Real People Real Choices Chapter 9

Product Management
The systematic usually team based strategy of coordinating the products marketing mix.
Product Line
A firms total product offering designed to satisfy a single need or desire of target customers
Product Line Length
Determined by the number of separate items in the same category.
Cannibalization
The loss of sales of an existing brand when a new item in a product line or product family is introduced.
Product Mix
The total set of all products a firm offers for sale.
Product Mix width
The number of different product lines the firm produces.
Product Quality
The overall ability of a product to satisfy customers’ expectations.
Total Quality Management (TQM)
A management philosophy that focuses satisfying customers through empowering employees to be an active part of continuous quality improvement.
ISO 9000
Criteria developed by the international by the international organization of standardization to regulate product quality in Europe
ISO 14000
Standards of the International Organization for standardization concerned with “environment management” aimed at minimizing harmful effects on the environment.
Six Sigma
A process whereby firms work to limit product defects to 3.4 per million or fewer.
Product Life Cycle (PLC)
A concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, decline.
Introduction Stage
The first stage of the product life cycle in which slow growth follows the introduction of a new product in the marketplace.
Growth Stage
The second stage in the product life cycle, during which consumers accept the product and sales rapidly increase.
Maturity Stage
The third and longest stage in the product life cycle, during which sales peak and profit margins begin to grow.
Decline Stage
The final stage in the product life cycle, during which sales decrease as customer needs change.
Brand
A name, a term, a symbol or any other unique element of a product that identifies one firm’s product(s) and sets it apart from the competition.
Trademeark
The legal term for a brand name, brand mark, or trade character. trademarks legally registered by a government obtain protection for exclusive use in that country.
Brand Equity
The value of a brand to an organization.
Brand Meaning
The beliefs and associations that a consumer has about the brand.
Brand Storytelling
Marketers seek to engage consumers with compelling stories about brands.
Brand Extensions
A new product sold with the same brand name as a strong existing brand.
Sub-branding
Creating a secondary brand within a main brand that can help differentiate a product line to a desired target group.
Family Brand
A brand that a group of individual products or individual brands share.
National or Manufacturer Brands
Brands that the product manufacturer owns.
Private-Label brands
Brands that a certain retailer or distributor owns and sells
Generic Branding
A strategy in which products are not branded and are sold at the lowest price possible
Licensing
An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.
Cobranding
An agreement between two brands to work together to market a new product.
Package
The covering or container for a product that provides product protection, facilitates product use and storage and supplies important marketing communication.
Universal Product Code (UPC)
The set of black bars or lines printed on the side of bottom of most items sold in grocery stores and other mass-merchandising outlets. The UPC readable by scanners creates a national system of product identification
Brand Manager
An individual who is responsible for developing and implementing the marketing plan for a single brand.
Product Category Managers
Individuals who are responsible for developing and implementing the marketing plan for all brands and products within a product category.
Market Manager
An individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.
Venture Teams
Groups of people within an organization who work together to focus exclusively on the development of a new product.