Business Chapter 14
Card Set Information
Business Chapter 14
based upon the review sheet from Elizabeth Slenker
Value (define and two points)
good quality at a fair price
Adapting products to new markets is an ongoing challenge
Product development is a key activity in any modern business
cell phone service
haircuts and coloring
Distributed product development
The handling off of various parts of your innovation process - often overseas.
The increase in outsourcing has resulted in using multiple organizations separated by cultural, geographic and legal boundaries
Total Product Offer
Everything consumers evaluate when deciding whether to buy something
evaluated on tangible and intangible dimensions
Marketers must think like and talk to consumers to find out what's important.
A group of products that are physically similar or intended for a similar market
competing brand examples
: Coca-Cola, Diet Coke, Coke Zero, Cherry Coke
The combination of all product lines offered by a manufacturer or service provider.
Product mixes like Procter & Gamble's can be extensive
: Toothpaste, cosmetics, diapers, batteries, bar soap
The creation of real or perceived product differences.
Marketers use a mix of pricing, advertising, and packaging to create different images.
Convenience Goods and Services
Products consumers purchase frequently with minimal effort: Candy, snacks, gas, milk, eggs
Shopping Goods and Services
Products customers buy only after comparing value, quality, price, and styles: clothes, shoes, appliances, furniture, childcare, home remodeling
Specialty Goods and Services
Products with unique characteristics and brand identity: Tiffany jewelry, Rolex watches, Lamborghini, Ritz Carlton Hotels.
Unsought Goods and Services
Products consumers aren't aware of or haven't thought of buying until they need them: car-towing services, funeral services, renter's insurance
Products used in the production of other products and sold in the B2B market: Installations, capital items, accessory equipment, supplies, service.
Companies often use packaging to change and improve their basic product. Examples:
(McDonald's) green packaging
To attract buyers' attention
protect the goods inside and be tamperproof
be east to open
Describe and give information and warnings
Give indication of price, value, and uses
Grouping two or more products together and pricing them as a unit.
Name, symbol, or design that identifies the goods or services and distinguishes them from competitors' offerings
A brand that has exclusive legal protection for both its brand name and design.
Brand names of manufacturers that distribute products nationally.
Dealer (Private-Label) Brands
Products that carry a retailer's or distributor's brand name instead of a manufacturer's.
Non-branded products that sell at a discount compared to manufacturers' or dealers' brands
Illegal copies of national brands
the value of the brand name and associated symbols.
the degree to which consumers are satisfied and are committed to further purchases
how quickly or easily a given brand name comes to mind when someone mentions a product category.
linking a brand to other favorable images, like celebrities or a geographic area.
Person responsible for a particular brand and handles all the elements of the brand's marketing mix
Reduces the number of new products a firm is working on to focus on the most promising
Focuses on the cost estimates and sales forecasts to get an idea of potential profitability
Takes a product idea to consumers to test reactions
Promoting the product to distributors and retailers and developing the promotional campaign.
Product life cycle (define and stages)
A theoretical model of what happens to sales and profits for a product over time
Introduction, growth, maturity, decline
achieving a target return on investment or profit
achieving greater market share
creating an image
furthering social objectives both short-run and long-run
measures cost of producing a product including materials, labor, and overhead.
Designing a product that satisfies customers and meets the firm's targeted profit margins
a strategy based on what the competition is charging for its products
The process used to determine profitability at various levels of sales. where revenues equal cost.
total fixed costs
all costs that remain the same no matter how much is produced or sold
costs that change according to the level of production
skimming price strategy
pricing new products high to recover costs and make high profits while competition is limited
penetration price strategy
pricing products low with the hope of attracting more buyers and discouraging other companies from competing in the market
Everyday low pricing (EDLP)
setting prices lower than competitors with no special sales
using regular prices that are higher than EDLP stores except during special sales when they are lower
pricing products at price points that make a product seem less expensive than it is.