Question 1

example of brand that has grown over time.

Accepted Answer

Gatorade has had continuous product development and brand repositioning

Question 2

product life cycle

Accepted Answer

4 stages 1. Introduction. 2. Growth 3. Maturity 4. Decline describes the stages a new product goes through in the marketplace

Question 3

4 things you need to know for the product life cycle chart

Accepted Answer

1. sales grow in the growth phase. 2. sales level off or reach their peak in the maturity phase. 3. Profit starts below zero in the introductory phase. 4. profit reaches its peak in the growth phase.

Question 4

marketing objective

Accepted Answer

goal of introductory phase.

Question 5

Gain awareness (introductory phase)

Accepted Answer

few competition, one product, skimming or penetration, limited place, inform/educate promotion.

Question 6

stress differentiation (Growth phase)

Accepted Answer

hallmark of growth phase is more competitors so we need to specify the differences of our product.

Question 7

Maintain Brand loyalty (Maturity phase)

Accepted Answer

maximum sales and profits are steady, brands that have been around and trying to maintain brand loyalty.  promotion is reminderoriented hallmark!!! little competitors leave the market.

Question 8

Harvesting, Deletion (Decline)

Accepted Answer

1. deletion: take product off the market, 2. Harvesting: making product as long as people will buy it. reduced comp, only sell best-sellers, stay profitable.

Question 9

Price

Accepted Answer

Skimming or penetration, Gain market share, deal, Defend market share profit, stay profitable.

Question 10

skimming

Accepted Answer

pricing high them coming back to level

Question 11

penetration

Accepted Answer

pricing low them bring it back to level

Question 12

fashion product

Accepted Answer

something that returns, goes from popular then declines, then becomes popular again and declines. "sign of the times"

Question 13

fad product

Accepted Answer

wildly popular then fall off

Question 14

product class

Accepted Answer

refers to the entire product category or industry

Question 15

product form

Accepted Answer

pertains to variations of a product within a product class

Question 16

product adopters

Accepted Answer

innovators, early adopters, early majority, late majority, laggards

Question 17

innovators

Accepted Answer

venturesome, higher educated, use multiple information sources. Marketers love them

Question 18

early adopters

Accepted Answer

leaders in social setting, slightly above average education

Question 19

early majority

Accepted Answer

deliberate, many informal social contacts

Question 20

late majority

Accepted Answer

skeptical, below average social status

Question 21

laggards

Accepted Answer

fear of debate, don't participate

Question 22

product/ brand manager responsibilities

Accepted Answer

manage product life cycle stages, new product development, marketing program implementation

Question 23

product modification

Accepted Answer

changing the product, altering one or more of a product's characteristics to increase the products value to customers and increase sales.

Question 24

market modification

Accepted Answer

changing the market, tries to find new customers, increase a products use among existing customers, or create new use situations.

Question 25

example of product modification

Accepted Answer

value meal/ bundling.

Question 26

trading up

Accepted Answer

adding value to the product or the line through additional features or higher quality materials.

Question 27

trading down

Accepted Answer

reducing a products number of features, quality, or price

Question 28

Downsizing

Accepted Answer

reducing content in package

Question 29

branding

Accepted Answer

marketing decision in which an organization uses a name, phrase, design, or symbols to distinguish product.

Question 30

brand name

Accepted Answer

word, device or combination of these used to distinguish a sellers product or service.

Question 31

brand personality

Accepted Answer

set of human characteristics associated with a brand name.

Question 32

brand equity

Accepted Answer

added value a brand name gives to a product beyond the functional benefits provided

Question 33

brand licensing

Accepted Answer

contractual agreement whereby one company allows its brand name or trademark to be used with products or services offered by another company for a royalty or fee.

Question 34

packaging

Accepted Answer

component of a product that refers to any container in which it is offered for sale on which label information is conveyed

Question 35

label

Accepted Answer

identifies the product or brand, who made it, where and when it was made, how to use it.

Question 36

communication benefit

Accepted Answer

information for consumers

Question 37

functional benefit

Accepted Answer

storage, convenience, or protection

Question 38

service

Accepted Answer

intangible activities or benefits that an organization's provides to satisfy consumers needs in exchange for money or something else of value

Question 39

services over goods

Accepted Answer

we spend almost twice as much on services than goods and is half our GDP.

Question 40

Four I'd of services

Accepted Answer

consists of the four unique elements to services: intangibility, inconsistency, inseparability, and inventory.

Question 41

intangibility

Accepted Answer

cannot hold a service before purchase

Question 42

inconsistency

Accepted Answer

services depend on people and quality varies

Question 43

inseparability

Accepted Answer

cannot separate the deliverer of the service from the service itself (one bad experience can cause you to think every time is bad)

Question 44

inventory

Accepted Answer

cost is paying the person even if no customers

Question 45

idle production capacity

Accepted Answer

occurs when the service provider is available but there is no demand for the service

Question 46

low cost inventory carrying cost

Accepted Answer

real estate agency, hair salon, Insurance company

Question 47

High cost inventory carrying cost

Accepted Answer

Amusement park, airline, hospital

Question 48

service continuum

Accepted Answer

consists of the range of offerings companies bring to the market, from the tangible to the intangible

Question 49

product dominated offering

Accepted Answer

salt, neckties

Question 50

service dominated offerings

Accepted Answer

teaching, nursing

Question 51

balance

Accepted Answer

fast food resturant

Question 52

high in search properties

Accepted Answer

clothing, jewelry, furniture, houses, automobiles

Question 53

high in experience properties

Accepted Answer

restaurant meals, vacations, haircuts, child care

Question 54

price

Accepted Answer

money or other considerations exchanged for the ownership or use of a product or service

Question 55

barter

Accepted Answer

practice of exchanging products and services for other products and services, rather than for money

Question 56

new car final price (price example)

Accepted Answer

sticker price (list price) - rebate, cash discount, trade ins + special accessories, destination charges, financing charges

Question 57

term in college bought by student tuition (price example)

Accepted Answer

published tuition - scholarship+

Question 58

value

Accepted Answer

ratio of perceived benefits to price or value = perceived benefits/price

Question 59

value pricing

Accepted Answer

practice of simultaneously increasing product and service benefits while maintaining or decreasing price

Question 60

profit equation

Accepted Answer

profit = total revenue - total cost

Question 61

step 1 in profit equation

Accepted Answer

identify pricing objectives and constraints , objectives, constraints

Question 62

step 2 in profit equation

Accepted Answer

estimate demand and revenue, price elastic estimation, sales revenue and demand estimations

Question 63

step 3 in profit equation

Accepted Answer

determine cost, volume, and profit relationship, cost estimates, marginal analysis, break-even analysis

Question 64

pricing objectives

Accepted Answer

specify the role of price in an organization's marketing and strategic plan.

Question	Answer
example of brand that has grown over time.	Gatorade has had continuous product development and brand repositioning
product life cycle	4 stages 1. Introduction. 2. Growth 3. Maturity 4. Decline describes the stages a new product goes through in the marketplace
4 things you need to know for the product life cycle chart	1. sales grow in the growth phase. 2. sales level off or reach their peak in the maturity phase. 3. Profit starts below zero in the introductory phase. 4. profit reaches its peak in the growth phase.
marketing objective	goal of introductory phase.
Gain awareness (introductory phase)	few competition, one product, skimming or penetration, limited place, inform/educate promotion.
stress differentiation (Growth phase)	hallmark of growth phase is more competitors so we need to specify the differences of our product.
Maintain Brand loyalty (Maturity phase)	maximum sales and profits are steady, brands that have been around and trying to maintain brand loyalty. promotion is reminderoriented hallmark!!! little competitors leave the market.
Harvesting, Deletion (Decline)	1. deletion: take product off the market, 2. Harvesting: making product as long as people will buy it. reduced comp, only sell best-sellers, stay profitable.
Price	Skimming or penetration, Gain market share, deal, Defend market share profit, stay profitable.
skimming	pricing high them coming back to level
penetration	pricing low them bring it back to level
fashion product	something that returns, goes from popular then declines, then becomes popular again and declines. "sign of the times"
fad product	wildly popular then fall off
product class	refers to the entire product category or industry
product form	pertains to variations of a product within a product class
product adopters	innovators, early adopters, early majority, late majority, laggards
innovators	venturesome, higher educated, use multiple information sources. Marketers love them
early adopters	leaders in social setting, slightly above average education
early majority	deliberate, many informal social contacts
late majority	skeptical, below average social status
laggards	fear of debate, don't participate
product/ brand manager responsibilities	manage product life cycle stages, new product development, marketing program implementation
product modification	changing the product, altering one or more of a product's characteristics to increase the products value to customers and increase sales.
market modification	changing the market, tries to find new customers, increase a products use among existing customers, or create new use situations.
example of product modification	value meal/ bundling.
trading up	adding value to the product or the line through additional features or higher quality materials.
trading down	reducing a products number of features, quality, or price
Downsizing	reducing content in package
branding	marketing decision in which an organization uses a name, phrase, design, or symbols to distinguish product.
brand name	word, device or combination of these used to distinguish a sellers product or service.
brand personality	set of human characteristics associated with a brand name.
brand equity	added value a brand name gives to a product beyond the functional benefits provided
brand licensing	contractual agreement whereby one company allows its brand name or trademark to be used with products or services offered by another company for a royalty or fee.
packaging	component of a product that refers to any container in which it is offered for sale on which label information is conveyed
label	identifies the product or brand, who made it, where and when it was made, how to use it.
communication benefit	information for consumers
functional benefit	storage, convenience, or protection
service	intangible activities or benefits that an organization's provides to satisfy consumers needs in exchange for money or something else of value
services over goods	we spend almost twice as much on services than goods and is half our GDP.
Four I'd of services	consists of the four unique elements to services: intangibility, inconsistency, inseparability, and inventory.
intangibility	cannot hold a service before purchase
inconsistency	services depend on people and quality varies
inseparability	cannot separate the deliverer of the service from the service itself (one bad experience can cause you to think every time is bad)
inventory	cost is paying the person even if no customers
idle production capacity	occurs when the service provider is available but there is no demand for the service
low cost inventory carrying cost	real estate agency, hair salon, Insurance company
High cost inventory carrying cost	Amusement park, airline, hospital
service continuum	consists of the range of offerings companies bring to the market, from the tangible to the intangible
product dominated offering	salt, neckties
service dominated offerings	teaching, nursing
balance	fast food resturant
high in search properties	clothing, jewelry, furniture, houses, automobiles
high in experience properties	restaurant meals, vacations, haircuts, child care
price	money or other considerations exchanged for the ownership or use of a product or service
barter	practice of exchanging products and services for other products and services, rather than for money
new car final price (price example)	sticker price (list price) - rebate, cash discount, trade ins + special accessories, destination charges, financing charges
term in college bought by student tuition (price example)	published tuition - scholarship+
value	ratio of perceived benefits to price or value = perceived benefits/price
value pricing	practice of simultaneously increasing product and service benefits while maintaining or decreasing price
profit equation	profit = total revenue - total cost
step 1 in profit equation	identify pricing objectives and constraints , objectives, constraints
step 2 in profit equation	estimate demand and revenue, price elastic estimation, sales revenue and demand estimations
step 3 in profit equation	determine cost, volume, and profit relationship, cost estimates, marginal analysis, break-even analysis
pricing objectives	specify the role of price in an organization's marketing and strategic plan.
pricing objectives may be:	profit, sales revenue, market share, unit volume, survival, social responsibility
market share pricing objectives	percentage goal %%%
unit volume price objectives	(#) number we wanna sell
Survival price objectives	trying to have your business survive,
social responsibility price objectives	trying to take care of people
pricing constraints	factors that limit the range of prices a firm may set
pricing constraints reasons	cost of producing and marketing the product, profit for channel members, cost of changing prices and the time period they apply
pricing constraints single product versus a product line	1 product will cause you to naturally price higher, multiple will allow you to change product price
pricing constraints competitors	prices and consumers awareness and ability to easily purchase them, whether to change price if competitors change price
demand curve	graph!! relating the quantity sold and price which shows the maximum number of units that will be sold at a given price
demand factors	determines consumers willingness and ability to pay for products and services
demand factor examples	1. consumer tastes, 2. price and availability of similar products, 3. Consumer income
price elasticity of demand	percentage change in quantity demanded relative to a percentage change in price
price elastic	when 1% price decrease generates more than 1% quantity increase. GOOD/ buy more on discount
Price inelastic	when 1% percent price decrease produces less than 1% quantity increase. BAD/ buy regardless of price
example of price inelastic	baby items and gasoline
total revenue	total money received from the sale of a product
total cost	total expense incurred by a firm in producing and marketing a product. total cost is the sum of fixed cost and variable cost
fixed cost	sum of expenses that do not change. examples: rent, salaries, insurance.
variable cost	sum of expenses that vary directly with the quantity of a product that is produced. examples : Direct labor, Direct materials
unit variable cost (UVC)	expressed on a per unit basis UVC=VC/Q
contribution margin (CM)	expressed on a per unit basis as the difference between unit sales and variable cost
break-even analysis	technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
skimming price	involves setting the highest initial price that customers who really desire the product are willing to pay when introducing a new or innovative product.
penetration price	involves setting a low initial price on a new product to appeal immediately to the mass market.
prestige price	involves setting a high price so that quality- or status- conscious consumers will be attracted to the product and buy it.
price lining	involves setting the price of a line of products at a number of different specific pricing points.
odd-even pricing	involves setting prices a few dollars or cents under an even number.
target pricing	(1) estimating the price that consumers would pay(2) working backward to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.
bundle pricing	involves the marketing of two or more products in a single package price.
yield management pricing	involves the charging of different prices to maximize revenue for a set amount of capacity at any given time.
standard markup pricing	involves adding a fixed percentage to the cost of all items in a specific product class.
cost- plus pricing	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.
target profit pricing	involves setting an annual target of a specific dollar volume of profit.
target return-on-sales pricing	involves setting a price to achieve a profit that is a specified percentage of the sales volume.
target return-on-investment pricing	involves setting a price to achieve an annual target return on investment (ROI).
customary pricing	involves setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
above-at-, or below-market pricing	involves setting a market price for a product or product class based on a subjective feel for the competitors’ price or market price as the benchmark.
loos-leader pricing	involves deliberately selling a product below its customary price, not for sales but to get them to buy the product when they mark it up too.
fixed-price policy	involves setting one price for all buyers of a product or service. Also called a one-price policy.
dynamic pricing policy	involves setting different prices for products and services in real time in response to supply and demand conditions. Also called a flexible price policy
product line pricing	involves the setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
price war	involves successive price cutting by competitors to increase or maintain their unit sales or market share.
quantity discount	reductions in unit costs for a larger order.
promotional allowances	cash payments or extra amount of “free goods” awarded to sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product.
everyday low pricing	practice of replacing promotional allowances with lower manufacturer list prices.
price fixing	involves a conspiracy among firms to set prices for a product.
price discrimination	practice of charging different prices to different buyers for products of like grade and quality.
predatory pricing	practice of charging a very low price for a product with the intent of driving competitors out of business.
marketing channel	individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
intermediares	things that are between where the product is made and where it is sold
transactional function intermediares	buying, selling, risk taking
logistical function intermediares	assorting, storing, sorting, transporting
facilitating function intermediares	financing, grading, marketing information and research
direct channel	producer to consumer
indirect channel	anything that adds a step from the producer to consumer
example of direct channel product	schwan's
example of indirect channel	toyota, mars
example of direct channel business	IBM
example of indirect channel business	Caterpillar, stake fastener company, Hartman
example of direct channel online	dell inc
example of indirect channel online	commercial airline, amazon
direct to consumer	allows consumers to buy products by interacting with various print or electronic media without a face to face meeting with a salesperson
multichannel marketing/ Omnichannel	blending of different communication and delivery channels that are mutually reinforcing in attracting buys,
Dual distribution	reach different buyers by different channels
vertical marketing system	professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
intensive distribution	level of distribution density whereby a firm tries to place its products and services in as many outlets as possible
exclusive distribution	level of distribution density whereby only one retailer in a specific geographical area carries that product
selective distribution	level of distribution density whereby a firm selects a few retailers in a specific area to carry its product.
buyer requirements for deciding channels	1. information, 2. convenience, 3. variety, 4. pre- or postal service.
channel conflict	when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
disintermediation	channel conflict that arises when a channel member bypasses!!! another member and sells or buys the product.
logistics	activities that focus on getting the right amount of the right products to the right place at the right time at the right cost.
supply chain	various firms involved in performing the actives required to create and deliver a product or service to ultimate consumers or industrial users.

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marketing unit 3