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75 Cards in this Set

  • Front
  • Back
New-Product Development
The development of original products, product improvements, product modifications and new brands through the firm’s own R&D efforts.
Idea Generation
The systematic search for new-product ideas.
Idea Screening
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
Product Concept
A detailed version of the new-product idea stated in meaningful consumer terms.
Concept Testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Marketing Strategy Development
Designing an initial marketing strategy for a new product based on the product concept.
Business Analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives
Product Development
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product
Test Marketing
The stage of new-product development in which the product and marketing program are tested in more realistic market settings
Introducing a new product into the market
Sequential Product Development
A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage
Simultaneous (or team based) Product Development
An approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
Product Life Cycle (PLC)
The course of a product’s sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline.
A basic and distinctive mode of expression
A currently accepted or popular style in a given field
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Introduction Stage
The product life-cycle stage in which the new product is first distributed and made available for purchase
Growth Stage
The product life-cycle stage in which a product’s sales start climbing quickly
Maturity Stage
The stage in the product life cycle in which sales growth slows or levels off.
Decline Stage
The product life-cycle stage in which product’s sales decline.
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Dynamic Pricing
Charging different prices depending on individual customers and situations.
Target Costing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Fixed Cost
Costs that do not vary with production or sales level
Variable Costs
Costs that vary directly with the level of production
Total Costs
The sum of the fixed and variable costs for any given level of production.
Experience Curve (learning curve)
The drop in the average per-unit production cost that comes with accumulated production experience
Demand Curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
Price Elasticity
A measure of the sensitivity of demand to changes in price
Cost-plus Pricing
Adding a standard markup to the cost of the product
Break-even Pricing (target profit pricing)
Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit.
Setting price based on buyers’ perceptions of value rather than on the sellers’ cost.
Value Pricing
Offering just the right combination of quality and good service at a fair price.
Competition-based Pricing-
Setting prices based on the prices that competitors charge for similar products.
Marketing-skimming pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Market-penetration Pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share
Product Line Pricing
Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices
Optional-product Pricing
The pricing of optional or accessory products along with a main product.
Captive-product Pricing
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera
By-product Pricing
Setting a price for by-products in order to make the main product’s price more competitive
Product Bundle Pricing
Combining several products and offering the bundle at a reduced price.
A straight reduction in price on purchases during a stated period of time.
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way
Segmented Pricing
Selling a product or service at two or more pries, where the difference in prices is not based on differences in costs
Psychological Pricing
A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
Reference Prices
Prices that buyers carry in their minds and refer to when they look at a given product
Promotional Pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
FOB-origin Pricing
A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.
Uniform-delivered Pricing
A geographical pricing strategy in whcih the company charges the same price plus freight to all customers, regardless to their locations
Zone Pricing
A geographical pricing strategy in which the company sets up two or more zones, All customers within a zone pay the same total price; the more distant the zone, the higher the price
Basing-point Pricing
A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the greight cost from that city to the customer.
Freight-absorption Pricing
A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
Value Delivery Network
The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the system.
Marketing Channel (or distribution channel)
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
Channel Level
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
Direct Marketing Channel
A marketing channel that has no intermediary levels
Indirect Marketing Channel
A channel containing one or more intermediary levels.
Channel Conflict
Disagreement among marketing channel members on goals and roles—who should do what and for what rewards
Conventional Distribution Channel
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Vertical Marketing System (VMS)
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
Corporate VMS
A vertical marketing system that combines successive stages of productions and distribution under single ownership—channel leadership is established through common ownership
Contractual VMS
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact that they could achieve alone
Franchise Organization
A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process.
Administered VMS
A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one the parties
Horizontal Marketing System
A channel arrangement in which two or more companies at one level join together to follow a new marking opportunity
Multichannel Distribution System (or hybrid marketing channel)
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
The displacement of traditional resellers from a marketing channel by radical new types of intermediaries
Intensive Distribution
Stocking the product in as many outlets as possible
Exclusive Distribution
Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories
Selective Distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products.
Marketing Logistics (physical distribution)
The tasks involved in planning, implementing, and controlling the physical flow of materials, finals goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Supply Chain Management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, the resellers, and final consumers.
Distribution Centers
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
Integrated Logistics Management
The logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system.
Third-party logistics (3PL provider)
An independent logistics provider that performs any or all of the functions required to get its client’s product to market.