Chapter 6: Product and Brand Strategy Flashcards
Brand
A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is ‘trademark.’
Brand Equity
The set of assets (or liabilities) linked to the brand that add (or subtract) value. The value of these assets is dependent upon the consequences or results of the marketplace’s relationship with the brand.
Brand Extension
A strategy that uses a current brand name to enter a completely different product class.
Brand-Manager System
Type of product management system in which a manager focuses on a single product or a very small group of new and existing products. The brand manager is responsible for everything from marketing research and package design to advertising.
Cross-Functional Teams
Teams requiring the membership and cooperation of all the various functional departments in the organization to create successful new products.
Dual Branding
A strategy in which two or more branded products are integrated. This strategy is sometimes called joint or cobranding.
Extended Product
The tangible product along with the whole cluster of services that accompany it; one of the three ways a product can be viewed.
Fads
A product that experiences an intense but often very brief period of popularity. The faster it becomes popular, the faster it will become unpopular. A few fads may repeat their popularity after long absences.
Family Branding
Sometimes called franchise extension; an organization’s attachment of the corporate name to a product to enter either a new market segment or a different product class.
Fashions
Accepted and popular products that go through a repetitive cycle of popularity, lost popularity, and regained popularity, repeating the cycle again.
Generic Product
Product that includes the essential benefits the buyer expects to receive; one of the three ways a product can be viewed.
Horizontal Marketing
Market that exists for an organizational product when it is purchased by all types of firms in many different industries.
Marketing-Manager System
Type of product management system popular in organizations with a line or lines of similar products or one dominant line. One person is responsible for overseeing an entire product line with all of the functional areas of marketing such as research, advertising, sales promotion, sales, and product planning.
Multibranding
A strategy that assigns different brand names to each product. The organization makes a conscious decision to allow the products to succeed or fail on their own merits.
Product
The sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption. This definition is consistent with the marketing concept.
Product Adoption and Diffusion
The spread of a product through the population; encompasses five stages of adopters: innovators, early adopters, early majority, late majority, and laggards
Product Life Cycle
The concept that many products go through a cycle; that is, they are introduced, grow, mature, and decline. While the cycle varies according to industry, product, technology, and market, it is a valuable aid in developing product and marketing strategies.
Product Line
A group of products that share common characteristics, distribution channels, customers, or uses.
Product Line Extension
A strategy of line extension that uses a well-known brand name to enter into a new market segment.
Product Mix
The full set of products offered for sale by an organization; described by its width and depth.
Product Mix Depth
The average number of products in each product line.
Product Mix Width
The number of individual product lines offered by the organization.
Quality
The degree of excellence or superiority that an organization’s product or service possesses. It can encompass both the tangible and intangible aspects of a product or service. Although quality can be evaluated from many perspectives, the customer’s perception of quality is crucial.
Tangible Product
The physical entity or service that is offered to the buyer; one of the three ways a product can be viewed.
Value
Encompasses not only quality but also price. Value is what the customer gets for what the customer gives.
Venture Team
A cross-functional team responsible for all of the tasks involved in the development of a new product. When the new product is launched, the team usually turns over responsibility for managing the product to a brand manager or product manager or it may manage the new product as a separate business.
Vertical Market
Market for organizational products that have a limited number of buyers. A vertical market is narrow because customers are restricted to a few industries and is deep in that a large percentage of the producers in the market use the product.
