intro business ch. 14

trademark

a brand that has been given exclusive legal protection for both the brand name and the pictorial design

product line

a group of products that are physically similar or are 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

brand

a name, symbol or design (or combination) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors

competition-based pricing

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

product screening

a process designed to reduce the number of new-product ideas being worked on at any one time

product life cycle

a theoretical model of what happens to sales and profits for a product class over time

total fixed costs

all the expenses that remain the same no matter how many products are made or sold

specialty goods and services

consumer products with unique characteristics and brand identity; because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them

variable costs

costs that change according to the level of production

target costing

designing a product so that it satisfies customers and meets the profit margins desired by the firm

total product offer

everything that consumers evaluate when deciding whether to buy something; also called a value package

value

good quality at a fair price; when consumers calculate the value of a product, they look at the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the cost

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

knockoff brands

illegal copies of national brand-name goods

product analysis

making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas

generic goods

nonbranded 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

unsought goods and services

products that consumers are unaware of, haven't necessarily though of buying, or find that they need to solve an unexpected problem

dealer (private-label) brands

products that don't carry the manufacture's name but carry a distributor or retailer's name instead

convenience goods and services

products that the consumer wants to purchase frequently and with a minimum of effort

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 pricing (EDLP)

setting prices lower than competitors and then 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 the competitors'

skimming price strategy

strategy in which a new product is priced high to make optimum profit while theres 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' brand names

the brand names of manufacturers that distribute products nationally

brand equity

the combination of factors - such as awareness, loyalty, perceived quality, images, and emotions - that people associate with a given brand name

product mix

the combination of product lines offered by a manufacturer

product differentiation

the creation of real or perceived product differences

brand loyalty

the degree to which customers are satisfied, like the brand, and are committed to further purchase

brand association

the linking a brand to other favorable images

price leadership

the procedure by which one or more dominant firms set the pricing practices that all competitors in a industry follow

break-even analysis

the process used to determine profitability at various levels of sales

shopping goods and services

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