Business Chapter 14

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Business Chapter 14
2014-12-07 17:19:30
Business 14

based upon the review sheet from Elizabeth Slenker
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  1. 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
  2. "Necessity" products
    • Internet service
    • cell phone service
    • cable television
    • discount apparel
    • haircuts and coloring
    • fast-food
  3. "Expendable" products
    • luxury handbags
    • satellite radio
    • specialty apparelĀ 
    • high-end cosmetics
    • facials
  4. 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
  5. 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.
  6. Product Line
    • 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
  7. Product Mix
    • 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
  8. Product Differentiation
    • The creation of real or perceived product differences.
    • Marketers use a mix of pricing, advertising, and packaging to create different images.
  9. Convenience Goods and Services
    Products consumers purchase frequently with minimal effort: Candy, snacks, gas, milk, eggs
  10. Shopping Goods and Services
    Products customers buy only after comparing value, quality, price, and styles: clothes, shoes, appliances, furniture, childcare, home remodeling
  11. Specialty Goods and Services
    Products with unique characteristics and brand identity: Tiffany jewelry, Rolex watches, Lamborghini, Ritz Carlton Hotels.
  12. 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
  13. Industrial Goods
    Products used in the production of other products and sold in the B2B market: Installations, capital items, accessory equipment, supplies, service.
  14. Companies often use packaging to change and improve their basic product. Examples:
    • Microwave popcorn
    • tuna pouches
    • (McDonald's) green packaging
  15. Packaging Functions:
    • 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
  16. Bundling
    Grouping two or more products together and pricing them as a unit.
  17. Brand
    Name, symbol, or design that identifies the goods or services and distinguishes them from competitors' offerings
  18. Trademark
    A brand that has exclusive legal protection for both its brand name and design.
  19. Manufacturers' Brands
    Brand names of manufacturers that distribute products nationally.
  20. Dealer (Private-Label) Brands
    Products that carry a retailer's or distributor's brand name instead of a manufacturer's.
  21. Generic Goods
    Non-branded products that sell at a discount compared to manufacturers' or dealers' brands
  22. Knockoff Brands
    Illegal copies of national brands
  23. Brand Equity
    the value of the brand name and associated symbols.
  24. brand loyalty
    the degree to which consumers are satisfied and are committed to further purchases
  25. brand awareness
    how quickly or easily a given brand name comes to mind when someone mentions a product category.
  26. brand association
    linking a brand to other favorable images, like celebrities or a geographic area.
  27. brand manager
    Person responsible for a particular brand and handles all the elements of the brand's marketing mix
  28. Product screening
    Reduces the number of new products a firm is working on to focus on the most promising
  29. Product analysis
    Focuses on the cost estimates and sales forecasts to get an idea of potential profitability
  30. Concept testing
    Takes a product idea to consumers to test reactions
  31. Commercialization
    Promoting the product to distributors and retailers and developing the promotional campaign.
  32. 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
  33. Pricing objectives
    • achieving a target return on investment or profitĀ 
    • building traffic
    • achieving greater market share
    • creating an image
    • furthering social objectives both short-run and long-run
  34. cost-based pricing
    measures cost of producing a product including materials, labor, and overhead.
  35. Target costing
    Designing a product that satisfies customers and meets the firm's targeted profit margins
  36. competition-based pricing
    a strategy based on what the competition is charging for its products
  37. Break-even analysis
    The process used to determine profitability at various levels of sales. where revenues equal cost.
  38. total fixed costs
    all costs that remain the same no matter how much is produced or sold
  39. variable costs
    costs that change according to the level of production
  40. skimming price strategy
    pricing new products high to recover costs and make high profits while competition is limited
  41. penetration price strategy
    pricing products low with the hope of attracting more buyers and discouraging other companies from competing in the market
  42. Everyday low pricing (EDLP)
    setting prices lower than competitors with no special sales
  43. high-low pricing
    using regular prices that are higher than EDLP stores except during special sales when they are lower
  44. psychological pricing
    pricing products at price points that make a product seem less expensive than it is.