Chapter 14-Part of Final Flashcards
(38 cards)
What is a total product offer?
Everything that consumers evaluate when deciding whether to buy something.
Includes both tangible and intangible dimensions.
Define distributed product development.
Handing off of various parts of your innovation process, often to companies overseas.
What is a product line?
A group of products that are physically similar or intended for a similar market.
What is a product mix?
The combination of product lines offered by a manufacturer.
What is product differentiation?
The creation of real or perceived product differences.
List examples of convenience goods and services.
- Candy and snacks
- Gas
- Milk
What are specialty goods and services?
Consumer products with unique characteristics and brand identity.
What are unsought goods and services?
Products that consumers are unaware of or have not necessarily thought of buying.
What are industrial goods?
Products used in the production of other products, sometimes called B2B goods.
What are the key functions of packaging?
- Attract buyers’ attention
- Protect the goods inside and be tamperproof
- Be easy to open
- Describe and give information about the product
- Explain the product’s benefits
- Provide warranty information and warnings
- Give an indication of price, value, and uses
Define brand.
A name, symbol, or design that identifies the goods or services of one seller or group of sellers.
What is a trademark?
A brand that has exclusive legal protection for both its brand name and its design.
List the 4 categories of brands.
- Manufacturers’ brands
- Dealer (private-label) brands
- Generic goods
- Knockoff brands
What is brand equity?
The value of the brand name and associated symbols.
What does brand loyalty refer to?
The degree to which customers are satisfied, like the brand, and are committed to further purchases.
What is the product life cycle?
A theoretical model of what happens to sales and profits for a product class over time.
List the stages of the product life cycle.
- Introduction
- Growth
- Maturity
- Decline
What is break-even analysis?
The process used to determine profitability at various levels of sales.
What are the 3 major approaches to pricing strategy?
Cost-based pricing, demand-base pricing, and competition-based pricing.
What is cost-based pricing?
Pricing that measures the cost of producing a product including materials, labor, and overhead.
Define demand-based pricing.
Target costing, designing a product to satisfy customers and meet desired profit margins.
What is competition-based pricing?
A pricing strategy based on what all the other competitors are doing.
What is the skimming price strategy?
A strategy in which a new product is priced high to make optimum profit while there’s little competition.
What is penetration pricing?
A strategy in which a product is priced low to attract many customers and discourage competition.
