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71 Cards in this Set
- Front
- Back
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Define product
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Anything that is offered to a market for consumption that satisfies a need.
A bundle of attributes that satisfies consumers and is received in exchange for money or some other unit of value. |
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Define consumer goods
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Consumer goods are products purchased
by the ultimate consumer. |
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What are the four different types of consumer goods?
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Convenience Products
Shopping Products Specialty Products Unsought Products |
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Define convenience products
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Relatively inexpensive product that
merits little shopping effort |
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Define shopping products
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More expensive than convenience product, requiring more shopping effort
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Define specialty products
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Extensive search effort; consumer
reluctant to accept substitute |
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Define unsought products
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Product that the buyer does not
actively seek |
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Define business goods
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Business goods are products that assist directly or indirectly in providing
products for resale. |
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What are the two types of business goods?
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production goods
support goods |
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Define production products
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Items used in the manufacturing process that become part of the final product
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Define support products
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Items used to assist in producing
goods and services |
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Define product item
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A specific version of a product
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Define product line
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A group of closely related product
items |
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Define product mix
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All products an organization sells
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What are the three levels of a product
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basic product- tangible product features
core benefit augmented product- service, warranty, ancillary products, accessories, packaging |
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Define product life cycle
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The stages a product goes through in
the market place: introduction, growth, maturity, and decline |
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What are the stages of the product life cycle?
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introduction
growth maturity decline |
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What should happen in the introduction stage of the product life cycle?
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Promote to inform and encourage trial
Market skimming or penetration |
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What should happen in the growth stage of the product life cycle?
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Add features
Improve quality Add channels New markets |
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What should happen in the maturity stage of the product life cycle?
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Modify market
Modify product Modify marketing mix |
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What should happen in the decline stage of the product life cycle?
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Maintain
Harvest Drop |
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What are the steps of the product development process
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idea generation
idea screening concept testing marketing strategy business analysis product development market testing commercialization |
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What happens in the idea screening step of the new product development process?
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type 1 and type 2 errors
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What happens in the concept testing step of the new product development process?
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**breaks down most often
test concept with customers |
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What happens in the business analysis step of the new product development process?
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• Forecasting
• Profitability analysis • Legal |
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What happens in the market testing step of the new product development process?
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Place the product in several test markets (representative cities)
• Measure performance • Project results to the larger market |
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Define brand
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A name, term, symbol, design, or
combination thereof that identifies a seller’s products and differentiates them from competitors’ products. |
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What did Larry Light say about brands?
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battle of the brands
market-dominant brand |
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Advantages of Branding
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1. Branding allows marketers to distinguish their products from all others.
2. Branding helps consumers identify products they wish to buy again and avoid those they do not. 3. Branding is useful when introducing new products. |
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What are the three things a brand should do?
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• Resonate with customers
• Differentiate from competitors • Motivate employees |
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What are the three types of brands?
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functional
image experiential |
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What is a functional brand?
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satisfy functional needs
Differentiate from competitors by offering superior performance or superior economy Connect with consumers by helping them achieve basic goals related to physical needs, such as food, shelter, health, safety |
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What is an image brand?
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Image brands create value by projecting a distinct and admired image
Differentiate from competitors by offering a unique set of associations or images Connect with consumers through emotional images, symbols, and associations |
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What is an experiential brand?
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While image brands focus on what the product represents, experiential brands focus on how consumers feel when interacting with the brand
Products, environments, and services are combined to create temporary multisensory encounters with the brand Connect with consumers through experiences that are co-created by the brand and the consumer at the time of consumption |
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What are the three components of brand positioning?
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• Competitive frames of reference
• Points of difference (POD’s) • Points of parity (POP’s) |
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What are the parts of competitive frames of reference of brand positioning?
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• Nature of competition
• Target Market |
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What are the parts of points of difference of brand positioning?
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• Desirable to consumer
• Deliverable by the brand • Differentiating from competitors |
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What are the parts of points of parity of brand positioning?
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• Negate competitor points-of-difference
• Demonstrate category credentials |
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What are the three elements of the Nike brand formula?
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product, athletes, marketing
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What are the benefits of using intermediaries?
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Breaking Bulk
Providing Assortment Holding Inventory Offering services Market Efficiency |
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What are the three types of market exposure?
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intensive distribution
exclusive distribution selective distribution |
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Define intensive distribution
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Maximum market coverage--firm seeks to make the product available in every outlet where customers might want to buy it
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Define selective distribution
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A level of distribution intensity whereby a firm selects a few retail outlets in a specific geographical area
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Define exclusive distribution
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A level of distribution intensity whereby only one retail outlet in a specific geographical area carries the firm’s products
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What should the best channel system achieve?
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The best channel system should achieve ideal market exposure.
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How do marketing channels effect customer value?
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Total benefits- total costs = customer value
(product/service/image benefit) - (price/non price costs) |
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What is the primary cause of conflict between channel members?
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distribution of products
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What are the different utilities of retailing to customers?
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time - making the product available at a convenient time
place - making the product available at a convenient place form - making the product in the form customers want possession - transfer of product ownership |
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What are the types of retail atmospherics?
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Layout
Colors Sounds Signage The feel of the place |
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What is the effect of shelf space on sales?
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expanded shelf space
special display increase sales |
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What effects does promotion have on the demand curve?
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increases demand
makes it more inelastic |
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What are the four types of promotion?
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advertising
sales promotion personal selling publicity |
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Define advertising
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Paid placement of announcements and
persuasive messages to inform and/or persuade |
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Define sales promotion
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Short-term incentives to encourage trial or increase purchase
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Define personal selling
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Personal contact between a representative of the selling firm and the customer with the intention of making a sale
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Define publicity
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Unpaid placement of news or media presentations with the deliberate attempt to manage the public’s perception
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What is a push strategy?
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A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.
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What is a pull strategy?
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A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.
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What are the three objectives of advertising?
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cognitive- build awareness (awareness/interest)
affect- gain interest, liking (desire) behavioral- stimulate action (action) **Consumers move in steps from one mental state to the next before eventually deciding to purchase a particular product. |
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Why should you make the product obvious?
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Make the product obvious because normal people ignore ads unless they are in the market to buy or justifying purchase decisions
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Why should you make the advertiser obvious?
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Make the advertiser obvious because normal people ignore ads unless they are in the justifying purchase decisions or think they will be entertained
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Why should you make the benefit obvious?
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Make the benefit obvious because
normal people ignore ads unless they are in the market to buy or justifying purchase decisions |
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What factors impact sales?
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Aptitude--Native abilities and enduring personal traits relevant
to job performance (e.g., mental abilities, personality) Personal Characteristics--Physical traits, family background, education, work and sales experience Skill Level--Learned proficiencies at performing job activities Role Perceptions--Perceptions of job demands and the expectations of role partners Motivation--Desire to expend effort on specific job activities Organizational/Environmental Factors-- Territory potential, company’s competitive strength |
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What's the difference between high involvement and low involvement products?
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the benefit
high- Differentiating features tied to differentiating emotions low- It is enough that the reference group loves the product |
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What is the finding from Dr. Swenson's research
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The data suggest that face-to-face selling is a crucial skill: for ventures to have any chance of success the entrepreneur has to be able to call on a customer and secure an order for a product or service.
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What makes the ideal price?
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The buying situation or context, as well as core dimensions of the product, determine what the consumer is willing to pay.
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Define External reference price
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what everyone else is paying for the product.
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Define internal reference price
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what you think you should pay given
your past experience and the buying situation. |
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What is the goal of pricing?
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With pricing, we try to capture as much of the perceived value as possible without inviting over-powering competition.
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What is skimming pricing?
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• High prices at first, reduce over time
• Capture consumer surplus • Quantity is low at the start • Thus, not ideal for gaining market share |
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What is penetration pricing?
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• Low prices at first
• Does not capture consumer surplus • Quantity is high at the start • Thus, better for building market share |
