Term
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Definition
| anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. |
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Term
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Definition
| an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. |
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Term
| What are the three levels product planners need to think about for their product? |
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Definition
1) core customer value
2) actual product
3) augmented product |
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Term
| define: consumer products |
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Definition
| products and services bought by final consumers for personal consumption. |
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Term
| What are the three different types of consumer products? |
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Definition
1) convenience products
2) shopping products
3) speciality products |
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Term
| define: convenience products |
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Definition
| a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort. |
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Term
| define: shopping products |
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Definition
| a consumer product that the customer, in the process of selecting and purchasing, usually compares on attributes such as suitability, quality, price, and style. |
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Term
| define: specialty products |
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Definition
| a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. |
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Term
| define: industrial products |
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Definition
| a product bought by individuals and organizations for further processing or for use in conducting a business. |
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Term
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Definition
| the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. |
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Term
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Definition
| a name, term, sign, symbol, design, or a combination of these, that identifies the product or service of one seller and differentiates them from those of competitors. |
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Term
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Definition
| the activities of designing and producing the container or wrapper for a product. |
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Term
| Marketers make product and service decisions at which three levels? |
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Definition
1) individual products decisions
2) product line decisions
3) product mix decisions |
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Term
| The major product line decision involves what? |
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Definition
| Product line strength - the number of items in the product line |
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Term
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Definition
| a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and marketed through the same types of outlets, or fall within given price ranges. |
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Term
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Definition
| adding more items within the present rage of the line. |
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Term
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Definition
| lengthening a product line beyond its current range. |
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Term
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Definition
| the set of all product lines and items that a particular seller offers for sale. |
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Term
| define: width (product mix) |
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Definition
| the number of different product lines the company carries. |
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Term
| define: length (product mix) |
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Definition
| the number of items a company carries within its product lines. |
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Term
| define: depth (product mix) |
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Definition
| the number of versions offered for each product in the product line. |
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Term
| define: consistency (product mix) |
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Definition
| how closely related the product lines are in end use, production requirements, distribution channels, or some other way. |
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Term
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Definition
| the differential effect that knowing the brand name has on customer response to the product or its marketing. |
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Term
| The major brand strategy decisions involve what? |
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Definition
1) Brand positioning
2) Brand name selection
3) Brand sponsorship
4) Brand development |
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Term
| define: private brand (or store brand) |
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Definition
| a brand created and owned by a reseller of a product or service. |
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Term
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Definition
| the practice of using the established brand names of two different companies on the same product. |
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Term
| A company has four choices when it comes to developing brands. What are they? |
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Definition
1) Line extensions
2) Brand extensions
3) Multi-brand
4) New Brands. |
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Term
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Definition
| extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. |
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Term
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Definition
| extending an existing brand name to new product categories |
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Term
| define: new product development |
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Definition
| the development of original products, product improvements, product modifications, and new brands through a firm’s own product development efforts. v |
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Term
| There are eight major steps in the product development process. What are they? |
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Definition
1) Idea generation
2) Idea screening
3) Concept develpment and testing
4) Marketing strategy development
5) Business analysis
6) product development
7) test marketing
8) commercialization |
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Term
| define: idea generation (think of the product development process). |
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Definition
| the systematic search for new-product ideas. |
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Term
| define: crowd sourcing (think of the product development process). |
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Definition
| inviting broad communities of people into the new product innovation process. |
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Term
| define: idea screening (think of the product development process). |
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Definition
| screening new-product ideas to spot good ideas and drop poor ones as soon as possible. |
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Term
| define: drop error (think of the product development process). |
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Definition
| a mistake made by a company in deciding to abandon a new product idea that would have been very successful if developed. |
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Term
| define: product idea (think of the product development process). |
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Definition
| an idea for a possible product that the company can see itself offering to the market. |
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Term
| define: product concept (think of the product development process). |
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Definition
| a detailed version of the new-product idea stated in meaningful consumer terms. |
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Term
| define: concept testing (think of the product development process). |
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Definition
| testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal. |
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Term
| define: marketing strategy development (think of the product development process). |
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Definition
| designing an initial marketing strategy for a new product based on the product concept. |
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Term
| define: business analysis (think of the product development process). |
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Definition
| a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives. |
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Term
| define: product development (think of the product development process). |
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Definition
| developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering. |
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Term
| define: testing marketing (think of the product development process). |
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Definition
| the stage of the new-product development in which the product and its proposed marketing program are tested in realistic market settings. |
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Term
| define: commercialization (think of the product development process). |
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Definition
| introducing a new product into the market. |
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Term
| define: customer-centered new-product development |
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Definition
| new-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. |
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Term
| define: Team-based new-product development |
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Definition
| an approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness. |
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Term
| define: product life cycle |
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Definition
| the course of a product’s sales and profits over its lifetime. |
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Term
| The PLC involves five distinct stages. What are they? |
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Definition
1) Product development
2) Product introduction
3) Product Growth
4) Product maturity
5) Product decline |
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Term
| define: Introduction stage (PLC) |
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Definition
| the PLC stage in which a new product is first distributed and make available for purchase. |
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Term
| define: growth stage (PLC) |
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Definition
| the PLC stage in which a product’s sales start climbing quickly. |
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Term
| define: maturity stage (PLC) |
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Definition
| the PLC stage in which a product’s sales growth slows or levels off. |
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Term
| Companies have three options that they can take while a product is in the maturity stage. What are they? |
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Definition
1) Modify the market
2) Modify the product
3) Modify the marketing mix. |
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Term
| define: decline stage (PLC) |
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Definition
| the PLC stage in which a product’s sales decline. |
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Term
| Companies have three options that they can take while a product is in the decline stage. What are they? |
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Definition
1) Maintain the product.
2) Harvest the product.
3) Drop the product. |
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Term
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Definition
| the amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of having or using the product or service. |
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Term
| define: customer value-based pricing |
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Definition
| setting price based on buyers’ perceptions of value rather than on the seller’s cost. |
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Term
| In regards to pricing strategies, what sets the price floor and what sets the price ceiling? |
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Definition
| Customers' perceptions of the product's value set the ceiling for prices. Product costs set the floor prices. |
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Term
| define: good-value pricing |
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Definition
| offering the right combination of quality and good service at a fair price. |
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Term
| define: everyday low pricing |
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Definition
| charging a constant, everyday low price with few or no temporary price discounts. |
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Term
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Definition
| involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. |
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Term
| define: value-added pricing |
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Definition
| attaching value-added features and services to differentiate a company’s offers and charging higher prices. |
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Term
| define: cost-based pricing |
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Definition
| setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. |
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Term
| define: cost-plus pricing |
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Definition
| adding a standard markup to the cost of the product. |
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Term
| define: break-even pricing |
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Definition
| setting a price to break even on the costs of making and marketing a product. There is no profit. |
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Term
| define: target profit pricing |
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Definition
| setting a price to make a target return. |
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Term
| define: competition-based pricing |
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Definition
| involves setting prices based on competitors’ strategies, costs, prices, and market offerings. |
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Term
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Definition
| pricing that starts with an ideal selling price and then targets costs that will ensure that the price is met. |
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Term
| define: market-skimming pricing |
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Definition
| setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to ay the high price; the company makes fewer but more profitable sales. |
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Term
| What are the 3 conditions that must be met for market-skimming pricing? |
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Definition
1) The product's quality and image must support its higher price.
2) The costs of producing a low volume cannot be so high to offset the higher price
3) competitors should not be able to enter the market and charge a lower price. |
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Term
| define: market penetration pricing |
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Definition
| setting a low price for a new product to attract a large number of buyers and a large market share. |
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Term
| What are the 3 conditions that must be met for market-penetration pricing? |
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Definition
1) The market must be highly price sensitive.
2) Production and distribution costs must decrease as sales volume increases.
3) The low price must help keep out competition. |
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Term
| What are the five product mix pricing strategies? |
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Definition
1) Product line pricing
2) Optional product pricing
3) Captive product pricing
4) By-product pricing
5) product-bundble pricing |
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Term
| define: product line pricing |
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Definition
| setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices. |
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Term
| define: optional product pricing |
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Definition
| the pricing of optional or accessory products along with a main product |
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Term
| define: captive product pricing |
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Definition
| setting a price for products that must be used along with a main product. |
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Term
| define: by-product pricing |
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Definition
| setting a price for by-products to make the main product’s price more competitive. |
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Term
| define: product-bundle pricing |
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Definition
| combining several products and offering the bundle at a reduced priced. For example, fast-food restaurants bundle a burger, fries, and a soft drink at a “combo” price. |
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Term
| What are the six price adjustment strategies? |
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Definition
1) Discount pricing
2) Allowance pricing
3) segmented pricing
4) psychological pricing
5) promotional pricing
6) geographical pricing |
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Term
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Definition
| a straight reduction in price on purchases during a stated period of time or of larger quantities. |
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Term
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Definition
| promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacture’s product in some way. |
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Term
| define: define segmented pricing |
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Definition
| selling a product or service at two or more prices, where the difference in prices is not based on differences in cost. |
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Term
| define: psychological pricing |
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Definition
| pricing that considers the psychology of prices, not simply the economics; the price says something about the product |
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Term
| define: promotional pricing |
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Definition
| temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. |
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Term
| define: geographical pricing |
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Definition
| setting prices for customers located in different parts of the country or world. |
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Term
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Definition
| adjusting prices continually to meet the characteristics and needs of individual customers and situations. |
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Term
| promotion mix (or marketing communications mix) |
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Definition
| The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. |
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Term
| What are the five major promotion tools? |
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Definition
1) Advertising
2) Sales promotion
3) Personal selling
4) PR
5) Direct marketing |
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Term
| Integrated marketing communications |
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Definition
| Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. |
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Term
| What are the six steps in to develop an effective integrated communications and promotion program? |
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Definition
1) Identify the target audience
2) determine the communication objectives
3) design a message
4) choose the media through which to send the message
5) select the message source
6) collect feedback |
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Term
| define: buyer-readiness stages. What are the five stages? |
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Definition
| The stages consumers normally pass through on their way to a purchase. The stages include 1) awareness 2) knowledge 3) liking 4) preference and 5) conviction. |
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Term
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Definition
| A framework for developing an effective message. AIDA = Attention, Interest, Desire, Action. |
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Term
| There are two broad types of communication channels. What are they? |
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Definition
1) Personal communication channels
2) Non personal communication channels. |
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Term
| define: personal communication channels |
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Definition
| channels through which two or more people communicate direct with each other, including face-to-face, on the phone, via mail or E-Mail, or even through Internet "chat." |
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Term
| define: word-of-mouth influence |
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Definition
| personal communication about a product between target buyers and neighbors, friends, family members, and associates. |
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Term
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Definition
| cultivating opinion leaders and getting them to spread information about a product or service to others in their communities. |
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Term
| define: non-personal communication channels |
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Definition
| media that carry messages without personal contact or feedback, including major media, atmosphere, and events. |
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Term
| What are the four common methods that a company uses to set the total budget for advertising? |
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Definition
1) Affordable method
2) Percentage-of-sales method
3) The competitve-parity method
4) Objective-and-task method |
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Term
| define: the affordable method (in regards to promotion budget) |
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Definition
| setting the promotion budget at the level management things the company can afford. |
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Term
| define: the percentage-of-sales method (in regards to promotion budget) |
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Definition
| setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. |
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Term
| define: competitive-parity method |
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Definition
| setting the promotion budget to match competitors' outlays. |
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Term
| define: objective-and-task method |
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Definition
| developing the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives and 3) estimated the costs of performing these tasks. The sum of these costs is the proposed promotion budget. |
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Term
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Definition
| a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers. |
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Term
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Definition
| a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, |
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Term
| define: value delivery network |
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Definition
| a network composed of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system in delivery customer value. |
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Term
| define: marketing channel (or distribution channel) |
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Definition
| a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. |
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Term
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Definition
| a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. |
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Term
| define: direct marketing channel |
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Definition
| a marketing channel that has no intermediary levels. |
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Term
| define: indirect marketing channel |
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Definition
| a marketing channel containing one or more intermediary levels. |
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Term
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Definition
| disagreement among marketing channel members on goals, roles, and rewards (who should do what and for what reward). |
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Term
| define: conventional distribution channel |
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Definition
| a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole. |
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Term
| define: vertical marketing system |
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Definition
| consists of producers, wholesalers, and retailers acting as a unified system. |
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Term
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Definition
| integrates successive stages of production and distribution under single ownership. |
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Term
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Definition
| a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. |
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Term
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Definition
| a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. |
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Term
| define: horizontal marketing system |
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Definition
| a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. |
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Term
| define: multichannel distribution system |
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Definition
| a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. |
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Term
| define: disintermediation |
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Definition
| the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries. |
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Term
| define: marketing channel design |
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Definition
| designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives. |
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Term
| define: marketing channel management |
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Definition
| selecting, managing, and motivating individual channel members and evaluating their performance over time. |
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