Product Features
tangible and intangible qualities that a company builds into its products
Value Package
a product is marketed as a bundle of value-adding attributes, including a reasonable cost
Consumer
person who purchases products for personal use
Industrial Buyer
a company or other organization that buys products for use in producing other products (goods or services)
Convenience Goods
inexpensive physical goods that are consumed rapidly and regularly
Convenience Services
inexpensive services that are consumed rapidly and regularly
Shopping Goods
Moderately expensive, infrequently purchased physical goods
Shopping Services
moderately expensive, infrequently purchased services
Specialty Goods
Expensive, rarely purchased physical goods
Specialty Services
Expensive, rarely purchased services
Production Items
Goods or services that are used in the conversion (production) process to make other products
Expense Items
Industrial products purchased and consumed within a year by firms producing other products
Capital Items
Expensive, long-lasting, infrequently purchased industrial products, such as a building, or industrial services, such as long-term agreement for data warehousing servieces
Product Mix
The group of products that a firm makes available for sale
Product Line
Group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
Speed To Market
Strategy of introducing new products to respond quickly to customer or market changes
Product Ideas
Typically come from consumers, the sales force, R&D departments, suppliers, or engineering personnel
Screening
Eliminate ideas that do not mesh with the firms abilities or objectives
Concept Testing
Companies use market research to get consumers' input about benefits and prices
Business Analysis
Marketers compare production costs and benefits
Prototype Deleopment
Engineering, R&D, or design groups produce a prototype
Product testing and test marketing
Test the product to see if it meets performance requirements
Commercialization
The company begins full scale production and marketing
Product Extension
Marketing an existing product globally instead of just domestically
Product Adaptation
Modifying an existing product for greater appeal in different countries
Reintroduction
Reviving obsolete or older products for new markets
Branding
Process of using symbols to communicate the qualities of a
Brand Awareness
extent to which a brand name comes to mind when a consumer considers a particular product category
Product Placement
promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers
National Brands
brand-name product produced by, widely distributed by, and carrying the name of a manufacturer
Licensed Brand
brand-name product for whose name the seller has purchased the right from an organization of individual
Private Brand (Private Label)
brand-name product that a wholesaler or retailer has commissioned from a manufacturer
Packaging
physical container in which a product is sold, advertised, or protected
Pricing
process of determining what a company will receive in exchange for its products
Pricing Objectives
the goals that sellers hope to achieve in pricing products for sale
profit-maximizing, market share
Cost-Oriented Pricing
pricing that considers the firm's desire to make a profit and its need to cover production costs
Markup
amount added to an item's purchase cost to sell it at a profit
Price Skimming
setting an initially high price to cover new product costs and generate a profit
Penetration Pricing
setting an initially low price to establish a new product in the market
Bundling Strategy
grouping several products together to be sold as a single unit at a reduced price, rather than individually
Price Lining
setting a limited number of prices for certain categories of products
Psychological Pricing
pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices
Odd-Even Pricing
psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts
Discount
price reduction offered as an incentive to purchase