exam 3 mkt final

Product

A good, service, or idea with a bundle of tangible and intangible attributes that satisfies consumer needs.

Consumer Products

Items purchased by the ultimate consumer.

Business Products

Items purchased by organizations that assist in providing other products for resale.

New-Product Development Process

Seven stages organizations go through to identify opportunities and convert them into salable products or services.

Feature Bloat

Adding unnecessary features or functionality to a product.

Feature Fatigue

The complexity of a product that reduces consumer satisfaction.

Gap Analysis

Comparing consumer expectations with actual experiences to assess service quality.

Convenience Products

Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

Shopping Products

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

Specialty Products

Items that a consumer makes a special effort to search out and buy.

Unsought Products

Items that the consumer either does not know about or knows about but does not initially want.

Idle Production Capacity

Occurs when the service provider is available but there is no demand for the service.

Product Item

Stock-keeping unit (SKU).

Product Line

Closely related group of items.

Product Mix

All of the product lines offered by a company.

Continuous Innovation

Consumers do not need to learn new behaviors.

Dynamically Continuous Innovation

Minor behavior changes are needed.

Discontinuous Innovation

Consumer learns new consumption patterns in order to use the product.

Brand Extension

Using the brand name on a new product.

Protocol

(1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

Product Life Cycle

Describes the stages a product goes through in the marketplace: introduction, growth, maturity, and decline.

Branding

Marketing decision in which an organization uses a name, phrase, design, or symbols to identify its products and distinguish them from competitors.

Brand Equity

The added value a brand name gives to a product beyond the functional benefits it provides.

Packaging

Any container in which a product is offered for sale and on which label information is conveyed.

Seven Ps of Services Marketing

Product, price, place, promotion, people, physical environment, and process.

Channel Conflict

Arises when one channel member believes another is engaging in behavior that prevents it from achieving its goals.

Logistics Management

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.

Supply Chain Management

Integration of information and logistics across firms to create and deliver products and services that provide value to consumers.

Skimming Pricing

setting initial price high for highly desirable products

Penetration Pricing

initial price is set low to appeal to masses

Prestige Pricing

price is set high so status conscious consumers are attracted

Odd-Even Pricing

prices are set slightly under an even number

Bundle Pricing

marketing of 2 or more products in a single package price

Standard Markup Pricing

adding fixed percentage to cost of all items in specific product class

Cost-Plus Pricing

summing total unit cost of providing a product + specific amount to the cost to arrive at a price

Target Profit Pricing

setting an annual target of a specific dollar volume of profit

Target return on sales pricing

price is set to achieve a profit that is a specific percentage of the sales volume

What are the 2 cost oriented approaches

standard markup and cost-plus

The 3 profit oriented approaches

target profit, target return on sales, and target return on involvement 

Target return on investment pricing

price is set to achieve an annual target return on investment

The 3 competition oriented approaches

Customary, above at or below market, and loss leader

customary pricing

price is set by tradition, a standardized channel of distribution, or other competitive factors

Above at or below market pricing

market price is set based on subjective feel fro competitors price as benchmark

Loss leader pricing

selling product below its customary price to attract customer attention on their other products

Price Equation

list price - (incentives+allowances) + extra fees

Value

what a customer receives

value pricing

simultaneously increasing product and service benefits while maintaining or decreasing price

The 5 demand oriented approaches

Skimming, Penetration, Prestige, Odd-Even, and Bundle