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48 Cards in this Set
- Front
- Back
Value
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Good quality at a fair price.
When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs |
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Distributed Product Development
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Handing off various parts of your innovation process - often to companies in other countries
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Total Product Offer
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Everything that consumers evaluate when deciding whether to buy something; also called a value package
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Product Line
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A group of products that are physically similar or are intended for a similar market
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Product Mix
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The combination of product lines offered by a manufacturer
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Product Differentiation
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The creation of real or perceived product differences
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Convenience Goods and Services
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Products that the consumer wants to purchase frequently and with a minimum of effort
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Shopping Goods and Services
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Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers
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Specialty Goods and Services
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Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them
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Unsought Goods and Services
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Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem
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Industrial Goods
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Products used in the production of other products. (Sometimes called business goods or B2B goods)
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What is the INSTALLATION category in the consumer goods and industrial goods and services chart?
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Consists of major capital equipment such as new factories and heavy machinery
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What is the CAPITAL ITEMS category in the consumer goods and industrial goods and services chart?
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Consists of expensive products that last a long time
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What is the ACCESSORY EQUIPMENT category in the consumer goods and industrial goods and services chart?
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Consists of capital items that are not quite as long-lasting or expensive as installations
(Ex: computers, copy machines, and various tools) |
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What 7 functions do packages perform?
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1.) Attract buyer's attention
2.) Protect goods inside, stand up under handling and storage, tamperproof, and deter theft 3.) Easy to open and use 4.) Describe/Give information about contents 5.) Explain benefits of the good inside 6.) Provide info on warranties, warnings, and other consumer matters 7.) Give indication of price, value, and uses |
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Bundling
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Grouping two or more products together and pricing them as a unit
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Brand
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A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors
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Trademark
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A brand that has exclusive legal protection for both its BRAND NAME and its DESIGN
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Manufacturers' Brands
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The brand names of manufacturers that distribute products nationally
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Dealer (private-label) Brands
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Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead
*also called House Brands/Distributor Brands |
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Generic Goods
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Nonbranded products that usually sell at a sizable discount compared to national or private-label brands
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Knockoff Brands
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Illegal copies of national brand-name goods
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Brand Equity
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The value of the brand name and associated symbols
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Brand Loyalty
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The degree to which customers are satisfied, like the brand, and are committed to further purchases
*BRAND PREFERENCE - preferring one brand over another *BRAND INSISTENCE - product becomes a specialty good cuz one needs it |
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Brand Awareness
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How quickly or easily a given brand name comes to mind when a product category is mentioned
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Brand Association
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The linking of a brand to other favorable images
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Brand Manager
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A manager who has direct responsibility for one brand or one product line; called a PRODUCT MANAGER in some firms
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Product Screening
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A process designed to reduce the number of new-product ideas being worked on at any one time
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What is the order of the Product Development Process?
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Idea Generation(based on consumer's needs), Product Screening, Analysis, Development, Testing, Commercialization
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Product Analysis
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Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas
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Concept Testing
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Taking a product idea to consumers to test their reactions
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Commercialization
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Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers
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Product Life Cycle
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A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are:
Introduction, Growth, Maturity, and Decline |
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What are the 4 stages of a product class over time?
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1.) Intro
2.) Grow 3.) Mature 4.) Decline |
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Ways a firm can formulate clear objectives for an overall pricing strategy?
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1.) Achieving a target return on investment or profit (making products smaller, hoping to increase profit)
2.) Building traffic (advertise a product at or below cost to attract customer base - called LOSS LEADERS) 3.) Achieving greater market share (offer low prices and low lease rates) 4.) Creating an image (watches/perfumes are priced high to give image of exclusivity and status) 5.) Furthering social objectives (prices items low to make it affordable, government subsidizes price of farm products to keep basic necessities easily affordable for everyone) |
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Target Costing
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Designing a product so that it satisfies customers and meets the profit margins desired by the firm
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Competition - based Pricing
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A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.
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Price Leadership
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The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow
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What are the 3 major approaches to pricing strategy?
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1.) Cost-Based
2.) Demand-Based (target costing) 3.) Competition-Based |
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Break-Even Analysis
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The process used to determine profitability at various levels of sales
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Total Fixed Costs
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All the expenses that remain the same no matter how many products are made or sold
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Variable Costs
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Costs that change according to the level of production
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Skimming Price Strategy
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Strategy in which a new product is priced high to make optimum profit while there's little competition
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Penetration Strategy ;)
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Strategy in which a product is priced low to attract many customers and discourage competition
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Everyday Low Pricing (EDLP)
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Setting prices lower than competitors and then not having any special sales
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High-Low Pricing Strategy
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Setting Prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'
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Psychological Pricing
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Pricing goods and services at price points that make the product appear less expensive than it is
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What is it called when marketers price on the basis of consumer demand rather than cost or some other calculation?
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Demand-Oriented Pricing
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