Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
149 Cards in this Set
- Front
- Back
|
Product
|
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumer's needs and is received in exchange for money or other value
|
|
|
Good
|
Has tangible attributes that a consumer's five senses can perceive
|
|
|
nondurable good
|
An item consumed in one or a few uses, such as food products and fuel.
|
|
|
durable good
|
one that usually lasts over many uses, such as appliances, cars, and phones.
|
|
|
Services
|
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money.
|
|
|
idea
|
A thought that leads to an action
|
|
|
Consumer Products
|
Products purchased by the ultimate consumer
|
|
|
Business products
|
(also called B2B products or industrial) products organizations buy that assist in providing other products for resale.
|
|
|
Shopping products
|
Items for which the consumer compare several alternatives on criteria
|
|
|
Unsought products
|
Items that the consumer does not know about o knows about but does not initially want.
|
|
|
Derived Demand
|
Sales of business products frequencly result (or derived) from the sale of consumer products
|
|
|
Components
|
Items that become part of the final product, such as grain or lumber.
|
|
|
Support Products
|
Items used to assist in producing other goods and services.
|
|
|
Product Item
|
A specific product that has a unique brand, size, or price
|
|
|
(SKU)
|
Stock keeping Unit
|
|
|
Product line
|
A group of product or service items that are closely related because they satisfy a class of needs, are used together are sold to the same customer group.
|
|
|
Product Mix
|
consists of all of the product lines offered by an organization
|
|
|
The four I's of services
|
Intangibility, Inconsistency, Inseparability, Inventory
|
|
|
Intangibility
|
Services can't be touched or seen before the purchase decision. Instead, services tend to be performance rather than an object.
|
|
|
Inconsistency
|
Not being consistent for every use for a service.
|
|
|
Inseparability
|
The consumer cannot distinguish the service provider from the service itself.
|
|
|
Inventory
|
inventory handling costs that relate to their storage.
|
|
|
idle production capacity
|
When the service provider is available but there is no demand for the service
|
|
|
goods-services continuum
|
organizations can offer a range of products from the tangible and the intangible.
|
|
|
continuous innovation
|
consumers don't need to learn new behaviors because the consumer doesn't have to learn anything new.
|
|
|
Dynamically continuous innovation
|
Minor changes in behavior are required.
|
|
|
discontinuous innovation
|
involves making the consumer learn entirely new consumption patterns to use the product.
|
|
|
protocol
|
A statement that before product development begins identifies a well defined market, specific customer needs, wants nad preferences.
|
|
|
The reasons products and Services Succeed or Fail
|
Insignificant point of difference, No economical access to buyers, Incomplete market and product protocol before product dev starts, Not satisfying customer needs on critical factors, bad timing, poor product quality, too little market attractiveness, Poor execution of the marketing mix: brand name, package, price, promotion, distribution
|
|
|
Insignificant point of difference
|
A distinctive point of difference is the single most important factor for a new product to defeat competitive ones.
|
|
|
No economical access to buyers
|
A product is not able to replace another item on a shelf due to not enough sales.
|
|
|
Incomplete market and product protocol before product development starts
|
(self explanatory)
|
|
|
Problems in new product Failure
|
Not really listening to the "voice of the consumer", Skipping the stages in the new product process, pushing a poorly conceived product into the market to generate quick revenue, Encountering "groupthink" in task force and committee meetings, Not learning critical takeway lessons from past failures, Avoiding the "Not In House" Problem
|
|
|
new-product-process
|
The seven stages an organization goes through to identify business opportunieis
|
|
|
Stage 1 of new-product-process
|
New product Strategy development, generally using SWOT analysis
|
|
|
Stage 2 of the new product process
|
Idea Generation
|
|
|
Open innovation
|
Organization finds and executes creative new product ideas from people outside the company
|
|
|
Stage 3 of the new product process
|
Screening and Evaluation, evaluate a product is worth doing
|
|
|
Customer Experience management (CEM)
|
the process of managing the entire customer experience within the company.
|
|
|
Stage 4 of the new product process
|
Business Analysis, features of the product and marketing strategy needed to bring it to the market
|
|
|
Stage 5 of the new product process
|
Development, the stage of active development of the product
|
|
|
Stage 6 of the new product process
|
Market Testing, AKA beta testing, or simulated market testing.
|
|
|
Stage 7 of the new product process
|
Commercialization
|
|
|
Regional roll-outs
|
introducing a product in a small local area to start and test market desire.
|
|
|
TtM
|
Time to market
|
|
|
Parallel development
|
cross-functional team members who conduct the simultaneous development of both the product and production precess.
|
|
|
Product Life Cycle
|
The stages a new product goes through in the market place. Introduction, growth, maturity, and decline
|
|
|
Introduction Stage
|
Occurs when a product is introduced to its intended target market. Sales grow slowly and profit is minimal.
|
|
|
trial
|
the initial purchase of a product by a consumer
|
|
|
primary demand
|
the desire for the product class rather than for a specific brand.
|
|
|
Selective demand
|
the preference for a specific brand
|
|
|
Skimming strategy
|
help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.
|
|
|
penetration pricing
|
helps build unit volume, but a company must closely monitor costs.
|
|
|
Growth Stage
|
characterized by rapid increases in sales, this is the stage competitors appear.
|
|
|
repeat purchasers
|
people who tried the product, were satisfied and bought again.
|
|
|
Maturity Stage
|
characterized by a slowing of total industry sales or product class revenue
|
|
|
Decline Stage
|
Occurs when sales drop.
|
|
|
Deletion
|
Product deletion, or dropping the product from the company's product line is the most drastic strategy.
|
|
|
Harvesting
|
A strategy when a company retains the product but reduces marketing costs.
|
|
|
The three aspects of the product cycle
|
(1) Length, (2) The shape of the sales curve, (3) the rate at which consumers adopt products.
|
|
|
Length of the Product life cycle
|
No set time, consumer products have shorter life cycles than business products.
|
|
|
Shape of the Product Life Cycle
|
Not all products have the same shape to their curve a few different types are High-Learning, low-learning, fashion and fad products.
|
|
|
generalized life cycle
|
The life sales curve of a product
|
|
|
High-Learning product
|
Significant customer education is required, longer introduction period.
|
|
|
low-learning product
|
begin immediately because little learning is required.
|
|
|
Fashion product
|
style of the times, cycles for fashion repeat, like a sine wave. except are not as predictable, but do repeat.
|
|
|
Diffusion of innovation
|
A product diffuses or spreads through the population
|
|
|
brand manager
|
product manager, manages the marketing efforts for a close-knit family of products or brands
|
|
|
Product modification
|
altering a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.
|
|
|
market modification
|
A company tries to find new customers, increase a product's use among existing customers or create new use situations.
|
|
|
product repositioning
|
Change the place a product occupies in a consumer's mind relative to competitive products.
|
|
|
Trading up
|
adding value to the product (or line) through additional features or higher-quality materials.
|
|
|
Trading down
|
reducing the number of features, quality or price.
|
|
|
downsizing
|
reducing the package content without changing package size and maintaining or increasing the package price.
|
|
|
Branding
|
An organization uses a name, phrase, design, symbols, or combination of these to identify its products from other competitors.
|
|
|
Brand Name
|
Any word, device (design, sound, shape or color) or combination used to distinguish a seller's goods or services.
|
|
|
Brand personality
|
A set of human characteristics associated with a brand name
|
|
|
Brand equity
|
Added value a brand name gives to a product beyond functional benefits provided.
|
|
|
Five criteria for picking a good brand name
|
(1) Name should suggest product benefits (2) name should be memorable, distinctive, and positive (3) name should fit the company or product image (4) name should have no legal or regulatory restrictions (5) name should be simple
|
|
|
multi-product branding
|
A company uses one name for all its products in a product class, sometimes called family branding or corporate branding.
|
|
|
product line extensions
|
The practice of using a current brand name to enter a new market segment in its product class.
|
|
|
subbranding
|
combines a corporate or family brand with a new brand
|
|
|
brand extension
|
the practice of using a current brand name to enter a different product class.
|
|
|
multibranding
|
involves giving each product a distinct name.
|
|
|
fighting brands
|
other multibrand companies introduce new product brands as a defensive moves to counteract competition.
|
|
|
private branding
|
also called, private labeling or reseller branding when its manufactures products but sells them under the brand name of a wholesaler or retailer
|
|
|
Mixed branding
|
A firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.
|
|
|
Packaging
|
component of a product refers to any container in which it is offered for sale and on which label information is conveyed.
|
|
|
label
|
An integral part of the package and typically identifies the product or brand
|
|
|
The four challenges of package and label designers
|
(1) The continuing need to connect with customers (2) environmental concerns (3) health, safety and security, and security issues; and (4) cost reduction.
|
|
|
Eight P's of services marketing
|
(1) Product (service) (2) Productivity (3) Price (4) Place (distribution) (5) Promotion (6) People (7) Physical Environment (8) Process
|
|
|
Capacity Management
|
The service component of the mix must be integrated with efforts to influence consumer demand.
|
|
|
Off-Peak Pricing
|
consists of charging different prices during different times of the day or days of the week to reflect demand.
|
|
|
Customer Experience Management (CEM)
|
The process of managing the entire customer experience with the company.
|
|
|
Retailing
|
all activities involved in selling, renting and providing products and services to ultimate consumers for personal, family, or household use.
|
|
|
Name the Utilities offered by Retailing.
|
Time, Place, form, and possession
|
|
|
Place Utility
|
Putting the products and services close to the consumer
|
|
|
Possession Utility
|
Making purchase easier, by various methods, like financing.
|
|
|
Form Utility
|
production or alteration of a product
|
|
|
time utility
|
Finding right product for certain (season/time)
|
|
|
form of ownership
|
distinguishes retail outlets based on whether individuals, corporate chains or contractual systems own the outlet.
|
|
|
level of service
|
used to describe the degree of service provided to the customer.
|
|
|
merchandise line
|
how many different types of products a store carries and in what assortment
|
|
|
Three general forms of ownership
|
independent retailer, corporate chain, and contractual system
|
|
|
Independent Retailer
|
most common form of retail ownership, include hardware stores, convenience stores, clothing stores and computer and software stores. offers convenience, personal service and lifestyle compatibility
|
|
|
Corporate Chain
|
Second form of ownership, the corporate chain involves multiple outlet stores under common ownership. etc: Macy's
|
|
|
Contractual Systems
|
Contractual Systems involve independently owned stores that band together to act like a chain, like subway (think franchise)
|
|
|
Two types of franchises
|
business-format franchises like McDonalds, product-distribution franchises like Coca-Cola or a Ford Dealership.
|
|
|
Three level's of Service
|
Self-Service, Limited Service, and Full Service
|
|
|
Self Service
|
The do it your self target consumer
|
|
|
Limited Service
|
Customers are responsible for most shopping activies
|
|
|
Full Service
|
When the sales people are giving full services to consumer in helping for all shopping activities, exchanges, explanations demoing, think Dealership (they are always there)
|
|
|
The Type of merchandise Lines
|
Depth of product line, breadth of product line
|
|
|
Depth of product line
|
Stores that carry a considerable assortment (depth) of a related line of items
|
|
|
Category killers
|
Stores that are made for special category and excel at it, example Best buy for Electronics.
|
|
|
Breadth of line
|
Stores that carry a broad product line, with limited depth. Generally known as general Merchandise stores
|
|
|
scrambled merchandising
|
Offering several unrelated product lines in a single store, like Walgreen.
|
|
|
Nonstore retailing
|
distribution but not from a store, like a vending machine, mail, catalogs, as seen on tv, and online shopping.
|
|
|
Telemarketing
|
call up and sell directly to consumers.
|
|
|
Direct Selling
|
Your door to door salesman, increased by 30 percent in the last five years. due to outside of US expansion and more companies using Direct selling.
|
|
|
Retailing mix
|
activities related to managing the store and the merchandise in the store.
|
|
|
markup
|
Refers to how much should be added to the cost the retailer paid for a product.
|
|
|
original markup
|
The original price for a price of a product. Original markup is the difference between retailer cost and initial selling price.
|
|
|
maintained markup
|
the price of product when it is sold.
|
|
|
gross margin
|
The maintained markup is also called the gross margin
|
|
|
markdown
|
occurs when the product does not sell at the original price and an adjustment is necessary
|
|
|
off-price retailing
|
involves selling brand-name merchandise at lower than regular prices.
|
|
|
Central business district
|
The oldest retail setting, the community's downtown area.
|
|
|
Multi-channel retailers
|
utilize and integrate a combination of traditional store formats and nonstore formats, like catalogs, and online shopping.
|
|
|
category management
|
This approach assigns a manager the responsibility for selecting all products that consumers in a market segment might view as substitutes.
|
|
|
Consumer marketing at retail (CMAR)
|
An advanced form of category management.
|
|
|
The two most popular measures for CMAR
|
sales per square foot, and same store sales growth.
|
|
|
power center
|
A huge shopping strip with multiple anchor stores.
|
|
|
Wheel of retailing
|
how new forms of retail outlets enter the market.
|
|
|
Retail life cycle
|
Describes the process of growth and decline that retail outlets experience over time.
|
|
|
Merchant Wholesalers
|
Independently owned firms that take title to the merchandise they handle. Also known as Industrial distributor.
|
|
|
Two types of full services wholesalers
|
General merchandise (or full-line) wholesalers. Specialty merchandise (or limited-line) wholesalers.
|
|
|
General Merchandise (Full line) wholesalers
|
carry a broad assortment of merchandise and perform all channel functions.
|
|
|
Specialty merchandise (limited-line) wholesalers
|
offer a relatively narrow range of products but have extensive assortment with the product lines carried.
|
|
|
The four major types of limited-service wholesalers
|
Rack Jobbers, Cash and carry wholesalers, Drop shippers (desk jobbers), and Truck jobbers
|
|
|
rack Jobbers
|
furnish racks and shelves that display merchandise in retail stores.
|
|
|
cash and carry wholesalers
|
take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.
|
|
|
Drop shippers (Desk jobbers)
|
wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it. They create orders from retailers and other wholesalers
|
|
|
Truck Jobbers
|
small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers. handle limited assortments of fast moving or perishable items.
|
|
|
Manufacturer's agents (manufacturer's representatives)
|
work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
|
|
|
Selling agents
|
represent a single producer and are responsible for the entire marketing function of that producer. Design promotion plans, prices, and distribution policies.
|
|
|
Brokers
|
independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. Brokers unlike agents usually have no continuous relationship with the buyer.
|
|
|
Manufacturer's branch office
|
Carries a producer's inventory and performs the functions of a full service wholesaler
|
|
|
Manufacturer's sales office
|
Does not carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers.
|
