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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
Q

Brand equity

A

the added value a brand gives to a product beyond the functional benefits provided

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26
Q

Brand licensing

A

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

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27
Q

A brand name should:

A
  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
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28
Q

Multiproduct branding

A

a branding strategy in which a company uses one name for all its products in a product class
- Family or corporate branding

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29
Q

Multibranding

A

a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment

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30
Q

Private branding(also called private labeling or reseller branding)

A

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

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31
Q

Packaging

A

the component of a product refers to any container in which it is offered for sale on which label information is conveyed

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32
Q

Labeling

A

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

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33
Q

Services

A

the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value

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34
Q

The Four I’s of Services

A

the four unique elements to services: intangibility, inconsistency, inseparability, and inventory

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35
Q

Inseparability

A

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

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36
Q

Idle production capacity

A

when the service provider is available but there is no demand for the service

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37
Q

2 ways to lessen inconsistency:

A
  1. standardization(every item is made the same way)
  2. train people
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38
Q

Service continuum

A

the range of offerings companies bring to the market, from the tangible to the intangible or product-dominant to service-dominant

39
Q

Types of Marketing

A
  1. multibranding
  2. mulitproduct branding
  3. private labeling
  4. mixed branding
40
Q

Evaluating Services

A
  1. search properties
  2. experience properties
  3. credence properties
41
Q

Search properties

A

products, goods, can be perceived by the senses, can be tried on

42
Q

Experience properties

A

things that we only discern after consumption, you have to experience it before you can discern it

43
Q

Credence properties

A

things that even after they are done, the average consumer cannot discern it

44
Q

Gap analysis

A

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
Q

Off-peak pricing

A

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
Q

Internal marketing

A

the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers

47
Q

Customer experience management(CEM)

A

the process of managing the entire customer experience within the company

48
Q

Capacity management

A

the service component of the marketing mix with efforts to influence consumer demand

49
Q

Seven Ps of services marketing

A

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
Q

Price(p)

A

the money or other considerations(including other products and services) exchanged for the ownership or use of a product or service

51
Q

Barter

A

the practice of exchanging products and services for other products and services, rather than for money

52
Q

Value

A

the ratio of perceived benefits to price; or value = (perceived benefits divided by price)

53
Q

Example of Value

A

Dad buying new tires for his daughter
- Daughter notices the car handles better
- Dad gets peace of mind

54
Q

Price vs. value

A

Price is what a consumer pays, value is what a consumer receives

55
Q

Value-Pricing

A

the practice of simultaneously increasing product and service benefits while maintaining or decreasing price

56
Q

Six steps in setting price

A
  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
Q

Pricing objectives

A

the role of price in an organization’s marketing and strategic plans

58
Q

Demand factors

A

consumers’ willingness and ability to pay for products and services

59
Q

Movement along versus shift of a demand curve

A
  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
Q

Price elasticity of demand

A

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
Q

Break-even analysis

A

a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output

62
Q

Odd-even pricing

A

setting prices a few dollars or cents under an even number

63
Q

Even pricing

A

denotes quality
- 50 instead of 50.00
- 35 instead of 35.00

64
Q

Target pricing

A
  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
Q

Yield management pricing

A

the charging of different prices to maximize revenue for a set amount of capacity at any given time
- Balancing supply and demand

66
Q

Standard markup pricing

A

adding a fixed percentage to the cost of all items in a specific product class

67
Q

Cost-plus pricing

A

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
Q

Experience curve pricing

A

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
Q

Customary pricing

A

setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors

70
Q

Loss-leader pricing

A

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
Q

Fixed-price policy

A

setting one price for all buyers of a product or service
- Also called a one-price policy

72
Q

Dynamic pricing policy

A

setting different prices for products and services in real time in response to supply and demand conditions
- Also called a flexible price policy

73
Q

Skimming pricing

A

setting the highest initial price that customers who really desire the product are willing to pay when introducing a new or innovative product

74
Q

Penetration pricing

A

setting a low initial price on a new product to appeal immediately to the mass market

75
Q

Prestige pricing

A

setting a high price so that quality-or-status-conscious consumers will be attracted to the product and buy it

76
Q

Price lining

A

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
Q

Bundle pricing

A

the marketing of two or more products in a single package price

78
Q

Supply chain

A

a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users

79
Q

Logistics

A

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
Q

Marketing channel

A

individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users

81
Q

Multichannel marketing

A

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
Q

Vertical marketing systems

A

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

83
Q

Forward integration

A

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
Q

Backward integration

A

it is coming from the consumer to the manufacturer/producer
- A retailer owns a manufacturer
- Kroger- own their own dairy farms

85
Q

Wholesaler-sponsored voluntary chains

A

a wholesaler develops with small retailers
- Ben Franklin
- To take advantage of economies of scale
- Can act bigger than they are

86
Q

Retailer-sponsored cooperatives

A

when a bunch of retailers coordinate their buying power
- Ace Hardware

87
Q

Intensive distribution

A

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
Q

Exclusive distribution

A

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
Q

Selective distribution

A

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
Q

Service-sponsored retail franchising

A

fast food
- McDonald’s

91
Q

Service-sponsored

A

going to license an individual, give them training and the name
- HR Bloch

92
Q

Manufacturer-sponsored retail

A

a manufacturer licenses retailers to sell them at a retailer
- GM

93
Q

Manufacturer-sponsored wholesale

A

take the product they sell and sells them to wholesalers
- Pepsi

MKTG 400 (1 decks)

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