Brand Naming Strategies, Benefits of New Products, Innovation, Diffusion of Innovation, New Product Development Process, Service-Product Continuum, Price, Gray Market, Reference Prices, EDLP vs. High-Low Strategy, Price Skimming, Penetration Pricing,...
Early majority
Large group of consumers who buy products and services when they become profitable
Price skimming
Setting a high price for a new product to capture innovators and early adopters
Penetration pricing
Setting a low initial price to quickly build sales and market share
Brand extensions
Using the same brand name in a different product line
Brand extension
Using the same brand name in a different product line to increase product mix's breadth
Line extension
Using the same brand name within the same product line to increase product line's depth
Brand dilution
When a brand extension adversely affects consumer perception about the core brand
Product development
Balancing engineering, manufacturing, marketing, and economic considerations to develop a product
Individual brands
Brands that have their own separate identities
Family brands
Brands that use the corporate name for all product lines
Repositioning
Changing a brand's focus to target new markets or align with changing preferences
Rebranding
Changing a brand's packaging or image to attract new markets or appear up-to-date
Imitators
Competitors who capitalize on weaknesses of pioneers
Compatibility
Consumer features that affect the diffusion process
Late majority
Consumers who enter the market when a product has achieved full potential
Laggards
Consumers who rely on traditional products and may never adopt new ones
Brand licensing
Contractual agreement allowing another firm to use a brand name, logo, etc.
Pure service
An offering that is intangible and produced and consumed at the same time
Pure good
An offering that is tangible and can be touched, tasted, or seen
Experience curve effect
Drop in unit cost as sales volume increases
Opinion leaders
Early adopters who are regarded as experts in a specific product category
EDLP
Every day low pricing, offering products at a consistent low price
Pioneers
First movers who establish new markets or product categories
First movers
First to create a market or product category
Federal Trade Commission Act 1914
Law regulating unfair methods of competition and deceptive acts or practices
Fair Packaging and Labeling Act 1967
Law requiring labels to include ingredients, origin, directions, safety measures
Nutrition Labeling Act 1990
Law requiring nutrition information on food labels
Co-branding
Marketing two or more brands together on the same package, promotion, or store
Early adopters
Opinion leaders who carefully review new products before purchasing
Sustainable packaging
Packaging with less negative impact on the environment
Packaging
Physical container that provides convenience, attracts attention, and promotes the product
Concept testing
Presenting a concept statement to potential buyers to obtain their reaction
High-low strategy
Pricing strategy that involves temporary price reductions and sales promotions
Diffusion of innovation
Process by which innovation spreads throughout a market group over time
Idea generation
Process of generating new viable product ideas
Innovation
Process of transforming ideas into new offerings to help firms grow
Customer service
Providing assistance and support to customers
Labeling
Providing information on the product for consumers
Benefits of new products
Reasons firms continue to introduce new products
Innovators
Risk-takers who are first to adopt new products or services
Gray market
Selling goods through unauthorized channels at lower prices
Price discrimination
Selling the same product to different customers at different prices
Brand naming strategies
Strategies for naming brands
Market testing
Testing a product in a limited geographic area prior to national launch
Trialability
The ease with which a product can be tried
Observability
The ease with which the benefits of a product can be observed
Secondary package
The exterior container that contains the primary package
Complexity
The level of complexity of a product or service
Price
The overall sacrifice a consumer is willing to make to acquire a product
Primary package
The package that the consumer uses directly
Relative advantage
The perceived superiority of a product or service over substitutes
Break-even point
The point at which total revenue equals total costs
Reference prices
The prices against which buyers compare the actual selling price