Mgt 103 Final

Front 1

Product life cycle

Back 1

Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

Front 2

What is primary demand?

Back 2

The desire for the product class rather than for a specific brand, since there are few competitors with the same product

Front 3

What is selective demand?

Back 3

the preference for a specific brand

Front 4

Define skimming strategy

Back 4

A high initial price to help the company recover costs of development as well as capitalize on the price insensitvity of early buyers

Front 5

Define penetration pricing

Back 5

A low initial price to discourage competitive entry and help build unit volume

Front 6

Describe introduction stage of product life cycle

Back 6

Sales grow slowly, profit is minimal, $$ spent heavily on advertising and other promotions, gaining distribution is difficult, price can be high or low

Front 7

Define repeat purchaser

Back 7

people who tried a product, were satisfied, and bought again

Front 8

Describe growth stage of product life cycle

Back 8

rapid increase in sales, competitors appear, changes appear in product to differentiate the brand; need to broaden distribution

Front 9

Describe maturity stage of product life cycle

Back 9

slowing of total industry sales, marginal competitors begin to leave the market, sales increase at decreasing rate

Front 10

Describe decline stage of product life cycle

Back 10

Sales drop; caused by environmental changes; company will have to either delete or harvest

Front 11

What is product deletion?

Back 11

dropping product from a company's product line

Front 12

What is product harvesting

Back 12

company keeps selling product, but reduces its marketing costs

Front 13

What are the four aspects of the product life cycle?

Back 13

length of cycle, shape of sales curve, how they vary with different levels of products, and rate at which consumers adopt products

Front 14

Four shapes of life-cycle curves

Back 14

high-learning (significant customer eductation; longer introductory period)

low-learning (little learning),

fashion (think sine graph),

fad (rapid intro and rapid decline)

Front 15

Product class vs. product form

Back 15

product class refers to an entire product category or industry

product form pertains to variations of the product class

Front 16

What barriers prevent customers from buying a new product?

Back 16

usage (not compatible with existing habits)

value (seems like theres no value)

risk (physical, economic, social)

psychological (cultural differences or image)

Front 17

What are the five groups of consumers based on when the adopt a product?

Back 17

innovators

early adopters

early majority

late majority

laggards

Front 18

what is a product/brand manager?

Back 18

they manage the marketing efforts for a close-knit family of products or brands

Front 19

What does BDI and CDI stand for? What are they used for?

Back 19

BDI: brand development index

CDI: category development index

used to identify strong and weak market segments for products and provide direction for marketing efforts

Front 20

Product modification

Back 20

altering one or more of a product's characteristics

Front 21

Product bundling

Back 21

the sale of two or more separate products in one package

Front 22

How does market modification happen?

Back 22

finding new customers

increasing a product's use

creating a new use situation

Front 23

Product repositioning

Back 23

changes the place a product occupies in consumer's mind. Four factors are:

reacting to a competitor's position

trying to reach new market

trying to catch rising trend

trying to change value offered

Front 24

Trading up and trading down

Back 24

Trading up: add value to product through additional features or higher-quality materials

Trading down: reducing number of features, quality, or price

Front 25

Downsizing

Back 25

reducing package content without changing package size and maintaining or increasing package price

Front 26

Brand equity

Back 26

the added value a brand name give to a product beyond the functional benefits provided

Front 27

Four steps to create brand equity

Back 27

1. develop positive brand awareness and association of a brand name to a product class

2. est brand's meaning in minds of consumers

3. draw out proper consumer response to brand's identity

4. create consumer-brand connection (psychological bond)

Front 28

Brand licensing

Back 28

contractural agreement whereby one company allows is brand name to be used with product offered by another company for a fee

Front 29

Six criteria when selecting brand name

Back 29

1.suggest product benefits

2.should be memorable, distinctive, positive

3. should fit company/product image

4. no legal restrictions

5. be simple and emotional

6. favorable phonetic/semantic associations in other languages

Front 30

Subbranding

Back 30

combines a brand with a new brand to distinguish a part of its product line from others (gatorade and G2)

Front 31

Brand Extension

Back 31

use current brand name to enter a different product class

Front 32

Co-branding

Back 32

pairing of two brand names of two manufacturers on a single product

Front 33

Multibranding

Back 33

each product is given a distinct brand name

Front 34

Fighting Brands

Back 34

company introduces new product brand to confront competitor brands

Front 35

Private branding

Back 35

company manufactures products but sells them under the brand name of another retailer

Front 36

Mixed branding

Back 36

Firm markets products under their own name and that of a reseller b/c segment attracted to the reseller is different form its own market

Front 37

What are the 4 branding strategies

Back 37

1. multi-product branding

2. private branding

3. mixed branding

4. multibranding

Front 38

What are the benefits you can get from good packaging

Back 38

1. Communication

2. Functional (protection storage, convenience)

3. Perceptual

Front 39

What are the four challenges when creating packaging for a product?

Back 39

1. connecting with customers

2. environmental concerns

3. health, safety, security issues

4. cost

Front 40

warranty

Back 40

statement indicating liability of the manufacturer for product deficiencies

Front 41

5 communication tools of the promotional mix

Back 41

advertising (have to pay; nonpersonal)

personal selling (2 way communication between buyer and seller; salesperson)

sales promotion (its a sale!)

public relations (seeks to influence feelings, opinions, beliefs of the consumer about the company; indirectly paid)

direct marketing (direct communication with consumers to generate a response)

Front 42

integrated marketing communications (IMC)

Back 42

concept of designing marketing communications programs that coordinated all the five (promotional activites) communicational tools

Front 43

Six elements of communication

Back 43

1. source : company/person who has info to convey

2. message

3. channel of communication

4. receivers: ppl who hear/read message

5. encoding: having the sender transform an idea into a set of symbols

6. decoding: reverse of decoding for receiver

Front 44

field of experience

Back 44

similar understanding and knowledge by sender and receiver

Front 45

Noise

Back 45

extraneous factors that can work against effective communication by distorting a message or the feedback received