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