mktg 300 exam 3

Product

Everything received in an exchange, including goods, services, and ideas.

Convenience product

Inexpensive product requiring little effort and bought frequently.

Shopping product

Product requiring comparison; may be homogeneous or heterogeneous.

Specialty product

Unique product with no substitutes; consumer spends significant effort.

Unsought product

Product consumers are unaware of or do not actively seek.

Product item

A specific version of a product.

Product line

A group of closely related product items.

Product mix

All products a company offers.

Product mix width

Number of product lines a firm offers.

Product line depth

Number of items within a specific product line.

Reasons to increase width/depth

More sales, more segmentation, reduced risk, economies of scale, seasonal balance.

Benefits of product lines

Advertising economies, package uniformity, standardized components, efficient distribution, consistent quality.

Product line overextension

Too many items; low profits, obsolete products, wasted resources.

Product line contraction

Removing weak items to focus resources and improve performance.

Quality modification

Changes to durability or performance.

Functional modification

Changes improving safety, convenience, or usefulness.

Style modification

Changes to appearance or aesthetics.

Planned obsolescence

Designing products to be replaced or upgraded.

Repositioning

Changing consumer perceptions due to demographic shifts, competition, social trends, or declining sales.

Brand

Name, symbol, or design that distinguishes a product.

Brand name

The spoken part of a brand.

Brand mark

Visual elements of a brand, such as a logo.

Benefits of branding

Differentiation, brand equity, loyalty, repeat sales, easier new product launches.

Manufacturer brand

National brand produced by manufacturer.

Private brand

Retailer-owned brand.

Captive brand

Exclusive brand sold only by one retailer.

Individual branding

Different brand names for different products.

Family branding

Using the same brand name for multiple products.

Co-branding

Using two or more brand names on a single product.

Ingredient branding

One brand used as a component in another product.

Cooperative branding

Two brands jointly promoted.

Complementary branding

Brands marketed together for joint use.

Packaging functions

Protect, promote, provide convenience, support sustainability, differentiate.

Informational labeling

Provides factual product information and reduces cognitive dissonance.

Persuasive labeling

Uses branding or themes to promote.

Greenwashing

Misleading environmental claims on labels/packaging.

Global packaging issues

Translation, colors, cultural meaning, climate durability, size preferences.

Express warranty

Written guarantee of performance.

Implied warranty

Unwritten guarantee that product will function for its intended purpose.

New-to-world products

First-of-their-kind innovations.

New product lines

New categories for a firm entering a market.

Additions to existing lines

New items added within current product lines.

Improvements/revisions

Updated or upgraded versions of existing products.

Repositioned products

Existing products targeted to new markets/uses.

Lower-priced products

Products offering similar performance at lower cost.

New product strategy

Guiding plan aligning NPD with organizational goals.

Idea generation

Creating new product ideas from customers, employees, competitors, distributors, R&D, and crowdsourcing.

Idea screening

Eliminating poor or inconsistent product ideas.

Business analysis

Evaluating demand, cost, sales, and profitability.

Development

Creating prototypes, packaging, and marketing strategies.

Test marketing

Limited rollout to test product performance and consumer reaction.

Commercialization

Full-scale launch including production, distribution, and marketing.

Why products fail

No benefit, poor quality, wrong price, wrong target, insufficient promotion, distribution problems, small market.

Diffusion of innovation

Spread of new products to consumers over time.

Adopter categories

Innovators, early adopters, early majority, late majority, laggards.

Diffusion factors

Complexity, compatibility, relative advantage, observability, trialability.

Product Life Cycle

Introduction, growth, maturity, and decline stages.

Introduction stage

Low sales, high cost, limited distribution.

Growth stage

Rising sales, increased competition, strong promotion.

Maturity stage

Longest stage; heavy promotion and price competition.

Decline stage

Sales decline due to substitutes or shifts in tastes.

Intangibility

Services cannot be touched or physically possessed.

Inseparability

Services are produced and consumed simultaneously.

Heterogeneity

Services vary in performance; less uniform than goods.

Perishability

Services cannot be stored for later use.

Search quality

Attributes evaluated before purchase.

Experience quality

Attributes evaluated after purchase/use.

Credence quality

Attributes difficult for consumers to evaluate even after use.

RATER model

Reliability, responsiveness, assurance, empathy, tangibles.

Gap model

Five gaps between expectations, perceptions, standards, delivery, and communication.

Service mix

Combination of core service and supplementary services.

Core service

Primary benefit the customer receives.

Supplementary services

Additional services enhancing value.

Customization

Tailoring service to individual customers.

Standardization

Consistent service delivery.

Mass customization

Use of tech to customize at scale.

Place strategy for services

Location, accessibility, scheduling, and number of service outlets.

Promotion strategy for services

Tangible cues, testimonials, employee image, postpurchase communication.

Price strategies for services

Time-based, task-based, bundled pricing.

Relationship marketing Level 1

Financial incentives.

Relationship marketing Level 2

Social connections with customers.

Relationship marketing Level 3

Customized services for individual needs.

Relationship marketing Level 4

Structural bonds offering added value; strongest loyalty.

Internal marketing

Treating employees as internal customers; ensuring satisfaction for quality service delivery.

Nonprofit marketing

Marketing focused on mission-based objectives rather than profit.

Symbolic pricing

Pricing to reflect social or moral value, not economic cost.

Indirect payment

Taxes or third-party funding rather than consumer payment.

Nonprofit target markets

Often apathetic, opposed, or underserved audiences.

Marketing channel

Pipeline that moves products, information, money, and risk from producer to consumer.

Upstream

Movement of materials/components toward the producer.

Downstream

Movement of finished goods toward consumers.

Merchant wholesalers

Buy and take title; store and resell products.

Agents and brokers

Facilitate sales without taking title.

Retailers

Sell products directly to consumers.

Transactional functions

Contacting, promoting, negotiating, risk-taking.

Logistical functions

Storing, sorting, transporting.

Facilitating functions

Researching and financing.

Direct channel

Producer sells directly to consumer.

Retailer channel

Producer → retailer → consumer.

Wholesaler channel

Producer → wholesaler → retailer → consumer.