Midterm 1- Vocab Flashcards
1
Q
Product
A
Anything that can be offered to a market for attention, acquisition, use, consumption, that will satisfy a need or want.
2
Q
Service Characteristics
A
intangibility, inseparability, variability, imperishably
3
Q
Consumer Products
A
Bought for final personal consumption. Included are all Convenience, shopping, specialty, and unsought.
4
Q
Convenience products
A
Frequent purchase, little planning, little comparison or shopping effort, low consumer involvement.
Price is low
Dustribution widespread, convenient location.
Mass promotion by producer
Ex) toothpaste, magazines, laundry detergent
5
Q
Shopping products
A
Less frequent purchases, much planning and effort, comparison of brands on price, quality and style.
Higher pricing
Selective distribution
Advertising and personal selling by both producer and reseller
Ex) major appliances, televisions, furniture, clothing
6
Q
Specialty Products
A
Buying behavior:
Strong brand preference and loyalty, special purchase effort, little comparison of brand, low price sensitivity.
Price: High Price
Distribution: exclusive distribution
Promotion: Carefully targeted market
Ex) Rolex, Lambo, rolls royce
7
Q
Unsought Products
A
Little product awareness or knowledge.
Varies in price
Distribution varies
Promotion is aggressive and personal
Ex) life insurance, donations and red cross blood donation
8
Q
4 Ps
A
Product, place, price, promotion
9
Q
Customer Delight
A
Going above and beyond. Experience is better than expectation.
10
Q
Marketing Myopia
A
When a company overly develops a product and doesnt focus on consumer needs
11
Q
Market in Marketing Terms
A
Target consumer group
12
Q
Demands
A
Need or wants backed by demand
13
Q
Segmentation-
A
Divide into groups
14
Q
Targeting
A
Choosing which groups
15
Q
Value Proposition (Augmentation)
A
an innovation, service, or feature added to a product intended to make a company or product attractive to customers
EX) LV purse adding status
EX) Warranty on car tires
16
Q
Value in Marketing Terms
A
Perceived worth of product.
Not necessarily cheap
17
Q
4 Ps
A
Product
Promotion
Place (distribution)
Price
18
Q
Marketing Channel
A
Producer > Wholesale> Retailer > Customer
19
Q
Supply Chain
A
Raw Material Supplier > Manufacturer > Transport > Wholesale > Retailer > Consumer
20
Q
Customer Equity
A
All customers over time
21
Q
Life Time Value
A
Life long customers
22
Q
3 Main Areas For Development
A
Core, Actual, Augmented
23
Q
Core
A
Customer Value
24
Q
Actual
A
Product itself, branding and packaging, design, features,
25
Augmented
Extra features that come with product
| EX) Warranty, customer support, delivery methods
26
Two Qualities of Quality
```
1) Expected Performance Quality
EX) MC Donald's toy vs Toys R Us
2) Consistency
- No Defects
- Good Performance
```
27
Product Mix
All products a company sells. Includes width, length, dept, and consistence.
28
Product Line
Product category of product mixes. EX) Bath Products, Hair Care, and Auto Care under one company.
29
Product Line Stretching
An existing brand adding new products to attract customers that isn't a usual target.
EX) Toyota creating Yaris
30
Product Mix Length
How many products under one line.
| EX) Proctor & Gamble have 7 detergents companies in its Detergent Line.
31
Product Line Filling
New products to an existing line.
| EX) Doritos adding new flavor.
32
Product Line Width
Number of lines in a product mix.
33
Product Line Depth
Number of versions under one product..
| EX) Tide= Various smells, stain removers, ect
34
Product Idea Generation
Coming together with ideas for a product. Sometimes numbers range from 1000s.
35
Product Idea Screening
Screening of ideas to find those which are profitable, and can be developed.
36
Product Concept
Creating a model, description or picture to show to a test group to gain feedback on potential product.
37
Marketing strategy Development
Initial product strategy for proposed product.
(1) Target market, value proposition, early projected sales, market share, & profits
(2) Planned price, distribution, & marketing budget for 1st year
(3) Planned long-term sales, profit goals, & marketing mix strategy
38
Business Analysis
Takes a look at products ability to reach businesses profit objective goal through researching costs, sales, and profits. Might be done by analyzing similar products and conducting consumer research to see the low and high points of product sales and analyze risk.
39
Product Development
R&D comes up with product that meets concept goals as efficiently as possible. Product then goes through another round of consumer testing.
40
Test Marketing
Allows for businesses to test out real market by slowly introducing product and make potential adjustments to strategy before the investment of full scale marketing campaigns.
Can tune targeting and positioning strategy, advertising, distribution, pricing, branding and packaging, and budget levels.
Test marketing varies with product and confidence of market.
41
Commercialization
Full introduction to market. Maybe local, regional, national and global depending on business and marketing budget.
Must conclude on timing. May wait to distribute product based on economy, potential competitors, and perfection of product.
42
Customer Centered New Product Development
Products designed and improved upon by listening to consumers needs, wants, and desires.
Most successful products are in collaboration with consumer values and proper research and development. Avoiding Marketing Myopia.
43
Team Based New Product Development
Various members of a company team together to do a variety of tasks in their own field that allow for the product to be completed faster. If one area of development slows the others can continue to not significantly delay product commercialization.
Such teams usually include people from the marketing, finance, design, manufacturing, and legal departments and even supplier and customer companies.
44
Systematic New Product Development
Finally, the new product development process should be holistic and systematic rather than compartmentalized and haphazard. Otherwise, few new ideas will surface, and many good ideas will sputter and die. To avoid these problems, a company can install an innovation management system to collect, review, evaluate, and manage new product ideas.
45
Product Life Cycle
Tracking of a products sales and profits over product lifetime.
46
Introduction
Product is introduced to market and profits are used to replace cost of development and high cost of introduction.
47
Product Growth
Product sales are yielding profits at a high rate.
In the growth stage, the firm faces a trade-off between high market share and high current profit. By spending a lot of money on product improvement, promotion, and distribution, the company can capture a dominant position. In doing so, however, it gives up maximum current profit, which it hopes to make up in the next stage.
48
Product Maturity
Product sales have leveled. Most products are in the maturity stage of the life cycle, and therefore most of marketing management deals with the mature product.
The slowdown in sales growth results in many producers with many products to sell.
Competitors begin marking down prices, increasing their advertising and sales promotions, and upping their product development budgets to find better versions of the product. These steps lead to a drop in profit causing weak companies to fall out.
In modifying the market, the company tries to increase consumption by finding new users and new market segments for its brands. May find new uses for product.
49
Product Decline
Product sales are tapering off and profits stop.
50
Style
style is a basic and distinctive mode of expression. For example, styles appear in homes (colonial, ranch, transitional), clothing (formal, casual), and art (realist, surrealist, abstract). Once a style is invented, it may last for generations, passing in and out of vogue. A style has a cycle showing several periods of renewed interest.
51
Fashion
A fashion is a currently accepted or popular style in a given field. For example, the more formal “business attire” look of corporate dress of the 1980s and 1990s gave way to the “business casual” look of the 2000s and 2010s. Fashions tend to grow slowly, remain popular for a while, and then decline slowly.
52
Fad
A fast introduction and decline of a product that has high temporary sales in response to consumer enthusiasm.
53
Direct Marketing Channel
Manufaturer to consumer
54
Indirect Marketing Channel
Marketing channel with intermediary
55
Conventional distribution channel
One of more intermediarys
56
Vertical marketing channel
Where one business or corporation takes over whole channel
57
Brand Strategies:
Line filling, brand stretching: adding new product line
58
Multi brand Brand Strategy
A business strategy involving a company marketing several similar products as competitors, each with their own individual brand name. A Multi-brand strategy does have some advantages as a way of securing greater shelf space with little remaining for rival products
59
multi product Brand Strategy
Selling multiple types of product under one brand.
| EX) different chip flavors under lays
60
Mixed Branding
refer to co-branding, or marketing partnerships - where two companies come together to market each other, often by having both brands side by side.
EX) Betty Crocker Reeces cookies
61
Brand Loyalty Types
1. ) Awareness
2. ) Preference
3. ) Insistence
62
Brand Equity
Customers perceived value of brand
63
Industrial Products
End goal is with a business.
| Raw materials, industrial products like machines, and office supplies
64
Packaging Products
Shipping packaging, Product packaging first and second
65
Packaging Concept
Finding double uses for product packaging
| EX) Pill containers like Allegra sectioning off dosing, disposable, convenience
66
Goods Service Continuum
scale from pure service to pure good
EX) Salt is pure good and teaching is pure service
EX) Restaurant is in between
67
Upstream supply chain
Whos above you in marketing stream
| EX)Retailers upstream supply chain is the manufacturer and whole sale
68
Down Stream supply chain
Whos below you in supply chain
| EX) Retailers often focus on downstream which is the consumer
69
Marketing Exchange
Trading good or service for a product
70
Marketing Relationships
WHAT- Forging a customer/ business relationship
| WHY- To increase customer loyalty and strengthen relationship
71
Marketing Strategy
The marketing logic by which the company hopes to create this customer value and achieve these profitable relationships. The company decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning)
72
Marketing Mix
The 4 Ps based on strategy
73
Direct Channel
Manufacturer to consumer. Channel Length 0
74
Indirect Channel
Manufacturer- Whole Sale- Retail- Consumer Channel length- 2
75
3 Intermediary Levels
Exchange activities
Physical Distribution Activities
Facilitating Activities
76
Exchange Activities
Buying & selling
| Contacting, matching offers to needs, price negotiation
77
Physical Distribution Activities
transport and distribution
78
Facilitating Activities
Gathering data; sharing marketing information (trade of consumer wants and needs between intermediaries)
standardization & grading ( ways to standardize product in industry)
risk taking-
financing-
79
Horizontal Conflict
Conflict on same level of marketing channel
| EX) Two franchises fighting over sale promotion
80
Vertical conflict
Conflict between different levels of marketing channel
| EX) Mc donalds corp vs franchise
81
Vertical Marketing System
Where the traditional distribution channel merges together to create on beast. Done through contracts, under one company, and administered
82
Contract VMS
Where a vertical distribution channel is set up by contracts.
83
Corporate VMS
One company buys the manufacturer, wholesaler, and retailer.
84
Administered VMS
Where one entity in the distribution channel has more power in market and can demand the market.
EX) Clorox makes 1/3 of sales from Walmart while Walmart makes .5 of a percent
85
Conventional Marketing Channel
Manufacturer- whole saler- retailer- consumer
86
Horizontal Marketing Channel
Where two companies combine to support each other
EX) Two hardware shops joining to buy wholesale
EX) Nestle and General Mills creating sub brand to reach larger market
87
Multi channel Distribution Channels
EX) Online straight from manu. to consumer and store sales
88
Disintermediation
occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.
