Ch 14 & 16

Question 1

value

Answer 1

good quality at a fair price (benefits-cost= + benefits)

Question 2

distributed product development

Answer 2

handing off various parts of your innovation process- often countries

Question 3

total product offer

Answer 3

everything that consumers evaluate when deciding whether to buy something; also called a value package

Question 4

product line

Answer 4

group of products that are physically similar or are intended fora similar market

Question 5

product mix

Answer 5

comes of product lines offered by a manufacturer

Question 6

product differentiation

Answer 6

creation of real or perceived product differences

Question 7

convenience goods and services

Answer 7

products that the consumer want to purchase frequently and with a minimum of effort

Question 8

shopping goods and services

Answer 8

products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers

Question 9

specialty goods and services

Answer 9

consumer products with unique characteristics and brand identity. bc these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them

Question 10

unsought goods and services

Answer 10

products consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem

Question 11

industrial goods

Answer 11

products used in the production of other products (also “business goods” or “B2B goods”)

Question 12

bundling

Answer 12

grouping two or more products together and pricing them as a unit

Question 13

brand

Answer 13

name, symbol, or design that identifies goods or services of one seller

Question 14

trademark

Answer 14

brand txt has exclusive legal protection for both its brand name and its design

Question 15

manufacturers’ brands

Answer 15

brand names of manufacturers that distribute products nationally

Question 16

dealer (private-label) brands

Answer 16

brands that don’t carry the manufacturer’s name but carry a distributor or retailer’s name instead

Question 17

generic goods

Answer 17

non branded products that usually sell at a sizable discount compared to national or private-label brands

Question 18

knockoff brands

Answer 18

illegal copies of national brand-name goods

Question 19

brand equity

Answer 19

value of brand name and symbols

Question 20

brand manager

Answer 20

a manager who has direct responsibility for one brand or one product line; called a product manager in some firms

Question 21

product screening

Answer 21

process designed to reduce the number of new-product ideas being worked on at any one time

Question 22

product analysis

Answer 22

making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas

Question 23

concept testing

Answer 23

taking a product idea to consumers to test their reactions

Question 24

commercialization

Answer 24

promoting a product to distributors and retailers to get wide distribution, and developing strong ad campaigns to generate and maintain interest in the product

Question 25

product life cycle

Answer 25

theoretical model of what happens to sales and profits for a product class over time (introduction, growth, maturity, decline)

Question 26

pricing objectives

Answer 26

1) achieving a target return on investment or profit
2) building traffic
3) achieving greater market share
4) creating an image
5) furthering social objectives

Question 27

target costing

Answer 27

designing a product so that it satisfies customers and meets the desired profit margin

Question 28

competition-based pricing

Answer 28

pricing strategy based on what all the other competitors are doing

Question 29

price leadership

Answer 29

strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow

Question 30

break-even analysis

Answer 30

process used to determine profitability at various levels of sales

Question 31

total fixed costs

Answer 31

all the expenses that remain the same no matter how many products are made or sold

Question 32

variable costs

Answer 32

costs that change according to the level of production

Question 33

skimming price strategy

Answer 33

strategy in which a new product is priced high to make optimum profit while there’s little competition

Question 34

penetration strategy

Answer 34

strategy in which a product is priced low to attract many customers and scourge competition

Question 35

everyday low pricing (EDLP)

Answer 35

setting prices low with no intention of special sales

Question 36

high-low pricing

Answer 36

setting prices that are higher than EDLP, but having many special sales lower than competitors

Question 37

psychological pricing

Answer 37

pricing goods and services at price points that make the product appear less expensive than it is

Question 38

promotion mix

Answer 38

combo of promotion tools an organization uses

Question 39

integrated marketing communication (IMC)

Answer 39

technique that combiners all the promotion tools into one strategy

Question 40

advertising

Answer 40

paid, non personal communication through various media by organizations

Question 41

interactive promotion

Answer 41

process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships

Question 42

personal selling

Answer 42

face-to-face presentation and promotion of goods and services

Question 43

prospecting

Answer 43

researching potential buyers and choosing those most likely to buy

Question 44

qualifying

Answer 44

making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message

Question 45

prospect

Answer 45

person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message

Question 46

trial close

Answer 46

step in the selling process that consists of a question or statement that moves the selling process toward the actual close

Question 47

sales promotion

Answer 47

promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

Question 48

sampling

Answer 48

promotional tool in which a company lets consumers have a small sample of a product for no charge

Question 49

viral marketing

Answer 49

any strategy that promotes people passing on a marketing message to others

Question 50

podcasting

Answer 50

means of distributing multimedia digital files on the internet for downloading to a portable media player

Question 51

push strategy

Answer 51

the producer uses ads, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

Question 52

pull strategy

Answer 52

heavy ads and sales promo efforts are directed toward consumers so that they’ll request the products from retailers