Principles of Marketing Chapter 8/9

product
anything that can be offered to a market
service
activity, benefit, satisfaction offered for sale
three levels of product
core customer value, actual product, augmented product
consumer products
bought by final consumers for personal use
convenience product
usually bought frequently, immediately, minimal comparison
specialty product
has unique characteristics or brand ID for which a specific group is willing to make purchase
unsought product
consumer does not know about or knows about but does not normally consider buying
industrial product
bought for further processing or for use in conducting business
social marketing
use of concepts and tools in programs designed to influence behavior to improve their well-being and that of society
product quality
ability to satisfy stated or implied needs
total quality management (TQM)
everyone in company is involved for constant improvement
brand
name, term, sign, symbol, or design
packaging
activities of designing and producing the container or wrapper for a product
product line
group of products that are closely related
product mix/portfolio
set of all product lines
service intangibility
cannot be seen, tasted, felt, heard, or smelled before bought
service inseperability
produced and consumed at same time and cannot be separated from providers
service variability
quality may vary greatly depending on who provides them and when, where, and how they are provided
service proft chain
chain that links service firm profits with employee and customer satisfaction (internal service quality, satisfied and productive service employees, gretaer service value, satisfied and loyal customers, healthy service profits and growth)
internal marketing
motivating customer contact employees
interactive marketing
training in the fine art of interacting with customers to satisfy their needs
brand equity
differential effect knowing the brand name has on customer response
brand value
total financial value of brand
brand name selection
should suggest something about it, should be easy to pronounce/understand, should be distinctive, should be expandable, should translate easily
store brand (or private brand)
created and owned by a reseller of a product and service
co-branding
practice of using the established brand names of two diff. companies of same product
line extension
extending current brand name to new forms, colors, sizes, etc.
brand extension
to new product categories
new product development
development of original products, improvements, modifications, new brands
idea generation
systematic search for new product ideas
crowdsourcing
inviting outside sources to help in innovation process
idea screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
product concept
detailed version of new product idea stated in meaningful consumer terms
concept testing
with a group of target consumers to find out if the concepts have strong consumer appeal
marketing strategy development
design an initial marketing strategy for a new product based on the product concept
business analysis
review of sales, cost, profit projections for a new product
product development
developing product concept into a physical product to ensure that it can work
test marketing
stage of new product development in which product and its proposed marketing program are tested in market setting
commercialization
intro of new product into market
customer-centered new product development
focuses on finding new ways to solve customer satisfying experiences
team-based new product development
various company department work closely together, overlapping the steps to save time and increase effectiveness
product life cycle (PLC)
course of a product’s sales and profits over time (development, intro, growth, maturity, decline)
style
basic and distinctive mode of expression
fashion
currently accepted or popular style in a given field
fad
temporary period of unusually high sales driven by popularity
intro stage
new product first distributed and made available
growth stage
product sales climb quicly
maturity stage
sales start to level off
decline stage
sales fade away