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123 Cards in this Set
- Front
- Back
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Product |
everything, both favorable and unfavorable, that a person receives in an exchange. (tangible good, service, and idea) |
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Business Product |
a product used to manufacture other goods or services, to facilitate an organizations operations, or to resell to other customers |
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Consumer Product |
a product bought to satisfy an individuals personal want |
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Convenience Product |
A relatively inexpensive item that merits little shopping effort |
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Shopping Product |
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores. (homogeneous-washers, dryers, television, heterogeneous furniture, clothing, housing, & universities) |
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Specialty Product |
a particular item for which consumers search extensively and are reluctant to accept substitutes (fine watches, expensive automobiles, & gourmet restaurants) |
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Unsought Product |
A product unknown to the potential buyer or a known product that the buyer does not actively seek. (new products, insurance, burial plots) |
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Product item |
Specific version of a product that can be designated as a distinct offering among an organizations products |
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Product Line |
A group of closely related product items |
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Product Mix |
All products that an organization sells. all of camp bells products constitutes its product mix. each product in the product mix may require a separate marketing strategy. |
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Advertising Economies |
Product lines provide economies of scale in advertising |
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Package Uniformity |
Packages in the product line may have a common lock but maintain their individual identities |
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Standardized Components |
Reductions in manufacturing and inventory costs |
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Efficient Sales and distribution |
A product line enables a full range of choices to customers, and as a result, better distribution and retail coverage |
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Equivalent Quality |
all products in a line are perceived as having similar quality |
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What are the Adjustments to Product Items and Mixes?? (3) |
1) Product modification 2) Product repositioning 3) Product Line Extension or contraction |
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Types of Product Modifications? (4) |
1) Functional Modification 2) Style Modification 3) Quality Modification 4) Planned Obsolecence |
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Functional Modification |
Change in a products versatility, effectiveness, convenience, or safety |
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Style Modification |
An aesthetic product change (like color) rather than a quality or functional change |
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Quality Modification |
Change in a products dependability or durability |
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Planned Obsolescence |
The practice of modifying products so those that have already been sold become obsolete before they need replacement.
(Technology upgrading from iPhone 4 to iPhone 5 within short time) |
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Why reposition established brands? |
1) Changing Demographics 2) Declining Sales 3) Changes in Social Environment
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Repositioning Brands |
Changes Consumers perception of a brand |
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Product Line Extension |
Adding additional products to an existing product line in order to compete more broadly in the industry |
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Brand |
A name, term, symbol, design, or a combination there of that identifies a seller's products and differentiates them from competitors products |
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Brand Name |
Part of the brand that can be spoken, including letters, words and numbers |
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Brand Mark |
The elements of a brand that cannot be spoken |
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Brand Equity |
The value of company and brand names |
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Global Brand |
a brand where at least a third of the earnings come from outside its home country |
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Benefits of Branding |
Branding has 3 main purposes: 1) product identification 2) repeat sales 3) New-product sales
Most important is Product Identification
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Manufacturers' Brand |
The brand name of a manufacturer Advantages: 1) Heavy consumer ads by manufacturers 2) attracts new customers 3) enhance dealers prestige 4) rapid delivery 5) Carry less inventory |
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Private Brand |
A brand name owned by a wholesaler or retailer. Also known as a private label or store brand. Advantages: 1) Earn higher profits on own brand 2) less pressure to mark down price 3) manufacturer can become a direct competitor or drop a brand/reseller 4) Ties customer to wholesaler or retailer |
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Captive Brand |
A brand manufactured by a third party for exclusive retailer, without evidence of that a retailer's affiliated. Advantages: 1) No evidence of stores affiliation 2) manufactured by 3rd party 3) sold exclusively at the chain 4) can ask price similar to manufacturer's brand |
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Individual Brand |
Using different brands for different products
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Family Brand |
Marketing several different products under the same brand |
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Co-branding |
placing two or more brand names on a product or its package
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Ingredient Branding |
identifies the brand of a part that makes up the product |
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Cooperative branding |
Occurs when two brands receive equal treatment |
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Complementary branding |
refers to products advertised or marked together to suggest usage |
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Trademarks |
The exclusive right to use a brand or part of a brand |
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Service Mark |
Performs the same function for services |
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What are the Functions of Packaging? |
1) Contain and protect products 2) Promote products 3) Facilitate the storage, use and convenience of products 4) facilitate recoiling and reduce environmental damage
1-3 are most important |
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Persuasive Labeling |
Focuses on promotional theme - consumer information is secondary
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Informational |
Helps make proper selections -lowers cognitive dissonance |
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Greenwashing Labeling |
Attempting to give the impression of environmental friendliness whether or not it is environmentally friendly |
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Universal Product Codes |
A series of thick and thin vertical lines (barcodes), readable by computerized optical scanners, that represent numbers used to track products |
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Global Packaging Issues? (3) |
1) Labeling 2) Aesthetics 3) Climate Consideration & Travel |
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Product Warranty |
A confirmation of the quality of performance of a good or service |
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Express Warranty |
A written guarantee |
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Implied Warranty |
An unwritten guarantee that the good or service is fit for the purpose for which it was sold |
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New-to-the-world products |
create an entirely new market and are the smallest category of new products
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New Product Lines |
Allow a firm to enter an established market |
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Product Line Additions |
Include new products that supplement a firms established product line |
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Improvements or Revisions in products |
Existing products may be significantly or only slightly changed |
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Repositioned Products |
are targeted at new markets or market segments |
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Lower-Priced Products |
Provide performance similar to competing brands at a lower price |
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What are the 7 steps for the formal new product development process? |
1) New product strategy 2) Idea generation 3) Idea screening 4) business analysis 5) Development 6) Test marketing 7) Commercialization of new product |
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New-Product Strategy |
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation |
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Crowdsourcing |
A technique that is being used increasingly to generate new product ideas |
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Brainstorming for new product development |
the process of getting a group to think of unlimited ways to vary a product or solve a problem |
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Focus group for new product development |
the objective of focus group interviews is to stimulate insightful comments through group interaction |
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Screening for new product development |
The first filter in the product development process, which eliminates ideas that are inconsistent with the organizations new product strategy or are inappropriate for some other reason |
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A concept test for new product development |
A test to evaluate a new product idea, usually before any prototype has been created. Often successful for line extension |
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Business Analysis for new product development |
The preliminary figures for demand, cost, sales, and profitability are calculated |
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Development for new product development |
Creation of a prototype, sketch a marketing strategy, decide on packaging, branding, labeling, map out promotion, price and distribution strategy and examine manufacturing feasibility |
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Simultaneous product development |
a team-oriented approach to new product development where all relevant functional areas and outside suppliers participate in the development process |
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Test Marketing |
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation |
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Alternatives to test marketing |
1) Single-source research using scanner data 2) Simulated (laboratory) market testing 3) Online test marketing |
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Commercialization |
ordering materials, production, inventory buildup distribution shipments, sales force training, trade announcements, customer advertising |
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Diffusion |
The process by which the adoption of an innovation spreads |
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Innovation |
A product perceived as new by a potential adopter |
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Categories of Adopters. What percent of each? 1) innovators 2) Early adopters 3) early majority 4) late majority 5) laggards |
1) Innovators - 2.5% 2) Early Adopters - 13.5% 3) Early Majority - 34% 4) late majority - 34% 5) Laggards- 16% |
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Two types of communication that aid the diffusion process? |
1) Word-of-Mouth communication among consumers 2) Communication directly from the marketer |
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Product Life Cycle (PLC) |
A concept that provides a way to trace the stages of products acceptance, from its introduction (birth) to its decline (death) |
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Four Stages of (PLC) |
1) Introductory stage: Full scale launch of product 2) Growth stage: Sales grow at increasing rates, competitors enter market and larger companies may acquire small pioneering firms 3) Maturity Stage: Begins when sales increase at a decreasing rate, and the market approaches saturation. (Longest Stage) 4) Decline Stage: depends on consumers lack of interest |
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How Do Services Differ from Goods?? |
Services are: Intangibility Inseparability Heterogeneity Perishability |
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Components of Service Quality? (5) |
Reliability Responsiveness Assurance Empathy Tangibles |
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Assessing Services |
Search Quality: Assessed before purchase. Experience Quality: Assessed after use Credence Quality: Assessed with only appropriate knowledge |
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The 5 Gaps |
Gap 1: what management thinks customers want Gap 2: what management thinks customers want and the quality specifications that management develops to provide the service Gap 3: Service quality specifications and the service that is actually provided Gap 4: What the company provides and what the company says it provides Gap 5: Service received and service they want |
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Levels in Marketing |
Level 1: Price incentives Level 2: Price incentives and social bonds Level 3: Structural bonds |
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4 Promotion strategies? |
1) Stressing tangible cues 2) Using personal informational sources 3) Creating a strong organizational image 4) Engaging in post purchase communication
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Pricing Strategies (3) |
1) Revenue-Oriented Pricing 2) Operations-Oriented Pricing 3) Patronage-Oriented Pricing |
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Revenue-Oriented Pricing |
Maximize the surplus of income over costs |
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Operations-Oriented Pricing |
Match supply and demand by varying price |
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Patronage- Oriented Pricing |
Maximize the number of customers by varying price |
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Supply Chain |
The connected chain of all business entities, both internal and external to the company that perform or support the logistics function |
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Supply Chain Management |
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, form the source to the point of consumption, resulting in enhanced customer and economic value. |
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Benefits of Supply chain management |
1) lower inventory, transportation, warehousing, packaging 2) greater supply chain flexibility 3) higher revenues 4) increased performance and profitability |
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Supply chain integration |
occurs when multiple firms or their functional areas in a supply chain coordinate business processes so that they are seamlessly linked to one another |
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Internal Integration |
Management practices that reflect a highly coordinated effort between supply chain firms or across business functions within the same or different firms are said to be "integrated" |
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Demand-Supply Integration (DSI) |
A supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization
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5 types of external integration |
1) Relationship Integration 2) Measurement Integration 3) Technology and Planning Integration 4) Material and Service Supplier Integration 5) Customer Integration |
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Relationship Integration |
The ability of two or more companies to develop social connections that serve to guide their interactions when working together |
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Measurement Integration |
The performance assessment of the supply chain as a whole that also holds each individual firm or business unit accountable for meeting its own goals |
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Technology and Planning Integration |
The creation and maintenance of information technology systems that connect managers across the firms in the supply chain |
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Material and Service Supplier Integration |
Requires firms to link seamlessly to those outsiders that provide goods and services to them so that they can streamline work processes and thereby provide smooth, high-quality customer experiences |
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Customer Integration |
Is a competency that enables firms to offer long lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or supply chain |
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8 Critical business processes on which supply chain managers must focus |
1) customer relationship management 2) Customer service management 3) Demand management 4) Order fulfillment 5) Manufacturing flow management 6) Supplier Relationship management 7) Product development and commercialization 8) Returns management |
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Customer Relationship managment |
Allows companies to prioritize their marketing focus on different customer groups according to each group's long term value to the company or supply chain |
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Customer Service Management |
Presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced |
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Demand Management |
Seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand related plans of action prior to actual customer purchasing behavior |
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Order Fulfillment |
A highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time |
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Manufacturing flow management |
Concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process |
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Supplier Relationship Management |
Supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers |
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Product Development & Commercialization |
Includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms |
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Returns Management |
Enables firm to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain |
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Supply chain functions: 3 interdependent groups of supply chain |
1) source 2) make 3) deliver |
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Supply chain team |
an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer |
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Logistical Components of the Supply Chain (6) |
1) Supply Management 2) Inventory Control 3) order Processing 4) Production 5) Warehousing and Material Handling 6) Transportation |
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Supply Management |
On the front lines. Supply managers plan strategies, develop specifications, select suppliers, and negotiate price and service levels |
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Inventory Control |
Develops and maintains an adequate assortment of materials or products to meet a manufacturers or a customers demands |
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Cycle Stocks |
Inventory include those items that are expected to be sold as finished goods (or materials that go into making finished goods) in a given demand period. Extra inventory for insurance |
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Safety Stock |
also called a buffer stock, are extra allotments of inventory that companies sometimes choose to hold |
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In-transit inventory |
moving into the business from a supplier or out on the way to a customer |
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Work-in-process inventory |
reflects inventory that is being assembled or manufactured from its raw state into a finished good for sale |
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Seasonal Inventory |
Certain times of the year when sales are traditionally higher for some items |
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Order Processing |
A system whereby orders are entered into the supply chain and filled |
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3 distribution intensity levels |
1) Intensive Distribution 2) Selective Distribution 3) Exclusive Distribution |
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Intenseive Distribution |
A form of distribution aimed at having a product available in every outlet where target customers might want to buy |
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Selective Distribution |
A form of distribution achieved by screening dealers to eliminate all but a few in any single area |
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Exclusive Distribution |
A form of distribution that establishes one or a few dealers within given area |
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Common Channel Structures (4) |
1) Direct channel= Producer --> Consumer 2) Retailer Channel= Producer --> Retailer --> consumer 3) Wholesaler Channel= Producer --> Wholesaler --> Retailer --> consumer 4) Agent/Broker Channel= Producer --agents & brokers --> wholesalers --> retailer --> consumer |
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Alternative channel arrangements (3) |
1) Dual (multiple) distribution-2 or more channels used to distribute same product 2) Strategic Channel Alliances- cooperative agreement between business firms to use the others already established distribution channel 3) Nontraditional channels- non physical, usually electronic |
