Chapter 4.5 Flashcards
(34 cards)
product
the end result of
the production process sold
on the market to satisfy a
customer need
consumer durables:
manufactured products
that can be reused and
are expected to have a
reasonably long life, such
as cars
product life cycle
the pattern of sales recorded by
a product from launch to
Removal from the market
extension strategies:
marketing plans that extend
the maturity stage of the
product before a brand new
one is needed
Boston Consulting Group
matrix
A method of
analysing the product
portfolio of a business in
terms of market share and
market growth
brand
an identifying
symbol, name, image or
trademark that separates
a product from its
competitors
brand awareness:
extent to
which a brand is recognised
by potential customers and
is correctly associated with a
particular product – can be
expressed as a percentage of
the target market
brand loyalty:
Brand loyalty is when consumers keep buying the same brand repeatedly, even if other brands try to attract them with marketing.
brand development
Brand development measures how much a product sells, usually out of every thousand people.
For example, if 100 out of 1,000 people buy a product, its brand development is 10.
brand value (or brand
equity):
the value
that a brand has because
customers are willing to pay
more for it than they would
for a non-branded generic
product !!
family branding
A marketing strategy that
involves selling several
related products under one
brand name (also known as
umbrella branding
product branding
Each individual product in a
portfolio is given its own
unique identity and brand
image (also known as
individual branding)
company or corporate
branding:
the company
name is applied to products
and this becomes the brand
name
own-label branding:
retailers create their own
brand name and identity for
a range of products
manufacturers’ brands:
producers establish the
brand image of a product or
a family of products, often
under the company’s name
cost-plus pricing
adding a fixed mark-up for profit to
the unit price of a product
penetration pricing:
setting a relatively low price
often supported by strong
promotion in order to
achieve a high volume
of sales
market skimming:
setting a high price for a new product when a firm has a unique
or highly differentiated
product with low price
elasticity of demand
psychological
pricing:
setting prices that take account of customers’ perception of value of the product
loss leader
product sold
at a very low price to
encourage consumers to buy
other products
price discrimination:
occurs when a business sells the
same product to different
consumers at different prices
promotional pricing
special low prices to gain market
share or sell off excess
stock – includes ‘buy one get
one free
price leadership
exists when one business sets a
price for its products and
other firms in the market set
the same or similar prices
(they ‘follow suit’)
predatory pricing:
deliberately undercutting
competitors’ prices in order
to try to force them out of
the market
