Chapter 13 Flashcards
(41 cards)
Term
Definition
consumer product
a product purchased to satisfy personal and family needs
business product
a product bought for resale, for making other products, or for use in a business’s operations
Convenience products
a relatively inexpensive, frequently purchased item for which buyers will exert only minimal effort
shopping product
an item for which buyers are willing to expend considerable effort on planning and making the purchase
component part
an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly
unsought product
a product that is not actively sought out until a significant event occurs
process material
a material that is used directly in the production of another product but not readily identifiable in the finished product
raw material
a basic material that is transformed into a physical product; it usually comes from mines, forests, oceans, or recycled solid wastes
specialty product
an item that possesses one or more unique characteristics for which a significant group of buyers is willing to spend considerable purchasing effort
Major equipment
large tools and machines used for production purposes
Innovation
any product improvement that customers value over existing choices, which includes entirely new products that did not previously exist and adaptations to existing products
business service
an intangible product that an organization uses in its operations
idea generation
the first phase of the product development process, when marketers generate as many ideas as possible
Accessory equipment
standardized equipment used in a business’s production or office activities
product analysis
the second phase of the product development process, when marketers screen ideas to select the best one
introduction stage
the first stage of the product life cycle, when there are few competitors; sales and profits are typically low in this stage
commercialization
the final phase of the product development process, when marketers take all they have learned from previous phases and make final improvements to the product before launching it to the market
maturity stage
the third stage of the product life cycle, when sales peak and profits begin to decline as the market becomes saturated and price competition increases
growth stage
the second stage of the product life cycle, when sales and profits increase, and competitors take notice and decide to enter the product category
development and testing
the third phase of the product development process, when marketers build prototypes or small production runs of the product to test on a small scale
decline stage
the fourth stage of the product life cycle, when sales and profits decline as consumer needs move away from the product category; ability to produce at low cost usually determines which competitors remain in market
Fixed costs
the operating costs of a company, such as rent, salaries, and marketing expenses
product mix
the collection of all the company’s products
