Chapter 8 & 9 Deck Flashcards
During the product development process of ( ), a product development team is involved in design work to ensure that the product will be safe.
making sure that the product performs and appeals to customers
If you’ve concluded that you have a potential product for which people will pay money, your next step is to ( ).
understand your industry
Most companies constantly look for ways to make ( ) improvements in existing products by adding features that will broaden their consumer appeal.
incremental
All of the following are characteristics of a typical entrepreneurial start-up except:
it focuses on growth rather than profits.
Using ( ) analysis allows you to determine the level of sales that you must reach in order to avoid losing money.
breakeven
( ) is one of the hardest tasks in business.
forecasting demand for a proposed product
The first step in the product development process is to evaluate opportunities and select the best product ideas. What is the second step?
Get feedback to refine the product concept
You can protect the rights to your idea with a ( ).
patent
An idea turns into a business opportunity when:
it has commercial potential
( ) is the most prevalent form of promotion.
Advertising
Using a strategy of ( ), a company orders only what it needs, thus cutting the time and cost required to move raw materials into and out of storage.
just-in-time production
The key to persuading customers to buy your products is delivering ( ).
value
When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end-users, Bridgett Hammerschmidt is managing her company’s ( ).
supply chain
A(n) ( ) is a wholesaler or retailer who helps move products from their original sources to end-users.
intermediary
( ) pricing bases the selling price of a product on its cost plus a reasonable profit.
Cost-based
The customer value triad is based on all of the following:
- quality
- service
- price
Your ( ) market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.
target
The ( ) market includes buyers who want a product for use in making other products.
industrial
A ( ) is something that can be marketed to customers because it provides them with a benefit and satisfies a need.
product
A ( ) is an invention that has yet to exist in the market.
new-to-the-market product
A ( ) is a good or service that is new to the company but has been sold by a competitor in the past.
new-to-the-company product
An ( ) is an enhancement of a product already on the market—for example, a change of ingredients and packaging for Mike & Ike’s.
improvement in an existing product
An ( ) is a new product developed as a variation of an already existing product—for example, Peeps chocolate eggs.
extension to an existing product line
Products provide customers with four types of utility or benefit:
- Time utility
- Place utility
- Ownership utility
- Form utility
What is a market segment?
Groups of potential customers with common characteristics that influence their buying decisions.
Within this market segment, you might want to subdivide further and find a ( ), an unmet need.
niche
( ) are when the total cost doesn’t change as the quantity of goods sold changes
fixed costs
These are costs that vary, in total, as the quantity of goods sold changes but that stay constant on a per-unit basis.
variable costs
( ) is the excess revenue per unit over the variable cost per unit.
Contribution margin per unit
The ( ) is calculated with this formula: fixed costs divided by contribution margin per unit (selling price per unit less variable cost per unit).
breakeven point in units
A ( ) is a physical model of the product.
prototype
The ( ) is during which employees are trained in the production process.
ramp-up stage
This basic philosophy—satisfying customer needs while meeting organizational goals—is called the ( ).
marketing concept
A marketing strategy is a plan for performing two tasks which are:
- Selecting a target market
2. Developing your marketing mix
A ( ) means implementing strategies for creating, pricing, promoting, and distributing products that satisfy customers
marketing mix
The ( ) market includes buyers who want the product for personal use.
consumer
The four Ps of the marketing mix are:
- Product
- Price
- Place
- Promotion
To protect a brand name, the company takes out a ( ) by registering it with the U.S. Patent and Trademark Office.
trademark
With ( ), the maker sells a product to a retailer who resells it under its own name.
private branding
Under ( ), a no-brand product contains no identification except for a description of the contents.
general branding
Using ( ), a company sells products under its own brand names.
manufacture branding
When consumers have a favorable experience with a product, it builds ( ). If consumers are loyal to it over time, it enjoys ( ).
brand equity/brand loyalty
( ) —the container holding the product—can influence consumers’ decisions to buy products or not buy them.
packaging
( ) —the information on the packaging—identifies the product. It provides information on the contents, the manufacturer, the place where it was made, and any risks associated with its use.
labeling
With a new product, a company might consider the ( ) —starting off with the highest price that keenly interested customers are willing to pay. This approach yields early profits but invites competition.
skimming approach
Using a ( ), marketers begin by charging a low price, both to keep out competition and to grab as much market share as possible.
penetration approach
With ( ), marketers set the price that they think consumers will pay.
demand-based pricing
Using ( ), they figure out how much consumers are willing to pay and then subtract a reasonable profit from this price to determine the amount that can be spent to make the product.
target costing
Companies use ( ) to capitalize on the common association of high price and quality, setting an artificially high price to substantiate the impression of high quality.
prestige pricing
With ( ), companies set prices at such figures as $9.99 (an odd amount), counting on the common impression that it sounds cheaper than $10 (an even amount).
odd-even pricing
( ) entails all activities involved in getting the right quantity of a product to customers at the right time and at a reasonable cost.
distribution
( ) buy goods from producers and sell them to consumers, whether in stores, by phone, through direct mailings, or over the Internet.
retailers
( ) (or distributors) buy goods from suppliers and sell them to businesses that will resell or use them.
wholesalers
( ) —the process of getting products from producers to customers—
physical distribution
( ) is the entire range of activities involved in producing and distributing products, from purchasing raw materials, transforming raw materials into finished goods, storing finished goods, and distributing them to customers.
supply chain
( ) a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them.
customer-relationship management
Companies that ask customers if they can contact them are engaged in ( ) marketing.
permission
( ) marketing is the practice of sending out messages to a vast audience of anonymous people.
mass
TV advertising is a form of ( ) marketing that interrupts people to get their attention (with the hope they will listen to the ad).
interruption
( ) marketing is the practice of including social media as part of a company’s marketing program.
social media
The stages of development and decline that products go through over their lives is called the ( ).
product life cycle
Four stages of product life cycle
- Introduction
- Growth
- Maturity
- Decline
