Marketing mid-term 2 - PT.2

Product

A good, service, or idea consisting of tangible and intangible attributes that satisfy consumers.

Good

A tangible item that can be perceived by the consumer's senses.

Intangible Attributes

Characteristics of a product that cannot be touched or held, such as warranties.

Nondurable Goods

Products that are consumed in one or a few uses.

Durable Goods

Products that usually last over many uses.

Service

Intangible activities or benefits provided to satisfy consumer needs.

Idea

A thought that leads to a product or action.

Consumer Products

Products purchased by the ultimate consumer.

Business Products

Products that assist an organization in providing other products for resale.

Convenience Products

Items purchased frequently with a minimum of shopping effort.

Shopping Products

Items for which consumers compare several alternatives on selected criteria.

Specialty Products

Items that consumers make special efforts to seek out and buy.

Unsought Products

Items that consumers either do not know about or do not initially want.

Components (Business Products)

Items that become part of the final product, such as raw materials.

Support Products (Business Products)

Items used to assist in producing other goods and services.

Intangibility (Four I's of Service)

Services cannot be held, touched, or seen.

Inconsistency (Four I's of Service)

Quality of services varies with each person's capabilities and performance.

Inseparability (Four I's of Service)

The consumer cannot separate the service from its deliverer.

Inventory (Four I's of Service)

Inventory carrying costs are related to idle production capacity.

Continuous Innovation

No new behaviors must be learned to use the product.

Dynamically Continuous Innovation

Only minor behavioral changes are needed to use the product.

Discontinuous Innovation

Consumers must learn entirely new consumption patterns.

Factors for Product Success

Significant points of difference, complete market protocol, satisfaction of customer needs, good timing.

New Product Strategy Development

Defines the role for a new product in terms of the firm’s overall objectives.

Idea Generation (New Product Process)

The step involving the creation of new product ideas.

Screening and Evaluation (New Product Process)

The process of assessing new product ideas for their feasibility.

Development (New Product Process)

Turning an idea into a prototype for testing.

Market Testing (New Product Process)

Exposing actual products to prospective consumers under realistic conditions.

Commercialization (New Product Process)

The launch of a new product into full-scale production and sales.

Four Main Types of Consumer Products

Convenience, shopping, specialty, and unsought products.

Product Life Cycle

The stages a product goes through: introduction, growth, maturity, and decline.

Modify the Product (PLM Strategy)

Changing attributes of a product to meet customer needs or market conditions.

Modify the Market (PLM Strategy)

Expanding the product's reach to attract new customers.

Reposition the Product (PLM Strategy)

Changing the product’s image through marketing mix elements.

Branding

The process of identifying and differentiating a product from competitors.

Good Brand Name

Should suggest benefits, be memorable, align with company image, and be simple.

Multiproduct Branding

Using one brand name for all products in a category.

Multibranding

Assigning unique brand names to different products.

Private Branding

Producing goods sold under a retailer's brand name.

Mixed Branding

Marketing products under both the company’s and a reseller’s brand name.

Packaging

The container in which a product is offered for sale.

Labeling

Information conveyed on the product packaging.

Differences between Direct and Indirect Channels

Direct channels do not use intermediaries, while indirect channels do.

Supply Chain

The network of firms involved in performing activities required to create and deliver a product.

Intermediaries

Entities that enable the flow of products from producers to consumers.

Logistics

Activities focusing on getting the right products to the right place at the right time.

Marketing Channel

Individuals and firms that make a product or service available for consumption.

Advertising

Paid form of non-personal communication about a product or service.

Public Relations

Activities aimed at creating positive goodwill or an image for an organization.

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product.

Direct Marketing

Direct connections with targeted consumers to obtain immediate responses.

Hierarchy of Effects

Stages of consumer awareness and decision-making in response to advertising.

Aided Recall

Respondents are prompted to remember an ad or its message.

Unaided Recall

Respondents are asked to recall an ad without prompts.

Price Elasticity of Demand

The percentage change in quantity demanded relative to a percentage change in price.

Break-even Point

The quantity at which total revenue equals total cost.

Pricing Objectives

Goals that specify the role of price in marketing strategy.

Pricing Constraints

Factors that limit the range of prices a firm can charge.