additional features for an extra charge
a type of consumer product. everyday goods and services that people buy frequently, usually without much conscious planning
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.
- 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.
ex: life insurance, cemetery plots
things people need but aren't looking for.
relatively inexpensive goods that are typically used within a year of purchase, like printer cartridges and papers\
- more expensive items with longer use life.
- ex: computers, cats, factories
product life cycle
- 1. introduction
- 2. growth
- 3. maturity
- 4. decline
identify the main types of consumer and organizational products
- - unsought goods
- - shopping goods
- - specialty products
- -convenience products
- -expense items
- -capital items
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
preproduction samples of products used for testing and evaluation
a product development stage in which a product is sold in small quantities to gauge its market appeal
final step of development - large scale production and distribution of products that survived the testing process
describe six stages in the product development cycle
NOT SURE, SEE NOTES
- 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
the value in the brand that the company has built up
the degree to which customers continue to purchase a specific brand
- portion of a brand that can be expressed verbally
- -includes words, numbers, letters
portion of a brand that can't be expressed verbally
visual representation of the brand
legal protection of the brand so that owners have exclusive usage rights
brands owned by the manufacturer and distributed nationally
brands that carry the label of a retailer or a wholesaler rather than a manufacturer
partnering with another company to closely link their brand names together for a single product
allowing the usage and marketing of another company's products in exchange for a royalty or a fee
managers who develop and implement marketing strategies and programs for specific products or brands
a series of related products offered by a firm
the complete portfolio of products that a company offers for sale
using a brand name on a variety of related products
applying a successful brand name to a new product category
a measure of the sensitivity of demand to changes in price
costs the remain constant regardless of the number of units produced
costs that change with volume
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
a method of pricing based on production costs rather than marketplace conditions
a method of setting prices based on customer perceptions of value
list the factors the influence pricing decisions and explain break-even analysis
- factors to influence pricing:
- marketing objectives
- government regulations
- customer perceptions
- market demand