Intro To Business Chapter 13

Front 1

total product offer

Back 1

benefits associated with a good, a service, or an idea that impact a consumer's purchasing decision

Front 2

core product

Back 2

provides the core benefit or service that satisfies the basic need or want that motivates a consumer's purchase

Front 3

actual product

Back 3

tangible aspect of the purchase that you can touch, see, hear, smell ,or taste

Front 4

augmented product

Back 4

consists of the core product and the actual product plus other real or perceived benefits that provide additional value to a customer's purchase

Front 5

product differentiation

Back 5

process of distinguishing a product from its competition in real or perceived terms to attract customers

Front 6

product line

Back 6

group of similar products marketed to one general market

Front 7

product mix

Back 7

combination of all product lines offered for sale by a company

Front 8

consumer products can be divided into four categories:
1. Convenience goods and services
2. Shopping goods and services
3. Specialty goods and services
4. Unsought goods and services

Back 8

-purchased easily and effortlessly. nondurable goods.
-requires more effort and time,purchased less frequently than consumer goods. durable goods
ie-clothes, shoes, televisions
-unique specialized products
ie- ferrari, rolex
-products buyers dont usually think about buying, dont know they exist, or buy only when a specific problem arises.

Front 9

Different B2B product classifications
1. Equipment
2. MRO products
3. Raw and processed materials
4. Components parts
5. Specialized professional services

Back 9

1. Equipment-physical facilities of a business
2. MRO products- products that facilitate production and operations but do not become a part of the finished product
3. Raw and processed materials-unprocessed materials that are sold in their original form before being processed for use in other products
4. Components parts-assembled portions of the finished product
5. Specialized professional services-services that support a firm's operations

Front 10

brand extension

Back 10

marketing a product using the same brand name but in a different product category

Front 11

trademark

Back 11

legally protected brand

Front 12

brand licensing

Back 12

agreement between the owner of a brand and another company or individual who pays a royalty to use the brand in association with a new product

Front 13

brand loyalty

Back 13

degree to which customers consistently prefer one brand to other brands

Front 14

brand equity

Back 14

overall value of a brand's strength in the market

Front 15

brand awareness

Back 15

extent to which a particular brand name is familiar within a particular product category

Front 16

six types of brand emerge from branding strategy:
-manufacturer's brands
-Family brands
-Individual brands
-Private brands
-Co-brands
-Generic brands

Back 16

-manufacturer's brands-brand created by producers
-Family brands-brand that markets several different products under the same brand name
-Individual brands- brand assigned to each product within a company's product mix
-Private brands-brand created by a distributor or a middleman
-Co-brands-using one or more brands affiliated with a single product
-Generic brands-product that has no brand at all.

Front 17

Process of developing new, high-quality products

Back 17

1.Idea generation
2. Idea screening
3. Product analysis
4. Development and testing
5. Product and marketing mix development
6. Market testing
7. Commercialization

Front 18

product life cycle

Back 18

theoretical model describing a product's sales and profits over the course of its lifetime

Front 19

Pricing objectives:

Back 19

1. maximizing profits
2. achieving greater market share
3. maximizing sales
4. building traffic
5. matching the status quo prices
6. covering costs to survive
7. creating an image
8. ensuring affordability to all

Front 20

pricing strategies
1. cost-based pricing
2. demand-based pricing
3. competition-based pricing
4. everyday low pricing

Back 20

1. cost-based pricing-based on covering costs and providing for a set profit
2. demand-based pricing-pricing a good or a service based on the demand for a product or its perceived value
3. competition-based pricing -pricing strategy based on what the competition is charging
4. everyday low pricing- charging low prices with few, if any, special or promotional sales

Front 21

price skimming

Back 21

charging a high price for a product initially and then lowering the price over time

Front 22

penetration pricing

Back 22

charging the lowest possible price for a new product

Front 23

prestige pricing

Back 23

practice of charging a high price to invoke perceptions of high quality and privilege

Front 24

pyschological pricing

Back 24

practice of charging a price just below a whole number to give the appearance of a significantly lower price

Front 25

loss leader

Back 25

a product that is priced below its costs

Front 26

reference pricing

Back 26

listing an inflated price that is then discounted to appear as if it is a good value

Front 27

break-even analysis

Back 27

determines production level for which total revenue is just enough to cover total costs

Front 28

types of discounts

Back 28

-cash discounts-reduced price for paying
-quantity discounts -lower price for buying large quantities
-seasonal discounts-price reduction if you buy out of season
-forms of allowance-reduced price if you trade your old good for a new good

Front 29

rebates

Back 29

partial refunds on what a customer has already paid for a product

Front 30

bundling

Back 30

two or more products that usually complement one another are combined and sold at a single price

Front 31

dynamic pricing

Back 31

prices are determined directly between a buyer and a seller
ie-auctions, ebay