Business - Chapter 13

  1. Value Package
    Product marketed as a bundle of value-adding attributes, including reasonable cost
  2. Convenience Goods and Services
    Relative inexpensive consumer goods or services that are bought and used rapidly and regularly (water bottle) - little time shopping around
  3. Shopping goods and services
    Moderately expensive consumer goods or services that are purchased unfrequently. (cell phone, etc...)
  4. Specialty goods and services
    Very expensive consumer goods and services that are purchased rarely, causing consumers to spend a great deal of time locating the exact item desired.
  5. Capital Items
    Expensive, long-lasting industrial goods that are used in producing other goods or services and have a long life.
  6. Expense items
    relatively inexpensive indistrial goods that are consumed rapidly and regularly.
  7. Product Mix
    The group of products a company has available for sale.
  8. Product Line
    A group of similar products intended for a similar group of buyers who will use them in a similar fashion.
  9. Seven Step Development Process
    • 1: Product Idea - Product development begins with a search for ideas for new products.
    • 2: Screening - The goal is to eliminate al product ideas that do mesh with the firm's abilities, expertise, or objectives.
    • 3: Concept Testing
    • 4: Business Analysis
    • 5: Phototype development
    • 6: Product Testing and test marketing
    • 7: Commercialization
  10. Speed to market
    strategy of introducing new products to respond quickly to customer and/ or market changes.
  11. Product Life Cycle
    the concept that the profit-producing life of any product goes through a cycle of:

    • Introduction
    • Growth
    • Maturity
    • Decline
  12. Branding
    Process of using symbols to communicate the qualities of a product made by a particular producer.
  13. Brand equity
    Degree of customers' loyalty to and awareness of a brand and its resultant market share.
  14. National Brands
    produts distributed by and carrying a name associated with the manufacturer.
  15. Licensed Brands
    Selling the right to use a brand name, a celebrity;s name, or some well-known identification mark to another company to use on a product
  16. Private brands
    Produts promoted by and carring a name associated with the retailer or wholesaler, not the manufacturer.
  17. brand Loyalty
    Customer's recognition of, preference for and insistance on buying a product with a certain name.
  18. Trademark
    The exclusive legal right to use a brand name - Granted for 15 years.
  19. Patent
    Protects an invention or idea for a period of 20 years.
  20. Copyright
    Exclusive ownership rights granted to creators for the tangible expression of an idea.
  21. Packaging
    The physical container in which a product is sold, including the label.
  22. Label
    the part of a product's packaging that indentifies the product's name and contents.
  23. Consumer Packaging and Labelling Act
    A federal Law that provides comprehensive rules for packaging and labelling of consumer products
  24. Push Strategy
    Promotional Strategy in which a company aggressively pushes its products through retailers and wholesalers, which persuade customers to buy it.
  25. Pull Strategy
    A Promotional Strategy in which a company appeals directly to customers, who demand the products from retailers and wholesalers.
  26. Promotional Mix
    The portion of Marketing concerned with choosing the best combination of advertising, personal selling, sales promotions, and publicity to sell a product.
  27. Advertising Medium
    The specific communication device - tv, radio, newspaper, direct mail - used to carry a firm's advertising message to potential customers.
  28. Direct mail
    printed advertisements, such as flyers, mailed directly to customer's homes.
  29. Word of Mouth
    Opinions about the value of produts passed along consumers in informal discussions.
  30. Ecommerce
    The use of internet and other eletronic means for retailing and business to business transactions.
  31. Internet Marketing
    The promotional efforts of companies to sell their products and services to consumers over the internet.
  32. Media Mix
    The combination of media through which a company chooses to advertise its products.
  33. Personal Selling
    Promotional tool in which a sales person communicates one on one with potential customers.
  34. Sales Promotions
    Short-Term promotional activities designed to stimulate customer buying
  35. Coupon
    A method of sales promotion featuring a certificate that entitles the bearer to stated savings off a product's regular price
  36. Point of Purchase (POP) Display
    A method of sales promotion in which a product display is so located in a retail store as to encourage consumers to buy the product.
  37. Premium
    A method of sales promotion in which some items is offered free or at a bargain price to customers in return for buying a specific product
  38. Trade Show
    A method of sales promotion in which members of a particular industry gather for display and products demonstrations designed to sell products to customers.
  39. Publicity
    Information about a company that is made available to customers by the news media.
  40. Public Relations
    Public-service announcements by the company designed to enhance the company's image.
  41. Global Perspective
    Company's apporach to directing its marketing toward worldwide
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Business - Chapter 13
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