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Brand
A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.
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Brand association
The linking of a brand to other favorable images.
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Brand awareness
How quickly or easily a given brand comes to mind when a product category is mentioned.
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Brand equity
The value of the brand name and associated symbols.
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Brand loyalty
The degree to which customers are satisfied, like the brand, and are committed to further purchases.
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Brand manager
A manager who has direct responsibility for one brand or one product line; called a product manager in some firms.
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Break-even analysis
The process used to determine profitability at various levels of sales. BEP=total fixed costs/price of one unite-variable costs of one unit
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Bundling
Grouping two or more products together and pricing them as a unit.
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Commercialization
Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.
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Competition-based pricing
A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.
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Concept testing
Taking a product idea to consumers to test their reactions.
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Convenience goods and services
Products that the consumer wants to purchase frequently and with a minimum of effort.
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Dealer (private-label) brands
Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.
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Everyday low pricing (EDLP)
Setting prices lower than competitors and then not having any special sales.
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Generic goods
Nonbranded products that usually sell at a sizable discount compared to national or private-label brands.
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High-low pricing strategy
Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.
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Industrial goods
Products used in the production of other products. Sometimes called business goods or B2B goods.
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Knockoff brands
Illegal copies of national brand-name goods.
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Manufacturers' brand names
The brand names of manufacturers that distribute products nationally.
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Penetration strategy
Strategy in which a product is priced low to attract many customers and discourage competition.
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Price leadership
The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.
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Product analysis
Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.
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Product differentiation
The creation of real or perceived product differences.
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Product life cycle
A theoretical model of what happens to sales and profits for a product class over time, the four stages of the cycle are introduction, growth, maturity, and decline. P.389
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Product line
A group of products that are physically similar or are intended for a similar market. Part of product mix.
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Product mix
The combination of product lines offered by a manufacturer.
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Product screening
A process designed to reduce the number of new-product ideas being worked on at any one time.
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Psychological pricing
Pricing goods and services at price points that make the product appear less expensive than it is. $2.99
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Shopping goods and services
Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.
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Skimming price strategy
Strategy in which a new product is priced high to make optimum profit while there's little competition.
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Specialty goods and services
Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them.
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Target costing
Designing a product so that it satisfies customers and meets the profit margins desired by the firm.
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Total fixed costs
All the expenses that remain the same no matter how many products are made or sold.
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Total product offer
Everything that consumers evaluate when deciding whether to buy something, also called a value package.
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Trademark
A brand that has exclusive legal protection for both its brand name and its design.
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Unsought goods and services
Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem.
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Value
Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
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Variable costs
Costs that change according to the level of production.
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Product development process
Idea generation (based on consumer wants and needs), product screening, product analysis, development (including building prototypes), testing, commercialization (bringing the product to the market)
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