Term
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Definition
-the development of product objectives, which must be measurable, clear, unambiguous and feasible
-designing product strategies that allow new or revised brands to compete successfully in the marketplace
-these strategies are translated into specific tactics |
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| Objectives and Strategies for Individual Products |
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Definition
1.Successful introduction of new products
2.Taking regional products national
3.Breathing new life into mature products while maintaining brand personality |
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| Objectives and Strategies for Multiple Products |
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Definition
1.Product line: Firm’s total product offering designed to satisfy a single need or desire of target customers
2.Product line strategies:
a.Full-line vs. limited-line strategies
b.Upward, downward, or two-way line stretch
c.Filling out or contracting a product line
3.Cannibalization is a risk
a.. A new product cannibalizes an existing brand when it steals sales from a product that is already part of the product line. |
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Definition
| the number of separate items that comprise the product line. |
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Term
| Objectives and Strategies for Multiple Products |
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Definition
Product mix strategies: The total set of products a firm offers for sale
Product mix strategies:
Width of product mix must be considered
Product lines in mix usually have some things in common
Example: Avon’s product line includes jewelry, fashion, household items, and off-course, cosmetics. |
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Term
| Quality as a Product Objective: The Science of TQM |
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Definition
Product quality is defined as the overall ability of a product to satisfy customer’s expectations.
Total quality management (TQM) initiatives can help a firm to achieve quality objectives. |
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Term
| Total Quality Management (TQM) |
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Definition
as company-wide dedication to the development, maintenance, and continuous improvement of all aspects of the company’s operations
Uniform ISO quality standards exist to offer guidance |
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Term
| Quality Guidelines from International Organization for Standardization |
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Definition
ISO 9000:
Voluntary standards for quality management
ISO 14000:
Concentrates on environmental management
Six Sigma methodology:
Process allowing no more than 3.4 defects per million (getting it right 99.9997% of the time) |
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Term
| Quality in the Marketing Mix |
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Definition
Product: improve customer service
Place: improve on-time delivery
Price: lower costs without lowering other aspects of quality
Promotion: give customers information when and where they want it (not when it is convenient for the company) |
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Term
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Definition
The overall ability of the product to satisfy customer expectations.
Ex. durable,reliable,versatile,sarisfies needs,precision,ease of use,prouct safety,degree of pleasure |
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Term
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Definition
Slow growth follows introduction of a new product in the marketplace
Goal: to get first time buyers to try a product
Firm does not usually make a profit during this stage
Product: offer a basic product
Price: use a cost-plus formula
Place: build selective distribution
Promotion: heavy to entice product trial |
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Term
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Definition
The product is accepted and sales increase rapidly
Goal: to encourage brand loyalty
Firm tries to attract market segments and increase market share
Product: offer extension, service, warranty
Price: penetration strategy
Place: build intensive distribution
Promotion: reduce to take advantage of demand |
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Term
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Definition
The longest stage in the life cycle, where sales peak and profit margins narrow
Competition grows intense
Product: diversify brand and models
Price: match or best competitors
Place: build more intensive distribution
Promotion: increase to encourage brand switching |
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Term
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Definition
Sales decrease as customer needs change
The market as a whole begins to shrink, profits decline, and suppliers pull out
Firm’s decision is whether to keep the product or not
Product: phase out weaker items
Price: cut prices
Place: move back to selective distribution – phase out unprofitable outlets
Promotion: reduce to a minimal level |
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Term
| Branding Decisions: Brand |
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Definition
A name, term, symbol, or any other unique element that identifies one firm’s product and sets it apart from the competition
Brand Marks (Nike Swoosh) and Trade Characters (Keebler Elves) are part of the branding process
Advantages to buyers:
Product identification
Product quality
Advantages to sellers:
Basis for product’s quality story
Provided legal protection
Helps to segment markets |
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Term
| Qualities in a "good" brand name |
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Definition
Maintains relationships with customers
Positions a product by:
Portraying an image (Ford Mustang)
Describing how the product works (Weedeater)
Is easy to say, spell, read, and remember
Fits the target market, product benefits, customer’s culture, and legal requirements |
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Term
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Definition
The legal term for a brand name, brand mark, or trade character
Trademarks legally registered by a government obtain protection for exclusive use in that country
® is the trademark symbol used in the U.S.
Common Law Protection occurs when the firm has used the name and established it over a period of time. |
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Term
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Definition
Brand equity: A brand’s value to its organization over and above the value of the generic version of the product
Brand equity provides competitive advantage
Brands with strong equity capture and can hold onto a larger share of the market
Brands with strong equity can also sell their product at prices with higher profit margins
Brand equity results in brand loyal consumers and attachment |
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Term
| Types of attachments to brands |
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Definition
Self-concept attachment: the product helps establish the user’s identity.
Nostalgic attachment: products that serve as a link with a past self.
Interdependence: product that is part of the user’s daily routine.
Love: highly emotional and occurs when the branded product creates bonds of warmth, passion, or other strong emotions. |
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Term
| Characteristics of world's top brands |
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Definition
1.The brand excels at delivering the benefits customers truly desire
2.The brand stays relevant
3.The pricing strategy is based on consumers’ perceptions value
4.The brand is properly positioned
5.The brand is consistent
6.The brand portfolio and hierarchy make sense
7.The brand makes use of and coordinates a full repertoire of marketing activities to build equity
8.The brand’s managers understand what the brand means to consumers
9.The brand is given proper support and that support is sustained over the long run
10.The company monitors sources of brand equity |
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Term
| More reasons why brands matter |
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Definition
1.Brand storytelling:
Marketers seek to engage consumers with compelling stories about brands
2.Characteristics of world class brands
3.Brand extensions:
New products sold with the same brand name
4.Sub-branding:
Creating a secondary brand within a main brand that can help differentiate a product line |
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Term
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Definition
-Individual brands vs Family brands
-National vs Store brands
-Generic brands
-Licensing
-Co-branding |
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Term
| Individual brands vs. family brands |
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Definition
| Family brands such as Campbell’s provide an umbrella under which multiple products can be marketed |
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Term
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Definition
| One firm sells the right to another to use a legally protected brand name for a specific purpose and for a specific period of time |
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Term
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Definition
| are sold in white packages with black letter names that just describe the product itself “Salt” or “Sugar”. In essence, generic products aren’t branded at all – they complete solely on the basis of price. |
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Term
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Definition
Two brands combine to create a new product
Provides greater recognition or other strengths than either could achieve alone
Ingredient branding is increasing
This is the licensed brand becomes a component part of a larger product.
Example: Breyer’s Ice Cream with M&M’s |
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Term
| Brand Metrics: approaches to measuring brand equity (4) |
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Definition
-Customer mind-set metrics focus on consumer awareness, attitudes, and loyalty toward the brand based on survey data.
-Product-market outcomes metrics focus on the ability of a brand to charge a higher price.
-Financial market metrics are more realistic as they include the purchase price of brand that is acquired or sold, and my include subjective valuations of future stock prices.
-The revenue premium metric compare the revenue generated by a brand over a given time period to that generated by a comparable store brand. |
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Term
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Definition
-Package: the covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communications
-Good packaging can create a competitive advantage for the brand.
-The package can also help to communicate the brand’s personality via the use of color, words, shapes, designs, and pictures.
-The package also supplies important information, such as nutritional information, ingredients, benefits, recipes, directions, warnings, toll-free phone numbers, and the UPC code.
-UPC: set of black bars or lines printed on the side/bottom of most items sold in stores. Creates a national system of product identification. |
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Term
| Designing Effective Packaging |
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Definition
Considers:
-Packaging of other brands in same product category
-Choice of packaging material and image it projects
-Environmental impact of packaging
-Shape and color influences on image
-Graphic information to be portrayed |
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Term
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Definition
Often used to evaluate package designs for consumer goods
V = Visibility: the package’s ability to stand out on the shelf and attract attention
I = Information: the presence of warnings, directions, product information, recipes, UPC, etc.
E = Emotional appeal: the package’s ability to provide cues about product attributes or benefits
W = Workability: the package’s ability to fit on retailer’s shelves and in consumer’s lives |
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Term
| Federal Fair Packaging and Labeling Act of 1966 |
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Definition
| Aims at making labels more helpful to consumers by providing useful information |
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Term
| Nutrition Labeling and Education Act of 1990 |
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Definition
| Require food labels to state how much fat, saturated fat, cholesterol, calories, carbohydrates, protein, and vitamins are in each product serving |
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Term
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Definition
Used in New-Product Development
Specialists in different areas who work together to focus on new-product development
Most appropriate when one or more of the following situations is present:
-If the new product being developed is one that falls outside of the firm’s existing businesses;
-The firm is developing industrial products that are highly dependent upon technology; and/or
-The new product is such that it will require more time, effort, and money to develop than most divisional or departmental managers are willing to devote. |
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Term
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Definition
Used in New Product Development
Small and isolated group in remote location that function with minimal supervision |
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Term
| Objectives for Single and Multiple Products |
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Definition
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