Mrkt 3001 - Ch 11

Front 1

Product Life Cycle

Back 1

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

Front 2

Introduction Stage

Back 2

Sales grow slowly, profit is minimal. Market objective for the company is to create consumer awareness and stimulate trial.

Front 3

Trial

Back 3

the initial purchase of a product by a consumer

Front 4

Primary Demand

Back 4

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

Front 5

Selective Demand

Back 5

the preference for a specific brand

Front 6

skimming

Back 6

help the company recover costs of development as well as capitalize on the price insensitivity of early buyers

Front 7

Penetration Pricing

Back 7

When a company initially prices low to prevent competitors from entry

Front 8

Growth Stage

Back 8

Rapid Increases in sales. this is the stage where competitors appear

Front 9

Repeat Purchasers

Back 9

people who bought the product, liked it, came back for some more lovin

Front 10

Maturity Stage

Back 10

Characterized by slowing of total industry sales or product class revenue. Marginal competitors begin to leave market. try to hold market share and maybe find some new buyers

Front 11

Decline Stage

Back 11

When sales drop

Front 12

Two strategies to handle a declining product

Back 12

deletion or harvesting

Front 13

Deletion

Back 13

Dropping the product from the companies product line

Front 14

Harvesting

Back 14

Retains Product but reduces marketing costs

Front 15

High Learning product

Back 15

one for which significant customer education is required and there is extended introduction period

Front 16

Low Learning Product

Back 16

Sales begin immediately because no learning is needed

Front 17

Fashion Item

Back 17

Style of the times. like apparel.

Front 18

Fad

Back 18

Rapid sales, rapid decline

Front 19

Product Class

Back 19

refers to the entire product category or industry, such as prerecorded music

Front 20

Product Form

Back 20

variations within a product class, likes cd's and mp3's

Front 21

Diffusion of innovation

Back 21

The process going through Innovators to early adopters to early buyers to late majority to laggards

Front 22

Brand Manager

Back 22

Use category development index and brand development index to do something

Front 23

Product Modification

Back 23

altering a products characteristic, such as quality, performance, or appearance, to increase the products value to customers and to increase sales

Front 24

Product Bundling

Back 24

the sale of two or more seperate products in one package

Front 25

Market Modification

Back 25

a company tries to find new customers, increase a products use among existing customers, or create new use situations

Front 26

Product Repositioning

Back 26

changes the place a product occupies in a consumers mind relative to competitive products

Front 27

Trading Up

Back 27

adding value to a product through additional features or higher quality materials

Front 28

Trading Down

Back 28

Reducing the number of features, quality or price

Front 29

branding

Back 29

where an org uses a name, phase, design, sumbols or combo of these to identify its products and distinguish themselves

Front 30

brand name

Back 30

any word, device, or combo of these used to distinguish a sellers good or service

Front 31

Trade Name

Back 31

commercial, legal name under which a company does busniess

Front 32

trademark

Back 32

identifies that a firm has legally registered its brand name or trade name so the firm has exclusive use, thereby preventing others from using it

Front 33

product counterfeiting

Back 33

low cost copies of popular brands not made by original producer

Front 34

Brand Personality

Back 34

a set of human characteristics associated with a brand name

Front 35

Brand Equity

Back 35

the added value a brand name gives to a product beyond its functional benefits

Front 36

4 Steps to brand equity

Back 36

Develop positive brand awareness---establish a brands meaning in the mind of consumers---elicit the proper consumer responses to brand identity and meaning---create a consumer brand connection evident in an intense, active loyalty relationship between consumers and the brand

Front 37

Brand Licensing

Back 37

contractual agreement where one company allows its brand names or trademarks to be used with products of services offered by another company for a royalty fee

Front 38

5 Criteria in selecting a brand name

Back 38

Name should suggest product benefits----name should be memorable, distinctive and positive---Name should fit company product image---Name should hae no legal restrictions---name should be simple and emotional

Front 39

Multiproduct branding

Back 39

company uses one name for all of its products. sometimes called family or corporate branding