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Bus Man 113 > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Product

A

Everything one receives in an exchange, including all tangible and intangible attributes and expected benefits
- A good, service, or idea

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2
Q

Consumer product

A

A product purchased to satisfy personal and family needs

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3
Q

Business/industrial product

A

A product bought for resale, for making other products, or for use in a firm’s operations

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4
Q

Convenience product

A

A relatively inexpensive, frequently purchased item for which buyers want to exert only minimum effort
- bread

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5
Q

Shopping product

A

An item for which buyers are willing to expend considerable effort on planning and making the purchase
- Buyers allocate time for comparing prices/products
- smart phone

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6
Q

Specialty product

A

An items that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort
- no substitute

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7
Q

Raw material

A

A basic material that becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes

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8
Q

Major equipment

A

Large tools and machines used for production purposes

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9
Q

Accessory equipment

A

Standardized equipment used in a firm’s production or office activities
- photocopier

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10
Q

Component part

A

An item that becomes a part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly

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11
Q

Process material

A

A material that is used directly in the production of another product but is not readily identifiable in the finished product

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12
Q

Supply

A

An item that facilitates production and operations but does not become part of the finished product

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13
Q

Business service

A

An intangible product that an organization uses in its operations
- financial service

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14
Q

PLC

A

A series of stages in which a product’s sales revenue and profit increase, reach a peak, then decline

=> Introduction
Customer awareness and acceptance are low

=> Growth
Sales increase rapidly as the product becomes well known

=> Maturity
Sales are still increasing but at a slower rate; later in this stage, sales and profits begin to slowly decline

=> Decline stage
Sales volume decreases sharply and profits continue to fall

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15
Q

Product line

A

A group of similar products that differs only in relatively minor characteristics
- Coke variations

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16
Q

Product mix

A
  • All of the products that a firm offers for sale
  • Width of the mix
    > The number of product lines the mix contains
  • Depth of the mix
    > The average number of individual products within each line
17
Q

Managing the product mix

A

Marketers must adjust, develop, and maintain an effective marketing mix

  • Managing existing products
    > Product modification: the process of changing one or more of a product’s characteristics such as quality, function, aesthetics
    > Line extensions: development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs (ie: different chip flavours)
  • Deleting products
    >weak and unprofitable
    >negatively impacts customer perception and sales
    > delete when Financial burden
    > systematic review of product effectiveness - marketing mix
  • Developing new products
    > Imitations, adaptations, or innovations
    > Consists of seven phases
    > expensive, time consuming and risky
    >
18
Q

Why Do Products Fail

A

The product and its marketing program are not planned and tested as completely as they should be
- For example, a firm tries to save product development costs and only market-tests a product and not its entire marketing mix

The firm markets a new product before all the “bugs” are worked out

When problems show up in testing, a firm tries to recover its costs by pushing ahead anyway

A firm tries to market a product with inadequate financing

19
Q

What is a brand?

A

A name, term, symbol, design, or any combination of these that identifies a seller’s products as distinct from those of other sellers

20
Q

Brand name

A

The part of a brand that can be spoken

21
Q

Brand mark

A

The part of a brand that is a symbol or distinctive design

22
Q

Trademark

A

A brand name or brand mark that is registered with the U.S. Patent and Trademark Office and is legally protected from use by anyone else

23
Q

Trade name

A

The complete and legal name of an organization

24
Q

Benefits of branding

A
  • easily recognizable, they reduce the amount of time buyers must spend shopping
  • help consumers judge quality
  • helps a firm introduce a new product
  • aids in promotional efforts because promotion of each branded product indirectly promotes others with the same brand
25
Q

Price

A

The amount of money a seller is willing to accept in exchange for a product at a given time and under certain circumstances

  • Price allocates goods and services among those who are willing and able to buy them
  • Price allocates financial resources (sales revenue) among producers according to how well they satisfy customers’ needs
  • Price helps customers allocate their own financial resources among various want-satisfying products
26
Q

Price competition

A

An emphasis on setting a price equal to or lower than competitors’ prices to gain sales or market share

27
Q

Non-price competition

A

Competition based on factors other than price (such as quality, customer service, packaging)

28
Q

Buyers’ perceptions of price

A

Buyers will accept different ranges of prices for different products
- A premium price may be appropriate if a product is considered superior or has inspired strong brand loyalty

29
Q

Pricing objectives

A

=> Survival
Pricing the firm’s products (perhaps at a loss) in order to attract customers to establish the firm in a market

=> Profit maximization
Pricing with the intent to reap profits as large as possible from a market—usually an unattainable goal

=. Target return on investment (ROI)
Pricing that allows the firm to attain its profit goal, which is a percentage of the investment the firm has made

=> Market-share goals
Pricing that will increase a firm’s proportion of total industry sales

=> Status quo pricing
Pricing the firm’s products so as not to disturb the stability of prices in the industry

30
Q

New prodcut pricing

A

> Price skimming
Penetration pricing

31
Q

Differential pricing

A

> Negotiated pricing
Secondary market pricing
Periodic discounting
Randome discounting

32
Q

Psychological pricing

A

> Odd number pricing
Multiple unit pricing
Reference pricing
Bundle pricing
Everyday low pricing
Customary pricing

33
Q

Product line pricing

A

> Captive pricing
Premium pricing
Price lining

Bus Man 113 (7 decks)

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