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71 Cards in this Set
- Front
- Back
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Convenience Products |
Purchased quickly with little effort Staples: Necessary (must have) Impulse Products: Quick purchases Emergency Products: Deem to have in time of emergency (battery, first-aid) |
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Shopping Products |
Product comparisons are made Homogeneous Shopping Products: everything is seen as the same, only except the Price. Heterogeneous Shipping Products: You can see the differences between products (origin, ratings, features) |
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Unsought Products |
No Demand for the Products New Unsought Products: Regular Unsought Products: |
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Specialty Products |
No close substitutes (brand loyalty) |
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Derived Demand |
A demand for a product, that is a consequence of the demand for something else. Ex. Smartphone glass screens demand from the demand of phones. |
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Seven Stages in the new product process leading to success |
1. New-product strategy development 2. Idea generation 3. Screening and evaluation 4. Business analysis 5. Development 6. Market testing 7. Commercialization |
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New-Product Strategy Development |
Find the Needs and Wants
SWOT Analysis Conducted Protocol Defined Strategic Role Identified |
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Idea generation |
Open Innovation Talking/Interviewing with Customer and Supplier, Employee and Co-Worker, R&D, Competitive Products, Universities, and Inventors to help give ideas to product or services. |
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Screening and Evaluation |
Determine what is the most viable External Approach: Concept Tests (focus groups) Internal Approach: Customer Experience Management |
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Business Analysis |
Financials, Investments How are we Capable to implement new changes |
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Development |
Brainstorming Service Encounters Safety Tests |
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Market Testing |
Test marketing Simulated Test Markets |
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Commercialization |
Product Launch Rollout |
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Product Life Cycle |
Market Intro: expect to have a loss. Market growth: sales jump, greatest amount of profits. Market maturity: equilibrium due to competition. |
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Branding |
A customer experience represented by a collection of images and ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme. |
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Brand Name |
Term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. |
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Trade Name |
A trademark that is used to identify an organization rather than a product or product line. |
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Trademark |
Identifies one seller's product and thus differentiates it from products of other sellers. Also aids in promotion and helps protect the seller from imitations |
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Packaging |
Refers to any container in which it is offered for sale and on which label information is conveyed. |
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Label |
an integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients. |
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What does Value Equal? |
Value = Perceived Benefits / Price |
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Profit |
Low prices, Increase market share |
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Target Return (ROI) |
considering profits in relation to capital invested. A return on investment |
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Price Elasticity of Demand |
Price Elasticity of Demand = Percentage Change in Quantity Demanded / Percentage Change in Price |
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Elastic Demand |
A situation in which a cut in price increases the quantity taken in the market enough that total revenue is increased. |
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Inelastic Demand |
A situation in which a cut in price yields such a small increase in quantity taken by the market that total revenue decreases. |
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Unitary (Price) Demand |
A special situation in which a cut in price increases quantity just enough that total revenue remains unchanged. |
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Penetration Pricing |
A low initial price in an attempt to increase market share rapidly. This policy is effective if demand is perceived to be fairly elastic. |
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Price Lining |
The offering of merchandise at a number of specific but predetermined prices. Once set, the prices may be held constant over a period of time, and changes in market conditions are adapted to by changing the quality of the merchandise. |
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Customary Pricing |
The practice of establishing a price for a product or service and not changing it over a relatively long time. Prices are changed by varying the quantity or quality of the product rather than the monetary value. |
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loss leader pricing |
The featuring of items priced below cost or at relatively low prices to attract customers to the seller's place of business.s |
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One-Price Policy |
A policy that, at a given time, all customers pay the same price for any given item of merchandise. (ex. 99 cent store, Daiso) |
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FOB Origin Pricing |
The seller pays the freight to the destination. Title does not pass until the merchandise reaches its destination; thus, the seller assumes all risks, loss, or damage while goods are in transit, except for the liability of the carrier. |
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Basing-Point Pricing |
Involves selecting one or more geographical locations from which the list prices for products plus freight expenses are charged to the buyer. |
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Bait and Switch |
A deceptive practice exits when a firm offers a very low price on a product to attract customers to a store. Once in the store, the customer is persuaded to purchase a higher-price item using a variety of tricks. |
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Middleman |
Any itermediary between manufacturer and end-user markets. |
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Agent or Broker |
Any intermediary with legal authority to act on behalf of the manufacturer |
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Wholesaler |
An intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets |
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Retailer |
An intermediary who sells to consumers |
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Distributor |
An imprecise term, usually used to describe intermediaries who perform a variety of distribution fuctions, including selling, maintaining inveentories, extending credid, and so on. |
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Dealer |
A more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth. |
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Marketing Channel |
Make possible the flow of goods from a producer, through intermediaries, to a buyer. "anyone" |
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Direct Channel |
A channel whereby goods and services are sold directly from producer to final user without involvement of other independent middlemen. |
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indirect channel |
A channel whereby goods and services are sold through independent middlemen to final users. |
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Independent Retailer |
An outlet owned individually; not a chain store or branch store. |
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Contractual Systems |
franchise system, retailer sponsored cooperative, and wholesaler sponsored cooperative. |
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Category Killers |
A type of destination store that is usually large and that concentrates on one category, thus making it possible to carry both a broad assortment and deep selection of merchandise, coupled with low price and moderate service. |
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The four positioning strategies for retailers |
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Retailing Mix |
Those variables that a retailer can combine in alternative ways to arrive at a strategy for attracting its consumers. Usually include merchandise and services offered, pricing, advertising and promotion, store design, location, and visual merchandising. |
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Markdown |
A reduction in the original or previous retail price of a piece of merchandise. a percentage of net sales in contrast with off-retail percentage. |
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Merchant Wholesalers |
The wholesalers who take title to the products they sell. |
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Rack Jobbers |
A wholesale middleman operating principally in the food trade, supplying certain classes of merchandise that do not fit into the regular routine of food store merchandise resource contacts. |
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Promotional Mix: Inform |
Prospective Buyers |
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Promotional Mix: Persuade |
Them to Try |
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Promotional Mix: Remind |
Them of the Benefits |
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Integrated Marketing Communications (IMC) |
A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. |
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Personal Selling |
Selling that involves a face-to-face interaction with the customer. |
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Advertising |
The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or audience about their products, services, organizations, or ideas. |
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Push Strategy |
A manufacturing strategy aimed at other channel members rather than the end consumer. The manufacturer attempts to entice other channel members to carry its product through trade allowances, inventory stocking procedures, pricing policies, etc. The communications and promotional activities by the marketer to persuade wholesale and retail channel members to stock and promote specific products. |
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Pull Strategy |
A manufacturing strategy aimed at the end consumer of a product. The product is pulled through the channel by consumer demand initiated by promotional efforts, inventory stocking procedures, etc. The communications and promotional activities by the marketer to persuade consumers to request specific products or brands from retail channel members. |
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Reinforcement |
A consequence that occurs after a behavior that increases the probability of future behavior of the same type. A term from learning theory denoting the reward available to an organism for the response that the experimenter was trying to create or encourage. |
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Advocacy |
A type of advertising placed by businesses and other organizations that is intended to communicate a viewpoint about a controversial topic relating to the social, political, or economic environment. |
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Institutional Advertising |
An advertising message or advertising campaign that has the primary purpose of promoting the name, image, personnel, or reputation of a company, organization, or industry. When employed by a company or corporation it is sometimes called corporate advertising. |
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Pioneer Ads |
Advertising something new. |
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Competitive |
A type of advertising where persuasion; something with comparison with competitor. |
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Reminder |
Ad to Remind customers about company/brand. |
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Product Line |
Company that has many different versions. Ex. Apple ipod: touch, shuffle, classic, gens |
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Product Mix |
Company that has many different categories. Ex. Apple Mac, ipad, iphone, ipod, Macbooks |
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Skimming Strategy |
Starting with a high price. Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. |
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Warranty |
Written statments of liabilities Guarantee |
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Scrambled Merchandising |
Retailer goes around looking for items not related to their tradition business to make a quick profit to be on sale in the business. |
