question

Good

answer

A tangible product that we can see, touch, smell, hear, or taste.

question

Attributes

answer

Include features, functions, benefits, and uses of a product. Marketers view products as a bundle of attributes that includes the packaging, brand name, benefits, and supporting features in addition to a physical good.

question

Core Product

answer

all the benefits the product will provide for consumers or business customers "problems you're trying to solve - basic benefits"

question

Actual Product

answer

the physical good or the delivered service that supplies the desired benefit "meeting what is at the core"

question

Augmented Product

answer

the actual product plus other supporting features, such as warranty, credit, services, etc.

question

consumer packaged good or fast moving consumer good

answer

a low cost good that is consumed quickly and replaced frequently ex: diapers & dish soap

question

equipment

answer

expansive goods that an organization uses in its daily operations that last for a long time

question

maintain, repair, and operating (MRO) products

answer

goods that a business customer consumes in a relatively short time (repair includes on equipment and business)

question

raw materials

answer

products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products

question

processed materials

answer

products created when firms transform raw materials from the original state

question

specialized services

answer

services that are essential to the operation of an organization but are not part of the production of a product

question

component parts

answer

manufactured goods are subassemblies of finished items that organizations need to complete their own product

question

creativity

answer

a phenomenon whereby something new and valuable is created

question

knockoff

answer

a new product that copies with slight modification the design of an original product

question

research and development

answer

a well defined and systematic approach to how innovation is done within the firm

question

value co-creation

answer

the process by which benefit-based value is created through collaborative participation by customers and other stakeholders in a new product development process

question

business analysis

answer

the step in the product development process in which company engineers refine and perfect a new product

question

simulated test marketing

answer

application of special computer software to imitate the introduction of a product into the marketplace allowing the company to see the likely impact of price cuts and new packaging - or even to determine where in the store it should try to place the product

question

crowdfunding

answer

online platforms that allow thousands of individuals to each contribute small amounts of money in order to fund a new product from a startup company

question

adoption pyramid

answer

reflects how a person goes from being unaware of an innovation through stages from the bottom up of awareness, interest, elevation, trail, adoption, and confirmation (stages you want customer to move through)

question

media blitz

answer

a massive advertising campaign that occurs over a relatively short time frame

question

Durable Goods

answer

Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances.

question

Nondurable Goods

answer

Consumer products that provide benefits for a short time because they are consumer (such as food) or are no longer useful (such as newspapers).

question

Convenience Product

answer

A consumer good or service that is usually low-priced, widely available, and purchased frequently with a minimum of comparison and effort.

question

Staple Products

answer

Basic or necessary items that are available almost everywhere.

question

Emergency Products

answer

Products we purchase when we're in dire need. (not urgent but consumers need now)

question

Shopping Products

answer

Goods or services for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase.

question

Specialty Product

answer

Goods or services that has unique characteristics and is important to the buyer and for which she will devote significant effort to acquire.

question

Unsought Products

answer

Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to her attention. (things you don't need now and don't pay attention to them until you need - diapers)

question

Innovation

answer

A product that consumers perceive to be new and different from existing products.

question

Continuous

answer

Innovation A modification of an existing product that sets one brand apart from its competitors.

question

Dynamically Continuous

answer

Innovation A change in an existing product that requires a moderate amount of learning or behavior change.

question

Discontinuous Innovation

answer

A totally new product that creates major changes in the way we live.

question

Convergence

answer

The coming together of two or more technologies to create a new system with greater benefits that its separate parts.

question

New Product Development

answer

The phases by which firms develop new products including idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization.

question

Idea Generation

answer

The first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission.

question

Product Concept Development and Screening

answer

The second step of product development in which marketers test product ideas for technical and commercial success.

question

Business Analysis

answer

The step in the product development process in which marketers assess a product's commercial viability.

question

Technical Development

answer

The step in the product development process in which company engineers refine and perfect a new product.

question

Prototypes

answer

Test versions of a proposed product.

question

Patent

answer

A legal mechanism to prevent competitors from producing or selling an invention, aimed to reducing or eliminating competition in a market for a period of time.

question

Test Marketing

answer

Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter.

question

Commercialization

answer

The final step in the product development process in which a new product is launched into the market. (becomes first step of product lifestyle)

question

Product Adoption

answer

The process by which a consumer or business customer begins to buy and use a new good, service, or idea.

question

Diffusion

answer

The process by which the use of a product spreads throughout a population.

question

Tipping Point

answer

In the context of product diffusion, the point when a product's sales spike from a slow climb to an unprecedented new level, often accompanied by a steep price decline.

question

Impulse Purchase

answer

A purchase made without any planning or search effort. (candy at register)

question

Innovators

answer

The first segment (roughly 2.5 percent) of a population to adopt a new product.

question

Early Adopters

answer

Those who adopt an innovation early in the diffusion process, but after the innovators.

question

Early Majority

answer

Those whose adoption of a new product signals a general acceptance of the innovation.

question

Late Majority

answer

The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase.

question

Laggards

answer

The last consumers to adopt an innovation.

question

Relative Advantage

answer

The degree to which a consumer perceives that a new product provides superior benefits. (benefits of product)

question

Compatibility

answer

The extent to which a new product is consistent with existing cultural values, customs, and practices. (how product fits in life)

question

Complexity

answer

The degree to which consumers find a new product or its use difficult to understand. (make it easier to understand)

question

Trialability

answer

The ease of sampling a new product and its benefits.

question

Observability

answer

How visible a new product and its benefits are to others who might adopt it.

question

Product Management

answer

The systematic and usually team-based approach to coordinating all aspects of a product's marketing initiative including all elements of the marketing mix.

question

Product Line

answer

A firm's total product offering designated to satisfy a single need or desire of target customers.

question

Product Line Length

answer

Determined by the number of separate items within the same category.

question

Cannibalization

answer

The loss of sales of an existing brand when a new item in a product line or product family is introduced.

question

Product Mix

answer

The total set of all products a firm offers for sale.

question

Product Mix Width

answer

The number of different product lines the firm produces.

question

Product Quality

answer

The overall ability of the product to satisfy customers' expectations. (looking at satisfaction of product - did it fill basic needs: core)

question

Product Life Cycle

answer

A concept that explains how products go through four distinct stages from birth to death; introduction, growth, maturity, and decline. (based on new to world products - they all go through this)

question

Introduction Stage

answer

The first stage of the product life cycle in which slow growth follows the introduction of a new product in the marketplace.

question

Growth Stage

answer

The second stage in the product life cycle, during which consumers accept the product and sales rapidly increase.

question

Maturity Stage

answer

The third and longest stage in the product life cycle, during which sales peak and profit margins narrow.

question

Decline Stage

answer

The final stage in the product life cycle, during which sales decrease as customer needs change.

question

Brand

answer

A name, a term, a symbol, or any other unique element of a product that identifies one firm's products and sets it apart from the competition.

question

Trademark

answer

The legal term for a brand name, brand mark, or trade character; legally registered by a government obtain protection for exclusive use in that country.

question

Brand Equity

answer

The value of a brand to an organization.

question

Brand Meaning

answer

The beliefs and associations that a consumer has about the brand.

question

Brand Storytelling

answer

Marketers seek to engage consumers with compelling stories about brands.

question

Brand Extensions

answer

A new product sold with the same brand name as a strong existing brand.

question

Sub-branding

answer

Creating a secondary brand within a main brand that can help differentiate a product line to a desired target group.

question

Family Brand

answer

A brand that a group of individual products or individual brands share.

question

National or Manufacturer Brands

answer

Brands that the product manufacturer owns.

question

Private-label Brands

answer

Brands that a certain retailer or distributor owns and sells.

question

Generic Branding

answer

A strategy in which products are not branded and are sold at the lowest price possible.

question

Licensing

answer

An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.

question

Cobranding

answer

An agreement between two brands to work together to market a new product.

question

Package

answer

The covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication.

question

Universal Product Code

answer

The set of black bars or lines printed on the side or bottom of most items sold in a grocery store and other mass-merchandising outlets. The UPC, readable by scanners, creates a national system of product identification.

question

Brand Manager

answer

An individual who is responsible for developing and implementing the marketing plan for a single brand.

question

Product Category Managers

answer

Individuals who are responsible for developing and implementing the marketing plan for all the brands and products within a product category.

question

Market Manager

answer

An individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.

question

Venture Teams

answer

Groups of people within an organization who work together to focus exclusively on the development of a new product.

question

stock-keeping unit (SKU)

answer

a unique identifier to each distinct product

question

total quality management (TQM)

answer

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

question

internal customers

answer

other employees with whom employees interact with attitude that all activities ultimately impact externe customers

question

internal customers mind-set

answer

an organizational culture in which all organization members treat each other as valued customers

question

ISO 9000

answer

criteria developed by the international organization for standardization to regulate product quality in Europe

question

six sigma

answer

a process whereby firms work to limit product defect to 3.4 per million or fewer (Sigma is SD of mean - 6 Ids from an normal distribution curve)

question

independent branding

answer

a type of branding in which branded materials become "component parts" of other branded products

question

Bitcoin

answer

the most popular and fastest growing digital currency

question

price

answer

the assignment of value, or the amount the consumer must exchange to receive the offering

question

market share

answer

the percentage of a market (defined in terms of either sales units or revenue) accounted for by a specific firm, product lines, or brands

question

prestige products

answer

products that have a high price and that appeal to status-conscious customers

question

price elasticity of demand

answer

the percentage change in unit sales that results from a percentage change in price

question

elastic demand

answer

demand in which changes in price have large effects on the amount demanded

question

inelastic demand

answer

demand in which changes in price have little or no effect on the amount demanded

question

cross-elasticity of demand

answer

when changes in the price of one product affect the demand for another item

question

variable costs

answer

the costs of production (raw and processed materials, parts, and labor) that are tied to and vary, depending on the number of units produced

question

fixed costs

answer

costs of production that do not change with the number of units produced

question

average fixed cost

answer

the fixed cost per unit produced

question

total costs

answer

the total of the fixed costs ad the variable costs for a set number of units produced

question

break-even analysis

answer

a method for determining the number of units that a firm must produce and sell at a given price to cover all its costs

question

break-even point

answer

the point at which the total revenue and total costs are equal and beyond which the company makes a profit; below that point, the firm will suffer a loss

question

contribution per unit

answer

the difference between the price the firm charges for a product and the variable costs

question

markup

answer

an amount added to the cost of a product to create the price at which a channel member will sell the product

question

gross margin

answer

the markup amount added tot he cost of a product to cover the fixed costs of the retailer or wholesaler and leave an amount for a profie

question

retailer margin

answer

the margin added to the cost of a product by a retailer

question

wholesaler margin

answer

the amount added to the cost of a product by a wholesaler

question

list price or manufacturer's suggested retail price (MSRP)

answer

the price that the manufacturer sets as the appropriate price for the end consumer to pay

question

cost-plus pricing

answer

a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling prices (fixed and variable + amount wanted to make it)

question

demand-based pricing

answer

a price-setting method based on estimates of demand at different prices

question

target costing

answer

a process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed; the product is manufactured only if the firm can control costs to meet the required price (start w/ price you want to charge, consumers say how much they want to pay - design product based off that price; mostly based off customer feedback)

question

yield management pricing

answer

a practice of charging different prices to different customers in order to manage capacity while maximizing revenues

question

price leadership

answer

a pricing strategy in which one firm first sets its price and other firms in the industry follow with the same or very similar prices

question

value pricing or everyday low pricing (EDLP)

answer

a pricing strategy in which a firm sets prices that provide ultimate value to customers

question

skimming price

answer

a very high, premium price that a firm charges for its new, highly desirable product (lots of money at first and then drop it few weeks in)

question

penetration pricing

answer

a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it

question

trial pricing

answer

pricing a new product low for a limited period of time in order to lower the risk for a customer

question

price bundling

answer

selling two or more goods or services as a single package for one price (phone and tv - make customer think they are getting a "bang for your buck"

question

captive pricing

answer

a pricing tactic for two items that must be used together; one item is priced very low, and the firm makes its profit on another, high-margin item essential to the operation of the first item (printer and ink: taking hit on one item and making it up on another)

question

F.O.B. origin pricing

answer

a pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer

question

F.O.B. delivered pricing

answer

a pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer

question

uniform delivered pricing

answer

a pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location

question

freight absorption pricing

answer

a pricing tactic in which the seller absorbs the total cost of transportation

question

trade discounts

answer

discounts off list price of products to members of the channel of distribution who perform various marketing functions

question

quantity discounts

answer

a pricing tactic of charging reduced prices for purchases of larger quantities of a product

question

cash discounts

answer

a discount offered to a customer to entice them to pay their bill quickly

question

seasonal discounts

answer

price reductions offered only during certain times of the year

question

dynamic pricing

answer

a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace

question

internet price discrimination

answer

an internet pricing strategy that charges different prices to different customers for the same product

question

online auctions

answer

e-commerce that allows shoppers to purchase products through online bidding

question

freemium

answer

a business strategy in which a product in its most basic version is provided free of charge but the company charges money (the premium) for upgraded versions of the product with more features, greater functionality, or greater capacity

question

internal reference price

answer

a set price or a price range in consumers' minds that they refer to in evaluating a product's price

question

price lining

answer

the practice of setting a limited number of different specific prices, called price points, for items in a product line

question

bait-and-switch

answer

an illegal marketing practice in which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher priced item

question

loss-leader pricing

answer

the pricing policy of setting prices very low or even below cost to attract customers into a store

question

unfair sales act

answer

state laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors

question

price fixing

answer

the collaboration of two or more firms in setting prices, usually to keep prices high

question

surge pricing

answer

a pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down

question

predatory pricing

answer

an illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business

question

elements of price planning

answer

setting price objectives estimate demand determine costs examine the pricing environment choose a pricing strategy develop pricing tactics

Marketing Chapter 8, 9, 10 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards