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54 Cards in this Set

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Three levels of product
1.) Class (overall category)
2.) Form (variations within class)
3.) Brand (specific type/name)
What is the product life cycle contingent on?
Sales
5 adopter categories of the product life cycle
1.) Innovators (2.5%)
2.) Early adopter (13.5%)
3.) Early majority (34%)
4.) Late majority (34%)
5.) Laggard (16%)
4 stages of the product life cycle
1.) Introduction
2.) Growth
3.) Maturity
4.) Decline
Main characteristic of a product life cycle for a product with high learning
Long introduction
Main characteristic of a product life cycle for a product with low learning
Quick introduction (distribution key)
Main characteristic of a product life cycle for a fashion product
Keeps coming back... has iterated introduction, growth, maturity, decline (like a rollercoaster)
Main characteristic of a product life cycle for a fad product
Quick growth and quick decline
4 kinds of consumer barriers to adoption of new products
1.) Usage barriers
2.) Value barriers
3.) Risk barriers
4.) Psychological barriers
What type of consumer barrier to adoption of new products involves the product being too hard to change or use?
Usage barriers
What type of consumer barrier to adoption of new products involves there being no reason to change the product used?
Value barriers
What type of consumer barrier to adoption of new products involves there being physical, economic, and social risks?
Risk barriers
What type of consumer barrier to adoption of new products involves cultural and image issues?
Psychological barriers
5 ways consumer barriers to adoption of new products are overcome
1.) Warranties
2.) Guarantees
3.) Instructions
4.) Demonstrations
5.) Samples
Five characteristics of introduction stage of product life cycle
1.) Growing sales
2.) Little profit
3.) Heavy advertising
4.) Distribution issues/problems
5.) Little variation among products
Two kinds of pricing decision for introduction stage of product life cycle
1.) Skimming
2.) Penetration
3 goals for introduction stage of product life cycle
1.) Promote awareness
2.) Stimulate trial
3.) Create primary demand
Kind of demand that is expressed as a desire for a product class (e.g. wrist telephones)
primary demand
Kind of demand that is expressed as a desire for a specific brand (e.g. Sony wrist telephones)
selective demand
7 characteristics of growth stage of product life cycle
1.) Rapid sales increase
2.) Profits peak
3.) Competitors enter
4.) Pricing a competitive feature
5.) Distribution a competitive feature
6.) Repeat purchasing needed
7.) New product variation from product differentiation
8 characteristics of maturity stage of product life cycle
1.) Sales growth slows
2.) Fewer new customers
3.) Marginal competitors exit
4.) Profits drop
5.) Heavy price competition
6.) Promotion focused on selective demand
7.) Search for cost reductions through efficiency
8.) Niche strategies
Key measure of success in maturity stage of product life cycle
market share
2 characteristics of decline stage of product life cycle
1.) Sales and profits drop
2.) Happens because of changes in the environment
Key competing factor in decline stage of product life cycle
CHEAP product
2 basic strategies pursued in the decline stage of the product life cycle
1.) Harvest strategy
2.) Deletion strategy
2 components of harvest strategy in decline stage of the product life cycle
1.) Maintain product, but reduce marketing costs
2.) Keep up with customer requirements
3 ways to manage the product life cycle
1.) Product modification
2.) Market modification
3.) Repositioning the product
2 methods to product modification approach to managing the product life cycle
1.) Altering product characteristics
2.) Trying to re-engage customers again (e.g. putting cameras and internet in cell phones)
3 methods to market modification approach to managing the product life cycle
1.) Get people to use more of the product as it is
2.) Find new uses for the existing product
3.) Finding new users/customers for the existing product
2 methods to reposition the product in managing the product life cycle
1.) Change the marketing mix (4 P's: product, price, promotion, place)
2.) Change how the customer thinks about your product in relation to competitors' products
4 reasons to reposition the product in managing the product life cycle
1.) React to a competitor (Progresso soup "time to grow up" vs. Campbell's)
2.) Reach a new market ("Ensure" for "active adults" - not seniors)
3.) Take advantage of a trend (Oats in Cheerios - heart-healthy trend)
4.) Change the value offered
3 ways to change the value offered in repositioning the product in managing the product life cycle
1.) Trade up (more features)
2.) Trade down (fewer features)
3.) Downsize (less in package without changing size or price)
Name, phrase, design, symbol to identify a product or distinguish it from others
Brand, brand name, logo (can't be pronounced)
5 criteria for a good brand name
1.) Describes product benefits
2.) Memorable, distinctive, and positive
3.) Fits the product and company image
4.) No legal restrictions
5.) Simple and appeals to emotions
Added value of a brand beyond what it does... also known as functional benefits
Brand equity
4 levels of the brand equity pyramid (from bottom to top)
1.) Brand salience
2.) Brand performance and imagery
3.) Consumer judgments and feelings
4.) Consumer brand resonance
Level of the brand equity pyramid characterized by brand awareness and identity... who are you?
brand salience
Level of the brand equity pyramid characterized by brand associations and meaning... what are you?
brand performance and imagery
Level of the brand equity pyramid characterized by brand responses... who is the brand to me?
Consumer judgments and feelings
Level of the brand equity pyramid characterized by brand relationships... "us."
Consumer brand resonance
5 kinds of manufacturer branding (list in order, with the first 4 listed in the textbook)
1.) Multiproduct branding
2.) Multibranding
3.) Private-label branding
4.) Mixed branding
5.) Co-branding
3 characteristics of multiproduct branding
1.) One name for all products - "family" name
2.) Encourages line extensions
3.) Encourages brand extensions
This kind of extension uses the current product name to introduce a similar new product in the SAME product class
Line extensions
This kind of extension uses the current product name to introduce new products in DIFFERENT product classes
Brand extensions
2 characteristics of multibranding
1.) Different names for each product (same product maker)
2.) Each product aimed at different segment
Pairing two brand names of two different manufacturers on one product
Co-branding
Main advantage of co-branding
Enter a new product class with strength of known brand with them
3 characteristics of private-label branding
1.) Sell under wholesaler/retailer name
2.) Shift promotional costs to retailer
3.) Manufacturer has another outlet for the produced product
2 characteristics of mixed branding
1.) Sells multiple products under manufacturer AND retailer names
2.) Appeals to different segments
3 entities that packaging provides
1.) Communications
2.) Function
3.) Perceptual
3 communication purposes of packaging
1.) Explain directions on how to use the product
2.) Disclose ingredients in the product
3.) Show brand personality
3 functional purposes of packaging
1.) Convenience
2.) Protection
3.) Storage
3 perceptual purposes of packaging
1.) Shows general buyer's status
2.) Shows economic level
3.) Shows quality of product
4 contemporary packaging challenges
1.) Continuing need to connect with customers
2.) Physical environmental concerns
3.) Health, safety, security issues
4.) Cost reduction