Midterm 3 Flashcards
the process of getting a group to think of unlimited ways to vary a product or solve a problem
brainstorming
the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
business analysis
the decision to market a product
commercialization
a test to evaluate a new-product idea, usually before any prototype has been created
concept test
a long-run drop in sales
decline stage
the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
development
the process by which the adoption of an innovation spreads
diffusion
the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
growth stage
a product perceived as new by a potential adopter
innovation
the full-scale launch of a new product into the marketplace
introductory stage
a period during which sales increase at a decreasing rate
maturity stage
a product new to the world, the market, the producer, the seller, or some combination of these
new product
a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
new-product strategy
all brands that satisfy a particular type of need
product category
a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
product development
a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
product life cycle (PLC)
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
screening
the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
simulated (laboratory) market testing
a team-oriented approach to new-product development
simultaneous product development
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
test marketing
the knowledge and courtesy of employees and their ability to convey trust
assurance
the most basic benefit the consumer is buying
core service
a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
credence quality
caring, individualized attention to customers
empathy
a characteristic that can be assessed only after use
experience quality
the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
heterogeneity
the inability of the production and consumption of a service to be separated; consumers must be present during the production
inseparability
the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
intangibility
treating employees as customers and developing systems and benefits that satisfy their needs
internal marketing
a strategy that uses technology to deliver customized services on a mass basis
mass customization
an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
nonprofit organization
the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets
nonprofit organization marketing
the inability of services to be stored, warehoused, or inventoried
perishability
an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization
public service advertisement (PSA)
the ability to perform a service dependably, accurately, and consistently
reliability
the ability to provide prompt service
responsiveness
a characteristic that can be easily assessed before purchase
search quality
the result of applying human or mechanical efforts to people or objects
service
a group of services that support or enhance the core service
supplementary services
the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
tangibles
a production method whereby products are made in advance of demand based on forecasts and are stored until customer orders arrive
build-to-stock
bundles of interconnected activities that stretch across firms in the supply chain
business processes
allows companies to prioritize their marketing focus on different customer groups according to each group’s long-term value to the company or supply chain
customer relationship management (CRM) process
presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
customer service management process
seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior
demand management process
a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization
demand-supply integration (DSI)
an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
distribution resource planning (DRP)
information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
electronic data interchange (EDI)
a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber optic cable or through satellite transmission of electronic signals
electronic distribution
a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand
inventory control system
the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
logistics
the link that connects all the logistics functions of the supply chain
logistics information system
concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
manufacturing flow management process
a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
mass customization (build-to-order)
an inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer
materials requirement planning (MRP; materials management)
a method of moving inventory into, within, and out of the warehouse
materials-handling system
a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
order fulfillment process
a system whereby orders are entered into the supply chain and filled
order processing system
a manufacturer’s or supplier’s use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing
outsourcing (contract logistics)
