Business - Chapter 14

List the 6 steps in the new product development process, starting with the first step at the top and ending with the last.

1. Idea Generation 2. Product Screening 3. Product Analysis 4. Development 5. Testing 6. Commercialization

List the six steps in the new product development process, starting with the first step at the top and ending with the last.

1. Idea Generation 2. Product Screening 3. Product Analysis 4. Development 5. Testing 6. Commercialization

List the stages of the product life cycle from beginning to end with the earliest stage at the top.

1. Introduction 2. Growth 3. Maturity 4. Decline

The stages of the product life cycle are:

1. Introduction 2. Growth 3. Maturity 4. Decline

An _____________ good is one sold from one business to another

Industrial

A theoretical model of what happens to sales and ________________ for a product class over time is called the product life cycle.

Profits

Products that do not carry the manufacturer's name, but carry the distributor or retailer name are called:

-Dealer brands -Private-label brands

The product life cycle is a valuable tool for:

-Planning marketing strategies -Adjusting the marketing mix -Anticipating market developments

The product life cycle is a valuable tool for:

-Planning marketing strategies -Anticipating market developments -Adjusting the marketing mix

A brand manager in a B2B company is responsible for:

-Product -Promotion -Price

Which of the following are examples of shopping goods? A.) Automobiles B.) Towing services C.) Candy bars D.) Dishwashers

Automobiles and dishwashers

Brand _____________ is how quickly or easily a given brand name comes to mind when a product category is mentioned.

Awareness

A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:

Brand

The linking of a brand to other favorable images is known as _____________ __________________.

Brand Association

The linking of a brand to other favorable images is known as ____________________ _________________________.

Brand Association

When consumers quickly and easily think of a given brand name when a product category is mentioned, they are said to have established ___________________ _____________________.

Brand Awareness

The point where revenues from sales equals all costs is called the:

Break even point

Grouping two or more products together and pricing them as a unit is called:

Bundling

Promoting a product distributors and retailers and developing strong advertising to generate interest in the product are components of _____________________.

Commercialization

The best way to _____________ is to design and promote products that consumers perceive as having greater value than the competition.

Compete

Set the price at, above or below the competition

Competition-based

Estimate the price people will pay and design a product that will satisfy customers and meet profit margins

Demand Based (target costing)

Firms can gain market share by creatively establishing product ________________ that is either real or perceived by consumers.

Differentiation

Regardless of the number of products made, ___________ ___________ are those expenses that remain the same.

Fixed costs

A ______________ good is a non-branded product that usually sells at a sizable discount compared to other brands.

Generic

Sellers fear that their brand will become a _________________ name, which is the name for a whole product category.

Generic

Sellers fear that their brand will become a ____________________ name, which is the name for a whole product category.

Generic

A ____________-_______ pricing strategy sets prices higher than other stores EDLP, but lower during special sales.

High-Low

An ______________________ good is one sold from one business to another.

Industrial

Heavy machinery, new buildings, and computers, all used in the production of other goods, are examples of _________________ goods.

Industrial

Heavy machinery, new buildings, and computers, all used in the production of other goods, are examples of ______________________ goods.

Industrial

When a consumer insists on one specific brand, making the product a specialty good, it is knows as brand ______________________.

Insistance

It is unusual for a company to sell:

Just one product

Illegal copies of national brand-name goods are called:

Knock offs

Private label brands are products that do not carry the ___________________ name, but carry a distributor or retailer name.

Manufacturers'

A low initial entry price, often lower than the eventual market price, ro attract many customers and discourage competition, is a strategy called:

Penetration

One dominant firm sets the pricing for all competitors in a industry in a _____________ ___________________ strategy.

Price Leadership

Getting a feeling for new product ideas by developing cost estimates and sales forecasts is called:

Product Analysis

A theoretical model of what happens to sales and profits for a product class over time is called the ______________ ____________ ____________

Product Life Cycle

A group of products that are physically similar or are intended for a similar market are referred to as a _______________ ___________.

Product Line

The combination of product lines offered by a manufacturer is called the _____________ ______

Product Mix

The value of a product is defined as good _____________ at a fair _____________.

Quality, Price

A firm wishing to track products via radio frequency will most likely use a ____________ system.

RFID

A method of tracking products through radio frequency is called:

RFIED Chip

The pricing strategy that calls for a new product being priced high to make optimum profit while there is little competition is called a __________________ price strategy

Skimming

When there is low competition, firms can use a _______________ ____________ strategy to recover research and development costs and make as much profit as possible

Skimming Price

Recognizing what stage of its life cycle a product is in has a direct impact on marketers' decisions about:

The marketing mix

Everything that consumers evaluate when deciding whether to buy something is referred to as the:

Total Product Offer

When consumers are deciding to make a purchase, everything they consider when deciding to buy is called the ______________ __________ __________

Total Product Offer

Good quality at a fair price. When consumers calculate the _________ of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.

Value

Marketers should make a habit of talking with consumers to determine which ___________ enhancers they want in the final product offerings.

Value

When customers calculate _________________ they look at the benefits of a product or service and subtract the costs to determine whether the benefits exceed the costs.

Value

When levels of production change so do ____________ costs.

Variable

A dealer brand may also be called a:

-Distributor brand -Private label -House brand

When the consumer will not accept a substitute for a particular product, the consumer has developed:

Brand Insistence

When consumers are satisfied with a product, like the brand, and are committed to further purchases, a company has achieved a certain degree of __________ _________________ for its product.

Brand Loyalty

When consumers are satisfied with a product, like the brand, and are committed to further purchases, a company has achieved a certain degree of ______________ _____________ for its product

Brand Loyalty

Promoting a product to distributors and retailers to get wide distribution is called:

Commercialization

_____________________________ is the marketing process of promoting a product to distributors and retailers and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

Commercialization

Setting price at, above, or below competitors based on what they are doing is a pricing strategy called:

Competition-based pricing

A ______________ - ____________ pricing strategy sets prices higher than other stores EDLP, but lower during special sales.

High-Low

To satisfy customers, marketers must learn to.....

Listen better and constantly adapt to changing market demands. -Marketers have learned that adapting products to new competition and new markets is an ongoing need.

Penetration strategy is the practice of pricing a product _______ to attract _____ customers and discourage competition.

Lower, New

_______________ is a set of processes for creating, communicating, and delivering value to customers, according to the American Marketing Association.

Marketing

When it comes to a ______________ product, no substitute will do.

Specialty

When it comes to a _______________ product, no substitute will do.

Specialty

Customers may evaluate the _________________ aspects of a product such as the product itself or the ______________ aspects such as the image portrayed in advertising.

Tangible Intangible

Designing a product so that it satisfies customers and meets the profit margins desired by firms is called ____________ ____________.

Target Costing

_______________ _______________ aims to design a product so that it satisfies customers and meets the profit margins for a company.

Target Costing

A product mix is:

The combination of all product lines a company offers

A brand that has exclusive legal protection for both its brand name and its design is called a:

Trademark

T/F: Value means that customers perceive a product as a good quality at a fair price.

True

Products that consumers are unaware of or have not thought of buying are:

Unsought

Costs that change according to the level of production is called:

Variable costs

The value of the brand name and associated symbols is referred to as ______________ _____________________.

Brand Equity

Questions about a new product such as what features customers like are revealed during the ______________ _______________ stage of the product development process.

Concept Testing

Taking a product idea to consumers to test their reaction is called _____________ _______________.

Concept Testing

Taking a product idea to consumers to test their reactions is called:

Concept testing

Consumers calculate the value of a product by:

Considering whether all of the benefits exceed all of the costs

A ____________ good or service is one that the consumer wants to purchase frequently and with minimum effort.

Convenience

Costs of production plus a margin of profit to determine price

Cost-Based

Small businesses can often gain market share through creative product __________________, such as attractive packaging when marketing their products.

Differentiation

Handing off various parts of a firm's innovation process sometimes to companies in other countries is called ________________ product development.

Distributed

Handing off various parts of your innovation process - often to companies overseas.

Distributed Product Development -The increase in outsourcing and alliance building has resulted in innovation efforts that often require using multiple organizations separated by cultural, geographic, and legal boundaries.

Brand ______________ is the value of the brand name and associated symbols

Equity

Products in the same product line usually:

Face similar competition

True or False: A generic good usually costs more?

False

Understanding the product life cycle can provide marketing managers a basis for planning _______________ ________ strategies.

Marketing Mix

Marketers must continually adapt products to new _____________.

Markets and competition

What store is likely to use low price to create an attractive total product offering

Outlet or warehouse

Making cost estimates and sales forecasts to get a feeling for the profitability of a new product idea is called:

Product Analysis

The main goal of ________________ ______________ is to get a feel for the profitability of new product ideas.

Product Analysis

The creation of real or perceived product differences is called:

Product Differentiation

The part of the new product development process that requires listening to employees, customers, and suppliers is generating new ___________ ____________.

Product Ideas

When a firm offers more than one product line, it is said to be offering a _______________ __________.

Product Mix

A process designed to reduce the number of new-product ideas being worked on at one time is called:

Product Screening

Justifying a new product's fit, profit potential, and marketability is known as:

Product Screening

The process of _____________ _______________ helps manufacturers determine whether a product fits well with the present products and has good marketability and profit potential.

Product Screening

An ongoing need for all marketers in order for their business to survive is:

Product adaptation

A group of products that are physically similar or are intended for a similar market are referred to as a _____________ ___________.

Product line

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

Product line

_________________ pricing makes a product appear less expensive than it really is.

Psychological

When firms try to make a product appear less expensive than it really is by the price points they set, it is:

Psychological Pricing

Product lines and product mixes are also present in the ___________ sector.

Service

__________________ goods or services are products the consumer buys only after comparing value, quality, price, and style from a variety of sellers.

Shopping

Products that rely on reaching a specific market segment through advertising in a medium such as a sports magazine are:

Specialty