42 terms

Business in Action Ch 14

convenience products
Everyday goods and services that people buy frequently, usually without much conscious planning
shopping products
Fairly important goods and services that people buy less frequently with more planning and comparison
specialty products
Particular brands that the buyer especially wants and will seek out, regardless of location or price
expense items
Inexpensive products that organizations generally use within a year of purchase
capital items
More expensive organizational products with a longer useful life, ranging from office and plant equipment to entire factories
product life cycle
Four stages through which a product progresses: introduction, growth, marturity, and decline
product development process
A formal process of generating selecting, developing, and commercializing product ideas
Preproduction samples of products used for testing and evaluation
test marketing
Product development stage in which a product is sold on a limited basis to gauge its market appeal
Large-scale production and distribution of a product
A name, term, sign, symbol, design, or combination of those used to identify the products of a firm and to differentiate them from competing products
brand equity
The value that a company hs built up in a brand
brand loyalty
The degree to which customers continue to purchase a specific brand
brand names
Portion of a brand that can be expressed orally, including letters, words, or numbers
brand mark
Portion of a brand that cannot be expressed verbally
A concise graphical and/or textual representation of a brand name
Brands that have been given legal protection so that their owners have exclusive rights to their use
national brands
Brands, owned by the manufacturers and distributed nationally
private brands
Brands that carry the label of a retailer or a wholesaler rather than a manufacturer
generic products
Products characterized by a plain label, with no advertising and no brand name
Partnership between two or more companies to closely link their brand names together for a single product
Agreement to produce and market another company's product in exchange for a royalty or fee
brand managers
Managers who develop and implement the marketing strategies and programs for a specific product or brand
product line
A series of related products offered by a firm
product mix
Complete list of all products that a company offers for sale
family branding
Using a brand name on a variety of related products
brand extension
Applying a successful brand name to a new product category
price elasticity
A measure of the sensitivity of demand to changes in price
fixed costs
Business costs that remain constant regardless of the number of units produced
variable costs
Business costs that increase with the number of units produced
break-even analysis
Method of calculating the minimum volume of sale needed at a given price to cover all costs
break-even point
Sales volume at a given price that will cover all of a company's costs
cost-based pricing
Method of setting prices based on production and marketing costs, rather than conditions in the marketplace
value-based pricing
Method of setting prices based on customer perceptions of value
optimal pricing
Computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives
skim pricing
Charging a high price for a new product during the introductory stage and lowering the price later
penetration pricing
Introducing a new product at a low price in hopes of building sales volume quickly
loss-lender pricing
Selling one product at a loss as a way to entice customers to consider other products
participative pricing
Allowing customers to pay the amount they think a product is worth
Temporary price reductions to stimulate sales or lower prices to encourage certain behaviors such as paying with cash
Offering several products for a single price that is presumably lower than the total of the products' individual prices
dynamic pricing
Continually adjusting prices to reflect changes in supply and demand