Module 3 Study Guide: Product Branding and Marketing Terms

Product

A good, service, or idea offered to the market to satisfy a need or want.

Good

A tangible item that can be physically possessed.

Service

An intangible product that involves a deed, performance, or effort.

Idea

A concept, philosophy, or image that can be marketed.

Core Product

The fundamental benefit that satisfies a consumer's need.

Actual Product

The physical or tangible aspects of the product, including branding and features.

Augmented Product

Additional services or benefits associated with a product (e.g., warranties).

Convenience Products

Inexpensive items that require little shopping effort (e.g., snacks).

Shopping Products

Products for which consumers compare options based on price and quality (e.g., clothing).

Specialty Products

High-involvement products with strong brand loyalty (e.g., luxury cars).

Unsought Products

Products consumers don't usually seek out (e.g., insurance).

Product Item

A specific version of a product within a product line.

Product Line

A group of related products offered by a company.

Product Mix

The total range of products offered by a company.

4 Stages of Product Life Cycle

Introduction, Growth, Maturity, Decline.

5 Steps of Product Adoption Process

Innovators → Early Adopters → Early Majority → Late Majority → Laggards.

Brand

A unique name, symbol, or design that identifies a product.

Brand Name

The verbal identity of a brand.

Brand Mark

The visual representation of a brand (e.g., logo).

Trademark

A legally protected brand symbol or name.

Trade Name

The full legal name of a company.

4 Steps of Branding Strategy

Brand positioning, Brand name selection, Brand sponsorship, Brand development.

Manufacturer Brands

Brands owned by producers (e.g., Nike, Apple).

Private Distribution Brands

Brands owned by retailers or wholesalers (e.g., Kirkland by Costco).

Generic Brands

Unbranded products with basic packaging and lower prices.

Brand Extension

Expanding a brand into new product categories.

Co-Branding

Two brands partnering to market a product (e.g., Nike & Apple Watch).

Brand Revitalization/Rebranding

Updating a brand's image, message, or positioning.

Packaging

The design and production of containers or wrappers for products.

Labeling

Information printed on product packaging, including branding and regulatory details.

Product Innovation

The process of creating and improving products.

5 Drivers of Innovation

Market trends, technological advancements, competition, regulatory changes, customer demand.

Line Extension

Expanding an existing product line with new variations.

Revamped Products

Updating an existing product to improve features or appeal.

Product Modification

Changes made to a product to enhance its appeal.

Quality Modifications

Improvements in a product's durability or reliability.

Functional Modifications

Changes that improve a product's functionality or usability.

Aesthetic Modifications

Design or style changes that affect the product's appearance.

5 Adoption Rate Factors

Relative advantage, compatibility, complexity, trialability, observability.

7 Stages of New Product Development

Idea generation, Idea screening, Concept testing, Business analysis, Product development, Market testing, Commercialization.

Product Deletion

Removing a product from the market.

Phase Out

Gradual product discontinuation.

Run Out

Selling remaining inventory before discontinuation.

Immediate Drop

Quick product removal due to poor performance.

Services

Intangible offerings that provide value to consumers.

Intangibility

The characteristic of a service that makes it unable to be touched or stored.

Inseparability

Services are produced and consumed simultaneously.

Perishability

The characteristic of services that makes them unable to be stored.

Perishability

Services cannot be stored for future use.

Heterogeneity

Variability in service delivery due to human involvement.

Level of Contact

The degree of interaction between customer and service provider.

Core Service

The main benefit a service provides (e.g., a hotel providing a room).

Supplementary Service

Additional services that enhance the core service (e.g., hotel concierge).

Objective Measure

A factual evaluation of service quality.

Technical Quality

The expertise or skill level involved in service delivery.

Functional Quality

The way a service is delivered to customers.

Five Dimensions of Service Quality

Reliability, Assurance, Tangibles, Empathy, Responsiveness.

Knowledge Gap

The difference between customer expectations and management's perception.

Design & Standards Gap

The difference between management's understanding and service design.

Delivery Gap

The difference between service standards and actual delivery.

Communications Gap

The difference between promised and actual service performance.

Service Failure

When service does not meet customer expectations.

Service Recovery

Steps taken to resolve service failures and regain customer trust.

Price

The amount charged for a product or service.

Revenue

Total income generated from sales.

Profits

Revenue minus expenses.

Stages for Establishing Prices

Developing objectives, Evaluating demand, Estimating costs, Analyzing competition, Selecting a pricing method, Choosing the final price.

Profit Maximization / Price Skimming

Setting a high price initially and lowering it over time.

Volume Maximization / Penetration Pricing

Setting a low price to gain market share quickly.

Survival Pricing

Setting prices to cover costs and remain in business.

Demand Curve

A graph showing the relationship between price and quantity demanded.

Prestige Demand Curve

Demand increases with price due to perceived luxury/status.

Price Elasticity of Demand

The degree to which demand changes with price fluctuations.

Elastic Demand

Demand that changes significantly with price changes.

Inelastic Demand

Demand that changes little with price changes.

Price Sensitivity

The degree to which consumers react to price changes.

Price Acceptability

Whether consumers view a price as reasonable.

Marginal Revenue

Additional revenue from selling one more unit.

Marginal Cost

Additional cost of producing one more unit.

Fixed Costs

Costs that remain constant regardless of output (e.g., rent).

Variable Costs

Costs that fluctuate with production levels (e.g., raw materials).

Break-even Analysis

Determining the sales level needed to cover costs.

Break-even Point

The point where total revenue equals total costs.

Matched Price

Setting a price equal to competitors.

Low Price

Pricing below competitors to attract customers.

High Price

Premium pricing above competitors for perceived quality.

Cost-plus Pricing

Adding a fixed percentage to production cost.

Mark-up Pricing

Increasing product cost by a set percentage to determine price.

Demand-Based Pricing

Setting prices based on customer demand.

Competition-Based Pricing

Setting prices relative to competitors.

Pricing Strategy

The overall approach to setting prices.

Psychological Pricing

Pricing designed to influence perception (e.g., $9.99 instead of $10).

Odd-number Pricing

Pricing just below a round number (e.g., $4.99).

Bundle Pricing

Offering multiple products at a reduced price.

Premium Pricing

Setting high prices for luxury products.