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68 Cards in this Set
- Front
- Back
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Product
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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
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Service
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Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
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Consumer Product
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A product bought by final consumer for personal consumption
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Convenience Product
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A consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort
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Shopping Product
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A consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style
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Specialty Product
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A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
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Unsought Product
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A consumer product that the consumer either does not know about or knows about but does not normally think of buying
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4 Types of consumer products
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convenience
shopping specialty unsought |
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Industrial Products
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A product bought by individuals and organizations for further processing or for use in conducting a business
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Social Marketing
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The use of commercial marketing concepts and tools in programs, designed to influence individuals' behavior to improve their well-being and that of society
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Product Quality
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The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
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5 Individual Product Decisions
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Product attributes
Branding Packaging Labeling Product support services |
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Brand
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A name, term, sign, symbol, design, or a combination of these that identifies the products or services of one seller or group of sellers an differentiates them from those of competitors.
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Packaging
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The activities of designing and producing the container or wrapper for a product
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Product Line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
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Product Mix
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The set of all product lines and items that a particular seller offers for sale
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Brand Equity
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The differential effect that knowing the brand name has on customer response to the product or its marketing
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4 Steps to building strong brands
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Brand positioning
Brand name selection Brand sponsorship Brand development |
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Store Brands (private brands)
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A brand created and owned by a reseller of a product or service
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Co-branding
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The practice of using the established brand names of two different companies on the same products
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Line Extension
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Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
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Brand Extension
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Extending an existing brand name to new product categories
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New-product Development
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The development of original products, product improvements, product modification, and new brands through the firm's own product-development efforts
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Idea Generation
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The systematic search for new product ideas
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Idea Screening
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Screening new product ideas in order to spot good ideas and drop poor ones as soon as possible
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Product concept
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A detailed version of the new product idea stated in meaningful consumer terms
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Concept testing
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Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
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Marketing strategy development
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Designing an initial marketing strategy for a new product based on the product concept
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Business analysis
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A review of the sales, costs, and profit projections fora new product to find out whether these factors satisfy the company's objectives
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Product development
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Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering
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Test marketing
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The stage of new product development in which the product and marketing program are tested in realistic market settings
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Commercialization
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Introducing a new product into the market
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Customer-centered new product development
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New product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences
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Team-based new product development
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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
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Product life cycle
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The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline
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Style
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A basic and distinctive mode of expression
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Fashion
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A currently accepted or popular style in a given field
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Fad
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A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
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Introduction Stage
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The product life cycle stage in which the new product is first distributed and made available for purchase
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Growth stage
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The product lief cycle stage in which a product's sales start climbing quickly
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Maturity stage
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The product life cycle stage in which sales growth slows or levels off
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Decline stage
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The product life cycle stage in which a product's sales decline
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Price
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The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service
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Value-based pricing
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Setting price based on buyers' perceptions of value rather than on the seller's cost
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Good-value pricing
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Offering just the right combination of quality and good service at a fair price
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Value-added marketing
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Attaching value-added features and services to differentiate a company's offers and charging higher prices
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Cost-based pricing
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Setting prices based on the costs for producing, distributing, and selling the products plus a fair rate of return for effort and risk
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Fixed costs (overhead)
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Costs that do not vary with production or sales level
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Variable costs
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Costs that vary directly with the level of production
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Total costs
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The sum of the fixed and variable costs for any given level of production
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Experience curve (learning curve)
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The drop in the average per unit production cost that comes with accumulated production experience
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Cost-plus pricing
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Adding a standard markup to the cost of the product
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Break-even pricing (target profit pricing)
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Setting price to break even on the costs of making and marketing a product, or setting price to make a target profit
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Target costing
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Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
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Market-skimming pricing
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Setting a high price for a new product to skim maximum revenues layer by layer from the segments wiling to pay the high price, the company makes fewer but more profitable sales
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Market-penetration pricing
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Setting a low price for a new product in order to attract a large number of buyers and a large market share
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Product line pricing
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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
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Optional-product pricing
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The pricing o optional or accessory products along with a main product
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Captive-product pricing
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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
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By-product pricing
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Setting a price for by-products in order to make the main product's price more competitive
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Product bundle pricing
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Combining several products and offering the bundle at a reduced price
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Discount
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A straight reduction in price on purchases during a stated period of time
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Allowance
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Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
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Segmented pricing
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selling a product or service at two or more prices, where the difference in prices is not based on differences in cost
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Psychological pricing
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A pricing approach that considers the psychology of prices an not simply the economics; the price is used to say something about the product
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Reference Prices
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Prices that buyers carry in their minds and refer to when they look at a given product
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Promotional pricing
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Temporarily pricing products below the list price, and sometimes even below cost, to increase short run sales
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Dynamic pricing
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Adjusting prices continually to meet the characteristics and needs of individual customers and situations
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