mkt exam 2

Develop marketing mixes for services.

"Product" (service) strategy issues include what is being processed (people, possessions, mental stimulus, information), core and supplementary services, customization versus standardization, and the service mix. Distribution (place) decisions involve convenience, number of outlets, direct versus indirect distribution, and scheduling. Stressing tangible cues, using personal sources of information, creating strong organizational images, and engaging in postpurchase communication are effective promotion strategies. Pricing objectives for services can be revenue oriented, operations oriented, patronage oriented, or any combination of the three.

market

(1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy

positioning bases: emotion

: Positioning using emotion focuses on how the product makes customers feel. A number of companies use this approach. For example, Nike's "Just Do It" campaign did not tell consumers what "it" is, but most got the emotional message of achievement and courage. Researchers have found that after a major apparel retailer implemented a comprehensive emotional-connection strategy, its customer attrition dropped 4 percent while its customer advocacy grew 6 percent and its same-store sales jumped more than 50 percent.

multisegment targeting strategy

A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each

Discuss global issues in new-product development.

A marketer with global vision seeks to develop products that can easily be adapted to suit local needs. The goal is not simply to develop a standard product that can be sold worldwide. Smart global marketers also look for good product ideas worldwide.

Explain what marketing channels and channel intermediaries are, and describe their functions and activities.

A marketing channel is a business structure of interdependent organizations that reach from the point of production to the consumer. Intermediaries negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller. Retailers are those firms in the channel that sell directly to consumers.

Define the term product.

A product is anything, desired or not, that a person or organization receives in an exchange. The basic goal of purchasing decisions is to receive the tangible and intangible benefits associated with a product. Tangible aspects include packaging, style, color, size, and features. Intangible qualities include service, the retailer's image, the manufacturer's reputation, and the social status associated with a product. An organization's product offering is the crucial element in any marketing mix.

Positioning Bases: attribute

A product is associated with an attribute, product feature, or customer benefit. In engineering its products, Seventh Generation focuses on removing common toxins and chemicals from household products to make them safe for everyone in the household.

Discuss the growing importance of scanner-based research.

A scanner-based research system enables marketers to monitor a market panel's exposure and reaction to such variables as advertising, coupons, store displays, packaging, and price. By analyzing these variables in relation to the panel's subsequent buying behavior, marketers gain useful insight into sales and marketing strategies.

Substantiality

A segment must be large enough to warrant developing and maintaining a special marketing mix

Concentrated: target market strategy

Advantages: Concentration of resources, Can better meet the needs of a narrowly defined segment, Allows some small firms to better compete with larger firms Disadvantages: Segments too small or changing, Large competitors may more effectively market to niche segment

Multisegment: target market strategy

Advantages: Greater financial success, Economies of scale in production/marketing Disadvantages: High costs, Cannibalization

Undifferentiated: target market strategy

Advantages: Potential savings on production/marketing costs, Disadvantages: Unimaginative product offerings, Company more susceptible to competition

Explain the concept of product life cycles.

All brands and product categories undergo a life cycle with four stages: introduction, growth, maturity, and decline. The rate at which products move through these stages varies dramatically. Marketing managers use the product life cycle concept as an analytical tool to forecast a product's future and devise effective marketing strategies.

Explain when marketing research should be conducted.

Because acquiring marketing information can be time-consuming and costly, deciding to acquire additional decision-making information depends on managers' perceptions of its quality, price, and timing. Research, therefore, should be undertaken only when the expected value of the information is greater than the cost of obtaining it. A customer relationship management system is integral to analyzing, transforming, and leveraging customer data.

Baby Boomers

Boomers make up 24.7 percent of the total population and constitute almost one-third of the adult population. They outspend the average consumer in nearly every product category, including food, household furnishings, entertainment, and personal care.

Classify consumer products.

Consumer products are classified into four categories: convenience products, shopping products, specialty products, and unsought products.

silent generation

Consumers who were born before 1946, The smallest generation of the past 100 years, members of this group were taught to play by the rules. They tend to be cautious and are hardworking and disciplined and place significant value on economic resources.

Explain the steps in the new-product development process.

First, a firm forms a new-product strategy by outlining the characteristics and roles of future products. Then new-product ideas are generated by customers, employees, distributors, competitors, vendors, and internal research and development personnel. Once a product idea has survived initial screening by an appointed screening group, it undergoes business analysis to determine its potential profitability. If a product concept seems viable, it progresses into the development phase, in which the technical and economic feasibility of the manufacturing process is evaluated. The development phase also includes laboratory and use testing of a product for performance and safety. Following initial testing and refinement, most products are introduced in a test market to evaluate consumer response and marketing strategies. Finally, test market successes are propelled into full commercialization. The commercialization process involves starting up production, building inventories, shipping to distributors, training a sales force, announcing the product to the trade, and advertising to consumers.

Discuss global issues in branding and packaging.

In addition to brand piracy, international marketers must address a variety of concerns regarding branding and packaging, including choosing a brand name policy, translating labels and meeting host-country labeling requirements, making packages aesthetically compatible with host-country cultures, and offering the sizes of packages preferred in host countries.

Discuss multichannel and omnichannel marketing in both B-to-B and B-to-C structures, and explain why these concepts are important.

In multichannel marketing strategies customers are offered information, goods, services, and/or support through one or more synchronized channels. While it can promote better consumer behavior, the multichannel design also creates redundancy and complexity in the firm's distribution system. Many companies are transitioning to omnichannel distribution operations that support their multichannel retail operations and unify their retail interfaces.

Discuss the concepts of internal and external supply chain integration and explain why each of these types of integration is important.

In the modern supply chain, integration can be either internal or external. Internally, the very best companies develop a managerial orientation toward demand-supply integration. Externally, five types of integration are sought by firms interested in providing top-level service to customers: relationship integration, measurement integration, technology and planning integration, material and service supplier integration, and customer integration.

Explain the concept of competitive intelligence.

Intelligence is analyzed information, and it becomes decision-making intelligence when it has implications for the organization. By helping managers assess their competition and vendors, competitive intelligence (CI) leads to fewer surprises. CI is part of a sound marketing strategy, helps companies respond to competitive threats, and helps reduce unnecessary costs.

Describe how and why product warranties are important marketing tools.

Just as a package is designed to protect the product, a warranty protects the buyer and gives essential information about the product. A warranty confirms the quality or performance of a good or service. An express warranty is a written guarantee. Express warranties range from simple statements—such as "100 percent cotton" (a guarantee of quality) and "complete satisfaction guaranteed" (a statement of performance)—to extensive documents written in technical language. In contrast, an implied warranty is an unwritten guarantee that the good or service is fit for the purpose for which it was sold. All sales have an implied warranty under the Uniform Commercial Code. Express warranty = written guarantee Implied warranty = unwritten guarantee

Lifestyles

Lifestyle segmentation divides people into groups according to the way they spend their time, the importance of the things around them, their beliefs, and socioeconomic characteristics such as income and education.

Motives

Marketers of baby products and life insurance appeal to consumers' emotional motives—namely, to care for their loved ones. Using appeals to economy, reliability, and dependability, carmakers like Subaru and Suzuki target customers with rational motives.

Define marketing research and explain its importance to marketing decision making

Marketing research is a process of collecting and analyzing data for the purpose of solving specific marketing problems. Practically speaking, marketers use marketing research to improve the decision-making process, trace problems, serve customers, gauge the value of goods and services, understand the marketplace, and measure customer service efforts.

Responsiveness

Markets can be segmented using any criteria that seem logical.

Describe the growing importance of mobile research.

Mobile survey traffic now accounts for approximately 30 percent of interview responses. Mobile surveys are designed to fit into the brief cracks of time that open up when a person waits for a plane, is early for an appointment, commutes to work on a train, or stands in a line. Marketers strive to engage respondents in the moment because mobile research provides immediate feedback when a consumer makes a decision to purchase, consumes a product, or experiences some form of promotion. Mobile research has also expanded into qualitative research. Using an app, respondents can participate in bulletin board and research community discussions.

Explain the importance of developing new products and describe the six categories of new products.

New products are important to sustain growth and profits and to replace obsolete items. New products can be classified as new-to-the-world products (discontinuous innovations), new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products, or lower-priced products. To sustain or increase profits, a firm must innovate.

Describe nonprofit organization marketing.

Nonprofit organizations pursue goals other than profit, market share, and return on investment. Nonprofit organization marketing facilitates mutually satisfying exchanges between nonprofit organizations and their target markets. Several unique characteristics distinguish nonbusiness marketing strategy, including a concern with services and social behaviors rather than manufactured goods and profit; a difficult, undifferentiated, and in some ways marginal target market; a complex product that may have only indirect benefits and elicit very low involvement; distribution that may or may not require special facilities depending on the service provided; a relative lack of resources for promotion; and prices only indirectly related to the exchange between the producer and the consumer of services.

Describe marketing uses of packaging and labeling.

Packaging has four functions: containing and protecting products; promoting products; facilitating product storage, use, and convenience; and facilitating recycling and reducing environmental damage. As a tool for promotion, packaging identifies the brand and its features. It also serves the critical function of differentiating a product from competing products and linking it with related products from the same manufacturer. The label is an integral part of the package, with persuasive and informational functions. In essence, the package is the marketer's last chance to influence buyers before they make a purchase decision.

Personality

Personality reflects a person's traits, attitudes, and habits. Clothing is the ultimate personality descriptor.

positioning bases: competitor

Positioning against competitors is part of any positioning strategy. Apple positions the iPhone as cooler and more up-to-date than Windows-based smartphones, and Samsung positions the Galaxy series as cooler and more up-to-date than the iPhone.

Discuss relationship marketing in services.

Relationship marketing in services involves attracting, developing, and retaining customer relationships. There are four levels of relationship marketing: level 1 focuses on pricing incentives; level 2 uses pricing incentives and social bonds with customers; level 3 focuses on customization; and level 4 uses pricing, social bonds, and structural bonds to build long-term relationships.

Identifiability and measurability

Segments must be identifiable and their size measurable. Data about the population within geographic boundaries, the number of people in various age categories, and other social and demographic characteristics are often easy to get, and they provide fairly concrete measures of segment size.

Steps in Segmenting a Market

Select a market or product category for study, Choose a basis or bases for segmenting the market, Select segmentation descriptors, Profile and analyze segments, Select markets, Design, implement, and maintain appropriate marketing mixes

Describe the components of service quality

Service quality has five components: reliability (ability to perform the service dependably, accurately, and consistently), responsiveness (providing prompt service), assurance (knowledge and courtesy of employees and their ability to convey trust), empathy (caring, individualized attention), and tangibles (physical evidence of the service).

Discuss the differences between services and goods.

Services are distinguished by four characteristics. Services are intangible performances in that they lack clearly identifiable physical characteristics, making it difficult for marketers to communicate their specific benefits to potential customers. The production and consumption of services occurs simultaneously. Services are heterogeneous because their quality depends on such elements as the service provider, individual consumer, location, and the like. Finally, services are perishable in the sense that they cannot be stored or saved. As a result, synchronizing supply with demand is particularly challenging in the service industry.

shopping product

Shopping products are of two types: homogeneous and heterogeneous. Because of the similarity of homogeneous products, they are differentiated mainly by price and features. In contrast, heterogeneous products appeal to consumers because of their distinct characteristics.ex. airline ticket, clothing, furniture

Discuss how new technology and emerging trends are impacting the practice of supply chain management.

Some of the business trends affecting supply chain management include outsourcing logistics, public-private partnerships, electronic distribution, maintaining a secure supply chain, and new analytics tools. While these changes exert pressure on managers to change the way their supply chains function, they also help make supply chain management more integrated and easier to track.

Positioning bases: use or application

Stressing uses or applications can be an effective means of positioning a product with buyers. Danone introduced its Kahlúa liqueur using advertising to point out 228 ways to consume the product.

Understand the importance of sustainable supply chain management to modern business operations.

Sustainable supply chain management involves the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process.

Discuss the profound impact of the Internet on marketing research.

The Internet has simplified the secondary data search process. Internet survey research is surging in popularity. Internet surveys can be created rapidly, are reported in real time, are relatively inexpensive, and are easily personalized. Often, researchers use the Internet to contact respondents who are difficult to reach by other means. The Internet can also be used to conduct focus groups, to distribute research proposals and reports, and to facilitate collaboration between the client and the research supplier.

Discuss global issues in services marketing.

The United States has become the world's largest exporter of services. Although competition is keen, the United States has a competitive advantage because of its vast experience in many service industries. To be successful globally, service firms must adjust their marketing mix for the environment of each target country.

cross-tabulation

The appropriate technique for addressing research questions involving relationships among multiple less-than interval variables; results in a combined frequency table displaying one variable in rows and another in columns.

discuss the benefits of supply chain management.

The benefits of supply chain management include reduced inventory, transportation, warehousing, and packaging costs; greater supply chain flexibility; improved customer service; and higher revenues.

Bases for Segmenting Business Markets

The business market consists of four broad segments: producers, resellers, government, and institutions.

Explain the diffusion process through which new products are adopted.

The diffusion process is the spread of a new product from its producer to ultimate adopters. Adopters in the diffusion process belong to five categories: innovators, early adopters, the early majority, the late majority, and laggards. Product characteristics that affect the rate of adoption include product complexity, compatibility with existing social values, relative advantage over existing substitutes, visibility, and "trialability." The diffusion process is facilitated by word-of-mouth communication and communication from marketers to consumers.

product differentiation

The distinctions between products can be either real or perceived. For example, Wendy's differentiates itself from other fast-food restaurants by using beef that is fresh, never frozen, as well as offering unique products such as chili and several different flavors of baked potatoes.However, many everyday products, such as bleaches, aspirin, unleaded regular gasoline, and some soaps, are differentiated by such trivial means as brand names, packaging, color, smell, or "secret" additives. The marketer attempts to convince consumers that a particular brand is distinctive and that they should demand it.

Accessibility

The firm must be able to reach members of targeted segments with customized marketing mixes.

gap model of service quality.

The gap model identifies five key discrepancies that can influence customer evaluations of service quality. When the gaps are large, service quality is low. As the gaps shrink, service quality improves. Gap 1 is found between customers' expectations and management's perceptions of those expectations. Gap 2 is found between management's perception of what the customer wants and specifications for service quality. Gap 3 is found between service quality specifications and delivery of the service. Gap 4 is found between service delivery and what the company promises to the customer through external communication. Gap 5 is found between customers' service expectations and their perceptions of service performance.

Identify the eight key processes of excellent supply chain management, and discuss how each of these processes affects the end customer.

The key processes that leading supply chain companies focus on are (1) customer relationship management, (2) customer service management, (3) demand management, (4) order fulfillment, (5) manufacturing flow management, (6) supplier relationship management, (7) product development and commercialization, and (8) returns management.

Describe the steps involved in conducting a marketing research project.

The marketing research process involves several basic steps. First, the researcher and the decision maker must agree on a problem statement or set of research objectives. Social media and big data may be helpful in this pursuit. The researcher then creates an overall research design to specify how primary data will be gathered and analyzed. Before collecting data, the researcher decides whether the group to be interviewed will be a probability or nonprobability sample. Field service firms are often hired to carry out data collection. Once data have been collected, the researcher analyzes them using statistical analysis. The researcher then prepares and presents oral and written reports, with conclusions and recommendations, to management. As a final step, the researcher determines whether the recommendations were implemented and what could have been done to make the project more successful.

positioning bases: product class

The objective here is to position the product as being associated with a particular category of products—for example, positioning a margarine brand with butter. Alternatively, products can be disassociated from a category.

market segmentation

The process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups

Discuss the importance of services to the economy.

The service sector plays a crucial role in the U.S. economy, accounting for approximately 80 percent of U.S. economic output. Services have unique characteristics that distinguish them from goods, and marketing strategies need to be adjusted for these characteristics.

positioning bases: Product user

This positioning base focuses on a personality or type of user. Gap Inc. has several different brands: Gap stores offer basic casual pieces, such as jeans and T-shirts, to middle-of-the-road consumers at midlevel prices; Old Navy offers low-priced, trendy casual wear geared to youth and college-age groups; and Banana Republic is a luxury brand offering fashionable, luxurious business and casual wear to 25- to 35-year-olds.

Positioning bases: price and quality

This positioning base may stress high price as a signal of quality or emphasize low price as an indication of value. Neiman Marcus uses the high-price strategy; Walmart has successfully followed the low-price and value strategy. The mass merchandiser Target has developed an interesting position based on price and quality. It is an "upscale discounter," sticking to low prices but offering higher quality and design than most discount chains.

Describe common channel structures and strategies and the factors that influence their choice.

When possible, producers use the direct channel to sell directly to consumers. When one or more channel members are small companies, an agent/broker channel may be the best solution. Most consumer products are sold through distribution channels similar to the retailer channel and the wholesaler channel. Dual distribution may be used to distribute the same product to target markets, and companies often form strategic channel alliances to use already-established channels. Managers must be sure that the channel strategy chosen is consistent with market factors, product factors, and producer factors.

captive brand

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

private brand

a brand name owned by a wholesaler or a retailer

retailer

a channel intermediary that sells mainly to consumers

Customer Relationship Management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

concentrated targeting strategy

a firm selects a market niche (one segment of a market) for targeting its marketing efforts. Because the firm is appealing to a single segment, it can concentrate on understanding the needs, motives, and satisfaction of that segment's members and on developing and maintaining a highly specialized marketing mix.

field service firm

a firm that specializes in interviewing respondents on a subcontracted basis

behavioral targeting (BT)

a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases

supplementary services

a group of services that support or enhance the core service

decline stage

a long-run drop in sales

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

maturity stage

a period during which sales increase at a decreasing rate

new-product strategy

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

positioning

a process that influences potential customers' overall perception of a brand, product line, or organization in general.

convenience product

a relatively inexpensive item that merits little shopping effort, ex. toothpaste, vitamins

observation research

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

family life cycle

a series of stages determined by a combination of age, marital status, and the presence or absence of children

central-location telephone (CLT) facility

a specially designed phone room used to conduct telephone interviewing

demand-supply integration (DSI)

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

simultaneous product development

a team-oriented approach to new-product development

informational labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

executive interview

a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services

undifferentiated targeting strategy

adopts a mass-market philosophy, viewing the market as one big market with no individual segments. The firm uses one marketing mix for the entire market.

frame error

an error that occurs when a sample drawn from a population differs from the target population

sampling error

an error that occurs when a sample somehow does not represent the target population

random error

an error that occurs when the selected sample is an imperfect representation of the overall population

measurement error

an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

merchant wholesaler

an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them, ex. Costco

computer-assisted personal interviewing

an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer

demographic segmentation

are age, gender, income, ethnic background, and family life cycle.

unsought products

are either new products or products that require aggressive selling because they are generally avoided or overlooked by consumers.ex. funeral services, life insurance plans

Geodemographics: Geodemographic segmentation

clusters potential customers into neighborhood lifestyle categories. It combines geographic, demographic, and lifestyle segmentations. Geodemographic segmentation helps marketers develop marketing programs tailored to prospective buyers who live in small geographic regions, such as neighborhoods, or who have very specific lifestyle and demographic characteristics. College students, for example, often share similar demographics and lifestyles and tend to cluster around campus.

manufacturing flow management process

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

Optimizers

consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one.

Satisficers

contact familiar suppliers and place the order with the first one to satisfy product and delivery requirements.

marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively

Usage-rate segmentation

divides a market by the amount of product bought or consumed. some combination of the following: former users, potential users, first-time users, light or irregular users, medium users, and heavy users

CRM (customer relationship management)

entails tracking interactions with customers to optimize customer satisfaction and long-term company profits.In order to facilitate this, Etsy used data analytics to develop a system that can recommend products based on factors beyond simply what people have looked at. As a result, Etsy shoppers now have an experience that surprises them with unexpected items and engages them to find more.

Consumer goods marketers commonly use one or more of the following characteristics to segment markets

geography, demographics, psychographics, benefits sought, and usage rate.

80/20 principle

holds that 20 percent of all customers generate 80 percent of the demand.

generic product name

identifies a product by class or type and cannot be trademarked

The purpose of market segmentation

in both consumer and business markets, is to identify marketing opportunities.

product mix

includes all the products it sells. Product mix width refers to the number of product lines an organization offers.

services are

intangible, simultaneous, heterogenous, and perishable

product line

is a group of closely related products offered by an organization. Product line depth is the number of product items in a product line.Product line extension occurs when a firm adds new products to existing product lines.

target market

is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Perceptual mapping

is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds. For example, Saks Incorporated, the department store chain, stumbled in sales when it tried to attract a younger core customer. To recover, Saks invested in research to determine its core customers in its 54 stores across the country.he perceptual map inExhibit 8.3 shows how Saks uses customer demographics such as spending levels and preferred styles to build a matrix that charts the best mix of clothes and accessories to stock in each store.

brand

is a name, term, or symbol that identifies and differentiates a firm's products. Established brands encourage customer loyalty and help new products succeed. Branding strategies require decisions about individual, family, manufacturers', and private brands.

product item

is a specific version of a product that can be designated as a distinct offering among an organization's products

market segment

is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

Repositioning

is changing consumers' perceptions of a brand in relation to competing brands. For example, Dunkin' Donuts is repositioning the brand to be known for coffee drinks instead of donuts. It has dropped "Donuts" from its name, reduced the number of food items on the menu, and redesigned its stores. Its new stores will include technology-based upgrades, including a dedicated space for mobile order pickups, digital ordering kiosks, and a drive-thru dedicated to customers who have ordered ahead with its smartphone. app.

Psychographic segmentation

is market segmentation on the basis of the following psychographic segmentation variables: Personality, Motives, Lifestyles, Geodemographics

Position

is the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

Benefit segmentation

is the process of grouping customers into market segments according to the benefits they seek from the product. Most types of market segmentation are based on the assumption that this variable and customers' needs are related

purpose of market segmentation

is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments

Specialty products

items with unique characteristics that buyers are willing to expend considerable effort to obtain, ex. luxury

family branding

marketing several different products under the same brand name

Market density

means the number of people within a unit of land, such as a census tract

cannibalization

occurs when sales of a new product cut into sales of a firm's existing products

There are at least four trends that will lead to the continued growth of CRM

personalization, time savings, loyalty, and technology.

co-branding

placing two or more brand names on a product or its package

customer service management process

presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

Geographic segmentation

refers to segmenting markets by region of a country or the world, market size, market density, or climate

demand management process

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior

brand equity

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

supply chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

commercialization

the decision to market a product

big data

the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data

screening

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason

introductory stage

the full-scale launch of a new product into the marketplace

core service

the most basic benefit the consumer is buying

simulated (lab) market testing

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market

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

business analysis stage

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

order cycle time

the time delay between the placement of a customer's order and the customer's receipt of that order

Generation X

those born between 1965 and 1980, is a smaller group than both the Millennial and the Baby Boomer groups; it makes up only 16 percent of the total population. Many of them are parents, and they make purchasing decisions with thought for and input from their families.they look for products that give them value for the money and good performance

The Millennial cohort

those born between 1981 and 1996, is comprised of 75.4 million people—more than any other generation, This group is idealistic and pragmatic and is the most technology-proficient generation ever

individual branding

using different brand names for different products

greenwashing

when a firm publicly feigns support for environmental or social sustainability but fails to live up to these standards in practice

agent and broker

wholesaling intermediaries who do not take title to a product, but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

Generation Z

whose members were born from 1997 to 2012, has access to $44 billion in buying power. Gen Zers want to work for their success, believe that brands need to be real, and have their own rules and etiquette for social media