Chapter 30 And 31 Vocab Flashcards
Includes all the different products that a company makes or sells
Product mix
Involves making decisions about the features of a product or idea that will help sell the product
Product planning
Is a group of closely related products manufactured or sold by a business
Product line
Is a specific model, brand or size of a product within a product line
Product item
Refers to the number of different product lines a business manufactures or sells
Product width
Refers to the number of items offered within each product line
Product depth
Is a model of the new product
Prototype
Represents the stages that a product goes through during its life
Product life cycle
Refers to the effort a business makes to identify place and sell its products
Product positioning
Is a process that involves managing product categories as individual business units
Catergory management
Is a computer developed diagram that shows retailers how and where products within a category should be displayed
Planograms
7 steps to developing new product lines
Generating ideas Screening ideas Developing a business proposal Developing the product Testing the product with consumers Introducing the product Evaluating customer acceptance
Is an alteration in a company’s existing product
Product modification
Reasons for deleting a product line
Obsolescence-no longer useful Loss of appeal Changes in company's objectives Lack of profit Conflict with other product in the line Replacement with new products
4 stages of product life cycle
Introduction, growth, maturity, decline
- product awareness
- develop a market
- special promotions
- trademarks
- patents
- least profitable stage
- production
- focus on benefits for customers
Introduction
- product is enjoying success
- increase sales and profits
- advertising is focused on consumer satisfaction
- build brand preferences
- increase market share
Growth
- sales decrease
- advertising continues to reinforce the product brand
- promotional costs are lower than in the introduction stage
- more competition
- product loses market share
- has lower profits
Maturity
- sales fall
- profits are smaller than expenses
- update or alter product
- management needs to make decision about product
- discount product
Decline
Ways to manage the decline stage
- sell or license product
- recommit to the product line
- discount the product
- regionalize the product
- update or alter the product
Is a name, term, design, symbol or combination of these elements that identifies a business, product or service and sets it apart from its competitors
Brand
Is a word, group of words, letters or numbers that represent a product or service
Brand name
Identifies and promotes a company or a division of a particular corporation
Trade name
Incorporates a unique symbol, coloring, lettering or design element
Brand mark
Is a specific type of brand make one with human form or characteristics
Trade character
Is a brand name, brand mark, trade name, trade character or a combination of these elements that is registered with the federal government and has legal protection
Trademark
Importance of brands in product planning
- to build product recognition and customer loyalty
- to ensure quality and consistency
- to capitalize on brand exposure
Are owned and initiated by national manufacturers or by companies that provide services
National brands
Are developed and owned by wholesalers and retailers
Private distributor brands
Are products that do not carry a company identity
Generic brands
Is a branding strategy that uses and existing brand name to promoted a new or improved product in a company’s line
Brand extension
Is a legal authorization by a brand owner to allow another company to use its brand, brand mark or trade character for a fee
Brand licensing
Strategy offers a combination of manufacturer, private distributor, and generic brands to consumers to
Mixed brands
Strategy combines one or more brands in the manufacture of a product or in the delivery of a service
Co-branding
Is the physical container or wrapping for a product
Package
When marketers package or bundle, 2 or more different goods or services in one packaged
Mixed bundling
Occurs when 2 or more similar products are placed on sale for one package price
Price bundling
Are packages with preformed plastic mold surrounding individuals items arranged on a backing
Blisterpacks
Uses technology that keeps foods fresh without refrigeration for long period of time
Aseptic packing
Uses packaging to promote social and political causes that may be unrelated to the products inside
Cause packaging
Is an information tag, wrapper, seal or imprinted message that is attached to a product or its package
Label
Gives the brand name, trademark or logo
Brand label
Gives information about the products use, construction, care, performance and other features
Descriptive label
States the quality of the product
Grade label
FPLA
Fair packaging and labeling act-established mandatory labeling requirements
FTC
Federal trade commission-established packaging regulations
