Marketing Exam #3 Melissa Moore Mississippi State University

The introduction stage

the PLC stage in which a new product is first distributed and made available for purchase

growth stage

the PLC stage in which a product's sales start climbing quickly

decline

Phasing out weak items is a product strategy in what phase

new product development

the development of original products, product improvements, product modifications, and new brands through the firm's own efforts

maturity stage

the PLC stage in which a product's sales growth slows or levels off

fashion

a currently accepted or popular style in a given field

product development

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

decline stage

the PLC stage in which a product's sales fade away

crowdsourcing

inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process

a fad

a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

style

a basic and distinctive mode of expression

Customer-centered new product development

focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

growth

Offering product extensions, service, and warranty is a product strategy in what phase

introduction stage

the PLC stage in which a new product is first distributed and made available for purchase

product concept

a detailed version of a new product idea stated in meaningful consumer terms

idea screening

scanning new product ideas to spot good ideas and drop poor ones as soon as possible

Team-based new product development

involves various company departments working closely together, overlapping the steps in the product development process to save time and increase effectiveness

marketing strategy development

designing an initial marketing strategy for a new product based on the product concept

maturity

Modifying the market, product offering, or marketing mix is a product strategy in what phase

idea generation

the systematic search for new product ideas

concept testing

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

Commercialization

the step of the new product process that involves introducing the new product into the​ market, which includes deciding when and where to introduce the product

test marketing

the stage of the new product development during which the product and its proposed marketing program are tested in realistic market​ settings, usually concentrated in a few geographical areas

marketing strategy development stage

Included in this stage are determining the​ budgets, pricing, and distribution for the new product

product life cycle (PLC)

the course that a​ product's sales and profits take over its lifetime

product​ development,

introduction,​

growth,

maturity,

decline

What are the five stages of PLC

fixed costs

costs that do not vary with production or sales level

target costing

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

determining costs that can be incurred

what is the third step in value-based pricing.

psychological pricing

the price is used to say something about the product

demand curve

shows the number of units the market will buy in a given time period, at different prices that might be changed

Setting a target price to match the customer's perceived value

what is the second step in value-based pricing

Customer value-based pricing

based on a buyer's perceptions of value rather than on the seller's cost

product line pricing

setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

price elasticity

a measure of the sensitivity of demand to changes in price

variable costs

costs that vary directly with the level of production

market penetration pricing

setting a low price for a new product in order to attract a large number of buyers and a large market share

Market-skimming pricing

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

total costs

the sum of the fixed and variable costs for any given level of production

captive product pricing

setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console

Good-value pricing

offering just the right combination of quality and good service at a fair price

Designing products to deliver the desired value at a target price

what is the fourth step in value-based pricing

designing a good product

what is the first step in cost-based pricing

Value-added pricing

attaching features and services to differentiate a company's offers and charging higher prices

price

the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

cost-plus pricing

when a marketer adds a standard​ mark-up to the cost of the product

competition-based pricing

when a marketer sets prices based on​ competitor's strategies,​ prices, costs, and market offerings

reference prices

prices that buyers carry in their minds and refer to when looking at a given product

intensive distribution

stocking the product in as many outlets as possible

A third-party logistics provider

performs any or all of the functions required to get a client's product to market

horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

direct marketing channel

a marketing channel that has no intermediary level

Disintermediation

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

administered vertical marketing system

coordinates successive stages of production and distribution through the size and power of one of the parties

marketing channel

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

marketing logistics

planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customers' requirements at a profit

selective distribution

the use of more than one but fewer than all of the intermediaries who are willing carry the company's products

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

multichannel distribution system

uses a single firm to set up two or more marketing channels to reach one or more customer segments

conventional distribution channel

a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

indirect marketing channel

a marketing channel containing one or more intermediary levels

supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

integrated logistics management

the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system

channel level

a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer

contractual vertical marketing system

consists of independent firms at different levels of production and distribution joining together through contracts

multichannel marketing

selecting, managing, and motivating individual channel members and evaluating their performance over time

vertical marketing system

a channel structure in which producers, wholesalers, and retailers act as a unified system

superstore

a store that offers a large assortment of routinely purchased food products, nonfood items, and services.

franchise organization

a contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent business people who buy the right to own and operate one or more business units in the franchise system).

shopping center

a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

retailer

a business whose sales come primarily from retailing

product assortment and services decision

Deciding on store atmosphere is an example of what

limited-service wholesalers

only offer specific services, like cash and carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order or web wholesalers

department stores

a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers

supermarket

a large, low-cost, low-margin, high-volume self-service store that carries a wide variety of grocery and household products

industrial distributors

sell to manufacturers rather than to retailers

convenience store

a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods

retailer cooperative

a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts

promotion decisions

Advertising, personal selling, sales promotion, public relations, and direct marketing are all considered what

service retailer

a retailer whose product line is actually a service; examples includes hotels, airlines, banks, and colleges

price decision

Deciding on either high markups on lower volume or low markups on higher volume is an example of what

retailing

all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use

voluntary chain

a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising

wholesale merchants

sell primarily to retailers and provide a full range of services

place decision

Choosing locations that are accessible to the target market in areas that are consistent with the retailer's positioning is an example of what

corporate chain

two or more outlets that are commonly owned and controlled

full-service wholesalers

provide a complete line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance