Chapter 7 Flashcards
A name, term, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Brand
What are the key roles of brands?
- Identify the source or maker of a product
- Simplify product handling or tracing
- Provide legal protection for unique features
- Signal a certain quality level
The added value endowed on products and services, reflected in consumer perceptions, prices, market share, and profitability
Brand equity
Trademarkable devices that identify and differentiate the brand.
Brand elements
List the criteria for choosing brand elements.
- Memorable
- Meaningful
- Likable
- Transferable
- Adaptable
- Protectible
The act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
Positioning
What are the four stages of the product life cycle?
- Introduction
- Growth
- Maturity
- Decline
Fill in the blank: A _______ is a basic and distinctive mode of expression appearing in a field of human endeavor.
[style]
A currently accepted or popular style in a given field.
Fashion
Are fashions that come quickly into public view, are adopted with great zeal, peak early and decline very fast.
Fads
A group of firms that offer a product or class of products that are closely substitutes for one another.
Industry
What are the three variables to monitor when analyzing competitors?
- Share of market
- Share of mind
- Share of heart
True or False: A company should only focus on weak competitors.
False
What is the difference between ‘good’ and ‘bad’ competitors?
‘Good’ competitors play by the industry rules, while ‘bad’ competitors disrupt the market with unhealthy practices.
What should companies evaluate in their customer base?
Which customers they are willing to lose and which they want to retain.
Fill in the blank: A company’s ability to perform in one or more ways that competitors cannot or will not match is called _______.
[competitive advantage]
What does the product life cycle assert?
- Products have a limited life
- Product sales pass through distinct stages
- Profits rise and fall at different stages
- Different strategies are required in each stage
The goal is to locate the brand in the minds of consumers to maximize the
potential benefit to the firm.
Positioning
appear in homes; clothing (formal, casual, funky) and art (realistic, surrealistic, abstract).
Style
can last for generations and go in and out of vogue.
Style
The length of a ____ cycle is hard to predict
Fashion
They end because they represent a purchase compromise, and consumers start looking for the missing attributes
Fashion
Their acceptance cycle is short, and they tend to attract only a limited
following who are searching for excitement or want to distinguish themselves from others.
Fads
Fail to survive because they don’t normally satisfy a strong need
Fads
a period of slow sales growth as the product is introduced in the market.
Introduction
Profits are nonexistent because of the heavy expenses of product _______.
Introduction
a period of rapid market acceptance and substantial profit improvement.
Growth
a slowdown in sales growth because the product has achieved acceptance by potential
buyers.
Maturity
Profits stabilize or decline because of increased competition.
Maturity
sales show a downward drift and profits erode.
Decline
classify industries according to number of sellers; degree of product differentiation; presence or absence
of entry, mobility, and exit barriers, cost structure, degree of vertical integration, and degree of
globalization.
Marketers
Companies that satisfy the same customer need
Competitors
group of firms following the same strategy in a given target market is a strategic
group. The company develops and discovers four strategic groups based on product quality and
level of vertical integration. If the company successfully enters a group, the members of that
group become its key competitors.
Strategies
Identification of main competitors and their strategies
Objectives
Competitor’s share of the target market
Share of the market
The percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry”
Share of mind
The percentage of customers who named the competitor in responding to the statement, “Name the company from which you would prefer to buy the product”
Share of heart
Classes of competitors
Strong versus weak
Close versus distant
Good vs Bad
3 special categories of product life cycles
Style
Fashion
Fads
