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Chapter 8
Marketing Test 2
18
Marketing
Undergraduate 4
10/14/2013

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Term
What is a product?
Definition
- Need satisfying offering--> functional, social, and psychological utilities
- Good, service, or idea
- Tangible, intangible, or both
Term
Product decisions
Definition
- Individual product--> stock keeping unit
- Product line
- Product assortment (mix): all your individual products and product lines
* breadth (how broad is product assortment), depth, and consistency
Term
Characteristics of services
Definition
- Intangible (pure service, more inconsistency)
- Inventory
- Inseparable (customer doesn't separate service from other things. ex. a flight with bad turbulence)
- Customer contact (service provider impacted by what customer wants. ex. a haircut)
- Where produced
Term
Product classes
Definition
1) consumer products
2) business products
Term
Consumer product classes
Definition
- how consumers think and shop for
1) convenience (staples, impulse, emergency)
2) Shopping
- homogeneous (view brands as being basically the same so you shop for lower price)
- heterogeneous (brand that best fits your needs)
3) specialty
4) Unsought
- new (something new you don't know about)
- regularly (we know it exists but we avoid buying it)
Term
Business product classes
Definition
- How buyers see products and how they will be used
1) Installations (capital items. ex. big equipment)
2) Accessories (capital items. ex. smaller equipment)
3) Raw materials (farm and natural products)
4) Components (parts and materials)
5) Professional services (ex. accountants)
6) Supplies (maintenance, repair, operating)
Term
Issues with business products
Definition
- Derived demand: consumer demand drives company demand)
- Tax treatment: expense and capital items
- Inelastic demand usually
Term
Branding decisions
Definition
1) individual
- brands have their own unique name
2) family
- 2 or more brands have same brand name
3) licensed
- allowing other companies to use your brand name
4) generic products
Term
Who does the branding
Definition
- Manufacturer brand (national/regional brands)
- Dealer brand (store brands)
- Battle of the brands
Term
Branding issues
Definition
1) Brand (words, letters, symbols, or marks)
2) Trademarks
- Lanham Act protects trademarks
- Generic brand names (like xerox)
- Counterfeiting in other countries
3) Brand equity (value of the brand)
4) Levels of brand familiarity
Term
Levels of brand familiarity
Definition
1) Rejection
2) Non-recognition
3) Recognition
4) Preference
5) Insistence
- Some items may not be easy to brand (ex. nails)
Term
How branding helps
Definition
1) Consumers
- Makes shopping easier
- Helps assure regular satisfaction
- Provides dependable guides to product quality
2) Producers
- Reduces selling effort
- Speeds acceptance of new products
Term
Keys to a good brand name
Definition
- short
- easy to spell/read/pronounce
- can be pronounced in all languages
- suggestive of product benefits
- adaptable to packaging needs
- no undesirable imagery
- always timely
- legally available
Term
Other branding issues
Definition
- Brand extension (coke adding diet coke... could lead to cannibalization)
- Brand transfer (brand is sold to another company and brand name is changed)
- Mixed branding (manufacturer brand and retail brand)
- Brand managers (responsible for just 1 brand like a little company)
- Co-branding (raisin bran uses sunmaid raisins)
Term
Packaging
Definition
1) promote the product
- at point of purchase
- at point of consumption (Coke)
2) Protect
- shipping and storing
- reduces shrinkage and spoiling
3) improve basic product (make it more convenient)
4) environmental
5) financial (reduce packaging cost)
6) governmental regs
- fair packaging and labeling act
- nutritional labeling and education act
7) universal product code (the bar code is beneficial to retailers)
Term
Packaging ethical issues
Definition
1) package size
- making amount smaller rather than raising the price
2) design of private label packages
- making an off-brand look the same as national brand
3) environmental/litter
4) Misleading labeling (organic, low fat)
5) warnings (on cigarrettes, alcohol)
6) Concealing a small sized product in big packaging
Term
Unit pricing
Definition
- Pricing per some unit of measure
Term
Warranties
Definition
- Guarantee
- Expressed (written) and implied (every product has an implied warranty that it is fit for use)
- Magnuson-Moss Act (covers warranties, enforced by FTC)
- Federal Trade Commission provides guidelines (must be clear, definitive, and available for inspection before purchase)
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