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28 Cards in this Set

  • Front
  • Back
Purpose of Product Manager
full responsibilty for managing the marketing mix of products
Goal of Market Segmentation
Small groups of people in a target market with homogenious needs
Why is demographic segmentation so popular?
Demographics are widely available, and advertising relies heavily on it.
Selection criteria for which markets are targeted:
Markets should have:
Profit Potential
Suffiecient Resources
A Competitive Advantage
Product Positioning
How the desired Target Market views your product
-Needs/Benefit segmentation important when considering positioning
Occurs when two or more products aim at the same target market
-When One product in a product line eats away at the sales at another in the same line
5 stages in a Product Life Cycle:
Product Development
Product Development Stage
High Failure Rate among new Product
High costs associated with development
Recently, much emphasis has been placed on speed to market
Introductory Phase
The time a product spends in this phase is tough to estimate
Promotion costs are high, so as to increase product awareness
-THe choice needs to be made as to whether it will be a pioneer vs. a late entrant, and whether it will use skimming of penetration pricing.
Maturity Stage
Slowed Sales growth may be remedied by:
more promotion
stealing customers from competitiors
targeting a new target market
modifying the product
Factors taht affect the adoption rate:
1.Relative advantage-how much better an option the product is over the nearest competition
2.Comunicability-how easily the benefits can be conveyed
3.Compatibility-how well the product corresponds with customer's lifestyle
4.Complexity- how tough the product is to learn
5.Divisibility-How easily the product can be used for a trial period
SKimming vs. Penetration
Skimming-high prices to skim off the top of the market (high profit, but low market share)

Penetration- cutting the price to gobble up market share (low profit margins, but large market share)
Decline Stage
Must decide whether product should be trashed, or whether it is viable to another company
Distribution Management
Managing the transfer of goods from producers to consumers with efficiency and effectivness
Direct vs. Indirect Channels
Direct = no middlemen (zero level channel)

Indirect= wholesalers, buyers, etc.... multiple levels inbetween consumer and manufacturers
Cost vs. Value of Indirect Channels
While it does add costs to the consumers to have intermediarys, it also adds valeus in cases (i.e. cow example)
Intensive Distribution
In as many outlets as possible, typically convenience goods
Selective Distribution
In several outlets, typically shopping goods
Exclusive Distribution
In only a few outlets, typically specialty goods
Horizontal Integration
When one channel member buys a similar company on the same channel level
Backwards Channel Integration
WHen a channel member closer to a consumer buys a company that is farther away from the consumer
fowards vertical integration
WHen a channel member farther away from the consumer purchases a channel member closer
Vertical Marketing System
Managing the Activities and strategies of Channel Members
Corporate VMS
most control, yet most cost
When a corporation controls a channel by owning several companies on different levels of it
Contractual VMS
a legal aggrement specifies how certain channel functions must be formed

----franchising is a common method of this
franchiser vs. franchisee
franchiser-the person who is selling the "concept"
franchisee- the person who purchases the concept
Administered VMS
when the most powerful channel member, or the channel captain, uses its influence to control the activities of other channel members

-members should agree to increase sales and profits
-often causes fighting
Growth Stage
Period of time in which a product experiences a growth in sales. Often, a producer of distributor may lose ability to keep up
-COuld result in the "Weeding out" of weaker competition