Term
| Which of the following is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion? |
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Definition
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Term
| When a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following a _________ strategy. THe low price is designed to capture a large share of a substantial market and produce lower production costs |
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Definition
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Term
| a firm charginga price identical to or very close to the competition's price is using a _______ strategy? |
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Definition
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Term
| State laws that put a lower limit on wholesale and retail prices are called _______. In states that have these laws, selling below cost is illegal. |
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Definition
| Unfair Trade Practice Acts |
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Term
| The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market is called: |
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Definition
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Term
| Which of the following is a price tactic that offers all goods and services at the same price (or perhaps two or three prices)? |
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Definition
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Term
| Odd-even pricing is also called: |
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Definition
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Term
| Reducing the services that come with the basic product is called: |
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Definition
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Term
| _________ are extra fees paid by consumers for violating the terms of purchase agreements |
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Definition
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Term
| Costs that are shared in the manufacturing and marketing of several products in a product line are called: |
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Definition
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Term
| A(n) ______ is the result of applying human or mechanical efforts to people or objects |
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Definition
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Term
| _______ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning and require wide distribution |
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Definition
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Term
| The value of company and brand names as referred to as: |
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Definition
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Term
| A consumer who consistently and repeatedly purchases the same brand is said to have: |
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Definition
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Term
| Campell's Nature Valley, Honda, and Lipton products are examples of _______ brands because of who owns them |
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Definition
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Term
| Which type of warranty is a written guarantee? |
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Definition
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Term
| ________ occurs when an existing product is targeted toward new market segments. It is another type of new product development because the product is new to that segment |
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Definition
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Term
| in the __________ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are made. |
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Definition
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Term
| A team-oriented approach to new-product development is referred to as: |
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Definition
| Simultaneous product development |
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Term
| The _________ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms. |
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Definition
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Term
| A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death) is called the: |
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Definition
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Term
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Definition
Everything, both favorable and unfavorable that a person receives in an exchange
Tangible good
service
idea |
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Term
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Definition
| A product used to manufacture other goods |
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Term
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Definition
A product bought to satisfy an individual's personal needs or wants
(make pies: buy ingredients and make pies and sell them) |
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Term
| Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she noticed that Soap Opera Digest had an interesting story about one of her favorite characters. As Amy is a huge fan of the long running soap, she had to buy a copy. In this example, the Soap Opera Digest is an example of a(n)________ product. |
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Definition
Convenience
Something you're familiar with, didn't plan to buy but you bought it anyways |
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Term
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Definition
A relatively inexpensive item that merits little shopping effort
candy bars, drinks, fast food |
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Term
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Definition
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores
jeans, clothes, cars, (no specific brand in mind) |
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Term
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Definition
A particular item for which consumers search extensively and are reluctant to accept substitutes
Want a certain brand and won't buy it if they don't have it |
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Term
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Definition
A particular item for which consumers search extensively and are reluctant to accept substitutes
Want a certain brand and won't buy it if they don't have it |
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Term
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Definition
A product unknown to the potential buyer or a known product that the buyer does not actively seek
insurance, funeral planning, financial planning (usually a salesperson you come in contact with will make you aware of your need for it) |
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Term
| There are a number of toothpastes marketed under the Crest brand including Cavity-Protection Crest, Sensitive-teeth protection Crest, Baking Soda Crest, ets. The large variety of toothpastes under the Crest brand is an example of a: |
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Definition
| Product line (since it's JUST talking about toothpaste) |
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Term
|
Definition
A specific version of a product that can be designated as a distinct offering among an organization's products
One certain product (different UPC code=Different product items)
One cell in excel |
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Term
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Definition
A group of closely-related product items
A column in Excel |
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Term
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Definition
All products that an organization sells
The Excel spreadsheet
The entire mix of products
Everything the company has |
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Term
| Benefits of Product LInes |
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Definition
Advertising economies
package uniformity
standardized components
efficient sales and distribution
equivalent quality |
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Term
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Definition
The number of product lines an organization offers
Diversifies risk
Capitalizes on established reputation |
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Term
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Definition
The number of product items in a product line
Attracts buyers with different preferences
Increases sales/ profits by further market segmentation
Capitalizes on economies of scale
Evens out on seasonal sale patterns |
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Term
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Definition
| A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitor's products |
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Term
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Definition
The part of a brand that can be spoken including letters, words, and numbers
Lucky Jeans, Nike Shoes |
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Term
|
Definition
The elements of a brand that cannot be spoken
Golden Arches, Chevy bowtie, Nike Swish |
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Term
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Definition
The value of company and brand names
Coca-cola brand is VERY expensive
buying the name Google is Very expensive |
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Term
|
Definition
A brand where at least one-third of the product is sold outside its home country
Apple, McDonalds, Nike, Burger King, Nokia, Toyota, Pizza Hut |
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Term
|
Definition
Product identification
repeat sales
new product sales |
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Term
|
Definition
Coca Cola
IBM
Microsoft
GE
Nokia
Toyota
Intel
McDonald's
Disney
Google |
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Term
| Wal-mart sells many health and beauty aid products under the name, Equate. This brand can only be purchased in Wal-Mart stores and is an example of a(n) ___________ brand. |
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Definition
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Term
|
Definition
True Generic
Private Brand
Individual Brand
Family brand
Combination |
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Term
|
Definition
Manufacturers brand
Individual brand
family brand
combination |
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Term
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Definition
THe brand name of manufacturer
Under Armor, Nike |
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Term
|
Definition
A brand name owned by a wholesaler or a retailer. Also known as private label or store brand.
Hy-Vee Brands
Sam's or Wal-Mart Brands |
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Term
| Advantages of Manufacturer's Brands |
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Definition
Heavy consumer ads by manufacturers
Attract new customers
Enhance dealer's prestige
Rapid delivery, carry less inventory
If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer |
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Term
| Advantages of Private Brands |
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Definition
Earn higher profits on own brand
Less pressure to mark down price |
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Term
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Definition
Using different brand names for different products
going away from this (diff. brand for different lines) |
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Term
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Definition
Marketing several different products under the same brand name
Kraft
Nike (shoes, apparel, women, kids, men apparel) |
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Term
|
Definition
Selling two brands at the same time
KC masterpiece Barbeque Chips; herseys Betty Crocker Brownies |
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Term
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Definition
exclusive right to use a brand
Many parts of a brand and associated symbol qualify for trademart protection
Trademark right comes from use rather than registration
the mark has to beontinuously protected
rights continue for as long as the mark is read
Tratemark law applies to the online world |
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Term
| Sherwin-Williams paint brand, Dutch Boy, has come up with an all-plastic gallon container with an easy twist-offlid, comfortable side handle, and even a pouring spout. There is no other paint product like it on the market. This innovative packagaing was most likely designed for which of the follwing functions? |
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Definition
| Facilitate Product for used and convenience |
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Term
|
Definition
Contain and protect
promote
facilitate storage, use and convenience
facilitate recycling |
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Term
|
Definition
| Persuasive and informational |
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Term
|
Definition
Focuses on promotional theme
Consumer information is secondary |
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Term
|
Definition
Helps make proper selection
lowers cognitive dissonance
includes use/care |
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Term
|
Definition
UPC's
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. |
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Term
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Definition
| a confiration of the quality or performance of a good or service |
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Term
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Definition
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Term
|
Definition
An unwritten guarantee that the good or ervice is fit for the purpose for which it was sold.
Buy something and there are bugs in it
Buy something and all the pieces aren't in there |
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Term
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Definition
| A product new to the world, market |
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Term
|
Definition
Being first on the market has numerous advantages:
Increased sales through longer sales life
Increased margins
increased product quality |
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Term
| New-to-the-world Products |
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Definition
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Term
|
Definition
Car company
electric car line |
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Term
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Definition
| Company has added a new product to the mix (something new to a soft drink) |
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Term
| Improvements or revisions |
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Definition
| Toothpaste- now with whitening |
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Term
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Definition
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Term
|
Definition
| SW airlines- same seat on plane can be different priced (super saver) |
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Term
| If you don't have new products, you can't keep going |
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Definition
| "either green and growing, or ripe and rotting" |
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Term
| New Product Success Factors |
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Definition
long-term commitment
company-specific approach
capitalize on experience
Establish an environment |
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Term
|
Definition
New-product strategy
Idea Generation
Idea screening
Business analysis
Development
Test Marketing
Commercialization
NEW PRODUCT |
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Term
|
Definition
| Not filtered; everything is possible |
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Term
| Sources of new-product ideas |
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Definition
Customers
Employees
Distributors
Vendors
Competitors
R and D
Consultants |
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Term
|
Definition
| the process of getting a group to think of unlimited ways to vary a product or solve a problem |
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Term
|
Definition
| The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new product strategy or are inappropriate for some other reason |
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Term
| After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. This stage of new-product development is called: |
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Definition
|
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Term
|
Definition
A test to evaluate a new-product idea, usually before any prototype has been created
We've been thinking about adding this topping to pizza |
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Term
| Business Analysis: Considerations in Business Analysis Stage |
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Definition
Can you afford the Product?
Demand
cost
sales
Profitability |
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Term
|
Definition
-Creation of Prototype
-marketing strategy
-Packaging, branding, labeling
-Promotion, price, and distribution strategy
-Manufacturing feasibility
-Final government approvals if needed |
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Term
| Simultaneous product development |
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Definition
work on stuff all together
saves time
team-oriented |
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Term
|
Definition
| A limited introduction of a product and marketing program to determine the reactions of potential customers in a market situation |
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Term
| Alternatives to Test Marketing |
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Definition
Simulated (laboratory) market testing
Online test marketing |
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Term
|
Definition
Production
Inventory Buildup
Distribution Shipments
Sales Training
Trade Announcements
Customer Advertising |
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Term
| Why some products succeed and others fail |
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Definition
No discernible benefits
poor match between features and customer desires
overestimation of market size
incorrect positioning
price too high or too low
inadequate distribution
poor promotion
inferior product |
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Term
|
Definition
Good Price
GOod Promotion
Match between product and market needs
Different from substitute products
Benefit to large numbers of people
listening to customers
Producing the best product
Vision of future market
Getting every aspect right
Strong leadership
Commitment to new-product development
Project-based team approach
Willingness to fail occasionally |
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Term
| The Spread of new products-All of the following statements about how adopters participate in the diffusion process are true EXCEPTS: |
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Definition
-Early Adopters may also be opinion leaders
-Laggards are the last consumer to adopt a new product
-THERE ARE THREE CATEGORIES OF CONSUMERS WHO WILL ADOPT AN INNOVATION (THERE ARE 5)
-The dominant characteristic of memebers of the late majority is skepticism
-Innovators are the first to purchase a new product |
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Term
|
Definition
The process by which the adoption of an innobation spreads
Smart Phones (not IPhones) |
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Term
| Categories of Adopters (KNOW CHARACTERISTICS/ EXAMPLES OF EACH) |
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Definition
Innovators
Early Adopters
Early Majority
Late Majority
Laggards |
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Term
| Product characteristics and the rate of adoptions |
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Definition
Complexity (Easy-fast; kind of difficult-slow)
Compatibility
Relative advantage
Observability (Can you see other people wearing it, wanting it, etc.
Trialability (Can you try it before you buy it?) |
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Term
| Communication aids the diffusion process |
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Definition
Word of Mouth (Friend)
Direction from Marketer (marketer) |
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Term
| The Stages of the product life cycle, in order, are: |
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Definition
| Introduction, growth, maturity, decline (MEMORIZE) |
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Term
|
Definition
A biological metaphor that traces the stages of a products acceptance from its introduction (birth) to it's decline (death)
Introductory Stage (sales 0)
Growth Stage (profits peak)
Maturity Stage (Sales Peak; more sales less profits; prices are lowered, but selling more; competition is crazy so you have to be competitive pricewise)
Decline Stage |
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Term
|
Definition
Styles
Fashions
Fads (doesn't see the whole product lifecycle) |
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Term
|
Definition
High Failure rates
Little competition
frequent production modification
limited distribution
high marketing and production costs
Negative profits with slow sales increases
Promotion focuses on awareness and information
Communication challenge is to stimulate primary demand |
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Term
|
Definition
Increasing rate of sales
Enterance of competitors
Market consolidation
Initial healthy profits
Aggressive advertising of differences between brands
Wider Distribution |
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Term
|
Definition
Sales increase at a decreasing rate
Saturated markets
Annual models appear
Lengthened product lines
Service and repair assume important roles
Heavy promotions to consumer and dealers
Marginal competitors drop out
Niche marketers emerge |
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Term
|
Definition
Long-run drop in sales
Large inventories of unsold items
Elimination of all nonessential marketing expenses
"Organized abandonment"
(Knowing and planning to abandon a particular line (VCR's) |
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|
Term
| PRODUCT LIFE CYCLES SLIDE: USE TO STUDY FOR TEST!!! |
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Definition
|
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Term
|
Definition
The result of applying human or mechanical efforts to people or objects
A lot of times a service is accompanied with a good |
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Term
| __% of GDP is earned through services |
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Definition
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|
Term
| David and Kathy are trying to decide where to go on vacation. David has suggested a cruise. Since neither of them have been on a cruise before, they will be unable to assess the _________ of a cruise until they have actually taken the vacation. |
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Definition
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Term
|
Definition
From the person performing the service
You can't get your haircut without being there
Have to be in contact with service provider to get that service |
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