Glossary of Exam
Created by connorbeitel
- a form of product that consists of activites, benefits, or satisfactions offered for sale that is essentially intangible and does not result in the ownership of anything.
- Product Line
- a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall withing given price ranges.
- Product Mix
- consists of all the product lines and items that a particular seller offers for sale.
- Line Extension
- Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. ie: all of the different kinds of Coke.
- Brand Extensions
- Extending an existing brand name to new product categories. ie: pasta company making spaghetti sauce.
- Four Service Characteristics
- 1. Intangibility: Services cannot be seen, tasted, felt, heard, smelled.
2. Inseperability: Services can't be separated from their providers.
3. Variability: Quality of services depends on who provides them.
4. Perishability: Services can't be stored for later use/sale.
- New-Product Development
- original products, product improvements, product modifications, and new brands that the firm develops through its own research-and-development efforts.
- New-Product Development Process
- 1. Idea Generation
2. Idea Screening
3. Concept Development and Testing
4. Marketing Strategy and Development
5. Business Analysis
6. Product Development
7. Test Marketing
- Product Life Cycle
- 1. Product Development
- Value-Based Pricing
- setting prices based on buyers' perception of value rather than on the seller's cost.
-good value does not mean low price
-everyday low pricing: charging constant, everyday low price with no discounts
High-low pricing: high prices with frequent promotions
- Cost-based pricing
- setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
- Fixed Costs
- costs that do not vary with production or sales level
- Variable Costs
- costs that vary directly with the level of production
- Total Costs
- the sum of the fixed and variable costs for any given level of production
- Market-Skimming Pricing
- setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price.
company makes fewer but more profitable sales (iPhone)
- Market-Penetration Pricing
- setting a low price for a new product in order to attract a large number of buyers and a large market share.
- Product-Line Pricing
- setting hte price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
- Optional-Product Pricing
- the pricing of optional or accessory products along with a main product.
- Captive-Product Pricing
- setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera.
- By-Product Pricing
- Setting a price for by-products in order to make the main product's price more competitive. (Zoo Poo)
- Dynamic Pricing
- Adjusting prices continually to meet the characteristics and needs of individual customers and situations (Amazon.com)
- Marketing Channel (Distribution Channel)
- A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. (Information, Promotion, Contact, Distribution, Financing)
- The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermetiaries; cutting out the retailer
(Dell, Southwest Airlines, iTunes)
- Marketing Logistics
- the tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information
getting right product to the right customer in the right place at the right time.
- Supply Chain Management
- managing upstream and downstream value
added flows of materials, final goods, and related information among suppliers, the company, resellers, and final comsumers.
- Steps of Supply Chain Management
- 1. Inventory Management: do you have what you need at the right place at the right time?
2. Transportation: how are you getting everything to the right place?
3. Warehousing: where are you keeping your products and is it cheap/convenient?
4. IT systems: knowing the things you'll need to know for success
reverse logistics: ?
- Integrated Logistics Management
- The logistics concept that emphasized teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system.
- Third Party Logistics (3PL)
- independent logistics provider that performs any or all of the functions required to get their client's product to market.
- Brand Development
- 1. Line extensions
2. Brand extensions
3. Multibrands (P&G)
4. New brands
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