Chapter 10 Marketing Terms

good

A tangible physical entity

service

An intangible result of the application of human and mechanical efforts to people or objects

idea

A concept, a philosophy, an image, or an issue

consumer products

Products purchased to satisfy personal and family needs

business products

Products bought to use in an organization's operations, to resell, or to make other products

Convenience products

Relatively inexpensive products that are purchased frequently and that require a minimum amount of effort on the part of the consumer to select and purchase

Shopping products

Items customers don't buy often and that they need to think carefully about before purchasing

Specialty products

Items with unique characteristics that buyers are willing to expend considerable effort to obtain

Unsought products

Products that consumers are either unaware of or are not interested in actively considering before purchase

Installations

Facilities and nonportable major equipment

Accessory equipment

Equipment that does not become part of the physical product but is used in production or office activities

Raw materials

Basic natural materials that become part of a physical product

Component parts

Items that become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly

Process materials

Materials that are used directly in the production of other products but are not readily identifiable

MRO supplies

Maintenance, repair, and operating items that facilitate production and operations but do not become part of the finished product

Business services

The intangible products that many organizations use in their operations

product item

A specific version of a product that can be designated as a distinct offering among a firm's products

product line

A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

product mix

The total group of products that an organization makes available to customers

width of product mix

The number of product lines a company offers

depth of product mix

The average number of different product items offered in each product line

product life cycle

The progression of a product through four stages: introduction, growth, maturity, and decline

introduction stage

The stage of a product's life cycle when sales begin

growth stage

The stage of a product's life cycle characterized by increasing sales and a peak in profit

maturity stage

The stage of a product's life cycle when sales peak and then stabilize

decline stage

The stage of a product's life cycle when sales begin to decrease

product adoption process

The process through which consumers learn about and adopt a new product

Innovators

Individuals who are the first to adopt a new product

Early adopters

Individuals who adopt a new product after the innovators

early majority

Individuals who adopt a new product just before the average person

First stage of the product life cycle

The stage when the product is initially released into the market and when sales start at zero and profits are negative.

The stages buyers go through in accepting a product

The process that consumers experience as they become aware of, evaluate, and decide to adopt a new product.

Late majority

Skeptics who adopt new products when they feel it is necessary.

Laggards

The last adopters, who distrust new products.

Brand

A name, term, design, symbol, or any other feature that identifies one marketer's product as distinct from those of other marketers.

Brand name

The part of a brand that can be spoken.

Brand mark

The part of a brand not made up of words.

Trademark

A legal designation of exclusive use of a brand.

Trade name

The full legal name of an organization.

Brand equity

The value of a brand, as determined by the consumer's perception of its quality and appeal.

Brand loyalty

A customer's favorable attitude toward a specific brand that leads them to repeatedly repurchase their products

Brand recognition

A customer's awareness that the brand exists.

Brand preference

The degree of brand loyalty in which a customer prefers one brand over competitive offerings.

Brand insistence

The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute.

Manufacturer brands

Brands owned by the manufacturer rather than the reseller.

Private distributor brands

Brands owned by a reseller.

Generic brands

Brands indicating only the product category.

Individual branding

A marketing approach in which every product or service provided by a company is promoted and sold using its own distinct brand name.

Family branding

A strategy where a company markets and promotes its wide range of products or services in a different product category with a single, unified brand name and identity.

Brand extension

Using an existing brand to brand a new product.

Co-branding

A strategy that involves two or more brands collaborating to create a joint product, service, or marketing campaign that leverages the strengths and equity of each brand.

Brand licensing

An agreement whereby a company permits another organization to use its brand on other products for a licensing fee.

Family packaging

Using similar packaging for all of a firm's products or packaging that has one common design element.

Labeling

Providing identifying, promotional, or other information on package labels.

Product life stage when sales peak

Maturity Stage

Product life stage when profits peak

Growth Stage