Unit 3 Key Terms

Harvest Strategy

The discontinuation of a product at the end of it’s life cycle.

Product Depth

Number of product variants within a product line.

Product Length

Number of similar products a business has within a product line.

Product Life Cycle

When a product is first introduced to when it is taken off of the market.

Product Line

Good in services with similar characteristics in the product mix.

Product Management

Coordination of activities required to make a product.

Product Mix

The good and service sold by a business

Product Width

The number of businesses product lines.

Purchasing

When a business buy things that are necessary to make a product.

Brand Extension

Using the popularity of an existing brand to sell more products.

Brand Identity

How a business wants customers to see it.

Brand Name

The name of a product or service.

Brand Promise

A statement that tells consumers about a product or services value.

Brand Strategy

A plan for how a business should appear to customers and competitors.

Logo

A symbol or design used by a company to identify it business and products.

Slogan

A phrase used by an individual, organization or product.

Break-Even Point

When cost and revenue are equal.

Keystone Pricing

Doubling the price a product was purchased or produced for.

Markup

Price added to the break even point to determine the selling price.

Percentage Markup

A percentage added to the products cost to determine what the selling price should be.

Price Elasticity

Change in quantity of good in response to it’s price changing.

Profit Margin

Difference between buying or making something and the price it’s sold at.

Return On Investment (ROI)

How much will be made from each marketing strategy and new customer.

Selling Price

The price that a product is sold to a consumer at.

Variable Expense

Prices that fluctuate based on production.

Fixed Expense

Expenses that never change.

Discount Pricing 

It is when there is a reduction in price based on cash, quantity, trade and seasonal factors.

Manufacturer’s Suggested Retail Price (MSRP)

The recommenced price point of a product to be sold in retail settings.

Pricing Policy

How a business sets it’s price.

Pricing Tactic

Methods of price manipulation

Product Mix Pricing

Adjusts prices within product lines to support the success of a product mix.

Psychological Pricing

It is a marketing tactic meant to generate an emotional response from the customer.

Brick and Mortar Retailer

A tradition business serving customers in a physical building instead of online.

Bulk Breaking

When an intermediary divides larger shipments into smaller amounts.

Freight Forwarder

Agents that sort product shipments.

Multichannel Retailer

A business that serves customers both online and in physical locations.

Non Store Retailer

Serve customers without requiring a physical location.

Physical Distribution

A series of activities that occur from the beginning to the end of distribution channel.

Supply Chain

The process and entities involved in turning raw materials into products to be purchased by customers.

Advertising

Promotion of products through non personal communication.

Institutional Advertising

Promoting a company for organization instead for an individual product.

Integrated Marketing Communications

Multiple elements of the promotional mix work together to persuade, inform, and remind customers of a company or product.

Participatory Marketing

A business engaging with a target market to include them in the communication process.

Personal Selling

A personalized approach to build long lasting customer relationships.

Product Advertising

Promotion an individual good or service.

Promotional Mix

A combination of strategies used sell a product in a promotion campaign.

Public Relations Strategy

To maintain a company image to the public.

Sales Promotion

Marketing strategies to attempt to increase customer demand.

Visual Merchandising

Showcasing product features and benefits by putting the product on display.