Ch. 15 UGBA 10

  1. augmenting
    additional features for an extra charge
  2. convenience products
    a type of consumer product. everyday goods and services that people buy frequently, usually without much conscious planning
  3. shopping products
    are fairly important goods and services that people buy less frequently, such as computers and college educations. stakes are higher and so product require more though and comparison shopping.
  4. specialty products
    • particular brands that the buyer especially wants and will seek out, regardless of location or price.
    • ex: suzuki violin lessons or Bang and Olufsen home entertainment gear.
  5. unsought products
    ex: life insurance, cemetery plots

    things people need but aren't looking for.
  6. expense items
    relatively inexpensive goods that are typically used within a year of purchase, like printer cartridges and papers\
  7. capital items
    • more expensive items with longer use life.
    • ex: computers, cats, factories
  8. product life cycle
    • 1. introduction
    • 2. growth
    • 3. maturity
    • 4. decline
  9. identify the main types of consumer and organizational products
    • - unsought goods
    • - shopping goods
    • - specialty products
    • -convenience products
    • -expense items
    • -capital items
  10. describe the four main stages of the life cycle of a product
    • intro: R&D -> product's first commercial availability
    • - a weak intro can doom a product(in some cases)
    • growth: jump in sales, competition increases, struggle for market share.
    • -expansion of distribution outlets
    • -economies of scale may be reached
    • maturity: long in the product life cycle
    • - market becomes saturated
    • - profits level off
    • - might have to win sales from other suppliers
    • - "milking a cash cow" to fund the new products
    • decline: declines occur because of changing demographics, shifts in popular taste, overwhelming competition and advances in technology
  11. prototype
    preproduction samples of products used for testing and evaluation
  12. test marketing
    a product development stage in which a product is sold in small quantities to gauge its market appeal
  13. commercialization
    final step of development - large scale production and distribution of products that survived the testing process
  14. describe six stages in the product development cycle
  15. brand
    • this is the identity of a company.
    • incorporates 3 things:
    • 1. the unique name/symbol
    • 2. the legal protections afforded by a trademark etc.
    • 3. the overall company or organizational brand
  16. brand equity
    the value in the brand that the company has built up
  17. brand loyalty
    the degree to which customers continue to purchase a specific brand
  18. brand names
    • portion of a brand that can be expressed verbally
    • -includes words, numbers, letters
  19. brand marks
    portion of a brand that can't be expressed verbally
  20. logo
    visual representation of the brand
  21. trademarks
    legal protection of the brand so that owners have exclusive usage rights
  22. national brands
    brands owned by the manufacturer and distributed nationally
  23. private brands
    brands that carry the label of a retailer or a wholesaler rather than a manufacturer
  24. co-branding
    partnering with another company to closely link their brand names together for a single product
  25. license
    allowing the usage and marketing of another company's products in exchange for a royalty or a fee
  26. brand managers
    managers who develop and implement marketing strategies and programs for specific products or brands
  27. product line
    a series of related products offered by a firm
  28. product mix
    the complete portfolio of products that a company offers for sale
  29. family branding
    using a brand name on a variety of related products
  30. brand extension
    applying a successful brand name to a new product category
  31. price elasticity
    a measure of the sensitivity of demand to changes in price
  32. fixed costs
    costs the remain constant regardless of the number of units produced
  33. variable costs
    costs that change with volume
  34. break-even analysis and break-even point
    • the method of calculating the minimum value of sales needed at a given price to cover all costs.
    • break even point refers to the sales volume at a given price that will cover all company costs
  35. cost-based pricing
    a method of pricing based on production costs rather than marketplace conditions
  36. value-based pricing
    a method of setting prices based on customer perceptions of value
  37. list the factors the influence pricing decisions and explain break-even analysis
    • factors to influence pricing:
    • marketing objectives
    • government regulations
    • customer perceptions
    • market demand
    • competition
  38. optimal pricing
Card Set
Ch. 15 UGBA 10
Product and Pricing Strategies