Exam 2 Flashcards
Tangible good
Physical objects, such as car or sweater, that can be touched
Shopping product
a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style (Air Conditioner)
Specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (Apple iPhone)
Convenience product
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Service
an activity , benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Packaging
the activities of designing and producing the container or wrapper for the product
Product Line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. (Starbucks, coffee, tea, snacks)
Product Mix
the set of all product lines and items that a particular seller offers for sale (Coca-Cola has product brands like Minute Maid, Sprite, Fanta, Thumbs up, etc. under its name.)
Co-branding
the practice of using the established brand names of two different companies on the same product (Nike & Apple with the chip in the shoe and smart watch)
Idea Screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
Idea Generation
the systematic search for new product ideas
New Product Development
The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts ( Netflix started as a DVD rental place)
In the new product development process which step would use the R W W framework?
Idea screening
What is commercialization of a product?
Introducing a new product into the market
When launching a new product the company must first decide when to ………………it?
When to launch it
A period of rapid market acceptance and increasing profits
Growth Stage
What are the stages of product life cycle?
Introduction, growth, maturity, decline
Value based pricing
You’ll be setting a cost based upon how much your customers will be willing to pay for the goods or service.
Cost based pricing
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
Price
the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service
Value- added pricing
differentiates your products by adding features or services that your competitors don’t have and that customers will pay more for ( Amazon prime w/music, discounts, etc)
Demand curve
a curve that shows the number of units that the market will buy in a given period, at different prices that might be charged
Fixed costs
costs that do not vary with production or sales level
Variable Costs
costs that vary directly with the level of production
Market penetration pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share (Model 3)
Uniform-delivered pricing
A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location
In a direct marketing channel a producer is guaranteed full control over product sales
True
A wholesaler is considered a marketing intermediary
True
Vertical Conflict
conflict between different levels of the same channel ( McDonald’s franchisees and upper management
Horizontal Conflict
occurs among firms at the same level of the channel ( Ford Dealerships)
What is an example of a contractual VMS?
Franchises
Intensive distribution
a strategy in which they stock their products in as many outlets as possible (toothpaste, candy)
Exclusive distribution
in which the producer gives only a limited number of dealers the exclusive right to distribute its products in the territories (luxury brands; watches)
Outbound
moving products from the factory to re-sellers and ultimately to customers
Inbound
moving products and materials from suppliers to the factory
Reverse
reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers
Retailing
all the activities involved in selling goods or services directly to final consumers for their personal, non-business use
Omni Channel Retailing
creating a seamless cross-channel buying experience that integrates instore, online, and mobile shopping
Convenience Store
A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods
Big Box Store
is a physically large retail establishment, usually part of a chain of stores
What are the three major product variables a retailer must decide?
Product assortment, services mix, and store atmosphere
Retailer Cooperative
Retailers use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. A group of independently owned businesses that pool their resources to purchase in bulk.
