AICE Business Lesson 19 Vocab

Product

Goods or services that are the end result of the production prcess and are sold on the market to satisfy customer needs

Marketing Mix

THe key decisions on product, promotion, price, and placement that must be taken to enable the effective marketing of the product

Goods

Products that are physical and tangible

Services

Products that are not physical and tangible

Brand

An identifying symbol, name, or image that distinguishes a product from its competitors

Intangible Attributes

THe subjective opinions of customers about a product, which can’t be measured or compared easily

Tangible Attributes

The measurable features of a product which can be easily compared to other products

New Product Development

The design, creation, and marketing of new products

Unique Selling Point

The special feature of a product that differentiates it from its competitors

Product Differentiation

The unique qualities of a product that cause a difference between the product and competitors’ products

Product Positioning

Consumers’ views of a product as compared to its competitors

Product Portfolio Analysis

Analysing the range of existing products of a business to help allocate resources effectively between them

Product Life Cycle

The pattern of sales for a product from launch to withdrawl from the market

Consumer Durable

A manufactured product that can be re-used and is expected to have a reasonably long life

Extension Strategy

A marketing plan to extent the maturity stage of the product before a new one is launched

Boston Matrix

A method of analysing the product portfolio of a business in terms of market share and growth

Mark-Up Pricing

Adding a fixed mark up for profit to the unit cost of buying a product

Cost-Plus Pricing

Setting a price by calculating a total unit cost for the product and then adding a fixed mark up

Contribution Cost Pricing

Setting prices based on the variable costs in order to make a contribution towards fixed costs and profit

Competitive Pricing

Making pricing decisions based off prices set by competitors

Price Discrimination

Charging different groups of people different prices for the same product

Dynamic Pricing

Offering products at a price that changes based off demand and customers’ ability to pay

Penetration Pricing

Setting a relatively low price to achieve a high volume of sales

Market Skimming

Setting a high price for a new product when it is unique with low price elasticity

Psychological Pricing

Setting a price at a level that matches consumers’ views about a product’s perceived value