Marketing 305 Exam 4

product life cycle
the stages that a really new product idea goes through: market introduction, product growth, market maturity, and sales decline
market introduction
stage of the product life cycle when sales are low as a new idea is first introduced to a market
market growth
stage of the product life cycle when industry sales grow fast- but industry profits rise and then start falling
market maturity
stage of the product life cycle when industry sales level off and competition gets tougher
sales decline
stage of the product life cycle when new products replace the old
fashion
the currently accepted or popular style
fad
idea that is fashionable only to certain groups who are enthusiastic about it
new product
one that is new in any way for the company concerned
Federal Trade Commission (FTC)
the federal government agency that polices antimonopoly laws
Consumer Product Safety Act
set up the Consumer Product Safety Commission to encourage safety in product design and better quality control
product liability
legal obligation ofsellers to pay damages to individuals who are injured by defective or unsafe products
concept testing
getting reactions from customers about how well a new product idea fits their needs
product managers (brand manager)
manage only specific products
total quality management (TQM)
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities, to better serve customer needs
continuous improvement
a commitment to constantly make things better one step at a time
Pareto chart
a graph that shows the number of times a problem cause occurs, with problem causes ordered from most frequent to least frequent
fishbone diagram
visual aid that helps organize cause-and-effect relationships for “things gone wrong”
empowerment
giving employees the authority to correct a problem without first checking with management
place
making goods and services available in the right quantities and locations, when customers want them
channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer
direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
discrepancy of quantity
difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want
discrepancy of assortment
difference between the lines a typical producer makes and the assortment final consumers or users want
regrouping activities
adjusts the quantities or assortments of products handled at each level in a channel of distribution: accumulating, bulk-breaking, sorting, and assorting
accumulating
collecting products from many small producers
bulk-breaking
dividing larger quntities into smaller quantities as products get closer to the final market
sorting
separating products into grades and qualities desired by different target markets
assorting
putting together a variety of products to give a target market what it wants
traditional channel systems
various channel members make little or no effort to cooperate with each other
vertical marketing systems
channels in which the whole channel focuses on the same target market at the end of the channel: corporate, administered, and contractul
corporate channel systems
corporate ownership all along the channel
vertical integration
acquiring firms at different levels of channel activity
administered channel systems
channel members informally agree to cooperate with each other
contractual channel systems
the channel members agree by contract to cooperate with each other
ideal market exposure
makes a product available widely enough to satisfy target customers’ needs but not exceed them
intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product
selective distribution
selling through only those intermediaries who will give the product special attention
exclusive distribution
selling through only one intermediary in a particular geographic area
multichannel distribution
occurs when a producer uses several competing channels to reach the same target market
reverse channels
channels used to retrieve products that customers no longer want
exporting
selling some of what the firm produces to foreign markets
licensing
selling the right to use some process, trademark, patent, or other right for a fee or royalty
management contracting
the seller provides only management and marketing skills
joint venture
a domestic firm enters into a partnership with a foreign firm
direct investment
a parent firm has a division in a foreign market
logistics
transporting, storing, and handling of goods in ways that match target customers’ needs with a firm’s marketing mix
physical distribution (PD)
another common name for logistics
customer service level
how rapidly and dependably a firm can deliver what they, the customers, want
physical distribution (PD) concept
all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer value
total cost approach
evaluating each possible PD system and identifying all of the costs of each alternative
supply chain
complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
electronic data interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems
transporting
the marketing function of moving goods
containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers fr transit to the final destination
piggybank service
loading truck trailers on railcars to provide both speed and flexibility
storing
the marketing function of holding goods so they’re available when they’re needed
inventory
amount of goods being stored
private warehouses
storing facilities owned or leased by companies for their own use
public warehouse
independent storing facilities
distribution center
special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs