M300 Chapter 3

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  1. product life cycle
    The stages a new product goes through in the marketplace: introduction, growth, maturity, and declin
  2. trial
    the initial purchase of a product by a consumer.
  3. primary demand,
    the desire for the product class rather than for a specific brand, since there are few competitors with the same product
  4. selective demand,
    the preference for a specific brand
  5. a skimming strategy
    A high initial price may be used as part of to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers
  6. penetrationstrategy
    Setting the price low so there is no competitive entry
  7. repeat customers
    people who tried the product, were satisfied and bought the product again
  8. Product Deletion
    dropping product from the company's product line. Most drastic decision because people still use the product even in the declining phase
  9. product harvesting
    company keeps declining product for sale but reduces marketing cost. Used to meet customer requests
  10. Three Aspects of Product Life Cycle
    • 1. Length of the Product Life Cycle -  Consumer products have shorter life cycles than business products
    • 2. Shape of the Life Cycle Curve
    • - Based on whether it is a high learning, low learning, fashion, or fad product
    • 3. Rate at which consumers adopt products
    • - Innovators, Early majority, Laggards, Early Adopters, Late majority
  11. High learning product
    one in which significant customer education is required and there is an extended introductory period. Slow sales at first due to education
  12. low learning product
    High sales right off the gate, need to enter and broadly distribute the product so to stop competitors from copying the product
  13. fashion product
    Prouducts that are introduced, decline and then seem to return. Seen a lot in the clothing market
  14. fad product
    rapid sales and then rapid decline. Products are typically novelties
  15. diffusion of innovation
    how a product spreads through a population
  16. Common reasons to resist product
    • 1. Usage barrier(the product is not compatible with existing habits)
    • 2. Value barrier (the product provides no incentive to change)
    • 3. Risk barriers(physical, economic, or social)
    • 4. psychological barriers (cultural difference or image)
  17. product manager (brand manager)
    manages the marketing efforts for a close knit family of products or brands
  18. product modification
    involves altering a product's characteristics, such as quality
  19. product bundling
    the sale or row or more seperate products into one package. (Microsoft Office)
  20. Market Modification
    • when a company tries to 
    • 1. Find New Customers (Harley Davidson and women)
    • 2. Increasing a Product's use (more soup advisement in Winter) 
    • 3. Creating a New Use Situation (Dockers and different use for pants)
  21. Product Repositioning
    • changes the place a product occupies in a consumers mind done by 
    • 1. Reacting to a Competitor's Position
    • 2. Reaching a New Market
    • 3. Catching a Rising Brand
    • 4. Changing the Value Offered
    • -Trading up - add more features or quality
    • -Trading Down - Taking away features to save costs
  22. branding
    An organization’s use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products.
  23. brand name
    Any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s products or services.
  24. brand personality
    A set of human characteristics associated with a brand name.
  25. brand equity
    • The added value a brand name gives to a product beyond the functional benefits provided.
    • Provides distinct advantage and consumers are willing to pay higher price
  26. Creating brand equity
    • 1. Develop positive brand awareness
    • 2.Develop brand performance and Brand imagery
    • 3. Develop Consumer judgement and feelings
    • 4. Develop a connection between the consumer and the brand (hardest step)
  27. Valuing Brand Equity
    - Brand Equity can depreciate and appreciate in value
  28. Brand licensing
    a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee. These products need to work together well to be successful though
  29. Picking a Brand Name
    • 1. The name should suggest the products benefits
    • 2. The name should be memorable, distinctive and positive
    • 3. The name should fit the company or product image
    • 4. The name should have no legal or regulatory restrictions
    • 5. The name should be simple  and should be emotional
    • 6. The name should be simple
    • 7. The name should have favorable phonetic and semantic associations in other languages
  30. Multiproduct Branding Strategy
    • A branding strategy in which a company uses one name for all its products in a product class (also called family branding or corporate branding)
    • -Can use to capitalize on brand equity
  31. product line extensions
    • The practice of using a current brand name to enter a new market segment in its product class
    • Advantage - Can result in lower advertising costs and raising brand awareness
    • Disadvantage - Can take away sales from other products
  32. subbranding
    combines a corporate or family brand with a new brand to distinguish product lines of other brands
  33. brand extension
    the practice of using a current brand name to enter a different product class (Honda selling snowmobiles, snow blowers etc.)
  34. multibranding
    • involves giving each product a distinct name. Good when a product is intended for different markets.
    • - Can be used to on basis of price quality segments
    • -Multibranding costs more money
  35. fighting brands
    their chief purpose is to confront competitor rands
  36. private branding
    when a manufacturer products but sells them under the same brand name of a wholesale  or retailer (Kroger brand)
  37. mixed branding
    where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market
  38. Competitve Advantage Package and Labeling
    • 1. Communication Benefits (nutrition for food)
    • 2. Functional Benefits (Pringles) 
    • 3. Perceptual Benfits (How it is seen)
  39. Challanges and Resources Packaging and Labeling
    • 1. Connecting with the Customer
    • 2. Environmental Concerns
    • 3. Health, Safety and Security Issues
  40. seven Ps of services marketing
    Expanding the four Ps framework to include people, physical environment, and process.
  41. capacity management
    Integrating the service component of the marketing mix with efforts to influence consumer demand.

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Author:
Anonymous
ID:
316283
Filename:
M300 Chapter 3
Updated:
2016-02-22 02:10:24
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marketing
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Description:
product life cycle The stages a new product goes through in the marketplace: introduction, growth, maturity, and declin
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