Term
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Definition
| Development of product that is closely related to existing products in the line but meets different customer needs....cheerios/ honeynut cheerios |
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Term
| Line extensions functions |
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Definition
may focus on same or new segment
used to counter competing products |
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Term
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Definition
Change inone or more product characteristics and eliminations of original product IMPROVE AND REMOVE
Prodcuts must be modifable and be modifiable to meet customers needs....CARS |
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Definition
| changes related to dependability and durability |
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Definition
| Changes affecting versatility effectiveness, convenience safety |
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Definition
| Changes to SENSORY appeal....taste texture smell or appearance |
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Term
| Phases of New Product Development |
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Definition
| Idea generation. Screening. Concept testing. Business analysis. Product development. Test marketing. Commercialization. |
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Term
| Success characteristics of new products |
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Definition
| relative advantage. compatibility. trial ability. observability. simplicity |
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Term
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Definition
seek new product ideas to achieve objectives.
Internal Source- Marketing managers, researchers, sales personnel, engineers.
External- customers, competitors, advertising agencies, consultants |
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Term
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Definition
select ideas w/ greatest potential for further review
Cannibalization- will it destroy our market of one of our other items, or grow market.
GREATEST NUMBER OF NEW PRODUCTS REJECTED IN THIS STAGE |
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Term
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Definition
seek potential buyers responses to a product idea
Uses drawing and written descriptions |
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Term
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Definition
| Evaluate potential impact of a product idea on firms sales costs and profits |
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Term
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Definition
determine if producing product is feasible and cost effective
determine pruduct attributes
Prototype developed and tested for performance safety and functionality |
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Term
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Definition
limited introduction of product in geographic areas chosen to represent the intended market
Sample launch of entire marketing mix..do everything includding promote and distribute.
Very expensive |
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Term
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Definition
finalizing plans and budgets for full scale manufacturing and marketing of a product
Marketing mix tweaked. |
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Term
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Definition
| creating and designing products so that customers perceive them as different from competing products |
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Term
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Definition
overall characteristics of a product that allow it to perform as expected in satisfying customer needs
Level of quality- relative amount of quality a product possesses
Consistency- degree to which a product has same level of quality over time |
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Term
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Definition
Delivery, installation, financing, customer training, warranties, gurantees, repairs, online product info.
competivite advantage when all other product features are equally matched by competitors. |
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Term
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Definition
Product degsign- how product is conceived, planned and produced
Styling- products physical appearance
Features- Specific design characteristic |
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Term
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Definition
| Quality Design and Support Services |
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Term
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Definition
Phase out you slowly remove items from shelf.
Run out- once items on shelf are gone item is done. |
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Term
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Definition
Brand- Identifying name, design or symbol.
Corvette, chevrolet, GM
Brand Name- part of brand that can be spoken in words letters numbers.
NBA, 49'ers, Q-TIP
Brand Mark- part of name not made up of words
Nike swoosh, Golden arches |
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Term
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Definition
| customer strongly prefers a specific brand, will not accept substitute. |
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Term
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Definition
| marketing and financial value associated with a brands market strength |
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Term
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Definition
Manufacturer Brands- initiated by producers
Private Distributor Brands- initiated and owned by resellers, dealer brands, private brands, store brands
Generic brands- indicate only product category |
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Term
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Definition
Individual- each product given a differnt name
Family- branding all of firms products with same name.. Arm and hammer
Brand extension- Uses one of its existing brands for a new product in different category. Tylenol-Cold medicine
Co branding- two or more brands on one product...Oreo cookie crisps
Licensing- agreement whereby one company permits another to use its brand on other products for fee...Star wars toys lunchboxes, shoes. |
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Term
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Definition
Cost of Packaging- limited consumer willingness to pay for better packaging
Tamper resistant packaging...family packaging...promotional role...reseller needs...environmentally responsible. |
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Term
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Definition
Environmentally Responsible- Biodegradable and recyclable
Category Consistent Packaging- reflects expected appearance of products in a category |
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Term
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Definition
| Unique features, differentiate from its competitors |
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Term
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Definition
| Group of individuals organizations that direct the flow of products from producers to customers |
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Term
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Definition
Time- products available when customer wants them
Place- products available in locations where customers purchase
Possession- provides customer with ownership use product or store for future use...raincoats |
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Term
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Definition
| Reduce overall costs of exchanges |
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Term
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Definition
Dual Distribution- use of two or more marketing channels to distribute same product to same target market. DPT store, magazine, online.
Strategic Channel Alliance- Agreement whereby products of one organization are distributed through the marketing channels of another...European water alliance with coca cola in usa |
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Term
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Definition
| using all available outlets to distribute a product, convenience products with high replacement rates...availability is more important than outlet type |
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Term
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Definition
| using only some available outlets to distribute a product. Shopping products...high qualification requirements for intermediaries to distribute |
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Term
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Definition
| using single outlet in a fairly large geographic...expensive |
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Term
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Definition
| Dominant member of a channel who organizes and controls...producer wholesaler or retailer...establishes channel policies...coordinates development of marketing mix |
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Term
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Definition
Channel managed by single channel member.
Corporate- common ownership of all levels.
Contractual- contractual agreements among channel members..Hr block, MC donalds
Administered- dominant member coordinates independent channel members- Coke, walmart, sears |
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Term
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Definition
| Producer uses two or more different channels to reach same target...only when driving out individual retailers |
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Term
| Restricted sales territories |
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Definition
| manufacturer grants exclusive sales territory rights to distributors |
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Term
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Definition
| supplier furnishes product to channel member stipulating the member must purchase other products |
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Term
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Definition
| requires channel member to purchase suppliers entire product line to obtain any of the suppliers products |
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Term
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Definition
| supplier forbids intermediary to carry products of a competing manufacturer. Pepsi |
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Term
| Physical Distribution Objectives |
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Definition
Meeting standards of customer service.
Reducing total distribution costs
Total cost approach to achieve lowest total distribution costs |
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Term
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Definition
Activities used to move products from producers to consumers and other end users
Order processing, inventory management, materials handling, warehousing and transportation.
Outsourcing- contracting of PD tasks to third parties with specialized logistics skills who do not have managerial authority within the marketing channel |
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Term
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Definition
| Electronic data interchange- computer integrated order processing with production, inventory, accounting, transportation. Reduces cycle time. |
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Term
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Definition
| Just in time- inventory management where supplies arrive just as needed for production or resale |
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Term
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Definition
design and operation of facilities for storing and moving goods.
Compensates for dissimilar production and consumption.
Functions- receive, identify sort, dispatch, hold, recall, assemble, dispatch |
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Term
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Definition
Railrods- heavy bulky carloads of freight
Trucks-flexible schedules, speed and access
Waterways- heavy low value
Airways- fast delivery high value
Pipelines- carry petroleum and chemicals |
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Term
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Definition
piggy back- rail truck
fishy back- boat truck
birdy back- plane truck |
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Term
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Definition
| Customer aware brand exists, views as alternative purchase |
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Term
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Definition
| - customer prefers one brand over competive offerings |
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