Mgmt 1 Ch 14

Front 1

Value

Back 1

Good quality at a fair price.

When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs

Front 2

Distributed Product Development

Back 2

Handing off various parts of your innovation process - often to companies in other countries

Front 3

Total Product Offer

Back 3

Everything that consumers evaluate when deciding whether to buy something; also called a value package

Front 4

Product Line

Back 4

A group of products that are physically similar or are intended for a similar market

Front 5

Product Mix

Back 5

The combination of product lines offered by a manufacturer

Front 6

Product Differentiation

Back 6

The creation of real or perceived product differences

Front 7

Convenience Goods and Services

Back 7

Products that the consumer wants to purchase frequently and with a minimum of effort

Front 8

Shopping Goods and Services

Back 8

Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers

Front 9

Specialty Goods and Services

Back 9

Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them

Front 10

Unsought Goods and Services

Back 10

Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem

Front 11

Industrial Goods

Back 11

Products used in the production of other products. (Sometimes called business goods or B2B goods)

Front 12

What is the INSTALLATION category in the consumer goods and industrial goods and services chart?

Back 12

Consists of major capital equipment such as new factories and heavy machinery

Front 13

What is the CAPITAL ITEMS category in the consumer goods and industrial goods and services chart?

Back 13

Consists of expensive products that last a long time

Front 14

What is the ACCESSORY EQUIPMENT category in the consumer goods and industrial goods and services chart?

Back 14

Consists of capital items that are not quite as long-lasting or expensive as installations

(Ex: computers, copy machines, and various tools)

Front 15

What 7 functions do packages perform?

Back 15

1.) Attract buyer's attention
2.) Protect goods inside, stand up under handling and storage, tamperproof, and deter theft
3.) Easy to open and use
4.) Describe/Give information about contents
5.) Explain benefits of the good inside
6.) Provide info on warranties, warnings, and other consumer matters
7.) Give indication of price, value, and uses

Front 16

Bundling

Back 16

Grouping two or more products together and pricing them as a unit

Front 17

Brand

Back 17

A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors

Front 18

Trademark

Back 18

A brand that has exclusive legal protection for both its BRAND NAME and its DESIGN

Front 19

Manufacturers' Brands

Back 19

The brand names of manufacturers that distribute products nationally

Front 20

Dealer (private-label) Brands

Back 20

Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead

*also called House Brands/Distributor Brands

Front 21

Generic Goods

Back 21

Nonbranded products that usually sell at a sizable discount compared to national or private-label brands

Front 22

Knockoff Brands

Back 22

Illegal copies of national brand-name goods

Front 23

Brand Equity

Back 23

The value of the brand name and associated symbols

Front 24

Brand Loyalty

Back 24

The degree to which customers are satisfied, like the brand, and are committed to further purchases

*BRAND PREFERENCE - preferring one brand over another
*BRAND INSISTENCE - product becomes a specialty good cuz one needs it

Front 25

Brand Awareness

Back 25

How quickly or easily a given brand name comes to mind when a product category is mentioned

Front 26

Brand Association

Back 26

The linking of a brand to other favorable images

Front 27

Brand Manager

Back 27

A manager who has direct responsibility for one brand or one product line; called a PRODUCT MANAGER in some firms

Front 28

Product Screening

Back 28

A process designed to reduce the number of new-product ideas being worked on at any one time

Front 29

What is the order of the Product Development Process?

Back 29

Idea Generation(based on consumer's needs), Product Screening, Analysis, Development, Testing, Commercialization

Front 30

Product Analysis

Back 30

Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas

Front 31

Concept Testing

Back 31

Taking a product idea to consumers to test their reactions

Front 32

Commercialization

Back 32

Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers

Front 33

Product Life Cycle

Back 33

A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are:

Introduction, Growth, Maturity, and Decline

Front 34

What are the 4 stages of a product class over time?

Back 34

1.) Intro
2.) Grow
3.) Mature
4.) Decline

Front 35

Ways a firm can formulate clear objectives for an overall pricing strategy?

Back 35

1.) Achieving a target return on investment or profit (making products smaller, hoping to increase profit)
2.) Building traffic (advertise a product at or below cost to attract customer base - called LOSS LEADERS)
3.) Achieving greater market share (offer low prices and low lease rates)
4.) Creating an image (watches/perfumes are priced high to give image of exclusivity and status)
5.) Furthering social objectives (prices items low to make it affordable, government subsidizes price of farm products to keep basic necessities easily affordable for everyone)

Front 36

Target Costing

Back 36

Designing a product so that it satisfies customers and meets the profit margins desired by the firm

Front 37

Competition - based Pricing

Back 37

A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.

Front 38

Price Leadership

Back 38

The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow

Front 39

What are the 3 major approaches to pricing strategy?

Back 39

1.) Cost-Based
2.) Demand-Based (target costing)
3.) Competition-Based

Front 40

Break-Even Analysis

Back 40

The process used to determine profitability at various levels of sales

Front 41

Total Fixed Costs

Back 41

All the expenses that remain the same no matter how many products are made or sold

Front 42

Variable Costs

Back 42

Costs that change according to the level of production

Front 43

Skimming Price Strategy

Back 43

Strategy in which a new product is priced high to make optimum profit while there's little competition

Front 44

Penetration Strategy ;)

Back 44

Strategy in which a product is priced low to attract many customers and discourage competition

Front 45

Everyday Low Pricing (EDLP)

Back 45

Setting prices lower than competitors and then not having any special sales

Front 46

High-Low Pricing Strategy

Back 46

Setting Prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'

Front 47

Psychological Pricing

Back 47

Pricing goods and services at price points that make the product appear less expensive than it is

Front 48

What is it called when marketers price on the basis of consumer demand rather than cost or some other calculation?

Back 48

Demand-Oriented Pricing