Ch. 15 Flashcards
product development is a …
key activity in any modern business, anywhere in the world
international competition today is so strong that …
Canadian businesses could lose some part of the market to foreign producers of they are not careful
the only way to prevent losses to foreign producers is to …
design and promote better products, meaning products are perceived to have the best value
define “value”
good quality at a fair price
when customers calculate the value of a product, they look at…
the benefits and then subtract the cost to see if the benefits exceed the costs
what is a “total product offer” (also called …)
(value package) consists of everything that consumers evaluate when deciding whether to buy something
developing a total product offer:
list the first four potential components
speed of delivery, image created by advertising, reputation of producer, guarantee
developing a total product offer: list the second group of four potential components
service, internal access, buyer’s past experience, store surroundings
developing a total product offer:
list the last four potential components
brand name, convenience, package and price
what is a “product line”
a group of products that are physically similar or are intended for a similar market
what is “product differentiation”
the creation of real or perceived product differences
what are the five factors of a good brand name
reflects benefits, easy to say, recognize and remember, distinctive, translates well and can be protected legally
define “brand equity”
(4 examples)
the combination of factors that people associate with a given brand name (e.g. awareness, loyalty, images, emotions etc.)
define “brand loyalty”
the degree to which customers are satisfied, enjoy the brand, and are committed to further purchase
define “brand awareness”
how quickly or easily a given brand name comes to mind when a product category is mentioned
what is a “brand manager”
a manager who has direct responsibility for one brand or one product line; called a product manager in some firm
what is a “national brand”
a known brand distributed and advertised nationally (ex. Kraft Foods)
what is a “private brand”
the goods do not carry the manufacturer’s name, they carry the distributor’s name (ex. Sears)
branding: define “generic name”
the name for a product category which is not advertised, is cheaply packaged, and is sold at a discount
list the four stages of a product life cycle
introduction, growth, maturity and decline
the ultimate goal of all marketing activity is to …
increase sales and profits
