mkt 309 uwl exam 2 terms

BRAND EQUITY

the added value a brand name gives to a product beyond the functional benefits provided

BRAND NAME

that part of a brand that can be spoken, including letters, words, and numbers

LABEL

integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients

MIXED BRANDING

a branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market

PACKAGING

involves designing and producing the container or wrapper for a product

PRODUCT LIFE CYCLE

describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

TRADE NAME

a commercial, legal name under which a company does business

INTRODUCTION STAGE

occurs when a product is introduced to its intended target market

MATURITY STAGE

characterized by a slowing of total industry sales or product class revenue, majority of competitors begin to leave the market

ADOPTION

the process by which a consumer or business customer begins to buy and use a new good, service, or idea

BRAND PREFERENCE

the degree of brand loyalty in which a customer prefers one brand over competitive offerings

NATIONAL BRAND

also know as manufacturer's brand - is one that represents the manufacturer has assumed all responsibility of branding.

DEALER BRAND

A brand that is owned by the wholesaler or retailer rather than the manufacturer

Family/Umbrella Branding

marketing several different products under the same brand name

GENERIC BRAND STRATEGY

Strategy in which no brand name is used

BRAND LICENSING

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee

BRANDING

a name, logo, slogan, and/or ad campaign associated with a product or service

MARKET MODIFICATION

a company tries to find new customers, increase a product's use among existing customers, or create new use situations

MULTI-PRODUCT BRANDING

a company uses one name for all its products in a product class

PRIVATE BRANDING

a branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding

PRODUCT MODIFICATION

involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales

TRADEMARK

A brand that has exclusive legal protection for both its brand name and its design

GROWTH STAGE

characterized by rapid increases in sales. It is in this stage that competitors appear

DECLINE STAGE

occurs when sales drop

DIFFUSION

product spreads through the population

BRAND LOYALTY

consistent preference for one brand over all others

MANUFACTURERS BRAND

brand name owned by a manufacturer or other producer

PRIVATE BRAND

a brand name owned by a wholesaler or a retailer

CAPTIVE BRAND

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

INDIVIDUAL BRAND STRATEGY

Strategy in which there is a unique name for each major product or product line

CO-BRANDING STRATEGY

Combining two or more brands to increase customer loyalty and sales for each individual brand.

barter

Exchange goods without involving money.

demand curve

a graph of the relationship between the price of a good and the quantity demanded

price

The amount of money exchanged for a good or service

price constraints

factors that limit the range of prices a firm may set

profit equation

total revenue - total cost

total revenue

the total amount of money a firm receives by selling goods or services

pricing objective

involve specifying the role of price in an organization's marketing and strategic plans

break-even analysis

a method of determining what sales volume must be reached before total revenue equals total costs

fixed cost

a cost that does not change, no matter how much of a good is produced

price elasticity of demand

a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

total cost

fixed costs plus variable costs

unit variable cost

variable cost expressed on a per unit basis for a product

variable cost

a cost that rises or falls depending on how much is produced

ABOVE, AT, BELOW MARKETING

setting a market price for a product or product class based on a subjective feel for the competitors price or market price

BUNDLE PRICING

Packaging together two or more complementary products and selling them at a single price

CUSTOMARY PRICING

involves setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

FIXED-PRICE POLICY

setting one price for all buyers of a product or service

LOSS-LEADER PRICING

the pricing policy of setting prices very low or even below cost to attract customers into a store

PENETRATION PRICING

setting a low initial price on a new product to appeal immediately to the mass market

PRESTIGE PRICING

charging a high price to help promote a high-quality image

PRICE FIXING

an agreement among firms to charge one price for the same good

PRODUCT LINE PRICING

establishing and adjusting prices of multiple products within a product line

QUANTITY DISCOUNTS

discounts offered to encourage customers to buy in larger amounts

STANDARD MARKUP PRICING

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

TARGET RETURN ON INVESTMENT (ROI)

Pricing that allows the firm to attain its profit goal, which is a percentage of the investment the firm has made

BASING POINT PRICING

a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer

COST-PLUS PRICING

adding a standard markup to the cost of the product

EVER DAY LOW PRICE (EDLIP)

the practice of replacing promotional allowances with lower manufacturer list prices

FOB ORIGIN PRICING

a price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")

ODD/EVEN PRICING

Ending the price with certain numbers to influence buyers' perceptions of the price or product

PREDATROY PRICING

the practice of charging a very low price for a product with the intent of driving competitors out of business

PRICE DISCRIMINATION

the business practice of selling the same good at different prices to different customers

PRICE LINING

the practice of offering a product line with several items at specific price points

PROMOTIONAL ALLOWANCE

Money that the manufacturer pays to the reseller to cover the costs of promotion done by the reseller

SKIMMING PRICING

a new product pricing strategy that aims to maximize profitability by offering new products at a premium price

TARGET PRICING

pricing goods according to what the customer is willing to pay

UNIFORMED DELIVERED PRICE

the price the seller quotes that includes all transportation costs

business analysis

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

commercialization

introducing a new product into the market

convenience products

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

idea generation

the systematic search for new product ideas

new product development process

A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization

open innovation

opening up the search for new ideas beyond the organization's boundaries and allowing innovations to easily transfer inward and outward

product item

a specific version of a product that can be designated as a distinct offering among an organization's products

product mix

the complete set of all products offered by a firm

services

Actions or activities that one person performs for another

business products

products meant for use in producing other products

consumer products

products purchased to satisfy personal and family needs

product development

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

market testing

the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy

new product strategy development

the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives

product

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

product line

a group of closely related product items

screening and evaluation

the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort

shopping products

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

specialty products

items with unique characteristics that buyers are willing to expend considerable effort to obtain

new to the world products

create an entirely new market and are the smallest category of new products

concept testing

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

test marketing

the process of testing products among potential users

new product committee

a group of key functional personnel who are brought together periodically to develop new products

venture team

a cross-functional group that creates entirely new products that may be aimed at new markets

unsought products

Products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think of buying

line extension

development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs

screening

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason

prototyping

the process of building a model that demonstrates the features of a proposed product, service, or system

market development

a marketing strategy that entails attracting new customers to existing products

commercerialization

the stage of new product development process that positions and launches a new product in full scale production and sales

new product department

A department set up within the company for the specific purpose of developing new products.

Bootlegging

informal work on projects, other than those officially assigned, of employees' own choosing and initiative