Chapter 5 Flashcards
(30 cards)
Consumer goods
Purchased and used by the ultimate consumer
Product Item
A specific model or size of project
Business goods
Purchased by organizations for use in there operation
Point of Difference
Unique product characteristic or benefit that’s sets the product apart from its competitors
SWOT Anyalsis
Strength weakness opportunities and threats, helps develop a product
Idea generation
Creating an idea based off consumers, employees, and research
Screening and evaluation
Focus groups
Business analysis
Finical aspects are analyzed
Development
Developing a prototype
Test marketing
Offering a product to a small group to see its popularity
Commercialization
Involves producing and marketing a new product
Product life cycle
Introduction, growth, maturity, and decline
3 ways of Managing the life cycle
Modify the product
Market the product
Reposition the product
What does price determine?
A company’s profit or loss
Pricing strategy: prestige pricing
Pricing based on customer perception
Pricing strategy: odd-even pricing
Pricing goods with either an odd or an even number to match the products image
Pricing strategy: target pricing
Pricing goods according to what the customer is willing to pay
Markup
Difference between the retail or wholesale price
Cost-plus
Pricing products by calculating all costs and expenses and adding desired profit
Skimming pricing
Pricing a new item high
Penetration pricing
Pricing below the competion
Market share objective
The percentage of total sales of all the companies that sell a product
Price lining
Selling all goods in a product line at a specific price
Bundiling
Selling several items as a package for a set price
