Chap 14 business

Product line

A group of products that are physically similar or intended for a similar market.

Brand manager

A manager who has direct responsibility for one brand or one product line called a product manager in some firms.

Competition based pricing

A pricing strategy based on what all the other competitors are doing the price can be said at above or below competitors prices.

Product screening

A process designed to reduce the number of new product ideas being worked out at any one time.

Total fixed costs

All the expenses that remain the same no matter how many products are made are sold.

Specialty goods and services

Are consumer products with unique characteristics and brand identity.

Unsought goods and services

Are products consumers are unaware of, haven't necessarily thought of buying, or suddenly find they need to solve an unexpected problem. They include emergency car towing services, burial services, and insurance.

Shopping goods and services

Are products the consumer buys only after comparing value, quality, price, and style from a variety of sellers.

Value

Good quality at a fair price.

Knockoff brands

Illegal copies of national brand name goods.

Brand association

The linking of a branch to other favorable images.

Break even analusis

The processes to determine profitability at various levels of sales.

Price leadership

The strategy by which one or more dominant firms set the price and practices that all competitors in an industry follow.

Brand equity

The value of the brand-name and associated symbols.

Trademark

A brand that has exclusive legal protection for both it's brand-name and it's design.

Brand

A name, symbol, or design that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

Convenience goods and services

Are products the consumer wants to purchase frequently and with a minimum of effort, like candy, gum, milk, snakes, gas, and banking services.

Variable costs

Conness that change according to the level of production.

Total product offer

Consists of everything consumers evaluate when deciding whether to buy something.

Target costing

Designing a product so that it satisfies customers and needs the profit margins desired by the firms.

Bundling

Grouping two or more products together and pricing them as a unit.

Brand awareness

How quickly or easily a given brand-name comes to mind when a product category is mentioned.

Product life cycle

I theoretical model of what happens to sales and profits for a product class overtime the four stages of the cycle our introduction growth maturity and decline.

Product differentiation

Is the creation of real or perceived product differences.

Distributed product development

Is the term used to describe handing off various parts of your innovation process often to companies in other countries.

Product analysis

Making cost estimates and sales forecasts to get a feeling for profitability of new product ideas.

Generic goods

Non-branded products that usually sell at a sizable discount compared to national or private label brands.

Psychological pricing

Pricing goods and services at price points that make the product appear less expensive than it is.

Dealer (private label) brands

Products that don't carry the manufactures name but carry a distributor or retailers name instead.

Industrial goods

Products used in the production of other products. Sometimes called business goods or B2B goods.

Commercialization

Promoting a product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

Everyday low prices (EDLP)

Setting prices lower than competitors than not having any special sales.

High-low pricing strategy

Setting prices that are higher than EDLP stores but having many special sales where the prices are lower than competitors.

Skimming pricing strategy

Strategy in which a new product is priced high to make optimum profit while there's little competition.

Penetration strategy

Strategy in which a product is priced low to attract many customers and discourage competition.

Concept testing

Taking a product idea to consumers to test their reactions.

Manufactures brands

The brand names of manufactures that distribute products nationally.

Product mix

The combination of all product lines offered by a manufacturer.

Brand loyalty

The degree to which customers are satisfied like the brand and are committed to further purchases.