Exam 2 Flashcards
product
good, service, or idea of tangible and intangible attributes that satisfy customer needs
product class
industry they belong to
product form
type of product within the industry
product item
unique brand, size, or price
product line
group of products that are closely related and often used together
product mix
all product lines sold by an organization
new product development
- New Product Strategy Development
- Idea Generation
- Screening and Evaluation (concept test)
- Business Analysis
- Development
- Market Testing
- Commercialization
npd - new product strategy development
defines its goals for the new product and aligns it with its overall business strategy.
npd - idea generation
brainstorm potential product ideas
npd - screening and evaluation
ideas are evaluated to eliminate those that are unfeasible or don’t align with strategy
npd - business analysis
examines the financial potential of the product
npd - development
idea becomes a prototype
npd - market testing
product is released in a limited market or test area
npd - commercialization
product goes to full market launch; production, distribution, marketing, and sales
new product failures
- Insignificant point of difference
- Incomplete market and product protocol
- Not satisfying customer needs on critical factors
- Bad timing
- No economical access to buyers
- Poor execution of the marketing mix
- Too little market attractiveness
- Poor product quality
product life cycle
- Introduction
- Growth
- Maturity
- Decline
trade name
name under which you do business
deletion
completely removing a product from the market
harvesting
milk the brand
downsizing
Reducing Content in Package
price
is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service
barter
exchanging products and services for other products and services
markup
the amount added to the cost of a product to determine its selling price
pricing constraints
- Demand for the Product
- Stage in the Product Life Cycle.
- Cost of Producing and Marketing the Product.
- Cost of Changing Prices.
- Single Product versus a Product Line.
- Type of Competition in the Market
Pure competition
market with many sellers offering identical products
Monopolistic competition
market with many sellers offering similar but slightly differentiated products
Oligopoly
market dominated by a few large firms
Pure monopoly
market where one company controls the entire supply of a product or service
Skimming pricing
Start with a high price when the product is new and innovative, then lower it over time
Penetration pricing
Start with a low price to quickly gain market share and attract customers
Prestige pricing
Set a high price to create an image of luxury or exclusivity
Price lining
Set a limited number of fixed prices for a range of products
Odd-even pricing
Prices that end in odd numbers make items seem cheaper than they are
Target pricing
A manufacturer works backward from what the customer is willing to pay and subtracts costs to set the wholesale price
Yield Management pricing
Charging different prices to different customers to maximize revenue, based on time, demand, and availability
Bundle pricing
Selling two or more products together at a discounted price
Standard Markup pricing
A fixed percentage is added to the cost of the product to set the selling price
Cost-Plus pricing
Add a specific dollar amount (not a percentage) to the total cost
Experience-Curve pricing
a company gains experience, its unit cost drops (usually by 10–30% each time total output doubles)
Deceptive pricing and the law
pricing practices that mislead or deceive consumers into thinking they are getting a better deal than they actually are
Horizontal price fixing and the law
anti-competitive practice where competitors at the same level of the supply chain (e.g., different companies in the same industry) agree to set prices at a certain level, rather than letting market forces determine those prices
Transactional Function
Buying; Selling; Risk
taking
Logistical Function
Assorting; Sorting (breaking
the bulk); Storing; Transporting
Facilitating Function
Financing; Grading;
Supplying marketing information and research
Corporate
a single company owns or controls all the levels of the distribution channel
Contractual
independent firms at different levels of the channel (e.g., producers, wholesalers, and retailers) come together through contracts to coordinate their activities
Administered
a dominant channel member (often a large company with significant market power) exerts control over the other members of the channel through influence rather than through ownership or contracts
Horizontal conflict
occurs among firms at the
same level of the channel
Vertical conflict
occurs between different
levels of the same channel
Reverse logistics
reusing, recycling, or
disposing of returns by consumers or resellers
Independent Retailers
Owned by a single person or family
Corporate Chains
Multiple outlets under common ownership
Contractual Systems
Independent owner pays fees and royalties to operate under a national brand
Sales Per Square Foot
total sales $ / selling area sqft
Same-Store Sales Growth
(sales yr 2 - sales yr 1) / sales yr 1
integrated marketing communications
sales promotion, advertising, personal selling, public relations, digital marketing
communication process
Source, Message, Encoding, channel of communication, Decoding, Receiver
types of advertisement
- Pioneering (informational)
- Competitive (persuasive)
- Reminder
- Advocacy (position of company on an issue)
Tools for Public Relations
News Release
News Conference
Public Service Announcement (PSA)
media richness
how effective a communication medium is at delivering information and resolving ambiguity or uncertainty
Share of voice
measures how much visibility or presence your brand has in the marketplace compared to competitors
