Chapter 10 Flashcards
The stages a new product goes through in the marketplace is known as
Product Life Cycle
What causes products to move through the product life cycle?
Changing customer needs
Launch of better, more efficient products
SLIDE 7!!
What are the 4 stages of the product life cycle curve?
Introduction
Growth
Maturity
Decline
In what stage of the product life cycle curve has
- slow sales
- low profit
Introduction Stage
Demand for type of product is known as
Primary Demand
Having high prices to recover costs is known as
Skimming Pricing
What type of pricing has lower prices to gain larger market share?
Penetration Pricing
In what stage of the product life cycle curve has
- fast sales growth
- increasing profit
Growth Stage
What are common occurrences during the growth stage?
- Public awareness rises
- More competitors
- Repeat purchases
- New features
- Broad distribution
- Selective demand- demand for specific brand
In what stage of the product life cycle curve has
- sales growth slows and levels out
- profit growth slows and begins to drop
Maturity Stage
What are some common occurrences during the maturity stage of the product cycle?
- Product differentiation
- Many competitors
- Many products part of product line
- Focus on reminding consumer to buy your brand
In what stage of the product life cycle curve has
- slow decrease in sales
- Profits decrease at rapid pace
Decline Stage
What type of changes cause products to move into the decline stage of the product life cycle?
Environmental changes
(changing consumer wants, tech advances)
What term describes when a product is dropped from the product line?
Deletion
What term describes how products are retained but reduce marketing costs?
Harvesting
What are 3 ways to manage the product life cycle?
Product Modification
Market Modification
Repositioning the Product
Altering one of more of product’s characteristics to increase value and increase sales is defined as
Product Modification
What are the two types of product modification?
Product Bundling
New Characteristics
Finding new customers, increasing a products use, and creating a new use situation are all strategies that are used to manage the product life cycle by?
Market Modification
Changing the place a product occupies in consumer’s mind relative to competition is known as
Repositioning the Product
What are the 4 ways to reposition a product?
- Reacting to a Competitor’s Position
- Reaching a New Market
- Catching a Rising Trend
- Changing the Value Offered
By using any of the following to identify or distinguish from competitors such as name, logo symbols, URLs, characters, slogan, jingles, and distinctive packages are all examples of
Branding
Employees
Actions
Product
Customer Service
Expectations
Reputation are also examples of what term
Branding
Added value a brand name gives to a product beyond the functional benefits provided is known as
Brand Equity
What are the 5 benefits brand equity can provide?
- Facilitate purchases
- Establish loyalty
- Protect from competition
- Are assets
- Affect Market Value
- Facilitate purchases
- Establish loyalty
- Protect from competition
- Are assets
- Affect Market Value
are all examples of benefits for what term?
Brand Equity
What are the 4 aspects used to determine brand equity
- Brand Awareness
- Perceived Value
- Brand Associations
- Brand Loyalty
How familiar customers are with a brand is known as
Brand Awareness
Relationships between benefits and costs are known as
Perceived Value
Mental and emotional links consumers make between brand and key attributes are defined as
Brand Associations
Consumers who buy the same product repeatedly can be described as
Brand Loyalty
What are the 4 categories of branding strategy?
Multiproduct branding strategy
Multibranding strategy
Private branding strategy
Mixed branding strategy
Using one brand name for all products to capitalize on brand equity and to lower advertising and promotion costs is an example of which branding strategy?
Multiproduct Branding Strategy
practice of marketing two or more brands together on the same package or promotion is defined as
Co-Branding
come back to 33-34
What type of branding sells under the brand name or wholesaler or retailer?
Private Branding
The container the products sold in and where labels are an integral part of this term
Packaging
What are the 3 benefits of packaging?
Communication Benefits
Functional Benefits
Perceptual Benefits
What type of packaging benefit highlights the directions and ingredients
Communication Benefits
What type of packing benefit highlights the storage of products, protection, and convenience
Functional Benefits
What type of packaging benefit focuses on the branding of the product and the importance of positioning it in the minds of consumers
Perceptual Benefits
