Exam 2 review Flashcards
What is a Product?
everything, both favorable and unfavorable, that a person receives in an exchange
What is a product item?
a specific version of a product that can be designated as a distinct offering among an organization’s products
What is a product line?
a group of closely related product items.
What is a product mix?
all products that an organization sells.
What is a brand?
A brand is a name, term, or symbol that identifies and differentiates a firm’s products.
What is diffusion?
the process by which the adoption of an innovation spreads.
What is innovation?
a product perceived as new by a potential adopter.
What is the product life cycle (PLC)?
a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
What is intangibility?
the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
What is inseparability?
the inability of the production and consumption of service to be separated; consumers must be present during the production.
What is heterogeneity?
the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
What is perishability?
the inability of services to be stored, warehoused, or inventoried.
What is a supply chain?
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
What is a marketing channel (channel of distribution)?
a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
What are channel members?
all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
What is a direct channel?
a distribution channel in which producers sell directly to consumers
What is retailing?
all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
What is an independent retailer?
a retailer owned by a single person or partnership and not operated as part of a larger retail institution
What is a chain store?
a store that is part of a group of the same stores owned and operated by a single organization
What is a franchise?
a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
What are the four types of consumer products?
convenience
specialty
shopping
unsought
What is a convenience product?
an inexpensive product that requires little shopping effort. Ex candy sodas asprin.
What is a shopping product?
A product that is more expensive than a convenience product and is sold in fewer stores. Example washer dryer, TVs
What is a specialty product?
A product that requires extensive research and customers will not accept substitutes. Omega watches and cars.
What is an unsought product?
A product that is unknown to the customer and they do not actively seek it. Example Insurance.
What is a product mix?
All the products a company sells.
What is product mix width
The number of product lines a company sells.
What is product line depth
Number of products items in a product line.
What is an indviudal brand?
Using different brand names for different products. Proctor and gamble.
What is family brand?
Marketing multiple products under one company name. Ex Mr clean cleaning products.
What is Cobranding?
placing two or more brand names on a product or its package
What is cooperative branding?
both brands receive equal treatment.
What is ingredient branding?
Identfies a brand that makes up part of the product. Ex Dr. Pepper chapstick.
What is complementary branding?
When products are advertised to be used together. Ex Oreo and milk.
What is an innovator?
The first 2.5% to adopt a product. Usually have high incomes and are fairly well educated.
What is an early adopter?
The second 13.5% to adopt a product. They adopt products early and rely more on group norms or values.
What is early majority?
The third 34% to adopt a product. Like to way pros and cons more and do more research before buying.
What is late majority?
The fourth 34% to adopt a product. Usually, adopt a product because most of their friends have.
What is a laggard?
The final 16% to adopt a product. Do not rely on group norms values are rooted in tradition.
What are the five product characteristics?
Complexity compatibility relative advantage observability trailability
What is complexity in the product characteristics?
degree of difficulty in understanding and using a new product. The more complex the product the slower the diffusion.
What is compatability in the product charactersitics?
Degree which new product is consistent with existing values, and product knowledge, pas experiences, and current needs. Incompatable products diffuse more slowly.
What is relative advantage?
the degree to which a product is perceived as superior to existing substitutes.
What is observability?
The degree to which the benefits or other results of using the product can be observed by others and communicated to target audience.
What is trialability?
The degree to which a product can be tried on a limited basis. It is much easier to try toothpaste than a new computer.
What are the four stages of a product lifecycle?
- introductory stage
- growth stage
- maturity stage
- decline stage
What is the introductory stage?
The launch of a new product into the marketplace.
What is the growth stage?
The second stage of the product life cycle. Sales typically grow at an increasing rate. many competitors enter the market. Profits are healthy
What is the maturity stage?
A period when sales increase at a lower rate.
What is the decline stage?
A long-run drop in sales.
Why are market costs high in the intorductory stage?
- high dealer margins are needed to obtain adequete distribution.
- Incentives needed to get custoemrs to try the product.
- adverstising is high because you need to educate the customer on the product.
- Production costs are high because of economies of scale.
What is people processing services?
when the services is directed at the customer like transportation and health care.
What is possession processing?
services is drected at customers physical possessions like lawn care and veterinary services.
What is a Core service?
most bsaic benefit the consumer is buying.
What is a supplementary service?
A group of services that support or enhance the core service.
What is mass customization?
a strategy that uses technology to deliver customized services on a mass basis
What are the three pricing objectives?
Revenue oriented
operations oriented
patronage oriented
What is revenue-oriented pricing?
Pricing that focuses on maximizing the surplus of income over cost. Downside it can be hard to determine cost for many services.
What is operations oriented pricing?
seeks to match supply and demand by varying prices. Example disney land when school is out.
What is patronage oriented pricing?
maximize number of customers using the service.
What are the types of intermediaries?
- Merchant wholesalers
- agents and brokers
- retailers
What is a merchant wholesaler?
A business that buys good from the manufacturer and resells them to businesses and government agencies, other wholesalers, and retailers. They take title to goods and store them in their own warehouses to ship them later.
What is agents and brokers?
wholesaling intermediaries who do not take title of the product but faciltate its sale from producer to end user.
What is a retailer?
a channel intermediary that sells mainly to consumers
What is a reverse channel?
channels that enable customers to return products or components for reuse or remanufacturing. Example Nike shoe bags.
What are the three levels of distribution intensity?
intensive
selective
exclusive
What is intensive distribution?
Having a product at every outlet.
What is selective distribution?
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
What is exclusive distribution?
distribution to only one or a few dealers within a given area
What is a department store?
Carries many departments under one roof. Example nordstrom rack and macys
What is a speciality store?
a retail store specializing in a given type of merchandise. Example Office depot, Ulta Beauty, and Footlocker
what is a supermarket?
a large, departmentalized, self-service retailer that specializes in food and some nonfood items. Example smiths.
what is a drug store?
a retail store that stocks pharmacy-related products and services as its main draw. Example CVS Walgreens
What is a convenience store?
a miniature supermarket, carrying only a limited line of high-turnover convenience goods. Example Giant, 7/112 Speedway.
What is a full line discount store?
a discount store that carries a vast depth and breadth of product within a single product category. Example Walmart.
What is a speciality discount store?
a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover. Example Foot Locker.
What is a warehouse club?
a large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee. Example Costco and Sams club.
What is a off price retailer?
a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges. Example Ross Tj Maxx Marshalls.
what is a restraunt?
a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation
What is a super center?
a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise. Super target walmart supercenter.
What is a category killer?
a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category. Example Bestbuy.
What are the types of non store retailing?
- automatic vending
- Self Service technologies (SST)
- direct retailing
- Direct Marketing (DM)
- Telemarketing
- Direct mail
- Shop at home television networks
- online retailing or etailing
- sharing economy
what is automatic vending?
the use of machines to offer goods for sale
What are self service technologies?
technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee
What is direct retailing?
the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties
What is direct marketing?
techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
What is telemarketing?
the use of the telephone to sell directly to consumers
What is direct mail?
the delivery of advertising or marketing material to recipients of postal or electronic mail
What is shop at home television networks?
a specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home viewers
What is online retailing?
a type of shopping available to consumers with personal computers and access to the Internet
What is sharing economy?
the way connected consumers exchange goods and services with each other through a digital marketplace
How do you keep a brand name from becoming a generic product?
- spell with a capital letter
- use an adjective
- include brand just after brand name
- pursue companies that infringe on trademark
- use “square symbol”
- use the r circle symbol on everything
What are the functions of packaging?
- containing and protecting
- promoting
- storage and Convenience
- recycling and reducing environmental damage
What is dual distribution
Manufacturers sell directly to consumers and wholesalers. Retailers lose business from direct sales.
What are the alternative channel arangements?
- Dual distribution
- gray marketing
- nontraditional
- strategic channel alliances
- reverse channels
- drop and shop
What is gray marketing
Ends up an unintended retailer. Example luxury brands at Costco
What is nontraditional channels?
nonphysical channels that market the product. Example infomercials or mail order television
What is strategic channel alliances
us another organization’s existing channels to market your own product. Examples Comcast promoting Verizon on their website.
What are reverse channels?
Recalls and returns
What is drop and shop?
Allows customers to bring used products for return or donation.
