Exam 3 Flashcards
1
Q
Product
A
The need-satisfying offering of a firm.
2
Q
Quality
A
A product’s ability to satisfy a customer’s needs or requirements.
3
Q
Individual Product
A
A particular product within a product line.
4
Q
Product Line
A
A set of individual products that are closely related.
5
Q
Product Assortment
A
The set of all product lines and individual products that a firm sells.
6
Q
Service
A
An intangible offering involving a deed, performance, or effort.
7
Q
Branding
A
The use of a name, term, symbol, or design—or a combination of these—to identify a product.
8
Q
Brand Name
A
A word, letter, or a group of words or letters
9
Q
Trademark
A
Those words, symbols, or marks that are legally registered for use by a single company.
10
Q
Service Mark
A
Those words, symbols, or marks that are legally registered for use by a single company to refer to a service offering.
11
Q
Brand Familiarity
A
How well customers recognize and accept a company’s brand.
12
Q
Brand Rejection
A
Potential customers won’t buy a brand—unless its image is changed.
13
Q
Brand Nonrecognition
A
Final customers don’t recognize a brand at all—even though intermediaries may use the brand name for identification and inventory control.
14
Q
Brand Recognition
A
Customers remember the brand.
15
Q
Brand Preference
A
Target customers usually choose the brand over other brands, perhaps b/c of habit or favorable past experience.
16
Q
Brand Insistence
A
Customers insist on a firm’s branded product and are willing to search for it.
17
Q
Brand Equity
A
The value of a brand’s overall strength in the market.
18
Q
Lanham Act
A
A 1946 law that spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them.
19
Q
Family Brand
A
A brand name that is used for several products.
20
Q
Licensed Brand
A
A well-known brand that sellers pay a fee to use.
21
Q
Individual Brands
A
Separate brand names used for each product
22
Q
Generic Products
A
Products that have no brand at all other than identification of their contents and the manufacturer or intermediary.
23
Q
Manufacturer Brands
A
Brands created by producers
24
Q
Dealer Brands (or Private Brands)
A
Brands created by intermediaries—sometimes referred to as private brands.
25
Battle of the Brands
The competition b/w dealer brands and manufacturer brands.
26
Packaging
Promoting, protecting, and enhancing the product.
27
Federal Fair Packaging and Labeling Act
A 1966 law requiring that consumer goods be clearly labeled in easy-to-understand terms.
28
Warranty
What the seller promises about its product.
29
Magnuson-Moss Act
A 1975 law requiring that producers provide a clearly written warranty if they choose to offer any warranty.
30
Consumer Products
Products means for the final consumer
31
Business Products
Products meant for use in producing other products.
32
Convenience Products
Products a consumer needs but isn’t willing to spend much time or effort shopping for.
33
Staples
Products that are bought often, routinely, and w/o much thought.
34
Impulse Products
Products that are bought quickly as unplanned purchases b/c of a strongly felt need.
35
Emergency Products
Products that are purchased immediately when the need is great.
36
Shopping Products
Products that a customer feels are worth the time and effort to compare w/ competing products.
37
Homogeneous Shopping Products
Shopping products the customer sees as basically the same and wants at the lowest price.
38
Heterogeneous Shopping Products
Shopping products the customer sees as different and wants to inspect for quality and suitability.
39
Specialty Products
Consume products that the customer really wants and makes a special effort to find.
40
Unsought Products
Products that potential customers don’t yet want or know they can buy.
41
New Unsought Products
Products offering really new ideas that potential customers don’t know about yet.
42
Regularly Unsought Products
Products that stay unsought but not unbought forever.
43
Derived Demand
Demand for business products derives from the demand for final consumer products.
44
Expense Item
A product whose total cost is treated as a business expense in the period it’s purchased.
45
Capital Item
A long-lasting product that can be used and depreciated for many years.
46
Installations
Important capital items such as buildings, land rights, and major equipment.
47
Accessories
Short-lived capital items—tools and equipment used in product or office activities.
48
Raw Materials
Unprocessed expense items—such as logs, iron ore, and wheat—that are moved to the next production process w/ little handling.
49
Farm Products
Products grown by farmers, such as oranges, sugar cane, and cattle.
50
Natural Products
Products that occur in nature—such as timber, iron ore, oil, and coal.
51
Components
Processed expense items that become part of a finished product.
52
Supplies
Expense items that do not become part of a finished product.
53
Professional Services
Specialized services that support a firm’s operations.
54
Product Life Cycle
The stages a new-product goes through from beginning to end.
55
Market Intro
A stage of the product life cycle when sales are low as a new idea is first introduced to a market.
56
Market Growth
A stage of the product life cycle when industry sales grow fast—but industry profits rise and then start falling.
57
Market Maturity
A stage of the product life cycle when industry sales level off and competition gets tougher.
58
Sales Decline
A stage of the product life cycle when new products replace the old.
59
Fashion
Currently accepted or popular style
60
Fad
An idea that is fashionable only to certain groups who are enthusiastic about it—but these groups are so fickle that a fad is even more short-lived than a regular fashion.
61
New Product
A product that is new in any way for the company concerned
62
Federal Trade Commission (FTC)
Federal government agency that polices antimonopoly laws.
63
Patent
Grants the inventor the ability to “exclude others from making, using, offering for sales, or selling the invention.”
64
Consumer Product Safety Act
A 1972 law that set up the Consumer Product Safety Commission to encourage more awareness of safety in product design and better quality control.
65
Product Liability
The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products.
66
Concept Testing
Getting reactions from customers about how well a new-product idea fits their needs.
67
Prototype
An early sample or model built to test a concept.
68
Product Managers
Manage specific products, often taking over the jobs formerly handled by an advertising manager—sometimes called brand managers.
69
Total Quality Management (TQM)
The philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities, to better serve customer needs.
70
Continuous Improvement
A commitment to constantly make things better on step at a time.
71
Brand Managers
Manage specific products, often taking over the jobs formerly handled by an advertising manager—sometimes called product managers.
72
Empowerment
Giving employees the authority to correct a problem without first checking w/ management.
73
Place
Making goods and services available in the right quantities and locations—when customers want them.
74
Channel of Distribution
Any series of firms or individuals who participate in the flow of products from producer to final user of customer.
75
Direct Marketing
Direct Communication b/w a seller and an individual customer using a promotion method other than face-to-face personal selling.
76
Discrepancy of Quantity
The difference b/w the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
77
Discrepancy of Assortment
The difference b/w the lines a typical producer makes and the assortment final consumers or users want.
78
Regrouping Activities
Adjusting the quantities or assortments of products handled at each level in a channel of distribution.
79
Accumulating
Collecting products from many small producers.
80
Bulk-Breaking
Dividing larger quantities into smaller quantities as products get closer to the final market.
81
Sorting
Separating products into grades and qualities desired by different target markets.
82
Assorting
Putting together a variety of products to give a target market what it wants.
83
Traditional Channel Systems
A channel in which the various channel members make little or no effort to cooperate w/ one another.
84
Channel Captain
A manager who helps direct the activities or a whole channel and tries to avoid, or solve, channel conflicts.
85
Vertical Marketing Systems
Channel systems in which the whole channel focuses on the same target market at the end of the channel.
86
Corporate Channel Systems
Corporate ownership all along the channel.
87
Vertical Integration
Acquiring firms at different level of channel activity.
88
Administered Channel Systems
Various channel members informally agree to cooperate w/ one another.
89
Ideal Market Exposure
When a product is available widely enough to satisfy target customers’ needs but not exceed them.
90
Intensive Distribution
Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
91
Contractual Channel Systems
Various channel members agree by contract to cooperate w/ one another.
92
Intensive Distribution
Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
93
Selective Distribution
Selling through only those intermediaries who will give the product special attention.
94
Exclusive Distribution
Selling through only one intermediary in a particular geographic area.
95
Multichannel Distribution
When a producer uses several competing channels to reach the same target market—perhaps using several intermediaries in addition to selling directly.
96
Reverse Channels
Channels used to retrieve products that customers no longer want.
97
Exporting
Selling some of what the firm produces to foreign markets.
98
Licensing
Selling the right to use some process, trademark, patent, or other right for a fee or royalty.
99
Management Contracting
The seller provides only management skills—others own the production and distribution facilities.
100
Join Venture
In international marketing, a domestic firm entering into a partnership with a foreign firm.
101
Direct Investment
A parent firm has a division (or owns a separate subsidiary firm) in a foreign market.
102
Physical Distribution (PD)
The transporting, storing, and handling of goods in ways that match target customers’ needs w/ a firm’s marketing mix—both within individual firms and along a channel of distribution (i.e., another name for logistics)
103
Customer Service Level
How rapidly and dependably a firm can deliver what customers want.
104
PD Concept
All transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level.
105
Total Cost Approach
Evaluating each possible PD system and identifying all of the costs of each alternative.
106
Supply Chain
The complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers.
107
Electronic Data Interchange (EDI)
An approach that puts information in a standardized format easily shared b/w different computer systems
108
Transporting
The marketing function of moving goods.
109
Containerization
Grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.
110
Storing
The marketing function of holding goods.
111
Inventory
The amount of goods being stored.
112
Logistics
The transporting, storing, and handling of goods in ways that match target customers’ needs w/ a firm’s marketing mix—both within individual firms and along a channel of distribution (i.e., another name for physical distribution)
113
Private Warehouses
Storing facilities owned or leased by companies for their own use
114
Public Warehouses
Independent storing facilities
115
Distribution Center
A special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
116
Retailing
All of the activities involved in the sale of products to final consumers
117
Corporate Chain
A firm that owns and manages more than one store—and often it’s many
118
Franchise Operation
A franchiser develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.
119
General Stores
Early retailers who carried anything they could sell in reasonable volume.
120
Single-Line Stores
Stores that specialize in certain lines of related products rather than a wide assortment—sometimes called limited-line stores.
121
Limited-Line Stores
Stores that specialize in certain lines of related products rather than a wide assortment—sometimes called single-line stores.
122
Specialty Shops
A type of conventional limited-line store—usually small and w/ a distinct personality.
123
Department Stores
Larger stores that are organized into many separate department and offer many product lines.
124
Mass-Merchandising Concept
The idea that retailers should offer low prices to get faster turnover and greater sales volume by appealing to larger numbers.
125
Supermarkets
Large stores specializing in groceries—w/ self-service and wide assortments.
126
Discount Houses
Stores that sell hard goods (cameras, TVs, Appliances) at substantial price cuts to customers who go to discounter’s low-rent store, pay cash, and take care of any service or repair problems themselves.
127
Mass-Merchandisers
Large, Self-service stores w/ many departments that emphasize soft goods (housewares, clothing, and fabrics) and staples (like health and beauty aids) and selling on lower margins to get faster turnover.
128
Supercenters (Hypermarkets)
Very large stores that try to carry not only food and drug items, but all goods and services that the consumer purchases routinely
129
Convenience Stores
A convenience-oriented variation of the conventional limited-line food stores.
130
Automatic Vending
Selling and delivering products through vending machines.
131
Door-to-Door Selling
Going directly to the consumer’s home
132
Multichannel Shoppers
Shoppers who use different retailers as they move through the purchase process
133
Omnichannel
A multichannel selling approach where a single retailer provides a seamless customer shopping experience from desktop computer, mobile device, telephone, or brick-and-mortar store.
134
Wheel of Retailing Theory
New types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services w/ higher operating costs and higher prices.
135
Scrambled Merchandising
Retailers carrying any product lines that they think they can sell profitably.
136
Wholesaling
The activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.
137
Wholesalers
Firms whose main function is providing wholesaling activities
138
Manufacturers' Sales Branches
Separate warehouses that producers set up away from their factories.
139
Merchant Wholesalers
Wholesalers who one (take title to) the products they sell.
140
Service Wholesalers
Merchant wholesalers that provide all the wholesaling functions
141
General Merchandise Wholesalers
Service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.
142
Single-Line (or general0line) Wholesalers
Service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers.
143
Specialty Wholesalers
Service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers
144
Limited-Function Wholesalers
Merchant wholesalers that provide only some wholesaling functions.
145
Cash-and-Carry Wholesalers
Like service wholesalers, except that the customer must pay cash
146
Drop-Shippers
Wholesalers that own (take title to) the products they sell but do not actually handle, stock, or deliver them.
147
Truck Wholesalers
Wholesalers that specialize in delivering products that they stock in their own trucks.
148
Rack Jobbers
Merchant wholesalers that specialize in hard-to-handle assortments of products that a retailer doesn’t want to manage—and they often display the products on their own wire racks.
149
Catalog Wholesalers
Sell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers.
150
Agent Wholesalers
Wholesalers who do not own (take title to) the products they sell.
151
Manufacturers' Agents
Agent wholesalers who sell similar products for several noncompeting producers for a commission on what is actually sold.
152
Export Agents
Manufacturers’ agents who specialize in export trade
153
Import agents
Manufacturers’ agents who specialize in import trade
154
Brokers
Agent wholesalers who specialize in bringing buyers and sellers together.
155
Export Brokers
Brokers who specialize in bringing together buyers and sellers from different countries
156
Import Brokers
Brokers who specialize in bringing together buyers and sellers from different countries
157
Selling Agents
Agent wholesalers who take over the whole marketing job of producers, no just the selling function
158
Combination Export Manager
A blend of manufacturers’ agent and selling agent—handling the entire export function for several producers of similar but noncompeting lines.
159
Auction Companies
Agent wholesalers that provide a place where buyers and sellers can come together and complete a transaction
