Term
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Definition
| Watching people to understand their needs. |
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Term
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Definition
| Developing products that consumers might want. |
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Term
| What is a total product offer? |
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Definition
| A total product offer consists of everything that consumers evaluate when deciding whether to buy something. (ie. a washing machine, an insurance policy, or a beer) |
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Term
| What are some value enhancers of a total product offer? |
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Definition
| Price, Brand name, Convenience, Package, Store surroundings, Service, Internet access, Buyer's past experience, Guarantee, Speed of delivery, Image created by advertising, Reputation of producer |
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Term
| What is a way to prevent losses? |
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Definition
| To design and promote better products meaning products that are perceived to have the best value -- good quality at a a fair price. |
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Term
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Definition
| Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs. |
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Term
| Companies usually don't sell just one product. Rather, they sell... |
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Definition
| Several different but complementary products. |
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Term
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Definition
| A group of products that are physically similar or are intended for a similar market. |
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Term
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Definition
| The combination of product lines offered by a manufacturer. |
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Term
| A total product offer is also called? |
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Definition
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Term
| Product differentiation is... |
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Definition
| The creation of real or perceived product differences. |
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Term
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Definition
| A brand that has been given exclusive legal protection for both the brand name and the pictorial design. |
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Term
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Definition
| The combination of factors -- such as awareness, loyalty, perceived quality, images, and emotions -- that people associate with a given brand name. |
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Term
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Definition
| The degree to which customers are satisfied, enjoy the brand, and are committed to further purchase. |
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Term
| In particular, the aspect that consumers evaluate of the total product offer is its... |
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Definition
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Term
| Companies must decide what mix is best. In order to ensure that all of the consumer's needs are being met, a mix usually includes... |
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Definition
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Term
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Definition
| A manager who has direct responsibility for one brand or one product line; called a product manager in some firms. |
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Term
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Definition
| How quickly or easily a given brand name comes to mind when a product category is mentioned. |
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Term
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Definition
| Designing a product so that it satisfies customers and meets the profit margins desired by the firm. |
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Term
| Pricing is the only element of the four Ps that generates... |
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Definition
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Term
| One of the most difficult of the four Ps for a manager to control is... |
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Definition
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Term
| Define Cost-based pricing. |
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Definition
| When the price is set based on costs and desired margin of profit. |
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Term
| Define Demand-based (target costing) pricing. |
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Definition
| An opposing strategy to cost-based pricing is one called target costing. Target costing means designing a product so that it satisfies customers and meets the profit margins desired by the firm. Target costing makes the final price an input to the product development process, not an outcome of it. You estimate the selling price people would be willing to pay for a product and subtract the desired profit margin. The result is the target cost of production. Japanese companies such as Isuzu Motors, Komatsu Limited, and Sony have used target costing. |
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Term
| Define Competition-based pricing. |
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Definition
| When the pricing is based on what competitors are doing. Follows the principle of price leadership. |
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Term
| What is price leadership? |
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Definition
| The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow. |
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Term
| Break-even analysis is... |
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Definition
| The process used to determine profitability at various levels of sales. |
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Term
| What are total fixed costs? |
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Definition
| All expenses that remain the same no matter how many products are made or sold. |
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Term
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Definition
| Costs that change according to the level of production. |
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Term
| What is the formula for calculating the break-even point is... |
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Definition
| Break-even point (BEP) = Total fixed cost (FC) OVER Price of one unit (P) - Variable cost (VC) of one unit |
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Term
| The skimming price strategy is... |
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Definition
| A strategy in which a new product is priced high to make optimum profit while there's little competition. |
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Term
| Penetration price strategy is... |
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Definition
| A strategy in which the product is priced low to attract many customers and discourage competitors. |
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Term
| The six functions of packaging are... |
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Definition
1) to protect from damage, theft
2) to attract the buyer's attention
3) to describe the contents
4) to explain the benefits of the good
5) to provide information on warranties
6) to indicate price, values, and uses |
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Term
| What are the four traditional tools that make up the promotion mix? |
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Definition
1) Advertising
2) Personal selling
3) Public relations
4) Sales promotion
The product in itself can also be a promotional tool, that is why it is shown in the middle of the traditional promotion mix model. |
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Term
| What is non-store retailing? |
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Definition
| Retailing done outside a traditional store. |
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Term
| What are some forms of non-store retailing? |
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Definition
| Telemarketing, vending machines, carts, direct selling (by approaching consumers in their homes or work places), and direct marketing (direct email or catalogue sales). |
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Term
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Definition
| Grouping two or more products together and pricing them as one unit. |
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Term
| Everyday low pricing (EDLP) is... |
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Definition
| Setting prices lower than competitors and then not having any special sales. |
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Term
| High-low pricing strategy is... |
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Definition
| Set prices that are higher than EDLP stores, but have many special sales where the prices are lower than competitors. |
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Term
| Psychological pricing occurs when... |
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Definition
| Goods and services are priced at price points that make the product appear less expensive than it is. |
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Term
| A total product offer consists of... |
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Definition
| Price, brand name, and satisfaction in use. |
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Term
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Definition
| An marketing intermediary who sells to other organizations. |
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Term
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Definition
| An organization that sells to ultimate consumers. |
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Term
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Definition
| Marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods. |
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Term
| What are marketing intermediaries? |
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Definition
| Organizations that assist in moving goods and services from producers to business and consumer users. |
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Term
| A channel of distribution is... |
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Definition
| A group of marketing intermediaries that join together to transport/store goods in their path from producers to consumers. |
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Term
| Strategies to avoid price wars include... |
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Definition
| Adding value, educating consumers, and establishing relationships. |
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Term
| What are the four stages of a product life cycle? |
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Definition
1) Introduction
2) Growth
3) Maturity
4) Decline |
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Term
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Definition
| Connecting producers to businesses. |
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Term
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Definition
| Connecting businesses to consumers. |
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Term
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Definition
| Paid, non-personal communication through various media by organizations and individuals. |
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Term
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Definition
| The development of a product and promotional strategy that can be implemented worldwide. |
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Term
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Definition
| The face-to-face presentation and promotion of goods and services. |
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Term
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Definition
| A promotional tool in which a company lets consumers have a small sample of a product for no charge. |
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Term
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Definition
| The combination of promotional tools an organization uses. |
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Term
| What is integrated marketing communication (IMC)? |
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Definition
| A technique that combines all promotional tools into one comprehensive and unified promotional strategy. |
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Term
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Definition
| Selling to consumers in their homes or where they work. |
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Term
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Definition
| Any activity that directly links manufacturers or intermediaries with the ultimate consumer. |
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Term
| Electronic retailing is... |
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Definition
| The selling of goods and services to ultimate consumers (i.e., you and me) over the Internet. |
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Term
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Definition
| The sale of goods and services by telephone. |
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Term
| Intensive distribution is... |
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Definition
| Distribution that puts products into as many retail outlets as possible. |
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Term
| Selective distribution is... |
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Definition
| Distribution that sends products to only a preferred group of retailers in an area. |
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Term
| Exclusive distribution is... |
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Definition
| Distribution that sends products to only one retail outlet in a given geographic area. |
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Term
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Definition
| The stage that comes before the maturity stage is... |
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Term
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Definition
| What strategy represents a pricing strategy for a new product that establishes a low price to attract more customers and attempts to discourage competitors? |
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Term
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Definition
| The cost of raw materials used to produce a good or service represent the firm's... |
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Term
| Assuming an increasingly important role in the promotion of products. |
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Definition
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Term
| Offered by a firm that are physically similar or are intended for a similar market? |
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Definition
| A product line refers to a group of products that is... |
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Term
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Definition
| Patrick Bolger is convinced that his product idea has tremendous potential. He will be involved with production, but plans to use other firms who specialize in storing and transporting the product to help him move the product along its path to the final consumer. These specialists are part of his product's... |
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Term
| Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals. |
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Definition
| Which of the following is the best example of a product line? |
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Term
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Definition
| What distribution strategy are producers of candy bars are most likely to use? |
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Term
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Definition
| Popular magazines would probably be distributed using a(n)... |
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Term
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Definition
| LoRider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part LoRider's... |
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Term
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Definition
| __________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm. |
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Term
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Definition
| The Pillsbury Doughboy is an example of a... |
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Term
| It teaches customers to wait for sales, and therefore could reduce profits. |
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Definition
| What is a potential problem with a high-low pricing strategy? |
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Term
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Definition
| The rent a firm pays each month for office space is an example of a(n)... |
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