Marketing

product life cycle

The stages a product goes through from introduction to decline.

market introduction

The phase where a new product is launched into the market.

market growth

The stage where sales increase as the product gains acceptance.

market maturity

The stage where sales growth slows and stabilizes.

sales decline

The stage where sales decrease as the product loses market appeal.

fashion

A currently popular style or trend in products.

fad

A short

new product

A product that is newly introduced to the market.

continuous innovations

Minor improvements or updates to existing products.

dynamically continuous innovations

Products that require some consumer learning but are not radically different.

discontinuous innovations

Products that create a significant change in consumer behavior.

Federal Trade Commission (FTC)

A government agency that regulates unfair business practices.

patent

A legal right granted for an invention, giving the inventor exclusive rights.

Consumer Product Safety Act

A law aimed at protecting consumers from hazardous products.

product liability

The legal obligation of manufacturers to ensure their products are safe.

return on investment (ROI)

A measure used to evaluate the efficiency of an investment.

concept testing

The process of evaluating a new product idea before it is developed.

prototype

An early sample or model of a product used for testing.

product managers

Individuals responsible for the development and marketing of a product.

brand managers

Individuals who oversee the marketing and development of a brand.

total quality management (TQM)

An organization

continuous improvement

Ongoing efforts to enhance products, services, or processes.

empowerment

Giving employees the authority to make decisions and take action.

Place

Making goods and services available in the right quantities and locations—when customers want them.

channel of distribution

Any series of firms or individuals who participate in the flow of products from producer to final user or consumer.

direct marketing

Marketing that communicates directly with consumers.

discrepancy of quantity

The difference between the amount of product produced and the amount consumers want.

discrepancy of assortment

The difference between the variety of products produced and the variety consumers want.

regrouping activities

Activities that adjust the quantity and assortment of products.

accumulating

The process of collecting products from various sources.

bulk

breaking

sorting

The process of separating products based on certain criteria.

assorting

Putting together a variety of products to give a target market what it wants.

traditional channel systems

Conventional methods of distributing products.

vertical channel conflict

Disagreements among different levels of the same channel.

administered

A type of channel system where one member has more power than others.

contractual

A type of channel system based on formal agreements between members.

corporate channel systems

A type of channel system owned and controlled by a single company.

vertical marketing systems

Different ways to manage a whole channel by focusing on the target market.

channel captain

The dominant member of a channel of distribution.

intensive distribution

Selling a product through all responsible and suitable wholesalers or retailers.

selective distribution

Selling through only those intermediaries who will give the product special attention.

exclusive distribution

Selling through only one intermediary in a particular geographic area.

multichannel distribution

Using multiple channels to reach consumers.

reverse channels

Channels that allow products to flow back to the producer.

logistics

The management of the flow of goods from point of origin to point of consumption.

physical distribution (PD)

The process of moving products from the manufacturer to the consumer.

customer service level

How rapidly and dependably a firm can deliver what customers want.

physical distribution (PD) concept

Focuses on coordinating all the storing, transporting, and product

total cost approach

A method that considers all costs associated with distribution.

supply chain

The entire system of production, processing, and distribution of goods.

electronic data interchange (EDI)

The electronic transfer of data between organizations.

transporting

Moving goods from one location to another.

containerization

The use of standardized containers for transporting goods.

storing

The act of keeping goods in a designated place.

inventory

The total amount of goods available for sale.

private warehouses

Storage facilities owned by a company for its own products.

public warehouses

Storage facilities available for rent to any business.

distribution center

A facility used to store and distribute products to retailers.

retailing

The sale of goods to consumers for personal use.

wholesaling

Intermediaries concerned with selling to retailers and other merchants.

wholesalers

Businesses that sell goods in large quantities to retailers.

corporate chain

A group of retail outlets owned by the same company.

franchise operation

A business model where a franchisee operates under the franchisor's brand.

general stores

Retail outlets that offer a wide variety of goods.

single

line stores

limited

line stores

specialty shop

A store that sells a specific category of products.

department stores

Large retail establishments that offer a wide range of products.

convenience (food) stores

Small retail outlets that stock a limited selection of goods.

automatic vending

The sale of goods through machines that dispense products.

door

to

mass

merchandising concept

supermarkets

Large stores specializing in groceries with self

service wholesalers

merchant wholesalers that provide all the wholesaling functions.

general merchandise wholesalers

service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.

agent wholesalers

wholesalers who do not own the products they sell.

promotion

communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior.

personal selling

involves direct spoken communication between sellers and potential customers.

mass selling

involves advertising and publicity.

advertising

any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

publicity

any unpaid form of nonpersonal presentation of ideas, goods, or services.

sales promotion

refers to promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.

integrated marketing communications

the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.

source

the sender of a message.

receiver

a potential customer.

encoding

the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver.

decoding

the receiver translating the message.

noise

any distraction that reduces the effectiveness of the communication process.

pushing

using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members.

pulling

getting consumers to ask for the product.

order

getters

order

taking

supporting salespeople

salespeople who help the order

missionary salespeople

supporting salespeople who try to develop goodwill and stimulate demand.

technical specialists

supporting salespeople who provide technical assistance to order

customer service reps

work with customers to resolve problems that arise after a purchase.

team selling

using different people from the sales team to help with different parts of the selling job.

telemarketing

using the telephone to "call" on customers or prospects.

inside sales force

a sales force that meets with customers in an office setting (in