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125 Cards in this Set

  • Front
  • Back
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Product bought by final consumer for personal consumption.
Consumer product
Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
Convenience product
Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style.
Shopping product
Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Specialty product
Consumer product that the consumer either does not know about or knows about but does not normally think of buying.
Unsought product
Product bought by individuals and organizations for further processing or for use in conducting a business.
Industrial product
The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.
Social marketing
The ability of a product to perform its functions; it includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes.
Product quality
A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
The activities of designing and producing the container or wrapper for a product.
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.
Product line
The set of all product lines and items that a particular seller offers for sale.
Product mix (or product assortment
The positive differential effect that knowing the brand name has on customer response to the product or service.
Brand equity
A brand created and owned by a reseller of a product or service.
Private brand (or store brand)
The practice of using the established brand names of two different companies on the same product.
Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.
Line extension
Using a successful brand name to launch a new or modified product in a new category.
Brand extension
A major characteristic of services-they cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service intangibility
A major characteristic of services-they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.
Service inseparability
A major characteristic of services-their quality may vary greatly, depending on who provides them and when, where, and how.
Service variability
A major characteristic of services-they cannot be stored for later sale or use.
Service perishability
The chain that links service firm profits with employee and customer satisfaction.
Service-profit chain
Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
Internal marketing
Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction.
Interactive marketing
The development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts.
New-product development
The systematic search for new-product ideas.
Idea generation
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
Idea screening
A detailed version of the new-product idea stated in meaningful consumer terms.
Product concept
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Concept testing
Designing an initial marketing strategy for a new product based on the product concept.
Marketing strategy development
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
Business analysis
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product.
Product development
The stage of new-product development in which the product and marketing program are tested in more realistic market settings.
Test marketing
Introducing a new product into the market.
A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
Sequential product development
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.
Simultaneous (or team-based) product development
The course of a product’s sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline.
Product life cycle (PLC
A basic and distinctive mode of expression.
A currently accepted or popular style in a given field.
A fashion that enters quickly, is adopted with great zeal, peaks early, and declines very quickly.
The product life-cycle stage in which the new product is first distributed and made available for purchase.
introduction stage
The product life-cycle stage in which a product’s sales start climbing quickly.
Growth stage
The stage in the product life cycle in which sales growth slows or levels off.
maturity stage
The product life-cycle stage in which a product’s sales decline.
decline stage
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Charging different prices depending on individual customers and situations.
Dynamic pricing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Target costing
Costs that do not vary with production or sales level.
Fixed costs
Costs that vary directly with the level of production.
Variable costs
The sum of the fixed and variable costs for any given level of production.
Total costs
The drop in the average per-unit production cost that comes with accumulated production experience.
Experience curve (learning curve)-
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
Demand curve
A measure of the sensitivity of demand to changes in price.
Price elasticity
Adding a standard markup to the cost of the product.
Cost-plus pricing
Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit.
Break-even pricing (target profit pricing)-
Setting price based on buyers’ perceptions of value rather than on the seller’s cost.
Value-based pricing
Offering just the right combination of quality and good service at a fair price.
Value pricing
Setting prices based on the prices that competitors charge for similar products.
Competition-based pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Market-skimming pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Market-penetration pricing
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.
Product line pricing
The pricing of optional or accessory products along with a main product.
Optional-product pricing
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.
Captive-product pricing
Setting a price for by-products in order to make the main product’s price more competitive.
By-product pricing
Combining several products and offering the bundle at a reduced price.
Product bundle pricing
A straight reduction in price on purchases during a stated period of time.
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
Selling a product or service at two or more prices, where the difference in prices is not based on difference in costs.
segmented pricing
A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
psychological pricing
Prices that buyers carry in their minds and refer to when they look at a given product.
reference prices
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Promotional pricing
A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.
FOB-origin pricing
A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
Uniform-delivered pricing
A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.
zone pricing
A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
Basing-point pricing
A geographical pricing strategy in which the seller absorbs all or port of the freight charges in order to get the desired business.
Freight-absorption pricing
The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system.
Value delivery network
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
Marketing channel (distribution channel)-
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
Channel level
A marketing channel that has no intermediary levels.
Direct marketing channel-
Channel containing one or more intermediary levels.
Indirect marketing channel
Disagreement among marketing channel members on goals and roles-who should do what and for what rewards.
channel conflict
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.
Conventional distribution channel
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
Vertical marketing system (VMS
A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership.
Corporate VMS
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone.
Contractual VMS
A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process.
Franchise organization
A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties.
Administered VMS
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
Horizontal marketing system
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
Multichannel distribution system
The displacement of traditional resellers from a marketing channel by radically new types of intermediaries.
Stocking the product in as many outlets as possible.
Intensive distribution
Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
Exclusive distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products.
Selective distribution
The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Marketing logistics (physical distribution)
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
Distribution center
Combining two or more modes of transportation.
Intermodal transportation
The logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system.
Integrated logistics management
An independent logistics provider that performs any or all of the functions required to get its client’s product to market.
Third-party logistics (3PL) provider
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Business whose sales come primarily from retailing.
A retail store that carries a narrow product line with a deep assortment within that line.
specialty store
A retail organization that carries a wide variety of product lines-typically clothing, home furnishings, and household goods; each line is operated as a separate department managed by specialist buyers or merchandisers.
department store
Large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry, and household products.
A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.
convenience store
A store much larger than a regular supermarket that carries a large assortment of routinely purchased food and nonfood items and offers services such as dry cleaning, post offices, photo finishing, check cashing, bill paying, lunch counters, car care, and pet care.
Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees.
category killer
A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.
Discount store
Retailer that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
Off-price retailer
Off-price retailer that is either owned and run by entrepreneurs or is a division of a larger retail corporation.
Independent off-price retailer
Off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer’s surplus, discontinued, or irregular goods.
factory outlet
Off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and a hodge-podge of other goods at deep discounts to members who pay annual membership fees.
warehouse club
Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise.
chain stores
A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.
A group of retail businesses planned, developed, owned, and managed as a unit.
shopping center
A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolved into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.
Wheel-of-retailing concept
All activities involved in selling goods and services to those buying for resale or business use.
A firm engaged primarily in wholesaling activity.
Independently owned business that takes title to the merchandise it handles.
merchant wholesaler
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.
Wholesaling by sellers or buyers themselves rather than through independent wholesalers.
Manufacturers’ sales branches and offices