Marketing 3-Part 2

Front 1

Stages a new product goes through in the marketplace: introductions, growth, maturity, and decline

Back 1

Product life cycle

Front 2

Occurs when a product is introduced to its intended target market.

Back 2

Introduction Stage of Product Life Cycle

Front 3

Characterized by rapid increases in sales.

Back 3

Growth Stage of Product Life Cycle

Front 4

Characterized by a slowing of total industry sales or product class revenue

Back 4

Maturity Stage of Product Life Cycle

Front 5

Occurs when sales drop

Back 5

Decline Stage of Product Life Cycle

Front 6

Venturesome, higher educated; use multiple information sources

Back 6

Innovators

Front 7

Deliberate; many informal social contacts

Back 7

Early majority

Front 8

Fear of debt; neighbors and friends are information sources

Back 8

Laggards

Front 9

Leaders in social setting; slightly above average education

Back 9

Early adopters

Front 10

Skeptical; below average social status

Back 10

Late majority

Front 11

Organizations use of a name, phrase, design, symbols, or combination of these to identify and distinguish its products

Back 11

branding

Front 12

Any word, device, or combination of these uses to distinguish a seller's goods or services

Back 12

brand name

Front 13

When a company uses its trade name to brand the product.

Back 13

family/corporate branding

Front 14

The practice of using a current brand name to enter a new market segment in its product class

Back 14

line extensions

Front 15

Manufacturer's branding strategy that gives each product a distinct name

Back 15

multibranding

Front 16

Part of a product that refers to any container in which it is offered for sale and on which label information is displayed

Back 16

packaging

Front 17

Money or other considerations exchanged for the ownership or use of a good or service

Back 17

Price

Front 18

The ratio of perceived benefits to price

Back 18

value

Front 19

Graph relating quantity sold and price, which shows how many units will be sold at a given price

Back 19

demand curve

Front 20

The percentage change in the quantity demanded relative to a percentage change in price

Back 20

price elasticity of demand

Front 21

Examines the relationship between total revenue and total cost to determine profitability at different levels of ouput

Back 21

break-even analysis

Front 22

The total expense incurred by a firm in producing and marketing a product; the sum of fixed cost and variable cost

Back 22

Total cost (TC)

Front 23

The sum of expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.

Back 23

Fixed cost (FC)

Front 24

Sum of the expenses of the firm that vary directly with the quantity of a product that is produced & sold

Back 24

Variable cost (VC)

Front 25

Expressed on a per unit basis; VC/Q

Back 25

Unit variable cost (UVC)

Front 26

A conspiracy among firms to set prices for a product

Back 26

Price fixing

Front 27

When two or more competitors collude to explicitly or implicitly set prices

Back 27

horizontal price fixing

Front 28

Involves controlling agreements between independent buyers and sellers

Back 28

price fixing

Front 29

the practice of charging different prices to different buyers for goods of like grade and quality

Back 29

Price discrimination

Front 30

charging a very low price for a product with intent of driving competitors out of business

Back 30

Predatory pricing

Front 31

reductions from list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller

Back 31

Discounts

Front 32

encourages customers to buy larger quantities of a product

Back 32

Quantity discounts

Front 33

rewards wholesalers and retailers for marketing functions they will perform in the future

Back 33

Trade (functional) discounts