Chapter 4: Product - Branding, Packaging, and New Product Development

Comprehensive vocabulary flashcards covering consumer product types, branding strategies, packaging functions, the new product development process, and the product life cycle.

Convenience Product

A relatively inexpensive item that merits little shopping effort, typically priced under $100$ and purchased every day or a few times a week.

Shopping Product

A product that requires comparison shopping because it is usually more expensive ($100$ to $10,000$) and found in fewer stores.

Specialty Product

A particular item for which consumers search extensively and are reluctant to accept substitutes, often involving high prices over $1,000$ and infrequent purchases.

Unsought Product

A product unknown to the potential buyer or a known product that the buyer does not actively seek until unforeseen circumstances arise.

Staple

A type of convenience product that people usually buy regularly, such as bread, milk, or rice.

Impulse Product

A product that a consumer buys spontaneously without prior planning.

Emergency Product

A product purchased urgently due to an unexpected need, such as an umbrella during rain or medicine.

Homogeneous Shopping Product

Products that consumers perceive as having the same quality or no significant differences, such as washing machines or televisions.

Heterogeneous Shopping Product

Products that consumers perceive as unique or distinct from other brands, such as laptops, clothes, or furniture.

Branding

The main tool marketers use to distinguish their products from the competition's.

Brand Name

The part of a brand that can be spoken, including letters (GM), words (Chevrolet), and numbers (WD-40).

Brand Mark

The elements of a brand that cannot be spoken, such as the Mercedes-Benz or Delta Air Lines symbols.

Brand Equity

The value of company and brand names, which is high when a brand has high awareness, perceived quality, and brand loyalty.

Brand Loyalty

A consistent preference for one brand over all others.

Manufacturer’s Brand

The brand name of a manufacturer, such as Kodak.

Private Brand

Also known as a private label or store brand, it is a brand name owned by a wholesaler or a retailer, such as the Lotus brand.

Trademark

The exclusive right to use a brand or part of a brand, which comes from use rather than registration and must be continuously protected.

Registered Trademark Symbol (®)

A symbol indicating that a trademark has been officially registered.

Unregistered Trademark Symbol (TM)

A symbol used for a brand that is claimed as a trademark but is not yet officially registered.

Unregistered Service Trademark (SM)

A symbol used for a service mark that is not officially registered.

Packaging Functions

To contain and protect products, promote products, facilitate storage/use/convenience, and facilitate recycling.

Persuasive Labeling

A type of labeling that focuses on a promotional theme while making consumer information secondary.

Informational Labeling

Labeling designed to help consumers make proper selections, lower cognitive dissonance, and include use or care instructions.

Concept Test

A test used at the screening stage to evaluate a new-product idea, usually before any prototype has been created.

Simultaneous Product Development

An approach where all relevant functional areas and outside suppliers participate in all stages of the development process to shorten time and reduce costs.

Test Marketing

The limited introduction of a product and marketing program to determine the reactions of potential customers in a market situation.

Commercialization

The final stage in the new-product development process, which is the decision to market a product.

Product Life Cycle (PLC)

A biological metaphor that traces the stages of a product's acceptance from introduction to decline.

Introduction Stage (PLC)

The stage characterized by low sales, high cost per customer, financial losses, and few competitors.

Growth Stage (PLC)

The stage where sales increase, profits rise, more competitors enter, and the cost per customer begins to fall.

Maturity Stage (PLC)

The stage featuring peak sales, the lowest cost per customer, high profits, and a stable number of competitors.

Decline Stage (PLC)

The stage where sales and profits fall, and the customer base contracts.

Martin Cooper

The individual from Motorola who demonstrated the first handheld mobile phone in New York City on 3 April 1973, which weighed approximately $2\,kg$.