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
