MKTG 3832- Exam Chapters 10-14 Terms

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 consumers search extensively and are very reluctant to accept substitutes.

Unsought product

a product unknown 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 characteristics.

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

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.

Brand name

that part of a brand that can be spoken, including letters, words, and numbers

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 brand

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 numbers 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 producer, 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 team-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

Stimulated (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 start to acquire small pioneering firms, 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; consumers 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 uniform 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 evaluations 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 uses 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 profit, market share, or return on investment

Nonprofit organization marketing

the effort by nonprofit organizations 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

Retailing

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

Retailer

a channel intermediary that sells mainly to consumers

Independent retailer

a retailer owned by a single person or partnership and not operated as part of a larger retail institution

Chain store

a store that is part of a group of the same stores owned and operated by a single organization

Franchise

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

Franchiser

the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product

Franchisee

an individual or business that is granted the right to sell another party's product

Gross margin

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

Department store

a store housing several departments under one roof

Specialty store

a retail store that carries a narrow product line with a deep assortment within that line

Supermarket

a large, departmentalized, self-service retailer that specializes in food and some nonfood items

Drugstore

a retail store that stocks pharmacy-related products and services as its main draw

Convenience store

a miniature supermarket, carrying only a limited line of high-turnover convenience goods

Discount store

a retailer that competes on the basis of low prices, high turnover, and high volume

Full-line discount store

a discount store that carries a vast depth and breadth of product within a single product category

Supercenter

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Specialty discount store

a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover

Category killer

a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category

Warehouse club

a large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee

Off-price retailer

a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges

Factory outlet

an off-price retailer that is owned and operated by a manufacturer

Used goods retailer

a retailer whereby items purchased from one of the other types of retailers are resold to different customers

Restaurant

a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation

Nonstore retailing

shopping without visiting a store

Automatic vending

the use of machines to offer goods for sale