mktg1001

Product management

the systematic and usually team-based approach to coordinating all aspects of a product's strategy development and execution

Product line

a firm's total product offering designed to satisfy a single need or desire of target customers

product line length

determined by the number of separate items within the same category

Stock Keeping Unit (SKU)

a unique identifier for each distinct product

cannibalisation

the loss of sales of an existing brand when a new item in a product line or product family is introduced

product mix

the total set of all products a firm offers for sale

product mix width

the number of different product lines the firm produces

product quality

the overall ability of the product to satisfy customer expectations

Total Quality Management (TQM)

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

internal customers

coworkers that interact who harbor the attitude and belief that all activities ultimately impact external customers

internal customer mind-set

an organizational culture in which all organization members treat each other as valued customers

ISO 9000

criteria developed by the International Organization for Standardization to regulate product quality in Europe

six sigma

a process whereby firms work to limit product defects to 3.4 per million or fewer

Product Life Cycle (PLC)

a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline

introduction stage

the first stage of the product life cycle, in which slow growth follows the introduction of a new product in 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 start to acquire small pioneering firms, and profits are healthy

maturity stage

the third and longest stage in the product life cycle, during which sales peak and profit margins narrow

decline stage

the final stage in the product life cycle, during which sales decrease as customer needs change

brand

A name, a term, a symbol, or any other unique element of a product that identifies one firm's product(s) and sets it apart from the competition.

trademark

the legal term for a brand name, brand mark, or trade character; trademarks legally registered by a government obtain protection for exclusive use in that country

brand equity

the value of a brand to an organization

brand meaning

the beliefs and associations that a consumer has about the brand

brand storytelling

compelling stories told by marketers about brands to engage consumers

brand extensions

a new product sold with the same brand name as a strong existing brand

brand dilution

a reduction in the value of a brand typically driven by the introduction of a brand extension that possesses attributes that adversely contrast with the current attributes consumers associate with the brand

sub-branding

creating a secondary brand within a main brand that can help differentiate a product line to a desired target group

family brand

a brand that a group of individual products or individual brands share

national or manufacturer brands

brands that the product manufacturer owns

private-label brands

brands that a certain retailer or distributor owns and sells

generic branding

a strategy in which products are not branded and are sold at the lowest price possible

licensing

an agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time

cobranding

an agreement between two brands to work together to market a new product

ingredient branding

a type of branding in which branded materials become "component parts" of other branded products

package

the covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication

Universal Product Code (UPC)

a set of black bars or lines printed on the side or bottom of most items sold in grocery stores and other mass-merchandising outlets that correspond to a unique 10-digit number

sustainable packaging

packaging that involves one or more of the following: elements of the packaging that can be produced from previously used materials, elements of the packaging that use materials in their development that can be repurposed after use, the use of materials that require fewer resources to cultivate, and the use of materials and processes that are generally less harmful to the environment

copycat packaging

packaging designed to mimic the look of a similar or functionally identical national branded product often meant to lead the consumer to perceive the two products as comparable

brand manager

an individual who is responsible for developing and implementing the marketing plan for a single brand

product category managers

individuals who are responsible for developing and implementing the marketing plan for all the brands and products within a product category

market manager

an individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group

venture teams

groups of people within an organization who work together to focus exclusively on the development of a new product

retailing

the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use

wheel-of-retailing hypothesis

a theory that explains how retail firms change, becoming more upscale as they go through their life cycle

experiential merchandising

tactic whose intent is to convert shopping from a passive activity into a more interactive one, by better engaging the customer

destination retailer

Firm that consumers view as distinctive enough to become loyal to it. Consumers go out of their way to shop there.

Omnichannel Marketing

a retail strategy that provides a seamless shopping experience, whether the customer is shopping online from a desktop or mobile device, by telephone or in a brick-and-mortar store

point-of-sale systems (POS)

retail computer systems that collect sales data and are hooked directly into the store's inventory-control system

perpetual inventory unit control system

retail computer systems that collect sales data and are hooked directly into the store's inventory-control systems

automatic recording system

retail recording system that is automatically activated when inventories reach a certain level

beacon marketing

a retail marketing strategy in which beacon devices are placed strategically throughout a store and emit a Bluetooth signal to communicate with shoppers' smartphones as they browse the aisles of the store

digital wallets

the use of Bluetooth technology that connects with customer smartphones and allows customers to pay for items without cash or even swiping a credit card

experiential shoppers

shoppers who shop because it satisfies their experiential needs, that is, their desire for fun

retailtainment

the use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand

shrinkage

losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise

Organized Retail Crime (ORC)

retail shoplifting by organized gangs of thieves that get away with thousands of dollars in goods in a single day

retail borrowing

the consumer practice of purchasing a product with the intent to return the non defective merchandise for a refund after it has fulfilled the purpose for which it was purchased

customer profiling

the act of tailoring the level of customer service based on a customer's perceived ability to pay

service retailer

Organization that offers consumers services rather than merchandise. Examples include banks, hospitals, health spas, doctors, legal clinics, entertainment firms, and universities.

merchandise mix

the total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups

combination stores

retailers that offer consumers food and general merchandise in the same store

supercenters

large combination stores that combine economy supermarkets with other lower-priced merchandise

merchandise assortment

the range of products a store sells

merchandise breadth

the number of different product lines available

merchandise depth

the variety of choices available for each specific product line

convenience stores

neighborhood retailers that carry a limited number of frequently purchased items and cater to consumers willing to pay a premium for the ease of buying close to home

supermarkets

food stores that carry a wide selection of edibles and related products

box stores

food stores that have a limited selection of items, few brands per item, and few refrigerated items

specialty stores

retailers that carry only a few product lines but offer good selection within the lines that they sell

category killer

A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability

leased departments

departments within a larger retail store that an outside firm rents

variety stores

stores that carry a variety of inexpensive items

general merchandise discount stores

retailers that offer a broad assortment of items at low prices with minimal service

off-price retailers

retailers that buy excess merchandise from well-known manufacturers and pass the savings on to customers

warehouse clubs

discount retailers that charge a modest membership fee to consumers who buy a broad assortment of food and nonfood items in bulk and in a warehouse environment

factory outlet store

a discount retailer, owned by a manufacturer, that sells off defective merchandise and excess inventory

department stores

retailers that sell a broad range of items and offer a good selection within each product line

bifurcated retailing

with the decline of middle-of-the-market retailing, both mass merchandising and niche retailing dominate the retail market

hypermarkets

retailers with the characteristics of both warehouse stores and supermarkets; hypermarkets are several times larger than other stores and offer virtually everything from grocery items to electronics

pop-up stores

retail stores, such as Halloween costume stores, that "pop up" one day and then disappear after a period of one day to a few months

nonstore retailing

any method used to complete an exchange with a product end user that does not require a customer visit to a store

B2C e-commerce

online exchanges between companies and individual consumers

m-commerce

promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such as smart phones and personal digital assistants

virtual experiential marketing

an online marketing strategy that uses enhancements, including colors, graphics, layout and design, interactive videos, contests, games, and giveaways, to engage experiential shoppers online

shopping cart abandonment

occurs when e-commerce customers leave an e-commerce site with unpurchased items in their cart

direct selling

an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise

Green River Ordinances

community regulations that prohibit door-to-door selling unless prior permission is given by the household

party plan system

a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone

multilevel or network marketing

a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited

pyramid schemes

an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public

intangibles

experience-based products

services

intangible products that are exchanged directly between the producer and the customer

intangibility

The characteristic that a service is not physical and cannot be perceived by the senses

perishability

the characteristic of a service that makes it impossible to store for later sale or consumption

capacity management

the process by which organizations adjust their offerings in an attempt to match demand

variability

the characteristic of a service that means that even the same service performed by the same individual for the same customer can vary

Inseparability

the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service

service encounter

the actual interaction between the customer and the service provider

Disintermediation

the elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel

Servicescape

the actual physical facility where the service is performed, delivered, and consumed

servqual

a multiple-item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy