Marketing ch 10&11 – Flashcards
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product
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a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value
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services
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intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
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convenience product
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items that the consumer purchases frequently, conveniently and with a minimum shopping effort
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shopping product
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items for which the consumer compares several alternatives on criteria such as price, quality, or style
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specialty product
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items that the consumer makes a special effort to search out and buy
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unsought product
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items that the consumer does not know about or knows about but does not initially want
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business product
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products that organizations buy that assist in providing other products for resale
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continuous innovation
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consumers do not need to learn new behaviors
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dynamically continuous innovation
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only minor changes in behavior are required
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discontinuous innovation
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making the consumer learn entirely new consumption patterns to use the product
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protocol
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a statement that, before the product development begins, identifies (1) well-defined target, (2) specific consumers' needs, wants, and preferences, and (3) what the product will be and do
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new product process
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the seven stages an organization goes through to identify business opportunities and convert them into salable products or services
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new-product strategy development
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the stage of the new product process that defines the role for a new product in terms of the firm's overall objectives
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idea generation
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the second stage of the new-product process, involved developing a pool of concepts to serve as candidate for new products, building upon the previous stage's results
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screening and evaluation
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internally and externally evaluates new product ideas to eliminate those that warrant no further effort
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business analysis
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specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
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development
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turns the idea on paper into a prototype
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market testing
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involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
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commercialzation
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positions and launches a new product in full-scale production and sales
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product item
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specific product that has a unique brand, size, or price
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product line
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a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
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product mix
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consists of all of the product lined offered by an organization
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concept tests
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external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product
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prototype
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a full-scale operating model of the product
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regional rollouts
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introducing a product sequentially into geographical areas of the United States, to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure
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slotting fee
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a payment a manufacturer makes to place a new item on a retailer's shelf
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failure fee
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a penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell
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parallel development
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cross-functional team members who conduct the simultaneous development of both the product and the production process stay with the product from conception to production
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fast prototyping
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encouraging continuing improvement even after initial design
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product life cycle
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describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
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introduction stage
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product is introduced to its intended target market
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growth stage
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rapid increases in sales
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maturity stage
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slowing of total industry sales or product class revenue
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deletion
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dropping the product from the company's product line
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harvesting
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a company retains the product but reduces marketing costs
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high learning product
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significant customer education is required and there is an extended introductory period
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low-learning product
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sales begin immediately because little learning is required by the consumer and the benefits of the purchase are readily understood
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fashion product
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style of the times; introduce, decline, then return
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fad
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rapid sales on introduction and then an equally rapid decline
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product class
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refers to the entire product category or industry
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product form
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pertains to variations within the product class
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product modification
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involves altering one or more of a product's characteristics, such as quality, performance, or appearance, to increase the product's value to customers and increase sales
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product bundling
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the sales of two or more separate products in one package
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market modification
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a company tries to find new customers, increase a product's use among existing customers, or create new use situation
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trading up
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involves adding value to the product (or line) through additional features or higher-quality materials
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trading down
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involves reducing the number of features, quality, or price
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branding
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an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors
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brand name
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any word, device, or combination of these used to distinguish a seller's goods or services
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trade name
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a commercial, legal name under which a company does business
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trademark
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identifies that a firm has legally registered its brand name or trade name so the firm has exclusive use, thereby preventing others from using it
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brand personality
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a set of human characteristics associated with a brand name
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brand equity
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brand name importance to a company
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brand licensing
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a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or a fee
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multiproduct branding
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a company uses one name for all its products in a product class
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product line extensions
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the practice of using a current brand name to enter a new market segment in its product class
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subbranding
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combines a corporate or family brand with a new brand, to distinguish a part of its product line from others
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brand extension
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the practice of using a current brand name to enter a different product class
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co-branding
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the pairing of two brand names of two manufacturers on a single product
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multibranding
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involves giving each product a distinct name
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fighting brands
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chief purpose is to confront competitor brands
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private branding
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when a company manufactures products but sells them under the brand name of a wholesaler or retailer
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mixed branding
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a firm markets products under its own names(s) and that of a reseller because the segment attracted to the reseller is different from its own market
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packaging
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refers to any container in which it is offered for sale and on which label information is conveyed
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label
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identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
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shelf life
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the time a product can be stored
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warranty
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a statement indicating the liability of the manufacturer for product deficiencies
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express warranties
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written statements of liabilities
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limited-coverage warranty
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specifically states the bounds of coverage and areas of noncoverage
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full warranty
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no limits of noncoverage
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Magnuson-Moss Warranty/FTC Improvement Act (1975)
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regulates the content of consumer warranties and so has strengthened consumer rights with regard to warranties
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implied wwarranties
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assign responsibility for product deficiencies to the manufacturer
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trial
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the initial purchase of a product by a consumer
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primary demand
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the desire for the product class rather than for a specific brand, since there are few competitors with the same product
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selective demand
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the preference for a specific brand
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penetration pricing
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companies price low to discourage competitive entry
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repeat purchasers
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people who tried the product, were satisfied, and bought again
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product counterfeiting
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involves low-cost copies of popular brands not manufactured by the original manufacturer or harm the company's reputation
