Marketing and Business Terminology: Goods, Services, Products, and Pricing, Quizzes of Marketing Management

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TERM 1 Product DEFINITION 1 is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers needs and isreceivedin exchange for money or something else of value TERM 2 A Good DEFINITION 2 has tangible attributes (e.g. see, feel) that a consumer's five senses can perceive, may also haveintangibleattributes (e.g.warranties) TERM 3 nondurable goods DEFINITION 3 is an item consumed in one or a few uses (e.g. food, fuel) TERM 4 durable good DEFINITION 4 is one that usually lasts over many uses TERM 5 Services DEFINITION 5 are intangible activities orbenefitsthat an organization provides to satisfy consumers needs in exchange formoneyor something else of value TERM 6 An Idea DEFINITION 6 is a thought that leads to an action such as a concept for a new invention TERM 7 Consumer products DEFINITION 7 are products purchased by the ultimate consumer TERM 8 Business products DEFINITION 8 are products that organizations buy that assist in providing other products for resale TERM 9 Types of Consumer Products DEFINITION 9 Convenience products, Shopping products, Specialty product, and Unsought products TERM 10 Convenience products DEFINITION 10 are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort TERM 21 Product line DEFINITION 21 is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributedthroughthe same outlet, or fall within a given price range. TERM 22 Product Mix DEFINITION 22 consists of all of the product lines offered by an organization TERM 23 Using Marketing Dashboards DEFINITION 23 measure actual market performance versus the goals set in new product planning. measure in "annual % sales change" TERM 24 Newness DEFINITION 24 if a product is functionally different from existing products, aproductup to six months after it enters regular distribution TERM 25 Existing product DEFINITION 25 proliferation of extra features. sometimes called feature bloating TERM 26 Newness from consumer perspective DEFINITION 26 degree of learning required by consumers. (i.e. continuous innovation, dynamically continuous innovation, discontinuous innovation.) TERM 27 Continuous innovation DEFINITION 27 consumers don't need to learn new behaviors TERM 28 dynamically continuous innovation DEFINITION 28 only minor changes in behavior are required TERM 29 discontinuous innovation DEFINITION 29 involves making the consumer learn entirely new consumption patterns to use the product TERM 30 Protocol DEFINITION 30 a statement that, before products development begins,identifies: a well defined target market, specific customer needs, wants and preferences, and what the product will be and do. TERM 31 Marketing reasons for new product failures DEFINITION 31 1. Insignificant point of difference,2. Incomplete market and product protocol before product development starts,3. not satisfying customer needs on critical factors,4. Bad timing,5. Too little market attractiveness,6. poor product quality,7. poor execution of the marketing mix,8. no economicalaccessto buyers. TERM 32 Organizational problems in New product failures DEFINITION 32 1. Not really listening to the "voice of the consumer"2. skipping stages in the new product process3. pushing a poorly conceived product into the market to generate quick revenue4. Encountering "groupthink" in task force and committee meetings5. Not learning critical takeaway lessons from past failures TERM 33 Intelligent failures DEFINITION 33 ones that happen early in the new product process TERM 34 New product process DEFINITION 34 the seven stages an organization goes through to identify business opportunities and convert them to a salable good or service1. new product strategy development2. idea generation3. screening and evaluation4. business analysis5. development6. marketing testing7. commercialization TERM 35 1. New product Strategy Development DEFINITION 35 is the stage of the new product process that defines the role for a newproductin terms of the firm's overall objective. TERM 46 7. Commercialization DEFINITION 46 the stage of the new product process that positions and launches a new product in full scale production and sales****most expensive stage TERM 47 Regional Rollouts DEFINITION 47 introducingthe product sequentially into geographical areas of the US. TERM 48 Slotting fee DEFINITION 48 a payment a manufacturer makes to place a new item on a retailer's shelf TERM 49 Failure fee DEFINITION 49 penalty payment amanufacturemakes to compensate a retailer for sales itsvaluableshelf space fails to make. TERM 50 Parallel Development DEFINITION 50 cross functional team members who conduct the simultaneous development ofboththe product and the product process stay with the product from conception toproduction TERM 51 Fast prototyping DEFINITION 51 do it, try it, fix it. encouraging continuingimprovementeven after theinitialdesign. TERM 52 Product Life Cycle DEFINITION 52 describes the stages a new product goes through in the market place: Introduction, growth, maturity, decline TERM 53 Introduction stage DEFINITION 53 occurs when a product is introduced to its intended target market. stimulate trial - the initial purchase of a product TERM 54 primary demand DEFINITION 54 thedesireof the product class rather than for a specific brand.initiatedin theintroductionstage TERM 55 selective demand DEFINITION 55 the preference for a specific brand. initiated in the growth stage TERM 56 Penetration pricing DEFINITION 56 Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. TERM 57 Growth Stage DEFINITION 57 characterized by rapid increases in sales. this is the stage that competitors appear. profit usual peaks in this stage TERM 58 Maturity Stage DEFINITION 58 slowing of total industry sales or product class revenue. marginalcompetitorsbegin to leave. TERM 59 Decline Stage DEFINITION 59 when sales drop. enters this stage due toenvironmentalchanges. TERM 60 Deletion DEFINITION 60 dropping theproduct from the company's product line, is the most drastic strategy TERM 71 Inconsistency DEFINITION 71 developing, pricing, promoting, and delivering services is challenging because the quality of a service is often inconsistent. services depend on the people who provide them TERM 72 Inseparability DEFINITION 72 the consumer cannot separate the deliverer of the service from the service itself. self service technologies such as ATMs TERM 73 Inventory DEFINITION 73 inventory of services is different from that of goods. inventory carrying coasts are more subjective and are related to idle production capacity TERM 74 Idle production capacity DEFINITION 74 which is when the service provider is available but there is no demand. the cost of paying a person to sit there and do no work (i.e. being idle) TERM 75 Service continuum DEFINITION 75 what companies bring to the market ranges from the tangible to the intangible or gooddominantto servicedominantofferings. TERM 76 Search Properties DEFINITION 76 related to tangible goods. have color, size, and style TERM 77 Experience properties DEFINITION 77 related to services. which can be discerned only after purchase or during consumption TERM 78 Credence properties DEFINITION 78 services provided by specialized professionals. characteristics that the consumer may find impossible to evaluate even after purchase and consumption TERM 79 Gap Analysis DEFINITION 79 differences between theconsumer'sexpectations and experience are identified through gap analysis TERM 80 customer contact audit DEFINITION 80 a flow chart of the points ofinteractionbetween consumer and service providers. TERM 81 Relationship Marketing DEFINITION 81 the contact between a service provider and a customer represents a service encounter that is likely to influence the customer's assessment of the purchase. TERM 82 Eight P's of Service Marketing DEFINITION 82 1. Product2. Price3. Place4. Promotion5. People6. Physical Environment7. Process8. Productivity TERM 83 Internal Marketing DEFINITION 83 is based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed to customers.***critical to the success of service organization TERM 84 Customer experience management (CEM) DEFINITION 84 is the process of managing the entire customer experience with the company TERM 85 Capacity Management DEFINITION 85 the service component of the marketing mix must be integrated witheffortsto influence consumer demand. TERM 96 Pure Competition DEFINITION 96 Many sellers who follow the market price for identical, commodity products. TERM 97 Monopolistic Competition DEFINITION 97 Many sellers who compete on nonprice factors TERM 98 Oligopoly DEFINITION 98 Few sellers who aresensitiveto each other's prices. TERM 99 Pure Monopoly DEFINITION 99 One seller who sets the price for a unique product. TERM 100 Demand Curve DEFINITION 100 is a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price TERM 101 Consumer tastes DEFINITION 101 depends on many factors such as demographics, culture, and technology TERM 102 Price and availability of similar Product DEFINITION 102 as the price of substitues falls or their availability increases, the demand for a product will fall TERM 103 Consumer income DEFINITION 103 as real consumer income increases, demand for a product also increases. TERM 104 Demand Factors DEFINITION 104 or factors that determine consumers willingness and ability to pay for products and services TERM 105 Price elasticity of Demand DEFINITION 105 the percentage change in quantity demanded relative to a percentage change in price TERM 106 Elastic demand DEFINITION 106 exists when a 1 percent decreases in prices produces more than a 1 percent increase in quantity demanded. TERM 107 Inelastic demand DEFINITION 107 exists when a 1 percent decrease in price produces less than a 1 percent increase in quantity demanded, thereby actually decreasing sales revenue TERM 108 Unitary demand DEFINITION 108 exists when the percentage change in price is identical to the percentage change in quantity demanded so that sales revenue remains the same. priceelasticityis equal to 1 TERM 109 Marginal analysis DEFINITION 109 which is a continuing,concisetrade off of incremental costs against incremental revenues TERM 110 Break even analysis DEFINITION 110 is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output TERM 121 Cost-Plus pricing DEFINITION 121 involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price TERM 122 cost-plus percentage of cost pricing DEFINITION 122 a fixed percentage is assed to the total unit cost TERM 123 cost-plus fixed fee pricing DEFINITION 123 which means that a supplier is reimbursed for all costs, regardless of what they turn out to be, but is allowed only a fixed fee as profit that is independent of the final cost of the product TERM 124 experience curve pricing DEFINITION 124 is based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience atproducingand selling them doubles. TERM 125 target profit pricing DEFINITION 125 a firm may set an annual target of a specific dollar volume of profit TERM 126 target return on sales pricing DEFINITION 126 to set typical prices that will give them a profit that is specified percentage of the sale volume TERM 127 target return on investment pricing DEFINITION 127 is a method of setting prices to achieve this target TERM 128 customary pricing DEFINITION 128 some products where tradition, a standardized channel of distribution, or other competitive factors dictate the price. TERM 129 above, at, or below market pricing DEFINITION 129 subjective feel for the competitors price or market price TERM 130 loss-leader pricing DEFINITION 130 special promotion retail stores deliberately sell a product below its customary price to attract attention to it. TERM 131 one-price policy DEFINITION 131 also called fixed pricing, is setting one price for all buyers of a product or service. TERM 132 flexible-price policy DEFINITION 132 also called dynamic pricing, involves setting different prices for products and services depending on individual buyers and purchase situations TERM 133 price war DEFINITION 133 involves successive price cutting by competitors to increase or maintain their unit sales or market share TERM 134 quantity discount DEFINITION 134 which are reductions in unit costs for a larger order TERM 135 noncumulative quantity discounts DEFINITION 135 are based on the size of an individual purchase order