Test 3 Flashcards
What are the four types of consumer products?
Conveince product, shopping product, specialty product, unsought product.
What is derived demand?
sales of business products frequently result from the sale of consumer products.
What are supporty products?
items used to assist in producing other products and services
How can services be classified?
1 delivered by people or equpment
2 firms or nonprofit
goverment agencies
Four I’s of services?
Intangibility–can’t be seen or touched before purchase decision
Inconsistency–depend on the people who provide them
Inseparability–cannot distinguish between provider from service
Inventory–service provider is available when no demand (idle production capacity)
How is service quality assessed?
By comparing consumer expectation with actual experiences through gap analysis.
What is gap analysis?
Asks consumers to assess their expectations and experiences on dimensions of service quality.
What are the ive dimensions of service quality?
Reliability, Tangibility, Responsiveness, Assurance, Empathy
Caring, individualized attention provided to customers
empathy
Willingness to help customers and provide prompt service
Responsiveness
Appearance of physical facilities, equipment, personnel, and communication materials
Tangibility
Ability to perform the promised service dependably and accurately
Reliability
Knowledge and courtesy of employees and their ability to convey trust and confidence
Assurance
A specific product that has a unique brand, size, or price
product item
A group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales, outlets, and prices
product line
All the product lines offered by a company
product mix
What is a new product?
a product that is functionally different from existing products
Consumers don’t need to learn new behaviors
continuous innovation
dynamically continuous innovation
minor changes
making consumer learn entirely new consumption pattern
discontinuous innovation
What is the legal definition of newness?
6 monthes after regular distribution
What is a statement that indentifies 1 a target market 2 specific needs wants and preferences, and what the product will be and do to satisfy customers
protocol
What are some marketing reasons for new-product failures?
Insignificant point of difference No economical access tobuyers Incomplete market and product protocol Not satisfying customer needs Bad timing Poor Quality Too little market attractiveness Poor execution of the marketing mix
What are some organizational problesm to product failuer
Ignoring custy Skipping stages in development Pushing a poorly conceived item into market for money Groupthink Not learning from failures NIH (Not invented here) problm
The seven stages an organization goes through to indentify business opportunities and convert them into salable products or services
New-product process
What are the 7 stages of the npp
- New product strategy development
- Idea generation
- Screening and evaluation
- Business analysis
- Development
- Marketing Testing
- Commercialization
Stage of the npp that defines the role for a new product in terms of the firms overall objectives
New product strategy development
involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage’s result
Idea generation
Who are some things ideas can be generated from?
employers, co-workers, customer and suppliers, R&D, Competitive products, small firms, universities, and investors
Internally and externnally evaluates np ideas to eliminate those that warrant no further effort
Screening and evaluation
specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
business analysis
The stage of the nppp that turns the idea on paper into a prototype
development (yohgurt)
stage of the npp that invovles exposing actual products to prospective consumer under realistic purchase conditions to see if they will be
market testing
Three types of test market?
Standard (sell it in certain place
Controlled (contracting test program
Simulated (replication of test market
the stage of the npp that positions and launches a new product in full-scall productions and sales
commercialization
a payment a manufacturer makes to place a new item on a retailers shelf
slotting fee
What is the simultaneous development of both the product and the productions process
parallel development
The stages a new product goes thrugh in the marketplace: introduction, growth, maturity, and decline
Product life cycle
What is the marketing goal during the introduction stage
creating awareness and stimulating trial
desire for a product class versus a specific product
primary demand
preference for a specific brand
selective demand
What are some goals during the growth stage?
differentiation, repeat purchase, broaden distribution
What is the marketing goal during maturity?
holding market share through further product differentiation and finding new buyers
Wha are marketing strategies during decline?
Deletion or harvesting
dropping a product from a company’s product line
deletion
retaining a product while reducing marketing costs
harvesting
What are 3 important aspects of the product life cycle?
- Length
- Shape
- Rate of adoption
What is the average length of a product life cycle?
Who knows!
a product for which significant customer education is required and there is an extended introductory period?
high-learning
immediate purchase because little learning is required by the consumer
low-learning product
What is the idea that products diffuses or spread through the population?
diffusion of innovation
What are the 5 types of consumers vis a vis diffusion of innovation?
Innovators, Early adopters, Early majority, Late majority, Laggards
What are some reasons for resisting a product in the introductory stage?
Usage barriers, value barriers, risk barriers, pyschological barriers
Who manages the marketing efforts for a close-knit family of products or brands
product/brand manager
What is altering one or more of a products characteristics, such as its quality, performance, or appearance to increase value of customers and increase sales
product modification
trying to find new customers. increase a prodct’s use among existing customers, or create new use situations
modifying the market
changes the place a product occupies in a consumer’s mind relative to competitive products
product repositioning
What are four factors that trigger a need for repositioning
Reacting to competitor position
Reaching a new market
Changing the value offered
Catching a rising trend
involves adding value to the product through additional features or higher-quality materials
trading up
reducing numbers of features, quality, or price
trading town (downsizing)
An organization’s use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products
branding
Any work, deice, or combination of these used to distinguish a seller’s goods or services
brand name
A set of human characteristics associated with a brand name
brand personality
The added value a brand name gives to a product beyond the functional benefits provided
brand equity
What are the steps to creating brand equity?
- positive brand awareness
- establish brand’s meaning
- proper response to brand identity
- Create a consumer-brand connecion
What is a contractual agreement whereby one company allows its brand names or trademarks to be used with products or services offered by another company for a royalty or fee
brand licensing
What are the steps to picking a good brand name?
- Name should suggest product benefits
- Name should be memorable, distinctive, and positive
- Name should fit company or product image
- Name should have no legal restrictions
- Name should be simple, emotional,
A branding strategy in which a company uses one name of all its products in a product glass
multiproduct branding (family/corporate branding)
a branding strategy that involves giving each product a distinct name
multibranding
combines corporate or family brand with a new brand, to distinguish a part of its product line from others
sub-branding
the practice of usng a current brand name to enter a different product class
brand extension
A branding strategy that involves giving each product a distinct name
multibranding
manufacturing products but sells them under the brand name of a wholesaler or retailer
private branding strategy
marketing products under its own name, and that of a reseller because the segment attracted to the reseller is different from its own market
mixed branding strategy
refers to any container in which it is offering for sale and on which label information is conveyeed
packaging
a benefit of packaging; label information on it conveys to the consumer how where and when to use the product, what the product is made from, and legal requirements
communication benefits
what is the role of packaging that involves storage, convenience, protection, or product quality?
functional benefits
What is the benefit of packing in the consner’s mind?
perceptual benefit
Expanding the four p’s framework to include people, physical environment, and process
seven p’s of service marketing
Charging different prices during different times of the day or days of the week to reflect variations in demand for the service
off-peak pricing
the process of managing the entire customer experience of the firm
customer experience management
Integrating the service componenet of the marketing mix with efforts to influence consumer demand
capacity management
The money or ther considerations exchanged for the ownership of or use of a product or service
price
What is the formula for final price?
FP= List - [incentives + allowances] +extra fees
The ratio of perceived benefits to price
value
Profit equals total revenue - total cost
profit equation
What are the four common approahes to pricing?
Demand-oriented, cost-oriented, profit-oriented, and competition-oriented
What are the demand oriented approaches?
Skimming, penetration, prestige, odd-even, target, bundle, yield management
What are the cost-oriented approaches
standard markup, cost-plus
What are the profit-oriented approaches?
Target profitm target return of sales, target return on investment
What are competition oriented approaches
customy, above, at, or below market, loss leader
A graph relating the quantity sold and the price, which shows how many units will be sold at a given price
demand curve
The percentage change in the quantity demanded relative to a percentage change in price
price elasticity of demand
What is unit variable costs?
variable cost per unit
