Marketing Vocab 1- product/ service management

aseptic packaging
A sterile product is packaged in a sterile container in a way that maintains sterility
Ex. Yoo-Hoo milk
blisterpacks
Product is sealed in plastic, often with a cardboard backing
Ex. Hot wheel individual toy cars
brand
Name, design, or symbol that identifies the products of a company
Ex. Coca Cola
brand extension
Uses an existing brand name to promote a new and improved product in a company’s product line
Ex. Frozen snickers ice cream bar
brand label
Manufactured by one company for offer under another company’s brand
Ex. Gulden’s Mustard
brand licensing
Allows others to use the brand name for a fee
Ex. Sports logos
brand mark
Unique symbol, design, coloring, or lettering of a brand
Ex. Nike check
brand name
Word or group of words that can be spoken
Ex. nike
category management
Range of products purchased by a business or sold by a retailer is broken down into groups of similar products
Ex. grocery categories- meats, fruits, veggies
cause packaging
Companies using their packages to promote social and political causes
Ex. Tide “Loads of Hope” for Hurricane Katrina Victims
co-branding
combines one or more brands
Ex. Crest with Scope Mouthwash
descriptive label
Label with name, net weight, ingredients, composition, nutritional value and health values, etc
Ex. Coca cola labels
generic brands
Lacks a widely recognized name; less expensive than brand name products
Ex. Honey Nut Scooters vs. Honey nut Cheerios
grade label
Tag/ sticker/ label that identifies the quality of a product offered for sale
Ex. Restaurants have grade labels posted in order to let customers know
label
Information tag, wrapper, seal, or imprinted message that is attached to a product or package
-establishes an image , insures quality and consistency
Ex. GE light bulbs
mixed brand
National manufacturer makes the product for a private label
Ex. Michelin Tires for Sears
mixed bundling
Allows customers to purchase goods as a bundle or separately
Ex. Xbox and controller and game for $149 or buy one of the above individually
national brands
Brand name is marketed nationally
Ex. Red Bull
package
Physical container or wrapping for a product
Ex. packaging of goldfish crackers
planograms
model that indicates placement of retail products on shelves in order to maximize sales
Ex. Planograms used in walmart to organize all products in each row/ shelf
price bundling
when two or more similar products are placed on sale for one package price
-benefits business and customers
ex. 2 for 1 x box games
private distributor brands
Brand that is owned and distributed by a reseller without displaying the manuf. identity
Ex. Walmart brand for Johnson’s soap
product depth
The number pf product items in a product line
ex. a company sells three sizes and two flavors of toothpaste; product depth of six
product item
A specific model, brand, or size, or a product within a product line
ex. retailer that sells watches sells one type at a specific location
product life cycle
Sequence of stages; intro, growth, maturity, and decline
-changes in the market situation that impacts the marketing strategy and mix
-example: product life cycle of the television
product line
a group of closely related products manufactured or sold by a business
Ex. apple product line
product mix
All the different products that a company makes or sells
-six steps
-modification & deleting of products and ideas from the mix
product modification
Attempt to extend the length of the product life cycle by making small or big changes to a product
-used to keep customers interested or buy accessory items
product planning
The decisions made about what features should be used in selling of a business’s products
Ex. Nike collecting data to decide a new style of shoe
product positioning
Efforts a business makes to identify, place, and sell its products in the marketplace
Ex. Ford Motor company positions its Focus as an economical passenger car while still emphasizing quality
-positioned by features and benefits, characteristics, and price
product width
The number of different product lines a business manufactures or sells
Ex. Nike sells over 300 styles of shoe
trade name
Identifies the company or a division of a particular corporation
Ex. Kodak (Eastman Kodak Company)
trade character
Personified brand mark
Ex. Aflac Duck
trademark
word, name, symbol, sound, device, or combination that has been given legal protections by the federal gov
Ex. starbucks coffee logo
Price
value placed on a good or service
ROI
-used to compare a company’s profitability or to compare the efficiency of investments
-Return On Investment
Market share
portion of a market is controlled by a specific company or product
market position
effort to influence consumer perception of a brand or product relative to the perception of competing brands or products
ex. where sold, packaging, price
break-even point
point at which sales revenue equals costs and expenses of making a product
demand elasticity
degree to which the demand for a product is affected by its price
ex. availability of substitues
Law of diminishing marginal utility
consumers will only buy so much of a product even though prices are low
price fixing
competition agrees on price ranges; eliminates other competition
ex. Sherman anti-trust act of 1890
-must have evidence of communication between competitors
price discrimination
when a firm charges different prices to similar customers in similar situations
unit pricing
allows consumers to compare prices in relation to a standard unit
ex. ounces
loss leader
used to increase store traffic by selling popular items at below-cost prices
markup
used by wholesalers and retailers involved in acquiring goods for resale
-must be high enough to include a profit
ex. items cost $10 but sold for $15
skimming pricing
product pricing strategy; sets very high price
-used if high demand
-attracts competitors
-potential for high profit
penetration pricing
product pricing strategy; sets relatively low price to saturate the market
-most effective (elastic demand)
-mass production
price lining
set prices for products within lines of merchandise
-set price differences large enough apart to appeal to various target markets and to differ products
bundle pricing
complementary products sold in a package at a single price
-low than if sold separately
ex software
psychological pricing
strategy based on theory that certain prices have a psychological impact
ex. odd prices $19.99
geographical pricing
modifying a basic list price based on the geographical location of buyers
-reflects costs of shipping to different locations
everyday low prices
consistently low prices with no intention of raising them or offering discounts; not deeply discounted
promotional pricing
reducing the price of a product or services in short term to attract more customers and increase sales
gross profit
company’s total revenue minus the cost of goods sold
-profit company makes after deducting the costs associated with making and selling products
maintained markup
the gross product generated on merchandise sold
ex. initial, cummulative, exchanged markup