Unit 2 Flashcards
(28 cards)
What are the three main categories of products
Non-durable goods, durable goods, and services
what are non durable goods
consumed once and bought frequently
what are durable goods
lasts for an extended amount of time
what is a service
intangible activity, benefit, or satisfaction
What are the four I’s in products
Intangibility, Inventory, Inconsistency, Inseparability
whats a product line
A group of similar products that are closely related and apply to the same target market. Example: coke offering different beverages
Whats a product mix
All product lines marketed by a company
What are four brand strategies
Individual, Family, Sub-Brand, Brand extension
Whats individual branding
When a company uses a brand name solely for a specific product category. Example: tide ONLY sells detergent
Whats family branding
When a company uses a brand name to cover a number of different product categories. Example: Crest provides toothpaste, mouthwash, floss, teeth whitening products.
Whats Sub-branding
A brand that uses the family brand name as well as its own brand name and identity so that it can take on the strengths of the parent brand but also differentiate itself.
Whats Brand extension
When new goods or services are introduced under an existing flagship brand name
What are the four consumer products
Convenience, shopping, specialty, unsought
What are the four stages in the product life cycle
Introduction, growth, maturity, decline
whats introduction
When a product is first introduced. Profits are minimal due to slow sales growth, production development costs, marketing spending to launch new product. Lack of competition and lack of consumer awareness
Whats growth
Increase in competition and rapid growth in sales and profits.
Whats maturity
Competitors are well established, sales and profit begin to slow down and steady out. Not many new consumers. Generally the longest stage
Whats decline
Sales and profits steadily drop over time. This can happen when technological innovation comes in or consumers needs have changed
what are four other product life cycles
High learning, Low learning, Fad (very short lifestyle with rapid growth and rapid decline), Fashion
What are four life cycle strategies
Modifying the product (line extensions, product improvement), Modifying the market (Finding new consumers, increasing products use, creating a new use situation), Repositioning a new product, Introducing a new product
What are some risks with new product development
Expensive undertaking, High risk of failure, High research costs, time and effort, product failure=expensive write offs, lack of future credibility
What are the 7 steps in new product development
- new product development strategies, 2. idea generation, 3. screening and evaluation, 4. business evaluation, 5. development, 6. test marketing, 7. commercialization
what does barter mean
exchanging goods and services for other goods and services
what are demand oriented pricing approaches
Skimming (high initial price), Penetration (low initial price), prestige (high price for high quality so consumers are attracted to buy it), Price lining (a line of products sold at different prices), Odd-even (6.99), Target (adjusting prices for target market), Bundle (package price), Yield Management (seasons)
