Marketing Exam Chapters 8-10 Flashcards

Product Planning Elements

• Includes product idea, branding, packaging, warranty, and classification of products.

Definition of Product

• A product is a need-satisfying offering from a firm.

Characteristics of Goods

• Tangible items that can be seen and touched; consumers generally know what to expect; typically mass-produced.

Characteristics of Services

• Intangible offerings experienced during use; cannot be owned and vary in quality; produced in the presence of the customer.

Product Assortment

• Refers to the collection of product lines and individual products offered by a firm.

Product Line

• A group of closely-related individual products.

Branding Goals

• The main goal of branding is to identify a product clearly in the market.

Good Brand Name Characteristics

• Should be short, simple, recognizable, easy to pronounce, suggestive of benefits, adaptable to packaging, and legally available.

Lanham Act

• Protects various types of marks and outlines methods for protection without enforcing mandatory registration.

Family Brand Definition

• Utilizes the same brand name across several related products, helping to unify brand identity.

Packaging Objectives

• Focuses on promoting, protecting, and enhancing the product.

Warranty Definition

• Clearly outlines the promises made by the seller regarding the product.

Magnuson-Moss Act

• Requires producers to have a clearly written warranty if they choose to offer one.

Consumer Product Classes

• Categories include convenience products, shopping products, specialty products, and unsought products.

Business Product Classes

• Categories include installations, accessory equipment, raw materials, component parts, MRO supplies, and professional services.

Product Life Cycle Stages

• Comprises market introduction, market growth, market maturity, and sales decline.

Market Introduction Characteristics

• Features low sales, negative profits, and minimal competition.

Market Growth Characteristics

• Profits peak, sales increase rapidly, and competitors enter the market due to opportunities.

Market Maturity Characteristics

• Sales peak, competition intensifies, and overall profitability declines due to rising costs.

Sales Decline Characteristics

• Sales and profits decrease as new products replace outdated ones, leading to intensified price competition.

New Product Characteristics

• Move quicker through early life cycle stages if they have comparative advantages, are easy to communicate, and align with customer values.

Definition of New Product (FTC Standard)

• A product is considered "new" for up to six months unless substantially changed.

New Product Development Process

• Consists of idea generation, screening (SWOT analysis), idea evaluation (concept testing), development, and commercialization.

Relative Quality Focus in Product Management

• Marketing managers often emphasize relative quality to differentiate their products from competitors.

Product Classification

• All goods are classified as tangible products.

Brand Recognition

• Achieved when consumers can recall and identify a brand from among other options in a store.

Green Packaging Trend

• Enhances products while promoting sustainability through recyclable or reduced materials.

Service Guarantees

• Offered instead of warranties for non-tangible services, providing assurance to customers.

Business Product Definition

• Products intended for use in the production of other goods.

Staple Product Definition

• Regularly used, frequently purchased items that require little thought.

Competitive Pricing Impact

• More crucial for homogeneous shopping products compared to specialty items.

Supplies Definition

• Expense items that do not become part of a final product.

Market Introduction Stage Losses

• Companies typically face losses during this initial stage of the product life cycle.

Market Maturity Promotions

• Characterized by rising promotion costs and price-cutting strategies from competitors.

Challenges in Mature Markets

• New entrants face competition from established firms with shrinking profit margins.

Consumer Learning Requirement

• Continuous, dynamically continuous, and discontinuous innovations vary in how much new behavior consumers must learn.

Definition of Planned Obsolescence

• Strategy that anticipates releasing new versions to replace older product lines regularly.

Concept Testing

• Involves consumer feedback to evaluate acceptance for new products.

Successful New-Product Development Factors

• Collaboration among R&D, operations, and marketing for feasibility assessment.

Product Managers in Large Companies

• Commonly oversee diverse product lines across multiple categories.

Employee Empowerment Concept

• Allowing staff autonomy to make decisions enhances customer satisfaction.

Measuring Product Quality

• Predominantly assessed through customer satisfaction levels.

Brand Name Characteristics

• Effective names are less about trends and more about clarity and pronounceability.

Decline of Industry Profits

• Profits typically start to decline during the market growth stage of the product life cycle.

Product Assessment Approach

• Managers should prioritize total consumer satisfaction and benefits.

Discrepancy of Quantity

• Represents the difference between production quantities and consumer demand.

Discrepancy of Assortment

• Indicates the gap between the product lines producers offer and the variety consumers desire.

Channel Conflict Types

• Includes vertical conflicts among different channel levels and horizontal conflicts among firms at the same level.

Channel Captain Benefits

• Guides channel relationships and helps to minimize conflicts.

Integration Benefits

• Strives for a unified distribution strategy to streamline processes.

80-20 Rule in Marketing

• Indicates that a small percentage of customers often accounts for the majority of purchases.

Intensive Distribution Strategy

• Ensures product availability across numerous outlets, often for convenience items.

Selective Distribution Strategy

• Engages a limited number of intermediaries for special attention to products.

Exclusive Distribution Strategy

• Restricts product sales to only one intermediary in a geographic area.

Global Market Strategies

• Various options weigh cost, control, and risk differently, including exporting, licensing, management contracting, joint ventures, and direct investment.

Channel Discrepancies in Supply

• Refers to the differences in quantity and assortment to address consumer needs effectively.

Prepare for your marketing exam with these flashcards covering key concepts from chapters 8-10. Learn about product planning, definitions of goods and services, and the essential elements of product offerings. Ideal for students looking to reinforce their understanding of marketing fundamentals.