PBAM unit 8 vocab

Value package

A product marketed as a bundle of value-adding attributes, including a reasonable cost, features, and benefits.

Product features

Tangible and intangible qualities that a company builds into its products.

Product benefits

The emotional or physical advantages that products can provide to consumers.

Industrial buyer

A company or organization that purchases products for use in producing other products.

Convenience goods

Inexpensive physical goods that are consumed rapidly and regularly.

Convenience services

Inexpensive services that are consumed rapidly and regularly.

Shopping goods

Moderately expensive, infrequently purchased physical goods such as appliances and mobile phones.

Shopping services

Moderately expensive, infrequently purchased services such as hotels and airfare.

Specialty goods

Expensive, rarely purchased physical goods such as wedding gowns and tuxedoes.

Specialty services

Expensive, rarely purchased services such as catering for wedding receptions and health care insurance.

Production items

Goods or services used in the conversion process to make other products, such as rubber and leather for cars.

Expense items

Industrial products purchased and consumed within a year by firms producing other products, such as rent, utilities, and wages.

Capital items

Expensive, long-lasting, infrequently purchased industrial products or services, such as tools, machinery, buildings, and vehicles.

Product mix

The group of products that a firm makes available for sale.

Product line

A group of closely related products that function similarly or are sold to the same customer group.

New product development process

A long, complex process involving risky commitments of time and resources.

Product mortality rates

It takes roughly 50 new product ideas to generate one product that reaches the marketplace.

Speed to market

The strategy of introducing new products quickly in response to customer or market changes.

Product ideas

Typically come from consumers, the sales force, R&D departments, suppliers, or engineering personnel.

Screening

The process of eliminating ideas that do not align with the firm's abilities or objectives, involving representatives from marketing, engineering, operations, and finance.

Concept testing

Using market research to gather consumers' input about benefits and prices.

Business analysis

Comparing production costs and benefits to determine whether the product meets minimum profitability goals after gathering consumer opinions.

Prototype development

Producing a prototype by engineering, R&D, or design groups, which incurs increased expenses.

Product testing and test marketing

Testing the product to see if it meets performance requirements, followed by limited production if successful. This is the most time-consuming step.

Commercialization

If test marketing proves positive, the company begins full-scale production and marketing. Timing is crucial for success.

Stages in the product life cycle

Introduction, Growth, Maturity, Decline.

Introduction (PLC)

The stage when the product enters the marketplace, focusing on making potential customers aware of the product and its benefits through heavy advertising.

Growth (PLC)

Sales and profits start to climb, with continued heavy advertising and pricing tactics to increase product adoption.

Maturity (PLC)

The longest stage with high profits, sales growth slows, and advertising decreases. Little price reductions occur.

Decline (PLC)

Sales and profits decline, advertising is nonexistent, but heavy price reductions and discounts are used to sell remaining products.

Product extension

Marketing an existing product globally instead of just domestically.

Product adaptation

Modifying an existing product to appeal to different countries or markets.

Product reintroduction

Reviving obsolete or older products for new markets.

Branding

Using symbols, names, logos, and colors to communicate the qualities and features of a product made by a particular producer.

Branding awareness

The extent to which a brand name comes to mind when a consumer considers a particular product category.

Product placement

A promotional tactic where characters in media use a real product with its brand visible to viewers.

National brands

Brand name products produced, widely distributed, and carrying the name of a manufacturer.

Licensed brands

Brand name products for which the seller has purchased the right to use the name from an organization or individual.

Private brand (or private label)

Brand name products commissioned by a wholesaler or retailer from a manufacturer.

Packaging

The physical container in which a product is sold, advertised, or protected.

Pricing

The process of determining what a company will receive in exchange for its products.

Pricing objectives

The goals that sellers hope to achieve in pricing products for sale.

Profit maximizing objectives

Pricing decisions critical for determining a firm's revenue, resulting from the selling price multiplied by the number of units sold.