency)
-wide mix – Walmart, many products in different categories
-narrow mix – coldstone, only icecream
-depth – the variety of products within a product line (Walmart cereals) many brands
-shallow – Sams club, cereals. Fewer brands |
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Term
Product modification = ____________
Line extension = _____________ |
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Definition
-don’t keep the older product around
-keep the old product around |
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Term
| What are Features? What are some examples? |
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Definition
| – make the product more convenient to use, safer (lawnmower evolution from push to riding, park assist in Ford Focus) |
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Term
| What are some examples of "New to World"? |
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Definition
| New to the world- people transport tube thing, Dyson air foil fan, chicken companies (buffalo wing, chicken fingers) |
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Term
| Who are the people that participate in idea generation? |
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Definition
| executives, sales people, R&D |
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Term
| What goes on in Concept testing? |
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Definition
| Concept testing – idea is still in idea phase. Get opinions from focus groups, present drawings of the product (Minute maid came up with concept about frozen juice that allowed you to make whatever amount of juice you wanted – consumers rejected idea based on instructions of how the idea would be accomplished) |
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Term
| What are the things to do when test marketing? |
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Definition
-can test pricing, distro, promotion/communication
-sample watch on a limited basis of your marketing mix
-want to choose medium size cities because testing is easier to control
-want to choose cities with good representations of the target market you are trying to market to
-choose test cities that there is strong competition for your product |
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Term
| What are the major issues associated with product elimination? What are the approaches? |
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Definition
-Management may be sentimental about products and are reluctant to get rid of it.
Approach 1 (informal or peach meal approach) – waits until the product that needs to be deleted is losing a lot of money.
-not the best approach
Approatch 2 periodic evaluation approach – look at 3 things, how does it contribute to revenue, cost and profit
-Allows to see problems and take corrective action like advertising
-better approach |
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