Term
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Definition
| Items viewed as a unit- shampoos for certain types of hair, toothpastes, etc. (closely related products of a firm) |
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Term
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Definition
| different products in product line(different kinds of Soaps-ivory/zest/dove, Shampoos-pantene/head and shoulders/Irish spring, Cokes-diet/zero. etc.) |
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Term
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Definition
| Number of different lines that firm markets |
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Term
| 1. Core (product hierarchy) |
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Definition
| generic product or service. Generally doesn’t get you to buy it. |
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Term
| 2. Branded (product hierarchy) |
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Definition
| core product plus characteristics that allow us to differentiate it. |
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Term
| 3. Augmented (product hierarchy) |
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Definition
| enhance value beyond core and branded- |
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Term
| • Alternatives to new product development |
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Definition
| o Line extensions –additional items in same product category under same brand name |
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Term
| o Down Market • Line extensions |
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Definition
| Lower end of market (usually cheaper). |
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Term
| o Up Market• Line extensions |
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Definition
| Higher end of the market (more growth, higher margins). |
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Term
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Definition
| Extends current brand name to new/modified products in new category |
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Term
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Definition
| Letters, words, numbers. (sometimes only distinguishing characteristic) |
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Term
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Definition
| Brand not made up of words (Symbols and designs). |
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Term
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Definition
| Producer identified with product at point of purchase |
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Term
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Definition
| Retailer doesn’t manufacture these |
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Term
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Definition
Two or more brands on one product
o Capitalizes on trust and confidence in brands involved
o Can help firm differentiate products. |
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Term
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Definition
| Change dependability or durability Altering materials or production process |
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Term
| o Functional Modifications- |
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Definition
| Versatility, Effectiveness, Convenience, or Safety (Usually extends life, usually requires redesign of product) |
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Term
| o Aesthetic Modifications |
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Definition
| Change sensory appeal (Taste, texture, sound, smell, appearance) |
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Term
| o Why firms develop new products |
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Definition
| Taste, texture, sound, smell, appearance |
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Term
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Definition
| Market research is critical- actively seeking new ways to improve |
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Term
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Definition
| Ideas analyzed- match objectives and resources? |
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Term
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Definition
| Sample potential buyers’ responses to idea |
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Term
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Definition
| Review sales, costs, profit projections |
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Term
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Definition
| Developing physical product- see if feasible and cost effective |
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Term
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Definition
| Determine if potential customers will actually buy. |
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Term
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Definition
| Full-scale manufacturing and marketing |
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Term
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Definition
| Getting consumers engaged in idea process |
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Term
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Definition
| units must sell to profit |
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Term
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Definition
| time to recover invest funds |
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Term
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Definition
| - limited introduction, areas represent intended market |
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Term
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Definition
| Eliminating product when no longer satisfies sufficient number of customers |
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Term
| • Importance of services to economy |
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Definition
o Aging population
o Higher per capita income
o Changing social and cultural values
o Increased leisure time |
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Term
| • How services differ from goods |
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Definition
| An intangible product that involves a deed, a performance, or an effort |
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Term
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Definition
| cannot be seen, tasted, felt, heard, or smelled before purchase |
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Term
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Definition
| services cannot be separated from their providers |
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Term
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Definition
| Quality of services depends on who provides them and when, where, and how |
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Term
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Definition
| services that cannot be stored for later sale or use |
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Term
| • Expanded marketing set for services (4Ps +3) |
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Definition
o Product, Price, Place, Promotion
o People, Physical Environment, Process |
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Term
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Definition
| the environment, landscapes, where the service takes place |
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Term
| • Why managers should care about service quality |
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Definition
o Increased customer retention
o Positive word-of-mouth
o Increased revenues |
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Term
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Definition
| Department stores, discount stores, convenience stores, supermarkets, superstores, warehouse clubs. (variety of products) |
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Term
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Definition
| Substantial assortments in a few product lines. (Narrow and deep assortments of items) |
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Term
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Definition
o Large specialty store
o low prices and product availability |
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Term
| • Off-¬‐ price retailers 2 |
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Definition
| Buy manufacturers’ seconds, overruns, returns, and off-season merchandise for resale at deep discounts |
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Term
| • Extreme value retailers |
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Definition
| Small discounters with limited assortment at deep discounts (Family Dollar, Dollar General, Dollar Tree) |
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Term
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Definition
Able to start business with limited capital while receiving guidance and advice from franchiser
More successful- lower failure rate compared to independent retail establishments |
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Term
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Definition
Franchiser can dictate aspects of business (décor, menu, hours) and collects percentage of the sales
Agreements are not always uniform- one franchisee may pay more than another |
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