Chapter 4.5 Flashcards
product
the end result of
the production process sold
on the market to satisfy a
customer need
consumer durables:
manufactured products
that can be reused and
are expected to have a
reasonably long life, such
as cars
product life cycle
the pattern of sales recorded by
a product from launch to
Removal from the market
extension strategies:
marketing plans that extend
the maturity stage of the
product before a brand new
one is needed
Boston Consulting Group
matrix
A method of
analysing the product
portfolio of a business in
terms of market share and
market growth
brand
an identifying
symbol, name, image or
trademark that separates
a product from its
competitors
brand awareness:
extent to
which a brand is recognised
by potential customers and
is correctly associated with a
particular product – can be
expressed as a percentage of
the target market
brand loyalty:
Brand loyalty is when consumers keep buying the same brand repeatedly, even if other brands try to attract them with marketing.
brand development
Brand development measures how much a product sells, usually out of every thousand people.
For example, if 100 out of 1,000 people buy a product, its brand development is 10.
brand value (or brand
equity):
the value
that a brand has because
customers are willing to pay
more for it than they would
for a non-branded generic
product !!
family branding
A marketing strategy that
involves selling several
related products under one
brand name (also known as
umbrella branding
product branding
Each individual product in a
portfolio is given its own
unique identity and brand
image (also known as
individual branding)
company or corporate
branding:
the company
name is applied to products
and this becomes the brand
name
own-label branding:
retailers create their own
brand name and identity for
a range of products
manufacturers’ brands:
producers establish the
brand image of a product or
a family of products, often
under the company’s name
cost-plus pricing
adding a fixed mark-up for profit to
the unit price of a product
penetration pricing:
setting a relatively low price
often supported by strong
promotion in order to
achieve a high volume
of sales
market skimming:
setting a high price for a new product when a firm has a unique
or highly differentiated
product with low price
elasticity of demand
psychological
pricing:
setting prices that take account of customers’ perception of value of the product
loss leader
product sold
at a very low price to
encourage consumers to buy
other products
price discrimination:
occurs when a business sells the
same product to different
consumers at different prices
promotional pricing
special low prices to gain market
share or sell off excess
stock – includes ‘buy one get
one free
price leadership
exists when one business sets a
price for its products and
other firms in the market set
the same or similar prices
(they ‘follow suit’)
predatory pricing:
deliberately undercutting
competitors’ prices in order
to try to force them out of
the market
promotion:
the use of advertising, sales promotion,
personal selling, direct mail,
trade fairs, sponsorship and
public relations to inform
consumers and persuade
them to buy
above-the-line promotion
a form of promotion that is
undertaken by a business by
paying for communication
with consumers, e.g.
advertising
below-the-line promotion:
promotion that is not a
directly paid-for means of
communication but based
on short-term incentives
to purchase, e.g. sales
promotion techniques
sales promotion
Incentives such as special offers or
special deals directed at
consumers or retailers to
achieve short-term sales
increases and repeat
purchases by consumers
promotion mix
The combination of promotional
techniques that a firm uses
to communicate the benefits
of its products to customers
internet (online)
marketing:
Refers to advertising and marketing
activities that use the
internet, email and
mobile communications to
encourage direct sales via
electronic commerce
viral marketing
the use of
social media sites or text
messages to increase brand
awareness or sell products
guerrilla marketing
An unconventional way of
performing marketing
activities on a very low
budget
channel of distribution
The chain of intermediaries
a product passes through
from producer to final
consumer
Agent:
a business with
the authority to act
on behalf of another
firm, e.g. to market its
products
