Vocabulary (Exam 2) Flashcards
The physical, tangible elements that make up a product’s essential benefit
Core Product
Frequently purchased, relatively low-cost products that consumers have little interest in seeking new information about or considering other product options
Convenience Goods
A set of assets and liabilities linked to a brand’s name and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm’s customers
Brand Equity
The joining of two or more well-known brands in a common product or taking two brands and marketing them in partnership
Co-branding
When a seller advertises a low price but has no intent to actually make the lower priced-item available for sale
Bait and Switch
Building a price by adding standardized markup on top of the costs associated with the offering
Cost-plus pricing
A shipping method used by manufacturers to better match quantities needed in terms of the space constraints and inventory turnover requirements of their buyers
Breaking Bulk
A function performed by intermediaries that involves taking product from multiple sources and sorting it into different classifications for sales through the channel
Accumulating Bulk
The process of accumulating products from several sources to then make those products available down the channel as a convenient assortment for consumers
Creating Assortments
The investment of a channel member in backward or forward vertical integration by buying controlling interests in other intermediaries
Corporate Vertical Marketing System (VMS)
The binding of otherwise independent entities in the vertical marketing system legally through contractual agreements
Contractual Vertical Marketing System (VMS)
The number of different product categories offered by a retailer
Breadth of Merchandise
Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations
Enhanced Product
Products that require consumers to do research and compare across product dimensions like color, size, features, and price
Shopping Goods
Unique products in which consumers’ purchase decision is based on a defining characteristics
Specialty Goods
Products that consumers do not seek out and often would rather not purchase at all
Unsought Goods
When a company fails to stop a bad product idea from moving into product development
Go-to-market Mistake
When a product that is a good idea is prematurely eliminated during the screening process and ultimately never introduced to the market
Stop-to-market Mistake
Strategies designed to involve investing against existing customers to gain additional usage of existing products
Market Penetration
A pricing strategy in which a firm enters a market at a relatively high price point, usually in an effort to create a strong price-quality relationship for the product
Market Skimming
When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales
Brand Licensing
Any information bearing experience that a customer or prospect has with the brand, the product category, or the sponsoring organization that relates to the marketer’s product or service.
Brand Contact
A pricing tactic in which the price is expressed in whole-dollar amounts
Even Pricing
When shippers set up geographic pricing zones based on the distance from the shipping location
Zone Pricing
