Marketing Chap 9

product management

The systematic and usually team-based approach to coordinating all aspects of a product’s strategy development and execution.

product objectives

The direction and focus that marketers establish for their products, which ultimately support the broader marketing objectives of the business unit and are consistent with the firm’s overall mission.

product line

A firm’s total product offering designed to satisfy a single need or desire of target customers.

product line length

Determined by the number of separate items within the same category.

stock-keeping unit (SKU)

A unique identifier for each distinct product.

full-line product strategy

A product line strategy that targets many customer segments to boost sales potential.

limited-line product strategy

A product line strategy that has fewer product variations in order to send a signal of exclusivity or specialization to the market.

product line extension

A strategy to expand an existing product line by adding more brands or models.

upward product line stretch

A product line extension strategy that adds new items toward the higher-priced end of the market.

downward product line stretch

A product line extension strategy that adds new items toward the lower-priced end of the market.

two-way product line stretch

A product line extension strategy that simultaneously expands new items toward both the higher and lower ends of the market.

filling-out product strategy

A strategy to add sizes or styles not previously available in a product category.

cannibalization

The loss of sales of an existing brand when a new item in a product line or product family is introduced.

product mix

The total set of all products a firm offers for sale.

product mix width

The number of different product lines the firm produces.

internal customers

Coworkers who interact and harbor the attitude and belief that all activities ultimately impact external customers.

internal customer mindset

An organizational culture in which all organization members treat each other as valued customers.

ISO 9000

The most famous of the family of standards overseen by the International Organization of Standardization. ISO 9000 provides guidelines for organizations to improve the quality of their products and services and consistently meet customer expectations.

Six Sigma

A process whereby firms work to limit product defects to 3.4 per million or fewer.

product life cycle (PLC)

A concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline.

introduction stage

The first stage of the product life cycle, in which slow growth follows the introduction of a new product in the marketplace.

product relaunch

Using principles of segmentation, target marketing, and positioning to reposition an existing product for reintroduction into the product life cycle.

growth stage

The second stage in the product life cycle, during which consumers accept the product and sales rapidly increase.

maturity stage

The third and longest stage in the product life cycle, during which sales peak and profit margins narrow.

decline stage

The final stage in the product life cycle, during which sales decrease as customer needs change.

brand

A name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and sets it apart from the competition.

trademark

The legal term for a brand name, brand mark, or trade character; these are legally registered by a government obtain protection for exclusive use in that country.

brand equity

The value of a brand to an organization.

brand meaning

The beliefs and associations that a consumer has about the brand.

brand personality

A distinctive image that captures the character and benefits of a good or service.

brand anthropomorphism

The assignment of human characteristics and qualities to a brand.

sub-branding

Creating a secondary brand within a main brand that can help differentiate a product line to a desired target group.

family brand

A brand that a group of individual products or individual brands share.

national or manufacturer brands

Brands that the product manufacturer owns.

private-label brands

Brands that a certain retailer or distributor owns and sells.

licensing

An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.

cobranding

An agreement between two brands to work together to market a product.

product category manager

An individual who is responsible for developing and implementing the marketing plan for all the brands and products within a product category.

market manager

An individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.

venture teams

Groups of people within an organization who work together to focus exclusively on the development of a new product.