buisness product
a product used to manufacture other goods or services, to facilitate an organization's operations, or resell to customers
product
everything that a person recieves in an exchange
consumer product
a product bought to satisfy an individuals personal wants
convenience product
a relatively inexpensive product that merits little shopping effort and time. Similiar to a routine decision making. Example is gum
shopping products
is usually more expensive than a convenience and the decision to buy is made after comparisions between similiar products and brands. Example is a washer machine.
specialty product
a particular item that consumers search extensively for and are very reluctant to accept substitutes. Example is a Rolex watch, usually expense
unsought product
a product that is unknown to consumer or consumers are actively seeking. Example life insurance and new products to the market
Product item
an individual item in a product line
Product line
a group of closely related products
Product mix
all products and product lines that an organization sells
product mix width
the variety of different product line a company has
product line depth
the number of different products each product line contains
product modification
changing one or more of a products characteristics, three types of modifications quality, functional and style
planned obsolescense
to purposely create products to become obsolete before it needs replacement.
product line extension
adding additional products to an existing product line
brand
a name, term or symbol that identifies and separates products from competitors
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 broken.
brand equity
the value of company and brand names
global brand
a brand where at least 20% of the product is sold outside its home country or region
brand loyalty
a consistent preference for one brand over all others
generic product
a no frills, no brand name, low cost product that is simply identified by its product category
manufacturer's brand
the brand name of a manufacturer
private brand
a brand name owned by a wholesaler or a retailer
individual branding
using different brand names for different products
family brand
marketing several different products under the same brand name
co-branding
placing two or more brand names on a product or its package
trademark
the exclusive right to use a brand or part of a brand
service mark
a trademark for a service
generic product name
identifies a product by class or type and can not be trademarked
persuasive labeling
a type of package labeling that focuses ono a promotional theme or logo and consumer info is secondary
informational labeling
a type of package labeling designedto help consumers make proper product selections and lower their cognitive dissonance after the purchase.
UPC (universal product codes)
a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners, that represent numbers used to track products
warranty
a confirmation of the quality or performance of a good or service
express warranty
a written guarantee
implied warranty
an unwritten guarantee that the good or service is fit for the purposefor which it was sold.
new product
a product new to the world, market, consumers, producer or seller
new product strategy
a plan that links the new product development process with the objectives of the marketing dept, the business unit and the corporation
product development
a marketing strategy that entails the creation of marketable new product. the process of converting applications for new technologies into marketable products
brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
screening
the first filter inthe product development process, which eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some reason
concept test
a test to evaluate a new product idea, usually before any prototype has been created
business analysis
the second stage of the screening process where preliminary figures for demand, cost, sales and profitability are calculated
development
the stage in the product development process in which a protype is developed and a marketing strategy is outlined
simultaneous product development
a team oriented approach to new product development
test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
commercialization
the decision to market a product
simulated marketing testing
the presentation of advertising and other promotion materials for several product, to members of the product's target market
adopter
a consumer who was happy enough with his or her trial experience with a product to use it again
innovation
a product perceived as new by a potential adopter
diffusion
the process by which the adoption of an innovation spreads
decline stage
a long run drop in sales
product life cycle (PLC)
a concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)
product category
all brands that satisfy a particular type of need
introductory stage
the full scale launch of a new product into the marketplace
growth stage
the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms and profits are healthy
maturity stage
a period during which sales increase at a decreasing rate
service
the result of applying human or mechanical efforts to people or objects
intangibility
the intangibility of services to be touched, seen, tasted, heard or felt in the same manner that goods can be sensed
search quality
a characteristic that can be easily assessed before purchase
experience quality
a characteristic that can be assessed only after use
credence quality
a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
inseparability
the inability of the production and consumption of a service to be separated. Consumers must be present during the production
heterogenity
the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
perishability
the inability of services to be stored, warehoused or inventoried
reliabilty
the ability to perform a service dependably, accurately and consistently
responsiveness
the ability to provide prompt service
assurance
the knowledge and courtesy of employees and their ability to convey trust
empathy
caring, individualized attention to customers
tangibles
the physical evidence of a service, including the physical facilities, tools and equipment used to provide the service
gap model
a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
core service
the most basic benefit the consumer is buying
supplementary service
a group of services that support or enhance the core service
mass customization
a strategy that uses technology to deliver customized services on a mass basis
internal marketing
treating employees as customers and developing systems and benefits that satisfyh their needs
non profit organization
an organization that exist to achieve some goal other than usual business goals such as profit, market share or return on investment
Public Service Announcement (PSA)
an announcement that promotes a program of a federal, state or local government or non profit organization
non profit organization marketing
the effort by non profit organizations to bring about mutually satisfying exchanges with target markets
marketing channel
a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer
channel members
all parties in the marketing channel that negotiate with another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the from the manufacturer into the hands of the consumer
supply chain
the connected chain of all the business entities, both internal and external to the company that perform or support the logistics function
retailer
a channel intermediary that sells mainly to customers
discrepancy of quantity
the difference between the amount of product produced and the amount an end user wants to buy
discrepancy of assortment
the lack of all the items a customer needs to recieve full satisfaction from a product or products
temporal discrepency
a situation that occurs when a product is produced but a customer isnt ready to buy it.
spatial discrepancy
the difference between the location of a producer and the location of widely scattered markets
direct channel
a distribution chanel in which producers sell directly to consumers
supply chain management
a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
strategic channel alliance
a cooperative agreement between business firms to use the other's already established distribution channel
dual distribution (multiple distribution)
the use of two or more channels to distribute the same product to target markets
intensive distribution
a form of distribution aimed at having a product availible in every outlet where target customers might want to buy it.
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
exclusive distribution
a form of distribution that establishes one or a few dealers within a given area
horizontal conflict
a channel conflict that occurs among channel members on the same level
vertical conflict
a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer
channel partnering (channel cooperation)
the joint effort of all channel members to create a suppply chain that serves customers and creates a competitive advantage
channel power
the capacity of a particular marketing channel member to control or influence the behavior of other channel members
channel control
a situation that occurs when one marketing channel member intentionally affects another member's behavior
channel leader (channel captain)
a member of a marketing channel that exercises authority and power over the activities of other channel members
channel conflict
a clash of goals and methods between distribution channel members
materials handling system
a method of moving inventory into, within and out of the warehouse system
logistics
the process of strategically managing the efficient flow and storage of raw materials, in process inventory, and finished goods from point of origin to point of consumption
logistics information systems
the link that connects all of the logistics functions of the supply chain
supply chain team
an entire group of individuals who orchestrate the movement of goods, services and information from the source to the consumer
mass customization (build to order)
a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
just in time production (JIT)
a process that redifines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line
order processing system
a system whereby orders are entered into the supply chain and filled
electronic data interchange (EDI)
information technology that replaces the paper documents that usually accompany business transactions such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline op
inventory control system
a method of developing and maintaining an adequate assortment of materials or products to meet or products to meet a manufacturers or customers demand
materials requirement planning (MRP) (materials management)
an inventory control system that manages the replenishment of raw materials, supplies, and components from the suppplier to the manufacturer.
distribution resource planning (DRP)
an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
outsourcing (contract logistics)
a manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system such as transportation, warehousing or order processing.
electronic distribution
a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber optical cable or through satellite transnmission of eclectronic signals
retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal and non business use
department store
a store housing several departments under one roof
buyer
a department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel
specialty store
a retail store specializing in a given type of merchandise
independent retailers
retailers owned by a single person or partnership and not operated as part of a larger retail institution
chain stores
stores owned and operated as a group by a single organization
franchise
the right to operate a business or to sell a product
gross margin
the amount of money the retailer makes as a percentage of sales after COGS is subtracted
atmosphere
the overall impression conveyed by a store's physical layout, decor, and surroundings
destination stores
stores that consumers purposely plan to visit
retailing mix
a combination of the six P's: product, place, promotion, price, presentation and personnel to sell goods and services to the ultimate consumer
product offering
the mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix
telemarketing
the use of the telephone to sell directly to consumers
online retailing
a type of shopping availible to consumers with -personal computers and access to the internet
franchisor
the originator of a trade name, product, methods of operation and so on that grants operating rights to another party to sell its product
franchisee
an individual or business that is granted the right to sell another party's product
automatic vending
the use of machines to offer goods for sale
direct retailing
the selling of products by representatives who work door to door, office to office or at home parties
direct marketing (direct marketing response)
techniques used to get consumers to make a purchase from their home, office or another non retail setting
factory outlet
an off price retailer that is owned and operated by a manufacturer
non store retailing
shopping without visiting a store
off price retailer
a retailer that sells at prices 25% or more below traditional department store prices because it pays cash for its stock and usually doesnt ask for return privileges
supermarket
a large departmentalized self service retailer that specializes in food and some non food items
scrambled merchandising
the tendency to offer a wide variety of non tradional goods and services under one roof.
drugstore
a retail store that stocks pharmacy related products and services as its main draw
convenience store
a miniature supermarket carrying only a limited line of high turnover convenience goods
discount store
a retailer that competes on the basis of low prices, high turnover and high volumer
full line discount store
a retailer that offers consumers very limited service and carries a broad assortment of well known nationally branded "hard goods
mass merchandising
a retailing strategy using modrate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of produts
supercenter
a retail store that combines groceries and general merchandise goods with a wide range of services
specialty discount store
a retail store that offers a nearly complete selection of single line merchandise and uses self service, discount prices and high volume and high turnover
category killers
specialty discount stores that heavily dominate their narrow merchandise segment
warehouse membership clubs
limited service merchant wholesalers that sell a limited selection of brand name appliances, household items and groceries on a cash and carry basis to members, usally small businesses and groups