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MKTG 400 > Exam 3 > Flashcards

Exam 3 Flashcards

1
Q

Product Life Cycle

A

the stages a new product goes through in the marketplace: introduction, growth, maturity and decline

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2
Q

Introduction Stage

A

Stimulate trial: induce customers to try a product
Primary demand: demand for a product category, not a specific brand
Selective demand: demand for a specific brand
Skimming strategy: charging all that the market will bear
Penetration pricing: setting a low initial price

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3
Q

Growth Stage

A

Rapid sales growth
More competitors
Profits peak
Advertising for selective demand
Repeat purchasers
New features
Broad distribution

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4
Q

Product Proliferation

A

adding new features

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5
Q

Maturity Stage

A

Industry/product sales slow
Fewer new buyers
Profit declines
Product differentiation
Fewer competitors
Examples: soft drinks, breakfast cereals

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6
Q

Decline Stage

A

Industry/product sales drop
Price drops
Environmental changes
Deletion
Harvesting: not putting anymore money into this but going to keep making this product, they have a hardcore group
Seldom if ever caused by bad marketing decisions, caused by market changes

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7
Q

Deletion

A

stop making that product

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8
Q

Harvesting

A

not putting anymore money into this but going to keep making this product, they have a hardcore group

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9
Q

High-learning products

A

we have to educate people on how to use

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10
Q

Low-learning products

A

anyone can use, easy to use, no learning, lot of competition(need to have a good distribution)

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11
Q

Fashion products

A

style of the times, cycle could be years or decades

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12
Q

Fad products

A

take off quickly, die quickly

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13
Q

Three things about products:

A

All products have a life cycle
There are four types of products
Product life cycles are getting shorter

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14
Q

Diffusion of innovation

A

how a product is accepted as it goes through society

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15
Q

The Stages of Product Adopters

A

Innovators(2.5%)
Early adopters(13.5)
Early majority(34%)
Late majority(34%)
Laggards(16%)
Not everyone fits into a category

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16
Q

Product modification

A

altering one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales

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17
Q

Product bundling

A

two or more products sold together at one price

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18
Q

Market modification

A

allow a company to try a find new customers, increase a product’s use among existing customers, or create new use situations
1. Finding new customers
2. Increasing a product’s use
3. Creating a new use situation

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19
Q

Branding

A

a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors

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20
Q

Brand name

A

any word, device(design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services

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21
Q

Logotype

A

logo

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22
Q

Trade name

A

a commercial, legal, name under which a company does business
Ex: Coca-Cola Company

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23
Q

Trademark

A

a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing other from using it

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24
Q

Brand personality

A

a set of human characteristics associated with a brand name
Ex: M&Ms

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25
Brand equity
the added value a brand gives to a product beyond the functional benefits provided
26
Brand licensing
a contractual agreement whereby one company(licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company(licensee) for a royalty or free Ex: NFL licenses team names and logos
27
A brand name should:
1. Suggest product benefits 2. Be memorable, distinctive, and positive 3. Fit the company or product image 4. Have no legal or regulatory restrictions 5. Be simple and emotional 6. Have favorable phonetic and semantic associations
28
Multiproduct branding
a branding strategy in which a company uses one name for all its products in a product class - Family or corporate branding
29
Multibranding
a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment
30
Private branding(also called private labeling or reseller branding)
when a manufacturer produces products but sells them under the brand name of a wholesaler or retailer - A true generic has no brand name - Just has the name of the product on the packaging - Ex: Aldi’s products
31
Packaging
the component of a product refers to any container in which it is offered for sale on which label information is conveyed
32
Labeling
an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
33
Services
the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value
34
The Four I’s of Services
the four unique elements to services: intangibility, inconsistency, inseparability, and inventory
35
Inseparability
the consumer can not separate the service from the deliverer of the service - Has changed in the last 50 to 60 years due to technology
36
Idle production capacity
when the service provider is available but there is no demand for the service
37
2 ways to lessen inconsistency:
1. standardization(every item is made the same way) 2. train people
38
Service continuum
the range of offerings companies bring to the market, from the tangible to the intangible or product-dominant to service-dominant
39
Types of Marketing
1. multibranding 2. mulitproduct branding 3. private labeling 4. mixed branding
40
Evaluating Services
1. search properties 2. experience properties 3. credence properties
41
Search properties
products, goods, can be perceived by the senses, can be tried on
42
Experience properties
things that we only discern after consumption, you have to experience it before you can discern it
43
Credence properties
things that even after they are done, the average consumer cannot discern it
44
Gap analysis
a type of analysis that compares the differences between the consumer’s expectations about and experiences with a service based on dimensions of service quality
45
Off-peak pricing
charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service
46
Internal marketing
the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers
47
Customer experience management(CEM)
the process of managing the entire customer experience within the company
48
Capacity management
the service component of the marketing mix with efforts to influence consumer demand
49
Seven Ps of services marketing
an expanded marketing mix concept for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process
50
Price(p)
the money or other considerations(including other products and services) exchanged for the ownership or use of a product or service
51
Barter
the practice of exchanging products and services for other products and services, rather than for money
52
Value
the ratio of perceived benefits to price; or value = (perceived benefits divided by price)
53
Example of Value
Dad buying new tires for his daughter - Daughter notices the car handles better - Dad gets peace of mind
54
Price vs. value
Price is what a consumer pays, value is what a consumer receives
55
Value-Pricing
the practice of simultaneously increasing product and service benefits while maintaining or decreasing price
56
Six steps in setting price
1. Identify pricing objectives/constraints 2. Estimate demand and revenue 3. Determine cost, volume, and profit relationships 4. Select approximate price level 5. Set list or quoted price 6. Make special adjustments
57
Pricing objectives
the role of price in an organization’s marketing and strategic plans
58
Demand factors
consumers’ willingness and ability to pay for products and services
59
Movement along versus shift of a demand curve
1. Movement along a demand curve 2. Shift in the demand curve 3. A change in price causes movement along the demand curve 4. Anything but price causes a shift in the demand curve 5. Movement = price 6. Shift = not price
60
Price elasticity of demand
the percentage change in quantity demanded relative to a percentage change in price - Equation: percentage change in quantity demanded/percentage change in price - Elastic: when 1% price decrease generates more than 1% quantity increase - Inelastic: when 1% decrease produces less than 1% quantity increase
61
Break-even analysis
a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
62
Odd-even pricing
setting prices a few dollars or cents under an even number
63
Even pricing
denotes quality - 50 instead of 50.00 - 35 instead of 35.00
64
Target pricing
1. Estimating the price that ultimate consumers would be willing to pay for a product 2. Working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers 3. Deliberately adjusting the composition and features of the product to achieve the target price to consumers
65
Yield management pricing
the charging of different prices to maximize revenue for a set amount of capacity at any given time - Balancing supply and demand
66
Standard markup pricing
adding a fixed percentage to the cost of all items in a specific product class
67
Cost-plus pricing
summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
68
Experience curve pricing
a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm’s experience at producing and selling them doubles
69
Customary pricing
setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors
70
Loss-leader pricing
deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products with large markups as well
71
Fixed-price policy
setting one price for all buyers of a product or service - Also called a one-price policy
72
Dynamic pricing policy
setting different prices for products and services in real time in response to supply and demand conditions - Also called a flexible price policy
73
Skimming pricing
setting the highest initial price that customers who really desire the product are willing to pay when introducing a new or innovative product
74
Penetration pricing
setting a low initial price on a new product to appeal immediately to the mass market
75
Prestige pricing
setting a high price so that quality-or-status-conscious consumers will be attracted to the product and buy it
76
Price lining
setting the price of a line of products at a number of different specific pricing points - Items that are subject to price lining, at the price point the demand curve is elastic but inelastic between the price points
77
Bundle pricing
the marketing of two or more products in a single package price
78
Supply chain
a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users
79
Logistics
activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost - Balance cost against consumer’s requirements
80
Marketing channel
individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
81
Multichannel marketing
the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
82
Vertical marketing systems
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
83
Forward integration
it is coming towards the consumer from the manufacturer/producer - A manufacturer owns a retailer - Apple company to the Apple store on the Plaza - Zeals own their own diamond mines
84
Backward integration
it is coming from the consumer to the manufacturer/producer - A retailer owns a manufacturer - Kroger- own their own dairy farms
85
Wholesaler-sponsored voluntary chains
a wholesaler develops with small retailers - Ben Franklin - To take advantage of economies of scale - Can act bigger than they are
86
Retailer-sponsored cooperatives
when a bunch of retailers coordinate their buying power - Ace Hardware
87
Intensive distribution
a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible - Reese’s peanut cup, convenience products
88
Exclusive distribution
a level of distribution density whereby only one retailer in a specific geographical area carries the firm’s products - Exclusive, expensive cars - Maserati, Jaguar, Mercedes-Benz
89
Selective distribution
a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products - Often use, most common form - Tablets, furniture
90
Service-sponsored retail franchising
fast food - McDonald’s
91
Service-sponsored
going to license an individual, give them training and the name - HR Bloch
92
Manufacturer-sponsored retail
a manufacturer licenses retailers to sell them at a retailer - GM
93
Manufacturer-sponsored wholesale
take the product they sell and sells them to wholesalers - Pepsi

MKTG 400 (1 decks)

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