Marketing Midterm 2

Front 1

Product Life Cycle

Back 1

The stages a new product goes through in the marketplace: intro>growth>maturity>decline.

Front 2

Introduction Stage

Back 2

It is meant to create consumer awareness and stimulate trial or first buyers. Its often at a loss due to initial investments.

Front 3

Primary Demand

Back 3

The desire for the product class, rather than for a specific brand. It is meant for the introduction stage objective.

Front 4

Selective Demand

Back 4

The preference for a specific brand. This occurs when the market is saturated with competition so the business focus turns to create this.

Front 5

Skimming Strategy

Back 5

A strategy with high initial price in order to help the company recover the costs of development as well as capitalizing on the price insensitivity of early buyers.

Front 6

Penetration Pricing

Back 6

A low price strategy to discourage competitive entry.

Front 7

Growth Stage

Back 7

The stage where product Life cycle is characterized by rapid increases in sales. Broaden distribution is important here, as well as differentiating since competition begins to appear. (industry profits peak here)

Front 8

Repeat Purchasers

Back 8

People who tried the product, we're satisfied, and bought again.

Front 9

Maturity Stage

Back 9

The stage that consists slowing of total industry sales or product class revenue. It is when business try to hold market share by differentiation.

Front 10

Decline Stage

Back 10

The stage of sales drop and the decrease of product Life cycle. Usually deletion or harvesting occurs here.

Front 11

High-Learning Product

Back 11

One for which significant customer education is required and there is an extended introductory period. (left skewed curve)

Front 12

Low-Learning Product

Back 12

where little learning is required by the consuner and the benefits of purchase are readily understood. (rising hill, Gillette razors)

Front 13

Fashion Product

Back 13

Is a style of the times. (camel back, up and down trend)

Front 14

Fad Product

Back 14

Experiences rapid sales on introduction and then an equally rapid decline. Typically novelties and have short life cycle. (one camel hump, incomplete, ends early)

Front 15

MultiPRODUCT Branding

Back 15

A branding strategy in which a company uses one name for all its products in a product class. (A&H Baking Soda, A&H Deodorant, A&H Toothpaste)

Front 16

Multibranding Strategy

Back 16

A strategy that involves giving each product a distinct name. (Marriott has Vacation Clubs, Renaissance, Courtyard, and Fairfield hotels to target different budgets)

Front 17

Private Branding Strategy

Back 17

Also called reseller branding, it is when manufacturer products sells under the brand name of a wholesaler or retailer. (RadioShack or CVS brands)

Front 18

Mixed Branding Strategy

Back 18

Where a firm markets products under its own names and that of a reseller because the segment attracted to the reseller is different from its own market. (Mossimo or Target Brand clothing)

Front 19

Price

Back 19

The money or other considerations exchanged for the ownership or use of a product or service. (non monetary is bartering)

Front 20

Value

Back 20

The ratio of perceived benefits to price (value= perceived benefits / price)

Front 21

Odd Even Pricing

Back 21

. 99 strategy

Front 22

Target Pricing

Back 22

Estimating price that consumer will pay, taking into account for mark ups, and adjust accordingly before distributing.

Front 23

Pricing Constraints

Back 23

Factors that limit the range of prices a firm may set.

Front 24

Steps in Setting Final Prices

Back 24

1) Select an Approximate Price Level

2) Set the List or Quoted Price

3) Make Special Adjustments to the list or Quoted Price

Front 25

Final Price Objective

Back 25

The purpose is to have it high enough to cover the cost of providing the product or service and meet the objectives of the company. However, low enough customers are willing to pay.