MARK Final Flashcards
Understand the difference between services and goods (both durable and non-durable).
Put simply, durable goods are products that do not need to be purchased often, whereas non-durable goods are products that expire more quickly. The rule of thumb for this is, if it lasts longer than 3 years, it is a durable good, and if it lasts less than 3 years, it is a non-durable good.
What is meant by the intangibility of service?
The intangibility of services is derived from the fact that you cannot see or touch a service. A service is made and delivered on spot and hence it cannot be measured as easily as a tangible product.
What is private label branding?
Private brands, also known as private label and store brands, are made and sold for a specific retailer and meant to compete with brand-name goods. Private brands tend to be cheaper than name brand goods and provide retailers with higher margins.
What is the inseparability of services?
Inseparability is used in marketing to describe a key quality of services that distinguishes them from goods. services are generated and consumed within the same time frame.
What is a generic brand?
Generic brands of consumer products are distinguished by the absence of a brand name, instead identified solely by product characteristics and identified by plain, usually black-and-white packaging. Generally they imitate more expensive branded products, competing on price.
Understand the “consistency” of service.
Clients need to know that you will deliver on your promises every time, rather than only when it may be convenient for you
What is the idle production capacity?
Idle capacity refers to the time spent in the manufacturing plant where no production occurs. During periods of idle capacity, the company gains no benefit from owning the equipment or hiring the employees.
Understand core, actual and augmented product.
The core product is defined as the benefit that the product brings to the customer.
The actual product refers to the tangible object and relates to the physical quality and design.
The augmented product consists of the measures taken to help the consumer put the actual product to use.
Understand the width of a company’s product line
Width or breath is the company’s product mix that means the total number of product lines that a company offers to sell. For instance, if a company offers milk and yogurts, this indicates that its product mix has two lines.
Understand the depth of a company’s product line
The depth of the product mix means the total number of products a company offers within a certain product line. There may be different variations in the product e.g. size, flavor, taste, and many other characteristics. For example, Medicam toothpaste sells four sizes and two flavors mean it has a depth of eight.
Understand what copyright is.
Copyright laws apply to the intellectual property for the duration of the artist’s life plus 70 years. Copyright is the exclusive right given to the creator of creative work to reproduce the work, usually for a limited time. The creative work may be in a literary, artistic, educational, or musical form.
What is brand personality?
Brand personality is a set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that a specific consumer segment enjoys
Understand the product life cycle and its stages.
The life cycle has four stages - introduction, growth, maturity and decline. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales
What is a concept test?
Concept testing is the process of using surveys to evaluate consumer acceptance of a new product idea prior to the introduction of a product to the market. It is important not to confuse concept testing with advertising testing, brand testing and packaging testing, as is sometimes done.
What is meant by test marketing?
Test marketing is an experiment conducted in a field laboratory (the test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction
What is meant by commercialization?
the process of managing or running something principally for financial gain.
What is the “harvesting” strategy
A harvest strategy or harvesting strategy is a business plan for either canceling or reducing marketing spending on a product. Marketing executives choose a harvesting strategy when a product has reached the end of its life cycle.
How do you extend the “life” of a product in reference to the product life cycle?
A branded good can enjoy continuous growth, such as Microsoft, because the product is being constantly improved and advertised, and maintains strong brand loyalty. Implementing a harvest strategy.
Define “fad.”
an intense and widely shared enthusiasm for something, especially one that is short-lived and without basis in the object’s qualities; a craze.
What is meant by a “line-extension?”
A product line extension is the use of an established product brand name for a new item in the same product category. Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes.
What does it mean to “reposition” a product?
Repositioning is defined as altering the position of a brand or product in the minds of the customer relative to the offerings of the competitive product. Repositioning is a very subtle and difficult process as the brand needs to change the target market’s understanding of the product.
Define “market penetration.”
Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service.
Understand the adoption curve.
The product adoption curve is a standard model that reflects who buys your products and when. Think of it as the big picture view of your product adoption. It takes the product lifecycle and considers what happens at different points.
Define “market share.”
the portion of a market controlled by a particular company or product.
Define “price discrimination.”
the action of selling the same product at different prices to different buyers, in order to maximize sales and profits.
Understand “dumping
It’s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter’s domestic market.
Define “predatory pricing.”
the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.
Understand one-price policy
A one price policy is a strategy in which the seller offers the same price to every customer. With a one price policy, customers cannot negotiate the price.
