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SGMA 217 > Chapter 13 > Flashcards

Chapter 13 Flashcards

1
Q

good

A

physcial tangible product

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2
Q

service

A

an intangible product or experience

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3
Q

what can be mass produced goods or services

A

only goods not all services

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4
Q

how do we judges goods and services

A

Goods: product

service: delivery + outcome

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5
Q

is it easy to classify a product?

A

not always!

sometimes the product is g+s (car fixed)
process of producing a good can be the service (starbucks)

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6
Q

2 types of produccts

A

consumer product (personal needs)
business product (resale/intermediate goods/investment)

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7
Q

can 1 good be ocnsumer and business product

A

yes! lightbulbs

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8
Q

types of consumer products

A

1) convenience
2) shopping
3)specialty

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9
Q

convenience products

A

cheap products thhat take lil effort (milk candy, bread)

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10
Q

shopping products

A

people willing to expend effort and planning (mattress, consoles, makeup)

they last gor a long time and bought less

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11
Q

specialty product

A

spend A LOTTTTTTTTTTTTT of money on them (they plan the purchase of it)

[gucci clothes]

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12
Q

unsought product

A

shopping ORRR specialty product

people dont seek it out until an ecenthappens (like life insurance)

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13
Q

what categroies can business products be separated into

A

1) raw metrial: basic material transformed into a physical product
2) component part: part of the physical product (either finished item or a big part of the finished product)
3)process material: used directly in producing a diff product ( cant identify it in finished product)
4) major equipment: large tools an dmachines for production purchase (drill machine, bulldozer)
5) accesory equipment: standardized equipment used in production/office activity (forklift,pcs)
6) supply:(helps in production but not part of final product) paper pencils
7) business service: janoritral/legal services

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14
Q

how is accesory and major equipment diff

A

accesory is CHEAPER and bought more regularly

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15
Q

component part vs process material

A

comp part: easily identify them in the finsihed good

process: ccant identify them in finished good (gllue)

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16
Q

why do companies innovate

A

to stay competitive

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17
Q

can innovation be in g and s

A

YES DUH; HELLO FRESH

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18
Q

pros of innovation

A

1) improved function + quality
2) cheap productiv
3) new experiences

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19
Q

what is failure rate for new products

A

50%

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20
Q

4 phases of product dev

A

idea generation

prodcut analysis

development and testing

commercialization

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21
Q

idea generation

A

brainstorming ideas to meet customer needs

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22
Q

product analysis

A

screen ideas pick the best one; lose the ones that do not fit product mix/dont work

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23
Q

product dev and testing

A

prototype, small production run, evaluate customer repsonse

“for a limited time only”

24
Q

commercialization

A

when you make the product big and launch it in market; large svale manufacturing

25
Q

product life cycle

A

1 intro stage
2 growth stage
3 maturity stage
4 decline stage

26
Q

plc intro stage

A

new product category, low competitiors, low profit & salees

27
Q

plc growth satge

A

sales and profit increase, competitors enter marktet

28
Q

PLC maturity stage

A

sales peak, profits decline as market becomes saturated comeptitors lower price

29
Q

PLC decline stage

A

sales and profits decline (customer needs change)

only those who can produce product at low cost determines who remains in the market

30
Q

what does PLC look like

A

left skewed graph

31
Q

introduction phase marketing strategy

A

market to early adopters; heavy promotion to generate interest + build awareness

32
Q

growth phase marketing strategy

A

advertise and increase distribution + lower prices

33
Q

maturity phase marketing strategy

A

add new features and styles + target competitors to make thesmelves loook good

34
Q

decline phase marketing strategy

A

decrease production costs and marketing costs, maybe even discontiue the product

35
Q

Product Mix

A

collection of all company products

36
Q

how is the prodcut mix changes determined/ why would they wanna change product mix

A

cusotomer preferences
competitor challenges
stage of PLC
simiplifying product mix

37
Q

Product line

A

group of similar products that are related in the way they work/target audience

these can often be under diff brand names

chips, sports drinks, cereals

38
Q

why are product lines good

A

1) clarity for consumers: makes easy for customers to pick

2) simpler branding: they already have a targeted brand

3) more effective management of product mix: certain managers per line

39
Q

goals of pacakaging

A

protect product

attract attention

improve design/fucntion (resealable)

provide info

serve customer needs (travel size/bundels)

40
Q

what affects product pricing

A

economic conditions - can prices be cut or raised

industry- are they monopoly/oligopoly? higher prices

PLC- beginning of life cycle HIGH price , Decline: low price

41
Q

what are main pricing consideration

A

cost to producee, max willingnes to pay, competition in amerkt

42
Q

breakeeven point

A

min number of units that must be sold to cover the costs

43
Q

two types of costs

A

fixed costs : operating costs like rent that will be always the same no matter how much you prooduce

variable costs: the costs of producing or purchasing one unit

44
Q

What is total variable cost

A

variable cost * units produced

45
Q

total cost

A

fixed +variable

46
Q

Revenue- Variable cost=?

A

unit contribution / contribtuion margin

this is the amount of money that is made after vbl costs paid, this money is ued to pay fixed costs

47
Q

percentage of sale that is contribution margin

A

percentage of the sale =

1- (vbl cost/sales)

48
Q

variable costs are also good

A

per unit costs

49
Q

how to calculate how many units sold are needed to breakeven ?

A

fixed costs/ unit contribution= breakeven volume (q)

OR

fixed costs/ contribution margin = breakeven sales (p)

either works, jus calculate p to q or vice versa

50
Q

how to calculat contribution margin?

A

revenue- vbl costs

51
Q

what are the 5 pricing objectives

A

maintain the status quo
(match competitors)

cmmunicate brand value (higher price=qulity)

increase market share

build loyal user base ( low prices to get long term customers)

survival or liquidation (increase cash flow in short term)

52
Q

pricing strategies

A

new product pricing: price skimming/ penetration pricing

psychological pricing: odd number pricing/ multi unit pricing

product line pricing: captive prcing/premium prciing/price lining

promotional pricing: price leaders/ special event prciign/ comparison discounting

53
Q

new product pricing

A

price skimming: highest possible price of a product when introduced in PLC
(skims cream of market)

penetration prcinig (low pricing to get large sales volume and market share b4 competitors notice)

54
Q

psychological prcing

A

odd number prciing: 5 or 9 endings to make people think lower price

multi unit pricingL single price for 2+ units
(2 for 1)

reference pricing: putting cheap and expensive things together so customer buys

bundle pricng: selling goods TOGETHER!!! like packages

EDLP: every day low pricing

customary pricing: rpcing based on tradition like gum

55
Q

product line prcing

A

changing the price of multiple products in a product line together

captive prciingLthe basic product inproduct line is priced low, others are priced high! (razor blades and printer ink)

premium pricing: highest quality product is the higherst price (ice cream, tv cable)

price lining: selling goods only at certain preset prices that reflect definite price breaks

56
Q

Promotional pricing

A

price leaders: priced below the usual, near cost of producing or below it (supermakrters)

special event pricig

xomparion discounting: sets price of product at specific levl and simulatneously compares w hihger price!!!

SGMA 217 (13 decks)

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