marketing exam 2

product life cycle steps

introduction, growth, maturity, decline

PLC introduction

product introduced to target market, slow sales, minimal profit

PLC growth

rapid increase in sales, more competitors, aggressive pricing, peak profit

PLC maturity

industry sales/ product class revenue slows, marginal competitors leave market, most customers are repeat

PLC decline

product sales drop, deletion or harvesting occurs

Product deletion

product dropped from product line

Product harvesting

product stays on line but is no longer promoted

Product class

entire product category or industry

Product form

variations of a product within its product class

Diffusion of innovation

innovators, early adopters, early majority, late majority, laggards

Product modification

altering one or more of a product’s characteristics to increase value to customers and increase sales

Market modifcation

finding new customers, trying to increase use among existing customers, or create new use situations

Trading up

adding value to the product through adding features or using higher quality materials

Trading down

reducing product features, quality, or price (shrinkflation/downsizing)

Branding

using names, phrases, designs, and symbols to distinguish products from competition

Brand name

any word or device used to distinguish a product

Brand personality

human characteristics associated with a brand name

Brand equity

added value a brand name gives to a product, gives brands a competitive advantage, consumers will pay more 

Brand purpose

reason why a brand exists, purpose in customers’ lives

brand licensing

contractual agreement with another company, allowing them to use brand name or trademarks for a fee

Multiproduct branding strategy

company using one name for all of its product in a product class

Multibranding strategy

each product has a distinct name for distinct segments

Private branding strategy

company manufactures products but sells them under a wholesaler or retailer’s name

Mixed branding strategy

firms market products under its own name and under a seller’s name 

Packaging

container that a product is offered for sale, label information is conveyed

Convenience products

items the consumer purchases frequently, conveniently, and with minimal shopping effort

Specialty products

items that the consumer makes a special effort to search out and buy

Shopping products

items that the consumer compares alternatives using criteria

Unsought products

items that a consumer does not initially want or does not know about

components

items that become part of the final product

business products

components and support products

support products

items used to assist in producing other products and services

consumer products

convenience, shopping, specialty, and unsought products

product item

product that has a unique brand, size, or price

product line

a group of product or service items that are closely related

product mix

all the product lines offered by an organization

feature bloat

when product developers add unnecessary features to a product that do not benefit consumers

continuous innovation

no consumer learning

dynamically continuous innovation

some consumer learning

discontinuous innovation

impacts entire industry

New product development process

new-product strategy, idea generation, screening & evaluation, business analysis, development, market testing, and commercialization

meeting quota

downsizing

decreasing amount in package without changing packaging or price

consumer contact audit

flowchart of points of an interaction between customers and the service provider which customers judge services

portfolio test

target audience is shown a collection of ads to evaluate effectiveness before campaign launce

internal marketing

promotion of a company’s objectives, products, or services to employees within the organization

web 2.0

evolution of the internet toward user participation, social interaction, and collaboration

web 3.0

users have more control over their data and digital interactions

brand development index

percent of brand sales to total US sales/percentage of total US population in the market

adoption process

awareness, interest, evaluation, trial, adoption

disney service recovery

fix it, red carpet, hero, empathize

hero

high severity, low responsibility

red carpet

high severity, high responsibility

empathize

low severity, low responsibility

fix it

low severity, high responsibility

order getting

conventional selling

order taking

processing routine orders/reorders and preserving relationships with customers

premium

merchandise being offered at free/significant savings to encourage frequent return

sample

offering product at free or reduced price

usage barriers

difficult or unappealing to use

value barriers

not enough value per cost

risk barriers

risk to buyer, functional, physical, financial, social, psychological, or uncertainty

psychological barriers

mental/emotional factors

factors that affect adoption

usage barriers, value barriers, risk barriers, psychological barriers