Business- Chapter 12

test marketing
a trial minilaunch of a product in limited areas that represent the potential market
commercialization
the full introduction of a complete marketing strategy and the launch of the product for commercial success
consumer products
products intended for household or family use
business products
products that are used directly or indirectly in the operation or manufacturing processes of businesses
product line
a group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations
product mix
all the products offered by an organization
branding
the process of naming and identifying products
trademark
a brand that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm
manufacturer brands
brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
private distributor brands
brands, which may cost less than manufacturer brands, that are owned and controlled by a wholesaler or retailer
packaging
the external container that holds and describes the product
labeling
the presentation of important information on a package
quality
the degree to which a good, service, or idea meets the demands and requirements of customers
price skimming
charging the highest possible price that buyers who want the product will pay
penetration price
a low price designed to help a product enter the market and gain market share rapidly
psychological pricing
encouraging purchases based on emotional rather than rational responses to the price
discounts
temporary price reductions, often employed to boost sales
marketing channel
a group of organizations that move products from their producer to customers; also called a channel of distribution
retailers
intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products
wholesalers
intermediaries who buy from producers or from other wholesalers and sell to retailers
intensive distribution
a form of market coverage whereby a product is made available in as many outlets as possible
selective distribution
a form of market coverage whereby only a small number of all available outlets are used to expose products
exclusive distribution
the awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory
physical distribution
all the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling
transportation
the shipment of products to buyers
warehousing
the design and operation of facilities to receive, store, and ship products
materials handling
the physical handling and movement of products in warehousing and transportation
integrated marketing communications
the physical handling and movement of products in warehousing and transportation
advertising
a paid form of nonpersonal communication transmitted through a mass medium, such as television commercials or magazine advertisements
advertising campaign
designing a series of advertisements and placing them in various media to reach a particular target market
personal selling
direct, two-way communication with buyers and potential buyers
publicity
nonpersonal communication transmitted through the mass media but not paid for directly by the firm
sales promotion
direct inducements offering added value or some other incentive for buyers to enter into an exchange
push strategy
an attempt to motivate intermediaries to push the product down to their customers
pull strategy
the use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available
promotional positioning
the use of promotion to create and maintain an image of a product in buyers’ minds
generic products
products with no brand name that often come in simple packages and carry only their generic name