Marketing 2.03

Bundling

A marketing strategy that involves offering several products for sale as one combined product

Decline stage

The product life cycle stage in which sales decrease and profits begin to erode

Early adopter

A person who embraces new products (particularly technology products) before most others do

Economies of scale

The drop in cost-per-unit as a company produces a greater number of goods or services and becomes more efficient

Growth stage

The product life cycle stage in which sales rise rapidly

Harvesting

A strategy in which a company continues to offer a declining product but reduces its costs as much as possible

Introduction stage

The product life cycle stage when the product first appears in the marketplace

Liquidate

To convert assets into cash

Market saturation

A state that occurs when a product has been distributed throughout the population and the only chance for increased sales comes with population growth or a shift in market share

Maturity stage

The product life cycle stage in which sales peak and then increase at a slower rate or start to decline

Niche

The small segment of the total market interested in a subject

Penetration pricing

A pricing strategy that involves setting prices lower than those of the competition

Place (Distribution)

Marketing element focusing on considerations in getting a selected product in the right place at the right time

Price

Marketing element requiring marketers to determine the amount of money they will ask in exchange for their products

Price skimming

A pricing strategy that involves setting prices higher than those of the competition

Product

Marketing element referring to what goods, services, or ideas a business will offer its customers

Product life cycle

The stages through which goods and services move from the time they are introduced on the market until they are taken off the market

Product line

A group of related product items

Profit

The income left once all expenses are paid

Promotion

Marketing element referring to the various types of communications that marketers use to inform, persuade, or remind customers of their products