Chapter 14 Flashcards Preview

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Flashcards in Chapter 14 Deck (61):
1

product

in marketing, any goof or service, along with its perceived attributes and benefits, that creates value for the customer

2

brand

a name, design, symbol, specific colour, slogan, or any other feature that identifies a product, distinguishes it from other products, and creates a perception in the minds of consumers

3

trademark

a legally exclusive design, name, or other identifying mark associated with a company's brand

4

brand loyalty

a customer's preference for a particular brand that results in advocacy for that brand

5

master brand

a brand that is so dominant that customers think of it immediately when a product category is mentioned

6

manufacturer brand

a brand that is owned by a national or regional manufacturer; the products are widely distributed

7

dealer brand

a brand that is owned by the wholesaler or retailer rather than the manufacturer

8

generic brand

a brand that carries no specific name associated with a manufacturer, wholesaler, or retailer and usually comes in plain containers and sells for less than brand name products

9

unsought products

products that are either unknown to the potential buyer or are known but not actively sought by the buyer

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convenience products

relatively inexpensive items that require little shopping effort and are purchased routinely without planning

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shopping products

items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style

12

specialty products

items for which consumers search long and hard, and for which they refuse to accept substitutes

13

capital products

large, expensive items with a long lifespan that are purchased by businesses for use in making other products or providing a service

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expense items

items, purchased by businesses, that are smaller and less expensive than capital products and usually have a lifespan of less than one year

15

product life cycle

the pattern of sales and profits over time for a product or product category; consists of an introductory stage, growth stage, maturity stage, and decline stage (that ultimately results in death of the product or product category)

16

profit maximization

a pricing objective that entails getting the largest possible profit from a product by producing it for as long as the revenue from selling the product exceeds the cost of producing it

17

target return of investment

a pricing objective where the price of a product is set so as to give the company the desired profitability in terms of return on its money

18

value pricing

a pricing strategy in which the target market is offered a high-quality product at a fair price and with good service

19

price skimming

the strategy of introducing a product with a high initial price and lowering the price over time as the product moves through its life cycle

20

penetration pricing

the strategy of selling new products at low prices in the hope of achieving a large sales volume

21

leader pricing

the strategy of pricing products below the normal markup or even below cost to attract customers to a store where they would not otherwise shop

22

loss leader

a product priced below cost as part of a leader pricing strategy

23

bundling

the strategy of grouping two or more related products together and pricing them as a single product

24

odd-even (psychological) pricing

the strategy of setting a price at an odd number to connote a bargain and at an even number to suggest quality

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prestige pricing

the strategy of increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value

26

break-even point (or break-even quantity)

the price at which a product's costs are covered, so additional sales result in profit

27

fixed costs

costs that do not vary with different levels of output; for example, rent

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variable costs

costs that change with different levels of output; for example; wages and cost of raw materials

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fixed-cost contribution

the selling price per unit (revenue) minus the variable costs per unit

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total revenue

the selling price per unit times the number of units sold

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total cost

the sum of the fixed costs and the variable costs

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total profit

total revenue minus total cost

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markup pricing

a method of pricing in which a certain percentage (the markup) is added to the product's cost to arrive at the price

34

activity-based costing (ABC)

ABC assigns resource costs through all the activities to either produce the product or acquire it for resale

35

distribution (logistics)

efficiently managing the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers

36

manufacturer

a producer; an organization that converts raw materials to finished products

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distribution channel

the series of marketing entities through which goods and services pass on their way from producers to consumers

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marketing intermediaries

organizations that assist in moving goods and service from producers to end users

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agents

sales representatives of manufacturers and wholesalers

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brokers

go-betweens that bring buyers and sellers together

41

industrial distributors

independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users

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wholesalers

companies that sell finished goods to retailers, manufacturers, and institutions

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retailers

companies that sell goods to consumers and to industrial users for their own consumption

44

dual distribution (or multiple distribution)

two or more channels that distribute the same product to target markets

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strategic channel alliances

one manufacturer using another manufacturer's previously established channel to distribute its goods

46

breaking bulk

the process of breaking large shipments of similar products into smaller, more usable lots

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exclusive distribution

a distribution system in which a manufacturer selects only one or two dealers in an area to market its products

48

selective distribution

a distribution system in which a manufacturer selects a limited number of dealers in an area (but more than one or two) to market its products

49

intensive distribution

a distribution system in which a manufacturer tries to sell its products wherever there are potential customers

50

promotion

the attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process

51

promotional mix

the combination of advertising, personal selling, sales promotion, and public relations used to promote a product

52

advertising

and paid form of non-personal presentation by an identified sponsor

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personal selling

a face-to-face sales presentation to a prospective customer

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sales promotions

marketing events or sales efforts - not including advertising, personal selling, and public relations - that stimulate buying

55

public relations

any communication or activity designed to win goodwill or prestige for a company or person

56

integrated marketing communications (IMC)

the careful coordination of all promotional activities - media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging, and other forms of promotion - to produce a consistent, unified message that is consumer focused

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detailing

the physical stocking of merchandise at a retailer by the salesperson who delivers the merchandise

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push strategy

a promotional strategy in which a manufacturer uses aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell its merchandise

59

pull strategy

a promotional strategy in which a manufacturer focuses on stimulating consumer demand for its product, rather than on trying to persuade wholesalers or retailers to carry the product

60

distribution centres

warehouses that specialize in rapid movement of goods to retail stores by making and breaking bulk

61

inventory control system

a system that maintains an adequate assortment of items to meet users' or customers' needs