question

concept, philosophy, or image (MADD's primary market)

answer

Idea

question

anything the customer receives in exchange Combination of 3 independent elements: 1. core product 2. supplemental features 3. symbolic and experiential benefits

answer

Product

question

product's fundamental utility or main benefit -usually addresses a fundamental need -example: Chipotle's core product uses the finest sustainable ingredients. therefor its core product is high quality fast food

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Core Product

question

provide added value or attributes in addition to its core utility or benefit -installations, delivery, training, and financing - are not required to make the core product function effectively -help differentiate one product brand from another

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Product's Supplemental features

question

-help symbolize products benefits and make intangible products more tangible -customers receive benefits based on their experiences with the product -can increase customer satisfaction and can also make the development of the product more cost effective

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Symbolic and Experiential Benefits (Symbols or Cues)

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buyers intended use of the product (always used in the classification of a good)

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Products are classified as being business or consumer products according to:

question

products that are relatively inexpensive and frequently purchased with minimal effort (bread, gum, soft drinks)

answer

Connivence Product

question

-products which buyers are more willing to spend much time comparing stores and brands for differences in the price, product features, and services -have LOWER inventory and need FEWER distribution outlets than connivence goods (appliances, bikes, furniture)

answer

Shopping Products

question

buyers do not compare alternatives when shopping, requires purchase planning, and the buyer will not accept substitutes (one of a kind necklace)

answer

Specialty Products

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when a sudden problem confronts a consumer, such as emergency automotive repair (emergency medical services, automotive repair)

answer

Unsought Products

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facilities and non-portable major equipment (buildings, factories, warehouses)

answer

Instalations

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-products bought to use in a firm's operations, to resell, or to make other products -classified according to their characteristics and intended use

answer

Business Products

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Equipment that does not become part of the final physical product but is used in production or office supplies (file cabinets, calculators, tools)

answer

Accessory Equipment

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basic natural materials that become part of the final product (minerals, chemicals, timber)

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Raw Materials

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1. MRO Supplies 2. Raw Materials 3. Installations 4. Accessory Equp. 5. Component Parts 6. Process Materials 7. Business Serives

answer

7 Business Catagoies

question

products purchased to satisfy personal and family needs

answer

Consumer Products

question

Consumers who spend considerable time researching product attributes and comparisons find these very appealing

answer

Consumer Reports and Shopsmart

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Items that become part of the physical product and are either finished items ready for assembly or items that need little processing become assembly and are easily identified and distinguished (spark-plugs, tires, clocks, breaks)

answer

Component Parts

question

materials that are used directly in the products of other products but are not readily identifiable (vinegar in a salad dressing)

answer

Process Materials

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Maintenance repair, and operating items that facilitate production and operations but do not become part of the finished product (paper, pencils, oils, cleaning agents, and paints)

answer

MRO Supplies

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Intangible products that many organizations use in their operations (financial, legal, market research, information technology, janitorial services)

answer

Business Services

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a specific version of a product that can be designated as a distinct offering among a firm's products (Abercrombie and fitch polo shirt)

answer

Product Item

question

a group of closely related product items viewed as a unit because of marketing, technical, or end use consideration (Purina's fancy feast includes five different varieties or wet, dry, or kitten food in the same product line)

answer

Product Line

question

the composite, or total, group of products that an organization makes available to customers (Procter & Gamble's product mix comprises all the health-care, beauty-care, laundry and cleaning, food and beverage, products that the firm manufactures)

answer

Product Mix

question

the number of product lines a company offers

answer

Width of product mix

question

the average number of different products offered in each product line

answer

Depth of product mix

question

1. Introduction 2. Growth 3. Maturity 4. Decline

answer

Four major stages of a product life cycle

question

the initial stage of a product's life cycle; its first appearance in the marketplace when sales start at zero and profits are negative (profits are usually negative and increasing)

answer

Introduction Stage

question

-the product life-cycle stage when sales rise rapidly, profits peak, and then they start to decline -business reaches the break-even point of the product -critical to the products survival because the competitors reactions to the product's success during this period will affect the product's life expectancy -marketers must fortify the production position -agressive pricing -achieving greater penetration of the market is typically a business goal during this time -Lowering prices after developmental costs have been recovered

answer

Growth Stage

question

-the stage of a product's life cycle when the sales curve peaks and starts to decline, and profits continue to fall -When a business finds itself squeezed out of a market for a product or loses interest in that product -some competitors are forced out -intense competition -sales usually start to decline at the end of this -likely to see dealers offered promotional assistance from the producer -more price flexibility

answer

Maturity Stage

question

1. Generate Cash flow 2. Maintain share of Market 3. Increase Share of customers

answer

Three general objectives that can be pursued during the maturity stage

question

the is essential for recouping the initial investment and generating excess cash to support new product

answer

Generate cash flow (maturity stage):

question

companies with marginal marker share must decide whether they have a reasonable chance to improve their position or whether they should drop out - requires average to large advertising expenditures

answer

Maintain share of market (maturity stage):

question

-whereas "market share" refers to the percentage of total customers a firm holds, "share of customers" relates to the percentage of each customer's needs that the firm is meeting -example: many banks have added new services (financial planning etc) to gain more of each customer's financial services business. (Walmart adding restaurants)

answer

Increase share of customers (maturity stage)

question

-the stage of a product's life cycle when sales fall rapidly -cut back advertising expenditures -revitalize its brand and attract different market segments -when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix -When are marketers least likely to change a product's design, style, or other attributes

answer

Decline Stage

question

1.Attempt to postpone the decline (harvesting) 2. Accept its inevitability (divesting)

answer

Marketing manager's two options during the decline stage

question

deciding to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources

answer

Harvesting (decline stage)

question

deciding to immediately withdraw all of its marketing support from these declining products

answer

Divesting (decline stage)

question

the five-stage process of buyer acceptance of a product: 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

answer

Product Adoption Process

question

the buyer becomes aware of the product (have litter information about the product and are not concerned about obtaining more) -An individual knows that a product exists, but has little information regarding the product and does not seek additional information

answer

Awareness

question

the buyer seeks information and its receptive to learning about the product (when they are motivated to get information about the product's features, uses, advantages, disadvantages, prices, and location)

answer

Interest

question

the buyer considers the product's benefits and decides whether to try it, considering its value versus the competition (consider whether the product will satisfy certain criteria that are crucial to meeting their particular needs)

answer

Evaluation

question

the buyer examines, test, or tries the product to determine if it meets his or her needs (use or experience the product for the first time, possibly by purchasing a small quantity, taking advantage of free samples, or borrowing the product from someone) -during this stage potential adopters determine the usefulness of the product under the specific conditions for which they need it

answer

Trial

question

the buyer purchases the product and can be expected to use it again whenever the need for this product arises (individuals move into this stage by choosing a specific product when they need a product of that general type) - does NOT mean the person will eventually adopt the new product -rejection may occur -can be temporary or permanent -begins using that specific product

answer

Adoption

question

1. company must promote the product to create widespread awareness 2. samples or simulated trials should be arranged 3. marketers should emphasize quality control and provide solid guarantees to reinforce buyers opinion 4. production and physical distribution must be lined to patterns of adoption and repeat purchases

answer

Adoption model when launching new product

question

1. Early Adopters 2. Early Majority 3. Late Majority 4. Laggards 5. Innovators

answer

5 Major Adopter Categories

question

first adopters of new products

answer

Innovators

question

people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters

answer

Early Adopters

question

Individuals who adopt a new product just prior to the average person

answer

Early Majority

question

Skeptics who adopt new products when they feel it is necessary

answer

Late Majority

question

the last adopters, who distrust new products

answer

Laggards

question

1. overestimated market plan 2. distributed insufficiently 3. poor timing 4. promoted poorly

answer

Reasons why new products fail

question

failure results in a loss on the investment and is deleted from the product mix

answer

Absolute Product failure

question

failure results in a small profit, and improvements or repositioning can create success later.

answer

Relative Product Failure

question

TRUE

answer

T/F A product need not be a physical product

question

TRUE

answer

T/F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

question

TRUE

answer

T/F Supporting services, such as installation and guarantees, are part of a product

question

FALSE - a core product consist of a products fundamental utility or main benefit, this is an example of a product's supplemental features

answer

T/F The core product element of the total product can include installation, delivery, training, and financing.

question

TRUE

answer

T/F The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product

question

TRUE

answer

T/F The buyer's intent can determine whether an item is classified as a consumer or a business product.

question

TRUE

answer

T/F Use of the product is the most important means of distinguishing consumer products from business products.

question

FALSE - the two major product categories are business and consumer

answer

T/F The two major product categories are business and institutional.

question

TRUE

answer

T/F A product's classification can influence its price, distribution, and promotion

question

TRUE

answer

T/F Bread is usually a convenience product

question

FALSE - Consumers are likely to purchase substitute brands if a desired brand of a convenience product is unavailable

answer

T/F Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

question

FALSE - unfinished furniture would be a component part

answer

T/F Unfinished furniture is considered to be a convenience product because it is relatively inexpensive

question

FALSE - Per-unit gross margins on convenience products are relatively low

answer

T/F Per-unit gross margins on convenience products are relatively high

question

FALSE - The gross margin percentage on convenience products is relatively low because they are low-priced items

answer

T/F The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.

question

FALSE- Buyers are willing to spend considerable effort in planning and making purchases

answer

T/F Buyers want to exert only minimal effort to obtain shopping products

question

TRUE

answer

T/F Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product

question

FALSE - buyers plan the purchase of a specialty product and will not accept a substitute

answer

T/F Obtaining a specialty product involves a considerable amount of comparison activity

question

FALSE- does not become part of the final physical product but is used in production or office activities

answer

T/F Accessory equipment becomes a part of the finished product

question

FALSE- component parts are either finished items ready for assembly or items that need little processing before assembly

answer

T/F Component parts usually need to be processed significantly before they are used in production.

question

TRUE

answer

T/F Process materials are used directly in the production of products

question

FALSE- it is a category or type of business product

answer

T/F "Business Services" is not a category or type of business product

question

FALSE- a product line is a group of closely related product items viewed as a unit because of marketing, technical, or end use consideration

answer

T/F A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

question

TRUE

answer

T/F A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

question

FALSE- a product mix refers to the TOTAL group of products that an organizations makes available to customers

answer

T/F Product mix refers to a related group of products in the product line.

question

TRUE

answer

T/F The depth of a product mix is measured by the average number of product types in a product line.

question

FALSE- the width of a product mix refers to the number of product lines a company offers

answer

T/F The width of a product mix refers to the number of generic products offered by a company.

question

TRUE

answer

T/F A product mix is the composite or total group of products that an organization makes available to customers.

question

TRUE

answer

T/F Procter & Gamble has a wider product mix than does Baskin Robbins.

question

FALSE

answer

T/F The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.

question

TRUE

answer

T/FF Many products never get beyond the introduction stage

question

TRUE

answer

T/F Communicating product benefits to consumers is very important in the introduction stage

question

TRUE

answer

T/F New products seldom generate enough sales to bring immediate profits.

question

TRUE

answer

T/F Price cuts are typical in a product's growth stage.

question

FALSE- as sales increase, promotion cost should drop as a percentage of total sales

answer

T/F During the growth stage, promotion costs rise as a percentage of total sales.

question

FALSE- profits decline as more competitors enter the market driving prices down and creating the need for heavy promotional expenses

answer

T/F Intensive competition causes price increases during the growth stage of the product life cycle

question

FALSE- as a product gains market acceptance, new distribution outlets usually become easier to obtain

answer

T/F Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition

question

TRUE

answer

T/F Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.

question

TRUE

answer

T/F Profits decline in the maturity stage, largely because of increased competition.

question

FALSE- in the maturity stage, profits continue to fall

answer

T/F A seller's profits peak in the maturity stage of a product's life cycle

question

TRUE

answer

T/F Sales peak in a product's maturity stage.

question

TRUE

answer

T/F Many products are in the maturity stage of the product life cycle

question

TRUE

answer

T/F Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.

question

FALSE- marketers must adjust the marketing mix

answer

T/F The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.

question

FALSE- producers who remain in the market are likely to change their promotional and distribution efforts during the maturity stage

answer

T/F During a product's maturity stage, all sales promotion efforts are focused on consumers.

question

TRUE

answer

T/F Strategies relating to price become more mixed during a product's maturity stage.

question

TRUE

answer

T/F A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix

question

TRUE

answer

T/F Sometimes new marketing channels open up in the decline stage

question

TRUE

answer

T/F Promotion decreases in importance during a product's decline stage

question

TRUE

answer

T/F Advertising used in the decline stage may prolong the life of the product.

question

TRUE

answer

T/F Sellers can sometimes prolong a product's life cycle.

question

TRUE

answer

T/F When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do they move through the process at the same speed

question

FALSE -trial is the fourth stage of the product adoption process

answer

T/F Trial is the first stage of the product adoption process.

question

FALSE- a buyer becomes aware of the product during the awareness stage

answer

T/F A buyer becomes aware of the product during the evaluation phase of the product adoption process.

Marketing 351 Chapter 11 – Flashcards

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