Exam 3 CH. 10 Flashcards
product
everything, both favorable and unfavorable, that a person receives in
an exchange
− Can be tangible or intangible, such as a service or idea
convenience products
a relatively inexpensive item that merits little shopping
effort
− Often bought with little planning
− Sometimes recognized by brand name
− Normally require wide distribution to sell sufficient quantities to meet profit goals
shopping product
a product that requires comparison shopping because it is
usually more expensive than a convenience product and is found in fewer
stores
− Usually purchased only after consumer compares several brands or stores on style,
practicality, price, and lifestyle compatibility
− Two types:
Homogeneous – basically similar
Heterogeneous – essentially different
specialty product
a particular item for which consumers search
extensively and are very reluctant to accept substitutes
− Often promoted using selective, status-conscious advertising to maintain an exclusive
image
− Distribution often limited to one or a very few outlets in a geographic area
− Brand names and quality of service are often very important
unsought product
product unknown to the potential buyer or a known
product that the buyer does not actively seek
− New products fall into this category until advertising and distribution increase consumer awareness of them.
− Generally sold directly through a salesperson, direct mail, or direct response advertising
product item
a specific version of a product that can be designated as a distinct offering
among an organization’s products
product line
a group of closely related product items
product mix
all products that an organization sells
product mix width
the number of product lines an organization offers
- Firms widen product mix to:
− Generate sales and boost profits
− Spread risk across many product lines rather than depending on only one or two
− Capitalize on established reputations
product line depth
the number of product items in a product line
- Firms increase the depth of their product lines to:
− Attract buyers with different preferences
− Increase sales and profits by further segmenting the market
− Capitalize on economies of scale in production and marketing
− Even out seasonal sales patterns
product line extension
adding additional products to an existing product line in order to compete more broadly in the industry
- Product lines can be overextended when:
− Some products in the line yield poor sales or cannibalize sales of other items in the line.
− Manufacturing or marketing resources are disproportionately allocated to slow-moving
products.
− Some products become obsolete
brand
a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
brand name
that part of a brand that can be spoken, including letters, words, and numbers
brand mark
the elements of a brand that cannot be spoken
brand equity
the value of a company or brand name
global brand
a brand that obtains at least one-third of its earnings from outside its home
country, is recognizable outside its home base of customers, and has publicly available
marketing and financial data
brand loyalty
consistent preference for one brand over all others
− Brand identity is essential to developing brand loyalty
manufacturers brand
the brand name of a manufacturer
private brand
a brand name owned by a wholesaler or a retailer
− Consumers more accepting of private brands
− Low overhead and no marketing costs yield higher profit margins
captive brand
a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
individual branding
using different brand names for different products
family branding
marketing several different products under the same brand
name
co-branding
placing two or more brand names on a product or its package
- Three common types:
− Ingredient branding – identifies a branded part that makes up the product
− Cooperative branding – occurs when two brands receive equal treatment
− Complementary branding – when products are advertised or marketed together to suggest usage
- A combination of brand names can enhance the prestige or perceived value of a
product
trademark
the exclusive right to use a brand or part of a brand
