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Marketing Chapter 11

Terms in this set (58)

Brand Equity
the added value a brand name gives to a product beyond the function benefits it provides
Brand Licensing
a contractual agreement whereby one company allows its brand names or trademarks to be used with products or services offered by other companies for a royalty fee
Brand Name
any word, device, or combination of these used to distinguish a sellers goods and services
Brand Personality
a set of human characteristics associated with a brand name
Branding
a marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors
Label
an integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
Market Modification
strategies by which a company tries to find new customers, increase a products use among existing customers, or create new use situations
Mixed Branding
a branding strategy where a firm markets products under its own names and that of a reseller because the segment attracted to the reseller is different from its own market
Multibranding
a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment
Multiproduct Branding
a branding strategy in which a company uses one name for all its products in a product class
Packaging
a component of a product that refers to any container in which it is offered for sale and on which label information conveyed
Private Branding
a branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer
Product Class
refers to the entire product category or industry
Product Form
pertains to variations of a product within the product class
Product Life Cycle
describes the stages a new product goes through in the market place; introduction, growth, maturity, and decline
Product Modification
strategies that alter a products characteristics such as its quality, performance, or appearance to increase the products value to customers and increase sales
Trade Name
a commercial, legal name under which a company does business
Trademark
identifies that a firm has legally registered its brand name or trade name so that the firm has its exclusive use, thereby preventing others from using it
Trading Down
reducing the number of features, quality, or price of a product
Trading Up
adding value to the product through additional features or higher quality materials
Warranty
a statement indicating the liability of the manufacturer for product deficiencies
Trial
the initial purchase of a product by a consumer
Primary Demand
the desire for the product class rather than for the specific brand, since there are few competitors with the same product
Selective Demand
the preference for a specific brand
Skimming
a high initial price used to help a company recover initial costs quickly and capitalize on the price insensitivity of early buyers
Penetration Pricing
low pricing by a company to discourage competition
Repeat Purchasers
people who tried the product, were satisfied, and bought it again
Product Deletion
dropping the product from the company's product line. Deletion is the most drastic response to the decline stage
Harvesting
when a company retains the product but reduces marketing costs by continuing to offer the product, but not allocating sales people or advertising dollars to it
High Learning Product
significant customer education is required and there is an extended introductory period
Low Learning Product
begin immediately because little learning is required by the consumer and the benefits of the purchase are readily understood
Fashion Product
a style of the times that are introduced, decline, and the reemerge over time
Fad
experiences rapid sales on introduction and then an equally rapid decline
Diffusion of Innovation
most sales occur after the product has been on the market for some time
Usage Barriers
the product is not compatible with existing habits
Value Barriers
the product provides no incentive to change
Risk Barriers
Physical, economic, or social
Psychological Barriers
cultural differences or image
Brand Manager
another name for the product manager that manages the marketing efforts for a close knit family of products or brands
Product Bundling
the sale of two or more separate products in one package
Product Repositioning
changes the place a product occupies in a consumers mind relative to competitive products
Downsizing
reducing the package content without changing package size and maintaining or increasing the package prices
Product Counterfeiting
involves low cost copies of popular brands not manufactured by the original producer. Counterfeiting leads to 200-250 billion in losses each year
Stop Counterfeiting in Manufactured Goods Act of 2006
makes counterfeiters subject to 20 years in prison or 15 million in fines
Thinking
part of brand equity that focuses on a brand's perceived quality, credibility, and superiority relative to other brands
Feeling
part of brand equity that relates to the consumers emotional reaction to the brand
Family branding or Corporate Branding
another name for multiproduct branding
Product Line Extensions
the practice of using a current brand name to enter a new market segment in its product class
Subbranding
combines a corporate or family brand with a new brand to distinguish a part of its product line from others
Brand Extension
the practice of using a current brand name to enter a different product class
Co-Branding
the pairing of two brand names of two manufactures on a single product
Fighting Brands
a defensive move by multibrand companies to counteract competition and confront competing brands
Shelf Life
the time a product can be stored safely
Express Warranties
written statements of liability
Limited Coverage Warranties
specifically states the bounds of coverage and non coverage
Full Warranty
has no limits on non coverage
Magnuson-Moss Warranty/FTC Improvement Act
regulates the content of consumer warranties and so has strengthened consumer rights with regard to warranties
Implied Warranties
assign responsibility for product deficiencies to the manufacturer
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