Marketing 300 Exam 3 Terms

Product

Product

everything, both favorable and unfavorable, that a person receives in an exchange

Convenience Product

a relatively inexpensive item that merits little shopping effort

Shopping Product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores

Specialty Product

a particular item for which consumer search extensively and are very reluctant to accept substitutes

Unsought Product

a product unkown to the potential buyer or a known product that the buyer does not actively seek

Product Item

a specific version of a product that can be designated as a distinct offering among an organization’s products

Product Line

a group of closely related product items

Product Mix

all products that an organization sells

Product Mix Width

the number of product lines an organization offers

Product Line Depth

the number of product items in a product line

Product Modification

changing one or more of a product’s characteristic

Planned Obsolescence

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

Product Line Extension

adding additional products to an existing product line in order to compete more broadly in the industry

Brand

adding additional products to an existing product line in order to compete more broadly in the industry

Brand Name

adding additional products to an existing product line in order to compete more broadly in the industry

Brand Mark

the elements of a brand that cannot be spoken

Brand Equity

the value of a company or brand name

Global Brand

a brand that obtains at least a one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

Brand Loyalty

consistent preference for one brand over all others

Manufacturer’s Brand

the brand name of a manufacturer

Private Brand

a brand name owned by a wholesaler or a retailer

Captive Brands

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation

Individual Branding

using different brand names for different products

Family Branding

marketing several different products under the same brand name

Co-Branding

placing two or more brand names on a product or its package

Trademark

the exclusive right to use a brand or part of a brand

Service Mark

a trademark for a service

Generic Product Name

identifies a product by class or type and cannot be trademarked

Persuasive Labeling

a type of package labeling that focuses on a promotional theme or logo: and consumer information is secondary

Informational Labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

Universal Product Codes (UPCs)

a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent number used to track products

Warranty

a confirmation of the quality or performance of a good or service

Express Warranty

a written guarantee

Implied Warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold

New Product

a product new to the world, the market, the product, the seller, or some combination of these

New-Product Strategy

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

Product Development

a marketing strategy that entails the creation of marketable new products: the process of converting applications for new technologies into marketable products

Brainstorming

the process of getting a group to think of unlimited ways to vary a product or solve a problem

Screening

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason

Concept Test

a test to evaluate a new-product idea, usually before any prototype has been created

Business Analysis

the second stage of the screening process, where preliminary figures for demand, cost, sales, and profitability are calculated

Development

the stage in the product development process in which a prototype is developed and a marketing strategy is outlined

Simultaneous Product Development

a term-oriented approach to new-product development

Test Marketing

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

Simulated (Laboratory) Market Testing

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market

Commercialization

the decision to market a product

Innovation

a product perceived as new by a potential adopter

Diffusion

the process by which the adoption of an innovation spreads

Product Life Cycle (PLC)

a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)

Product Category

all brands that satisfy a particular type of need

Introductory Stage

the full-scale launch of a new product into the marketplace

Growth Stage

the second stage of the product life cycle, when sales typically grow at an increasing rate; many competitors enter the market; large companies may stat to acquire small pioneering forms; and profits are healthy

Maturity Stage

a period during which sales increase at a slower rate

Decline Stage

a long-run drop in sales

Service

the result of applying human or mechanical efforts to people or objects

Intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

Search Quality

a characteristic that can be easily assessed before purchase

Experience Quality

a characteristic that can be assessed only after use

Credence Quality

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

Inseparability

the inability of the production and consumption of a service to be separated; consuemrs must be present during the production

Heterogeneity

the variability of the inputs and outputs of services, which causes services to tend to be less standardized and unifrom than goods

Perishability

the inability of services to be stored, warehoused, or inventoried

Reliability

the ability to perform a service dependably, accurately, and consistently

Responsiveness

the ability to provide prompt service

Assurance

the knowledge and courtesy of employees and their ability to convey trust

Empathy

caring, individualized attention to customers

Tangibles

the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

Gap Model

a model identifying five gaps that can cause problems in service delivery and influence customer evalutations of service quality

Core Service

the most basic benefit the consumer is buying

Supplementary Services

a group of services that support or enhance the core service

Mass customization

a strategy that use technology to deliver customized services on a mass basis

Internal Marketing

treating employees as customers and developing systems and benefits that satisfy their needs

Nonprofit Organization

an organization that exists to achieve some goal other than the usual business goals of profits, market share, or return on investment

Nonprofit Organization Marketing

the effort by nonprofit organization to bring about mutually satisfying exchanges with target markets

Public Service Advertisement (PSA)

an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization

Supply Chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Supply Chain Management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the sources to the point of consumption, resulting in enhanced customer and economic value

Supply Chain Agility

an operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain

Outsourcing

a manufacturer’s or supplier’s use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

Third-Party Logistics company (3PL)

a firm that provides functional logistics services to others

Reshoring

the reinstitutionalization of a business process from an outsource location/country back to the original location for the purpose of gaining economic advantage

Nearshoring

the transfer of an outsourced activity from a distant to nearby country

RFID

radio-frequency identification; a device that uses radio waves as a mean of locating a piece of inventory within confined geographic space

Supply Chain Orientation

a system of management practices that are consistent with a “system thinking” approach

Supply Chain Integration

when multiple firms or business functions in a supply chain coordinate, their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer

Demand-Supply Integration (DSI)

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

Business Processes

bundles of interconnected activites that stretch across firms in the supply chain

Customer Relationship Management (CRM) Process

allows companies to prioritize their marketing focus on different customer groups according to each group’s long term value to the company or supply chain

Customer Service Management Process

presents a multicompany, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

Demand Management Process

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchases

Sales and Operations Planning (S&OP)

a method companies use to alight production with demand by merging tactical and strategic planning methods across functional areas of the business

Order Fulfillment Process

a highly integrating process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction a given place and time

Order Cycle Time

the time delay between the placement of a customer’s order and the customer’s receipt of that order

Manufacturing Flow Management Process

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

Modular

a standardized form of component parts manufacturing designed so the parts are easily replaced or interchanged

Supplier Relationship Management Process

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

Product Development and Commercialization Process

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

Returns Management Process

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

Sustainable Supply Chain Management

a supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs