Term
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Definition
- Need satisfying offering--> functional, social, and psychological utilities
- Good, service, or idea
- Tangible, intangible, or both |
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Term
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Definition
- Individual product--> stock keeping unit
- Product line
- Product assortment (mix): all your individual products and product lines
* breadth (how broad is product assortment), depth, and consistency |
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Term
| Characteristics of services |
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Definition
- Intangible (pure service, more inconsistency)
- Inventory
- Inseparable (customer doesn't separate service from other things. ex. a flight with bad turbulence)
- Customer contact (service provider impacted by what customer wants. ex. a haircut)
- Where produced |
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Term
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Definition
1) consumer products
2) business products |
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Term
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Definition
- how consumers think and shop for
1) convenience (staples, impulse, emergency)
2) Shopping
- homogeneous (view brands as being basically the same so you shop for lower price)
- heterogeneous (brand that best fits your needs)
3) specialty
4) Unsought
- new (something new you don't know about)
- regularly (we know it exists but we avoid buying it) |
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Term
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Definition
- How buyers see products and how they will be used
1) Installations (capital items. ex. big equipment)
2) Accessories (capital items. ex. smaller equipment)
3) Raw materials (farm and natural products)
4) Components (parts and materials)
5) Professional services (ex. accountants)
6) Supplies (maintenance, repair, operating) |
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Term
| Issues with business products |
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Definition
- Derived demand: consumer demand drives company demand)
- Tax treatment: expense and capital items
- Inelastic demand usually |
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Term
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Definition
1) individual
- brands have their own unique name
2) family
- 2 or more brands have same brand name
3) licensed
- allowing other companies to use your brand name
4) generic products |
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Term
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Definition
- Manufacturer brand (national/regional brands)
- Dealer brand (store brands)
- Battle of the brands |
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Term
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Definition
1) Brand (words, letters, symbols, or marks)
2) Trademarks
- Lanham Act protects trademarks
- Generic brand names (like xerox)
- Counterfeiting in other countries
3) Brand equity (value of the brand)
4) Levels of brand familiarity |
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Term
| Levels of brand familiarity |
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Definition
1) Rejection
2) Non-recognition
3) Recognition
4) Preference
5) Insistence
- Some items may not be easy to brand (ex. nails) |
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Term
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Definition
1) Consumers
- Makes shopping easier
- Helps assure regular satisfaction
- Provides dependable guides to product quality
2) Producers
- Reduces selling effort
- Speeds acceptance of new products |
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Term
| Keys to a good brand name |
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Definition
- short
- easy to spell/read/pronounce
- can be pronounced in all languages
- suggestive of product benefits
- adaptable to packaging needs
- no undesirable imagery
- always timely
- legally available |
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Term
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Definition
- Brand extension (coke adding diet coke... could lead to cannibalization)
- Brand transfer (brand is sold to another company and brand name is changed)
- Mixed branding (manufacturer brand and retail brand)
- Brand managers (responsible for just 1 brand like a little company)
- Co-branding (raisin bran uses sunmaid raisins) |
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Term
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Definition
1) promote the product
- at point of purchase
- at point of consumption (Coke)
2) Protect
- shipping and storing
- reduces shrinkage and spoiling
3) improve basic product (make it more convenient)
4) environmental
5) financial (reduce packaging cost)
6) governmental regs
- fair packaging and labeling act
- nutritional labeling and education act
7) universal product code (the bar code is beneficial to retailers) |
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Term
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Definition
1) package size
- making amount smaller rather than raising the price
2) design of private label packages
- making an off-brand look the same as national brand
3) environmental/litter
4) Misleading labeling (organic, low fat)
5) warnings (on cigarrettes, alcohol)
6) Concealing a small sized product in big packaging |
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Term
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Definition
| - Pricing per some unit of measure |
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Term
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Definition
- Guarantee
- Expressed (written) and implied (every product has an implied warranty that it is fit for use)
- Magnuson-Moss Act (covers warranties, enforced by FTC)
- Federal Trade Commission provides guidelines (must be clear, definitive, and available for inspection before purchase) |
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