Chapter 11
Business Administration 150 with Unknown at University of Vermont
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By: Andrea Rhoads
Created: 2011-10-24
Size: 30 flashcards
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Created: 2011-10-24
Size: 30 flashcards
Views: 5
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Introduction
during this stage sales grow slowly and profit is minimal
Primary Demand
the desire for the product class rather than the specific brand, since there are few competitors with the same product.
Selective Demand
the preference for a specific brand; as more competitors launch their own products and the product progresses along its life cycle
Skimming
during introduction a high initial price may be used to help the company recover the costs of development as well as capitalize on the price insensitivity to the buyers.
Penetration Pricing
to discourage competitive entry, a company prices low to help build unit volume, but a company must closely monitor costs.
Growth
characterized by rapid increases in sales, the stage in which competitors appear It is important to gain as much distribution for the product as possible.
Maturity
characterized by a slowing of total industry sales or product class revenue. Marginal competitors begin to leave the market. Most people who would buy the product are either repeat purchasers of the item or have tried and abandoned it. Sales increase at a decreasing rate, profits decline.
Decline Stage
occurs when sales drop, products tend to consume a disproportionate share of management and financial resources relative to their future worth.
Deletion
dropping the product from the company’s product line; the most drastic strategy.
Harvesting
when a company retains the product but reduces marketing costs. The product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent. The purpose of harvesting is to maintain the ability to meet customer requests.
Three Aspects of the Product Life Cycle
Length of teh Product Life-Cycle, Shape of the Product Life-Cycle, and The Life Cycle and Consumers
High-Learning Product
one for which significant customer education is required and there is an extended introductory period.
Low-Learning Product
ales begin immediately because little learning is required by the consumer, and the benefits of purchase are readily understood. The product can often be easily imitated by competitors, so the marketing strategy is to broaden distribution quickly.
Fashion Product
a style of the times; fashion products are introduced, decline, and then seem to return
Fad Product
experiences rapid sales on introduction and then an equally rapid decline; typically novelties and have a short life cycle
Product Modification
involves altering a product’s characteristic, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales
Market Modificaton
a company tries to find new customers, increase a product’s use among existing customers, or create new use situations
Branding
an organization’s use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products
Brand Name
any word, device (design, shape, sound, or color) or combination of these used to distinguish a seller’s goods or services
Prand Personality
a set of human characteristics associated with a brand name
Brand Equity
the added value a brand name gives to a product beyond the functional benefits provided
Brand Licensing
a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee.
Multiproduct Branding
a branding strategy in which a company uses one name for all its products in a product class
Multibranding
a branding strategy that involves giving each product a distinct name
Private Branding
(private labeling/ reseller branding) used when a company manufactures products but sells them under the brand name of a wholesaler or retailer
Mixed Branding
a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market
Eight P's of Service Marketing
expanding the four P’s framework to include productivity, people, physical environment, and process
Capacity Management
integrating the service component of the marketing mix with efforts to influence consumer demand
Off-Peak Pricing
charging different prices during different times of the day or days of the week to reflect variations in demand for the service.
Customer Experience Management (CEM)
the process of managing the entire customer service experience with the company
About this deck
By: Andrea Rhoads
Created: 2011-10-24
Size: 30 flashcards
Views: 5
Created: 2011-10-24
Size: 30 flashcards
Views: 5
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
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“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
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