Managing Successful Products, Services, and Brands

This set of flashcards covers essential vocabulary and concepts related to managing products and brands, including definitions and explanations of key terms related to the product life cycle, branding strategies, and market dynamics.

Product Life Cycle

Describes the stages a new product goes through in the marketplace—introduction, growth, maturity, and decline.

Primary demand

Desire for the product class rather than for a specific brand.

Selective demand

Preference for a specific brand.

Harvesting

Retaining a product while reducing marketing costs.

Divesting

Selling a brand to another company.

Deletion

Dropping a product from the company's product line.

Skimming pricing

Setting a high initial price to help the company recover development costs.

Penetration pricing

Setting a low initial price to discourage competitive entry and build unit volume.

Product differentiation

Using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Brand loyalty

A favorable attitude toward and consistent purchase of a single brand over time.

Brand equity

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

Brand personality

A set of human characteristics associated with a brand name.

Brand licensing

A contractual agreement where one company allows its brand name to be used with products offered by another company for a royalty or fee.

Customer-Based Brand Equity Pyramid

Framework that outlines the process to build brand equity through awareness, meaning, judgments, feelings, and loyalty.

Diffusion of Innovation

The process by which new ideas and products are spread through society.