Marketing Unit Test 3

Product

A total collection of tangible and intangible attributes, including functional, social, and psychological utilities, that provides value to a consumer.

Tangible vs. Intangible Goods

Tangible goods are physical items you can touch, see, and own (e.g., a smartphone). Intangible goods (often services) are experiential, perishable, and cannot be physically possessed (e.g., a haircut or insurance policy).

Product Line

A set of individual products that are closely related because they function in a similar manner, are sold to the same customer groups, or are marketed through the same outlets

Product Assortment (or Product Mix)

The complete set of all product lines and individual items that a particular seller offers for sale to buyers.

Branding

The process of using a name, term, symbol, design, or combination of these to identify a product and distinguish it from competitors.

Brand Familiarity (5 Levels)

The degree to which customers recognize and accept a brand. The levels typically range from: Brand Rejection,Non-recognition,Recognition,Prference,Insistence

Brand Rejection

Customers won't buy the brand unless it changes.

Brand Non-recognition

Consumers don't recognize the brand at all.

Brand Recognition

Customers remember the brand when they see it.

Brand Preference

Target customers usually choose this brand over others.

Brand Insistence

Customers insist on this specific brand and will search for it.

Product Life Cycle (PLC)

The stages a new product idea goes through from beginning to end, divided into four major periods: Introduction, Growth, Maturity, and Decline.

ew Product Development Process

A structured, multi-step process used by firms to bring new products to market, typically involving idea generation, screening, idea evaluation, development, and commercialization.

Federal Trade Commission (FTC)

The federal government agency responsible for monitoring antitrust and consumer protection laws. In marketing, it strictly regulates what can legally be called a "new" product (usually only up to six months).

Direct Channel

A distribution channel where the producer sells a product directly to the final consumer without any intermediaries (e.g., a farmer selling fruit at a roadside stand)

Indirect Channel

A distribution channel that includes one or more independent intermediaries (like wholesalers, distributors, or retailers) between the producer and the final consumer.

Channel Captain

A dominant manager or firm within a marketing channel who directs, coordinates, and supports the activities of the other channel members.

Channel Conflict

Disagreements among marketing channel members on goals, roles, and rewards—can be horizontal (between firms at the same level) or vertical (between different levels of the same channel).

Vertical Marketing System (VMS)

A channel structure in which producers, wholesalers, and retailers act as a unified system to maximize efficiency and eliminate conflict.

Ideal Market Exposure

The degree of market accessibility a firm seeks, categorized into three strategies: Intensive Distribution, Selective Distribution, Exclusive Distribution

Intensive Distribution

Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product (e.g., convenience items).

Selective Distribution

Selling through only those intermediaries who will give the product special attention (e.g., appliances or shopping goods).

Exclusive Distribution

Selling through only one intermediary in a particular geographic area (e.g., luxury items).

Logistics (Physical Distribution)

The transporting, storing, and handling of goods in ways that match target customers' needs with a firm’s marketing mix, balancing total costs against customer service levels.

Customer Service Level

How rapidly and dependably a firm can deliver what the customer wants. Marketing managers must balance this against the physical costs of distribution

Just-in-Time (JIT) Delivery

A logistics approach where materials or goods are scheduled to arrive precisely when they are needed for production or resale, minimizing inventory costs.

Supply Chain

The complete connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.

Electronic Data Interchange (EDI)

An approach that puts information in a standardized format easily shared between different computer systems, allowing buyers and sellers to automatically track orders, inventory levels, and shipments.