Marketing Chapter 9
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46 terms
Terms | Definitions |
|---|---|
 many | most firms sell ____ products |
| product mix | the set of all products offered for sale by a company |
| breadth | measured by the number of product lines carried |
| depth | measured by the variety of sizes, colors, and models offered within each product line |
| product line | a broad group of products, intended for essentially similar uses and having similar physical characteristics |
| planned strategies | to be successful in marketing, producers and middlemen need carefully _______ __________. |
| positioning | entails developing the image that a product projects in relation to competitive products and to the firm's other products |
| needs; target | regardless of strategy, _____ of _______ market always must be considered |
| positioning strategies | positioning in relation to a competitor, positioning in relation to a product class or attribute, positioning by price and quality |
| product-mix expansion | accomplished by increasing the depth within a particular line and/or the number of lines a firm offers to customers |
| line extension | when a company adds a similar item to an existing product line with the same brand name. main reason for them is to appeal to more market segments |
| mix extension | the addition of a new product line |
| product alteration | often, improving an established product can be more profitable and less risky than developing a completely new one |
| consumer; packaging | alternatively, especially for ________ goods, the product itself is not changed but its _________ is altered. |
| product-mix contraction | carried out either by eliminating an entire line or by simplifying the assortment within a line. can weed out low-profit and unprofitable products |
| product strategies of trading up and trading down | involve a change in product positioning and an expansion of the product line |
| trading up | means adding a higher-price product to a line in order to attract a broader market. also, seller intends that the new product's prestige will help the sale of existing lower-price products |
| trading down | means adding a lower-price product to a company's product line. the new lower-price product should carry some of the status of the higher-price item. new offering may permanently hurt the firm's reputation and the status if its current high-quality product |
| product life cycle | consists of the aggregate demand over an extended period of time for all brands comprising a generic product category |
| product life cycle stages | introduction, growth, maturity, decline |
| introduction (pioneering stage) | product is launched into the market in a full-scale marketing program. it has gone through product development, including screening, prototype, and market tests. most expensive stage |
| growth (market-acceptance stage) | sales and profits rise, frequently at a rapid rate. competitors enter the market, often in large numbers to get in on the action. prices typically decline gradually in this stage |
| maturity | sales continue to increase, but at a decreasing rate. when sales level off, profits of both producers and middlemen decline because of intense competition. some firms extend product lines or improve them. some drop out if costs are too high at the end of maturity |
| decline | gauged by sales volume for the total category, and for most is inevitable for the following reasons: a better or less expensive product is developed to fill same need, people simply get tired of it, need for the product disappears |
| fad | a product or style that becomes immensely popular nearly overnight and then falls out of favor with consumers almost as quickly |
| extended introduction stage | product gains widespread consumer acceptance only after an extended introductory period |
| indefinite maturity stage | product's mature stage lasts almost indefinitely.e.g. carbonated soft drinks, portable music players |
| shorter | setting aside fads, product life cycles are generally getting _______ |
| market | when we say a product is in a specific stage of its life cycle, implicitly we are referring to a specific market |
| entry strategies | a firm entering a new market must decide whether to plunge in during the introductory stage or it can wait and make its entry during the early part of the growth stage, after innovating companies have proven there is a viable market |
| first-mover advantage | the benefit to getting a head start in marketing a new type of product; the company that introduces the product can target the highest potential market segments and can determine how to produce the good or service at lower and lower costs |
| managing on the rise | decisions made during the growth stage influence (1) how many competitors enter the market and (2) how well the company's brand within a product category does both in the near and distant future. target markets have to be confirmed, and if necessary adjusted, product improvements must be formulated, prices assessed, distribution expanded, and promotion enhanced |
| managing during maturity | implement line-extension, modify the product, design new promotion, and devise new uses for the product |
| surviving the decline | when sales are declining, management has the following alternatives: ensure efficiency in marketing and production programs, prune unprofitable sizes and models, cut all costs to the bare minimum to maximize profitability, and best (and toughest) of all improve the product in a functional sense, or revitalize it in some manner |
| product abandonment | if an alternative doesn't work in the decline stage management will have to consider this |
| planned obsolescence | is used to refer to either of two developments: technological obsolescence, style obsolescence |
| technological obsolescence | significant technical improvements result in a more effective product |
| style obsolescence | superficial characteristics of a product are altered so that the new model is easily differentiated from the previous model, it is intended to make people feel out-of-date |
| style | a distinctive manner of construction or presentation in any art, product, or endeavor |
| fashion | any style that is popularly accepted or purchased by successive groups of people over a reasonably long period of time |
| fashion-adoption process | a series of buying waves that arise as a particular style is popularly accepted in one group, then another group, and another, until it finally falls out of fashion |
| fashion cycle | movement, representing the introduction, rise, popular culmination, and decline of the market's acceptance of a style |
| three theories of fashion adoption | trickle-down, trickle-across, and trickle-up |
| trickle-down | a given fashion cycle flows downward through several socioeconomic levels |
| trickle-across | the cycle moves horizontally and simultaneously within several socioeconomic levels |
| trickle-up | where a style first becomes popular at lower socioeconomic levels and then flows upward to become popular among higher levels |
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