Chapter 9

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Marketing
updated 6 years ago by rflangeness
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1

Product management

The systematic and usually team-based approach to coordinating all aspects of a products marketing initiative including all elements of the marketing mix

2

Product line

A firms total product offering designed to satisfy a single need or desire of target customers

3

product line length

Determined by the number of separate items within the same category

4

Cannibalization

The loss of sales of an existing brand when a new item in a product line or product family is introduced

5

product mix

the total set of all products a firm offers for sale

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product mix width

the number of different product lines the firm produces

7

Product quality

The overall ability of the product to satisfy customers expectations

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Total quality management (TMQ)

A management philosophy that focuses on satisfying customers through empowering employees to be an active of continuous quality improvement

9

ISO 9000

Criteria developed by the International Organization for Standardization to regulate product quality in Europe

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IS0 14000

Standards of the international organization for Standardization concerned with "environmental management" aimed at minimizing harmful effects on the environment

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Six Sigma

A process whereby firms work to limit product defects to 3.4 per million or fewer

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full line strategy

targets many customer segments to boost sales potential

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limited-line strategy

fewer product variations can improve the firms image if consumers perceive it as a specialist with a clear, specific position in the market example-Rolls-Royce

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upward line stretch

adds to higher priced entrants that claim better quality or that offer more bells and whistles.

15

downward line stretch

augments a line when it adds items at the lower end.

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two way stretch

adds products at both the upper and lower ends example hotels

17

filling out strategy

adds sizes or styles not previously available in a product category example-bite sized oreos

18

contract product line

when a firm decides to scrap its product when its not profitable

19

product life cycle

a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline

20

Introduction stage

The first stage of the product life cycle in which slow growth follows the introduction of a new product in the marketplace
**goal is to get first time buyers to try the product
**marketing focuses on informing consumers about the product
*sales increase at a steady but slow pace

21

Growth stage

the second stage in the product life cycle, during which consumers accept the product and sales rapidly increase
**marketing goal is to encourage brand loyalty
**profits increase and peak
**marketing communication consists of heavy advertising to counter new competition

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maturity stage

The third and longest stage in the product life cycle, during which sales peak and profit margins narrow
**marketing goal is to attract new users
**Sales peak then level off and often declineing
**marketing communication focuses on reminder advertising

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decline stage

the final stage in the product life cycle, during which sales decrease as customer needs change
**Marketing focuses on remaining profitable then decides whether to keep or phase out the product
**profits decline

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brand

a name, term, a symbol, or any other unique element of a product that identifies one firm's products and sets it apart from the competition

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trademark

the legal term for a brand name, brand mark, or trade character; trademarks legally registered by a government obtain protection for exclusive use in that country

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brand equity

the value of a brand to an organization example-ralph lauren

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licensing

an agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time
example-jack danels boubon name to tgi friday

28

cobranding

An agreement between two brands to work together to market a new product

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family brand

A brand that a group of individual products or individual brands share
**example-microsoft,GMC

30

private label brands

Brands that a certain retailer or distributor owns and sells

31

ingredient branding

branded materials become "components parts" of other branded products
example-dell and w/intel processors