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BUAD110 chapter 9
Terms in this set (82)
what are the 2 aspects of the marketing mix?
product mix and pricing mix
what are the 3 types of brands a product can be?
national, private, generic
the value placed on a company's brand
what is used to determine the effectiveness of company's product decisions?
what are the 4 basic pricing objectives?
performance, prevention, maintenance, survival
the combination of design, quality, brand, name, package, warranty, and product-line width and depth
what are the 3 things that need to be decided on when putting together a product mix?
product elements, developing new products, managing existing products
the tangible aspects of a product: its materials, shape, length, width, height, hardness or softness, etc
is a function of a product's physical aspects
name placed on a product
brands that carry the brand name of the manufacturer
carry the retailer's brand name
do not carry a brand name; label designates the content of the package
safeguards a product as it is transported from manufacturers to wholesalers to retailers
the one that encloses each unit of a product
is an assurance or guarantee made by a seller to a buyer about the quality of the good or service the seller offers
an unwritten or unspoken warranty that exists because the Universal Product Code says that all goods are at least fit for the ordinary purpose for which they are used
an explicit warranty that is either written or spoken
Warranties can benefit producer
means using the same product mix in overseas markets as in domestic markets
offers a different product mix to the various international markets than the one used on domestic markets
refers to the number of different production lines
refers to the number of specific product (brands) on each product line
developing new products is .... and .....
time-consuming and costly
what are the 5 departments involved in developing a new product?
marketing, research and development, manufacturing, packaging, finance
a source for new products that is located outside a company
the large, high-profile firms in an industry whose business methods are often emulated by other companies
ideas coming from one company to another or from other industries or the gov't
sources for new products that are located within a firm
is a temporary unit formed to come up with new product ideas
internal sources of generating new product ideas are better for .......... companies
external sources of generating new product ideas are better for .......... companies
name the 5 possible external sources for new product development
lead users, technology transfer, patent offices, scientific and professional meetings, independent inventors
name the 4 possible internal sources for new product development
venture teams, R&D personnel, marketing department, company employees
considering potential new product ideas in a group setting
purpose is to identify the ideas that have the best chance of being commercially successful
presenting the general idea of a new product to a sample of the market in order to get its reaction
small group of consumers that is representative of the market for a new product and provides companies with reactions to new product concepts
used to predict how potentially profitable the new product will be
tells the company the number of units a new product needs to sell in order to cover the cost of developing the new product and providing the company with its desired level of profit
refers to how much better than competitive products the new offering is
involves the extent to much which purchasers of new products can continue to operate as they have in the past or how much differently they have to operate than they are used to
how complicated a product is to use
refers to how easy or difficult it is to convey the product's benefits to the intended market
the aspect of a new product that enables consumers to try it in a piecemeal manner without having to purchase the entire product
the step in the new product development process in which the design of the new product is finalized
research designed to achieve a specific objective
research whose aim is to obtain knowledge with no specific, immediate payoff in mind
R&D people being allowed to devote a portion of their time to projects they would like to work on
subjecting the product to physical evaluation that indicates its ability to meet the market's expectation of performance
marketing a product on a limited basis to help decide which marketing mix should be used when it is commercialized
what does technical testing enable? (2)
companies to place warranties and develop advertising
what does market testing help determine? (3)
price to charge, channel of distribution, appropriate advertisements
cities that mirror the larger U.S. market on factors believed important in the sale of the new product such as income, age, and ethnicity
when a firm chooses two test markets and sells the product at a different price in each city
an alternative to test markets that offers speed, lower cost, and less competitor interference
stimulated test markets
refers to the strategies used to introduce a new product to the market as well as the methods used to track its progress
defined as the first 2.5% of adopters of new products
what are the 4 stages of the product life cycle?
introduction, growth, maturity, decline
the first stage of the product life cycle in which revenues and profits are low but begin to increase
in the introduction stage, purchasers primarily come from what market?
in the growth stage, purchasers primarily come from what market?
in the maturity stage, purchasers primarily come from what market?
in the decline stage, what market is lost to competitors?
the second stage of the product life cycle in which revenues increase rapidly and profits are maximized
the third stage of the product life cycle in which profits drop and revenues are maximized
the fourth stage of the product life cycle in which profits and revenues continue to fall
what are the 2 factors that determine a company's marketing mix over the product life cycle?
market and competition
those purchasers whose needs and desires are the most compatible with the offering's features and benefits
the market segment in which the features and benefits of the product or service are not quite as congruent with the purchaser's needs and desires as they are in the primary market
the process whereby poorly performing products are dropped
around 20% of a company's products will account for about 80% of its revenues, and 80% of its products will generate only 20% of its revenues
a pricing objective designed to achieve a certain level of profit, revenues, or market share
a pricing objective to keep other firms from entering the market or deterring governmental scrutiny of a company's prices
a pricing objective involving the desire to retain the current market or competitive landscape
a pricing objective related to a firm remaining in business
is the number of units of a product that will be purchased at various prices
a combination of prices and quantities demanded that indicates that the market is very responsive to prices
elastic demand curve
a combination of prices and quantities for a product that indicates that the market is not very responsive to a product's prices
inelastic demand curve
prices a U.S. company charges its overseas subsidiary
Concerned with taxes
when a company sells a product in an international market at a price below its cost
difference between what a retailer pays for a product and the price at which the product is being sold
usually expressed as a percentage of the selling price
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