MKT 243 chapter 4

Subdecks (2)

Cards (63)

  • Product
    Everything, both favorable and unfavorable, that a person receives in an exchange. May be a tangible good or an intangible service.
  • Branding
    The main tool marketers use to distinguish their products from the competition's
  • Brand
    A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
  • Brand name
    That part of a brand that can be spoken, including letters, words, and numbers
  • Brand mark
    The elements of a brand that cannot be spoken, e.g. the Mercedes-Benz and Delta Air Lines symbols
  • Benefits of Branding
    • Product identification
    • Repeat sales
    • New product
  • Product identification
    Branding allows marketers to distinguish their products from all others
  • Brand equity
    The value of company and brand names
  • Repeat sales
    Branding helps consumers identify products they wish to buy again and avoid those they do not
  • Brand loyalty
    A consistent preference for one brand over all others
  • New product sales
    Branding facilitates the sales of new products
  • Branding strategies

    • Manufacturers' brands
    • Private (distributor) brands
  • Manufacturers' brands
    The brand name of a manufacturer, e.g. Kodak
  • Private brand
    A brand name owned by a wholesaler or a retailer, e.g. Tesco brand
  • Trademark
    The exclusive right to use a brand or part of a brand
  • Examples of trademarks
    • Shapes
    • Ornamental color or design
    • Catchy phrases
    • Abbreviations
    • Sounds
  • Packaging functions
    • Contain and protect products
    • Promote products
    • Facilitate storage, use, and convenience
    • Facilitate recycling and reduce environmental damage
  • Containing and protecting products
    Packaging enables manufacturers, wholesalers, and retailers to market products in specific quantities and protects products from various conditions
  • Promoting products
    Packaging differentiates a product from competing products and may associate a new product with a family of other products from the same manufacturer
  • Facilitating storage, use, and convenience

    Packaging that is easy to ship, store, stock, handle, open, and reclose can increase a product's utility and market share
  • Facilitating recycling and reducing environmental damage

    Packaging that is compatible with the environment and can be perpetually recycled
  • Advantages of new products
    • Increased sales through longer sales life
    • Increased margins
    • Increased product loyalty
    • More resale opportunities
    • Greater market responsiveness
    • A sustained leadership position
  • New product development process
    1. New-product strategy
    2. Idea generation
    3. Idea screening
    4. Business analysis
    5. Development
    6. Test marketing
    7. Commercialization
  • New-product strategy
    Links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
  • Sources of new-product ideas
    • Customers
    • Employees
    • Distributors
    • Vendors
    • Competitors
    • R & D
    • Consultants
  • Idea screening
    The first filter that eliminates ideas inconsistent with the organization's new-product strategy or inappropriate
  • Concept test

    Evaluates a new-product idea, usually before any prototype has been created
  • Business analysis
    Calculates preliminary figures for demand, cost, sales, and profitability
  • Development
    The R&D or engineering department develops a prototype, and the marketing department decides on packaging, branding, labeling, etc.
  • Simultaneous product development
    All relevant functional areas and outside suppliers participate in all stages of the development process
  • Test marketing
    The limited introduction of a product and a marketing program to determine the reactions of potential customers
  • Commercialization
    The decision to market a product, setting tasks in motion like ordering production materials, starting production, building inventories, training the sales force, and advertising
  • Product life cycle (PLC)

    A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death)
  • product refers to all tangible goods, services, ideas, information, experiences, events, people, places, properties, organizations, and other entities that can be offered to target customers for their satisfaction and fulfillment
  • Product
    The goods or services offered by an organization to satisfy customers' needs. Includes tangible, intangible, consumable, and industrial products.
  • Price
    The amount paid by customers to acquire a product or service. Includes pricing strategies such as skimming, penetration, competitive, premium, and bundling.
  • Promotion
    The communication and publicity efforts used to persuade customers to buy a product or service. Includes promotional tools such as advertising, sales promotions, public relations, and personal selling.
  • Place (or Distribution)

    The process of making a product or service available to customers. Includes distribution channels such as direct, indirect, online, and offline.
  • Purchase Intentions
    Pricing can change customers' purchase intentions. For example, high prices can discourage customers, while low prices can encourage them.
  • Perceived Value
    Pricing can influence customers' perceptions of a product or service's value. Higher prices can make it seem more valuable, while lower prices can make it seem less valuable.