Marketing ch 10&11

product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
services
intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value
convenience product
items that the consumer purchases frequently, conveniently and with a minimum shopping effort
shopping product
items for which the consumer compares several alternatives on criteria such as price, quality, or style
specialty product
items that the consumer makes a special effort to search out and buy
unsought product
items that the consumer does not know about or knows about but does not initially want
business product
products that organizations buy that assist in providing other products for resale
continuous innovation
consumers do not need to learn new behaviors
dynamically continuous innovation
only minor changes in behavior are required
discontinuous innovation
making the consumer learn entirely new consumption patterns to use the product
protocol
a statement that, before the product development begins, identifies (1) well-defined target, (2) specific consumers’ needs, wants, and preferences, and (3) what the product will be and do
new product process
the seven stages an organization goes through to identify business opportunities and convert them into salable products or services
new-product strategy development
the stage of the new product process that defines the role for a new product in terms of the firm’s overall objectives
idea generation
the second stage of the new-product process, involved developing a pool of concepts to serve as candidate for new products, building upon the previous stage’s results
screening and evaluation
internally and externally evaluates new product ideas to eliminate those that warrant no further effort
business analysis
specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
development
turns the idea on paper into a prototype
market testing
involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
commercialzation
positions and launches a new product in full-scale production and sales
product item
specific product that has a unique brand, size, or price
product line
a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
product mix
consists of all of the product lined offered by an organization
concept tests
external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product
prototype
a full-scale operating model of the product
regional rollouts
introducing a product sequentially into geographical areas of the United States, to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure
slotting fee
a payment a manufacturer makes to place a new item on a retailer’s shelf
failure fee
a penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell
parallel development
cross-functional team members who conduct the simultaneous development of both the product and the production process stay with the product from conception to production
fast prototyping
encouraging continuing improvement even after initial design
product life cycle
describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
introduction stage
product is introduced to its intended target market
growth stage
rapid increases in sales
maturity stage
slowing of total industry sales or product class revenue
deletion
dropping the product from the company’s product line
harvesting
a company retains the product but reduces marketing costs
high learning product
significant customer education is required and there is an extended introductory period
low-learning product
sales begin immediately because little learning is required by the consumer and the benefits of the purchase are readily understood
fashion product
style of the times; introduce, decline, then return
fad
rapid sales on introduction and then an equally rapid decline
product class
refers to the entire product category or industry
product form
pertains to variations within the product class
product modification
involves altering one or more of a product’s characteristics, such as quality, performance, or appearance, to increase the product’s value to customers and increase sales
product bundling
the sales of two or more separate products in one package
market modification
a company tries to find new customers, increase a product’s use among existing customers, or create new use situation
trading up
involves adding value to the product (or line) through additional features or higher-quality materials
trading down
involves reducing the number of features, quality, or price
branding
an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors
brand name
any word, device, or combination of these used to distinguish a seller’s goods or services
trade name
a commercial, legal name under which a company does business
trademark
identifies that a firm has legally registered its brand name or trade name so the firm has exclusive use, thereby preventing others from using it
brand personality
a set of human characteristics associated with a brand name
brand equity
brand name importance to a company
brand licensing
a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or a fee
multiproduct branding
a company uses one name for all its products in a product class
product line extensions
the practice of using a current brand name to enter a new market segment in its product class
subbranding
combines a corporate or family brand with a new brand, to distinguish a part of its product line from others
brand extension
the practice of using a current brand name to enter a different product class
co-branding
the pairing of two brand names of two manufacturers on a single product
multibranding
involves giving each product a distinct name
fighting brands
chief purpose is to confront competitor brands
private branding
when a company manufactures products but sells them under the brand name of a wholesaler or retailer
mixed branding
a firm markets products under its own names(s) and that of a reseller because the segment attracted to the reseller is different from its own market
packaging
refers to any container in which it is offered for sale and on which label information is conveyed
label
identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
shelf life
the time a product can be stored
warranty
a statement indicating the liability of the manufacturer for product deficiencies
express warranties
written statements of liabilities
limited-coverage warranty
specifically states the bounds of coverage and areas of noncoverage
full warranty
no limits of noncoverage
Magnuson-Moss Warranty/FTC Improvement Act (1975)
regulates the content of consumer warranties and so has strengthened consumer rights with regard to warranties
implied wwarranties
assign responsibility for product deficiencies to the manufacturer
trial
the initial purchase of a product by a consumer
primary demand
the desire for the product class rather than for a specific brand, since there are few competitors with the same product
selective demand
the preference for a specific brand
penetration pricing
companies price low to discourage competitive entry
repeat purchasers
people who tried the product, were satisfied, and bought again
product counterfeiting
involves low-cost copies of popular brands not manufactured by the original manufacturer or harm the company’s reputation