chapter 11 marketing final terms

creative destruction
a process of industrial mutation that incessantly revolutionizes the economic structure from within, destroying the old one and creating a new one
product life cycle
describes the stages a new product goes through in the marketplace
stages of product life cycle
1. introduction
2. Growth
3. maturity
4. decline
product class
consists of the entire product category
product form
consists of the variation of a product
product modification
strategy in which the firm alters one or more of its characteristics in order to increase the value to its target customers
market modification
strategy in which the firm tries to find newer customers or markets
trading up
occur when a firm adds more features that customers may find to be of added value
trading down
occurs when a firm reduces the number of features in order to lower the price of its product
brand name
any word, design, shape, sound, color or combination of these used to distinguish a firm’s products or services
branding strategy
the strategic decision taken by a firm to identify their products or services by using a unique word, design, sound, color or combination of these
brand personality
associating human characteristics to a brand a firm aims to develop
trade name
the legal name under which a firm conducts its business operations
brand equity
additional commercial value (over and above its functional use) that a product or services derives based on the brand name and brand personality that perceived by the customer
brand licensing
a firm may authorize another firm through a contract to use its brand name in return for a royalty or fee
packaging
any container or outer shell in which a product is offered for sale
label
any information that typically identifies the brand, the name of the firm making it, the place where it was made, the date and year it was made, instructions on how to use it, and the contents and ingredients used in the making, placed on the container or outer shell
warranty
statement, usually as part of the label, indicating the liability of the manufacturer for product deficiencies