Ch 5 Flashcards
(41 cards)
The entire group of a manufacturers athletic shoes
Product line
Specific model or size of a product
Product item
Goods purchased and used by the ultimate consumer for personal use
Consumer goods
Goods purchased by organizations for use in their operations
Business goods
A unique product characteristic or benefit that sets it apart from a competitor
Point of difference
Analyzes strengths, weaknesses, opportunities, and threats of a product. Helps develop a product that matches the company’s objectives.
SWOT analysis
Involves getting new product ideas
Idea generation
Product is evaluated in a focus group
Screening and evaluation
Focus group
A panel of 6 - 10 customers who discuss opinions about a product under the guidance of a moderator
Financial aspects of making and marketing a product are reviewed
Business analysis
Development of the prototype (first model)
Development
Product is tested in the marketplace
Test marketing
Process that involves producing and marketing a new product
Commercialization
7 steps in new product development
- SWOT analysis
- Idea generation
- Screening and evaluation
- Business analysis
- Development
- Test marketing
- Commercialization
4 stages of product life cycle
Introduction
Growth
Maturity
Decline
Three ways to manage product life cycle
Modify the product.
Market the product.
Reposition the product.
Changing a products characteristics
Modify
Strategy to find new customers or encourage current customers to use more of the product
Market the product
Changing a products image in relation I a competitors image
Repositioning a produce
The value placed on goods or services being exchanged
Price
Price is important to a business because it determines ____ and ____
Profit and loss
To determine profit you…
Subtract the cost of goods sold and the company’s expenses from the money it generated in sale revenue
Pricing based on consumer perception
Prestige pricing
Pricing goods with either an odd number or an even number to match the products image
Odd-even pricing
