Ch 12 RSM Marketing Management

Product
a bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants.
convenience products
are items that consumers purchase frequently, immediately, and with little effort. (newspapers, candy, snacks…)
shopping product
those products that are usually purchases only after the buyer has compared competing products in competing stores.
Product line
a group of related products that share physical similarities or are targeted toward a similar market
product mix
the assortment of product lines and individual goods and services that a firm offers to consumers and business users.
product life cycle
the four basic stages in the development of a successful product– intro, growth, maturity, and decline.
introduction stage
the firm takes on several activities: promoting demand for its new offering; informing the market abt the product; offering free samples to interest consumers in making their first purchase; and explaining the products feautures, uses and benefits.
Growth Stage
Sales climb quickly quickly as new customers join the early users who now are repurchasing the item.
Maturity stage
industry sales first increase, but then reach a saturation level when further expansion is difficult.
Decline stage
4th phase of product life cycle. Profits decrease and may become losses, as the reduced overall market for the product leads to further price-cutting.
6 stages in new product developent
Generate new product ideas, Screening (removes ideas that dont work), Concept Development and Businessv analysis (further screening occurs. assessing potentials sale, profits…use concept testing at this stage&focus groups), Product development (prototypes), then test marketing, and commercialization (made availible in marketplace).
Test Marketing
the introduction of a new product and a complete marketing campaign to a selected city or TV coverage area.
Brand
a name, term, sign, symbol, design, or some combination that identifies the products of one firm and shows how they differ from competitor’s offerings.
Brand Name
the part of the brand that is made up words or letters that form a name. It is used to identify a firm’s products AND SHOw how they differ from the products of competitors.
trademark
a brand that has been given legal protection
brand equity
that added value that a respected and successful name gives a product
Brand Loyalty (Measured in 3 stages)
Brand preference(customer recognizes the brand but does not choose it over other brands), recognition (chooses one brand over another), insistence (search for that brand only).
category advisor
the individual that the business customer assigns as the major supplier to deal with all the other suppliers for a project. The Category advisor also presents the entire package to the business buyer
distribution strategy
a plan that deals with the marketing activities and institutions that get the right good or service to the firms customers
distribution channels
the paths that products-and their legal ownership-follow from producer to consumers or business users
physical distribution
the actual movement of products from producer to consumers or business users.
wholesaler
a distribution channel member that sells primarily to retailers, other wholesalers, or business users.
retailers
distribution channel members that sell goods and services to individuals for their own use, not for resale.
supply chain
the complete sequence of suppliers that help to create a good or service and deliver it to a business users and final customers
logistics
the process of coordinating the flow of goods, services and the information among members of the supply chain
vendor managed inventory
the process in which the producer and the retailer agree that the producer (or the wholesaler) will decide how much of a product a buyer needs and automatically ship new supplies when needed.