Marketing Test 2
indirect channel
A marketing channel that consists of a producer, a consumer, and one or more intermediaries.
Financial feasibility
A new offering's ability to make money.
lead users
Potential customers who are innovative and develop new applications or new products for their own use without the aid of a supplier.
vertical market
B2B customers that compose a particular industry, such as he health care industry.
distributors
Businesses that purchase large quantities of products, can store products, can sell products, can delivered desired quantities of products, and can offer services. Distributors generally take title to products and employ a sales force to actively market their products.
retailers
Businesses that purchase products from manufacturers, wholesalers, agents, or distributors and then sell them to consumers.
Wholesalers
Businesses that purchase products in large quantities, can store the products, can break the pallets down into cases or units, and can deliver the desired quantity of a product to distributors, retailers, and/or consumers.
strategic channel alliance
An agreement formed by two or more firms to deliver their products via a channel. The products and organizations can be similar or different.
product-oriented
An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices.
service-dominant
An approach to offerings that integrates the physical product, attendant services, and price into the total offering.
product-dominant
An approach to products and offerings that clearly separates the physical product from services and from price.
depth interview
An exploratory research technique of engaging in detailed, one-on-one, question-and-answer sessions with potential buyers.
service
An intangible component of an offering.
unsought offering
An offering consumers don't typically shop for until it is needed. Examples include funeral and towing services.
shopping offering
An offering for which the consumer will make an effort to compare various firms' offerings and select a brand.
specialty offering
An offering that is highly differentiated from other offerings and is designed to satisfy a similar need or want.
impulse offerings
An offering that is purchased on impulse, without prior planning.
direct marketing
Delivering personalized promotional materials directly to individual consumers. Materials may be delivered via mail, catalogs, e-mail, Internet, or telephone, or in person.
convenience stores
Miniature supermarkets that stock a limited assortment of products. Many of them sell gasoline and are open twenty-four hours a day.
facilitating offerings
Offerings that support an organization's ability to do business but do not go into the final product.
maintenance, repair, and operations (MRO)
Offerings used to maintain, repair, and operate the physical assets of an organization.
tertiary packaging
Packaging designed for the shipping and efficiently handling of large quantities of a product.
primary packaging
Packaging designed to hold a single retail unit of a product.
secondary packaging
Packaging designed to hold a single wholesale unit of a product
concept testing
Presenting an idea for an offering (including possible marketing communication ideas), to consumers for their reaction early in the offering development process.
OEM offerings or components
Products, or parts, sold by one manufacturer to another that get built into a final product without further modification.
raw materials offering
Raw material products firms offer other firms so they can make a product or provide a service. These offerings are processed only to the point required for economic handling and distribution.
brokers (agents)
Representatives of one or more manufacturers who sell products on their behalf to consumers, wholesalers, and distributors, but do not take title to them.
nonstore retailing
Retailing not conducted in stores.
supermarkets
Self-service retailers that provide a full range of food products to consumers as well as some household products.
manufacturers' sales offices or branches
Selling units that work directly for manufacturers. A type of factory outlet store.
augmented product
Services and accessories that improve the core product's ability to deliver benefits.
pop-up store
Small temporary stores designed to generate "buzz" for a retailer and drive customers to its regular stores.
category manager
Someone responsible for managing a broad group of products that may belong to multiple manufacturers.
market manager
Someone responsible for managing efforts within a particular market, such as a geographic market or another grouping of customers into a market (e.g. a single industry or size).
supply chain management
The process of managing and refining supply chains so as to make them as efficient as possible.
brand extension
The process of utilizing an existing brand name or brand mark for a new product category.
brand name
The spoken part of an identity used to describe a brand.
divesting
companies get rid of a product, service, or business.
investment risk
The potential of losing one's money and time should a new offering fail.
feature
A characteristic of an offering.
original equipment manufacturer (OEM)
A company that assembles and manufactures a product into its final form.
category killer
A firm that sells high volume of a product in a particular category.
product line
A group of offerings that serve similar needs and are sold under the same name.
focus group
A group of potential buyers brought together to discuss a marketing research topic with one another.
skimming pricing strategy
A high initial price that companies set when introducing new products in order to get back money invested.
direct channel
A marketing channel that consists of a producer and a consumer.
manufactured material
A material that has been processed into a finished good, but is not a stand-alone product; it still has to be incorporated into something else to be usable.
brand
A name, picture, design, or symbol, or combination of those elements, used by a seller to differentiate its offerings from competitors'.
line extension
A new idea or offering that occurs when a company comes out with another model (related product or service) based on the same platform and brand as one of its other products.
brand manager
A person responsible for all business decisions regarding offerings within one brand. A brand manager is often charged with running his or her brand as if it is its own separate business.
branding
A set of activities designed to create a brand and to position it in the minds of consumers.
disintermediation
A situation that occurs when intermediaries are cut out of marketing channels.
quality function deployment (QFD)
A specific process for designing new offerings that begins by specifying a customer's requirements and then designing a product to meet those needs.
penetration pricing strategy
A strategy in which an organization offers a low initial price on a product so that it captures as much market share as possible.
brand mark
A symbol or logo used to identify a brand.
product
A tangible good that can be bought, sold, and owned.
supply chain
All the organizations that participate in the production, promotion, and delivery of a product or service from the producer to the end consumer.
harvesting
Companies reduce investment in a product, service, or business.
online retailers
Companies that sell products directly to consumers via the Web.
industrial distributors
Intermediary firms that sell products that businesses or government departments and agencies use but don't resell.
rolling launch
Introducing a new offering across markets one by one in order to work out any challenges or problems related to marketing and supporting the offering.
standardized
Keeping a product or service the same in all markets.
superstores
Large department stores that carry a broad array of general merchandise as well as groceries. Superstores are also referred to as hypermarkets and supercenters.
convenience offerings
Low-priced, frequently purchased products and services that require little shopping effort.
vertical market managers
Marketing managers who oversee B2B products sold to a particular industry.
product manager
Someone with business responsibility for a particular product or product line. pLike brand managers, product managers must make decisions, such as which offerings to include, advertising selections, and others.
department stores
Stores that carry a wide variety of household and personal types of merchandise such as clothing and jewelry.
specialty stores
Stores that sell a certain type of product.
off-price retailers
Stores that sell a variety of discount merchandise that consists of seconds, overruns, and the previous season's stock other stores have liquidated.
outlet stores
Stores that sell a variety of merchandise that may consist of seconds, overruns, and the previous season's stock, as well as first-run merchandise all from one manufacturer.
used retailers
Stores that sell products that have already been used.
drugstores
Stores that specialize in selling over-the-counter medication, prescriptions, and health and beauty products and offer services such as photo-developing.
warehouse clubs
Supercenters that sell products at a discount to people who pay an annual membership fee to join them.
capital equipment offering
Tangible equipment business purchases that are depreciated.
price
The amount exchanged by the buyer to receive the value offered by the product or service.
adaptation
The changes that an organization must make for a product or service to fit in the local culture.
technology platform
The core technology that is the basis for an offering or product.
benefit
The degree to which a feature satisfies a buyer's need or desire.
process feasibility
The degree to which the manufacturing of a product or the delivery of a service can be done within the proper quality specifications on a repeatable basis; the degree to which an organization can actually make and service an offering.
product mix
The entire assortment of products that a firm offers.
offering
The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers.
channel members
The firms a company partners with to actively promote and sell a product as it travels through its marketing channel to users.
Marketing channel
The group of organizations involved in selling and promoting goods from the time they are produced until they reach end users.
line breadth
The number of different, or distinct, product lines offered by a company.
line depth
The number of variations in a single product line.
core product
The physical component of an offering.
opportunity risk
The potential loss of revenue a company risks when it chooses an alternative course of action such as launching a different offering.
decline stage
The stage of the life cycle at which sales drop and companies must decide whether to keep, modify, or drop a product.
growth stage
The stage of the life cycle in which sales increase and more competitors enter the market.
maturity stage
The stage of the product life cycle at which sales begin to level off and competitors have saturated the market.
product life cycle (PLC)
The stages (introduction, growth, maturity, decline) that a product may go through over time.
market test
The test launch of a product's complete marketing plan to ensure that it reaches buyers, gets positive reactions, and generates sales of the product.
beta testing
The testing of a product by real customers in the customers' location.
alpha testing
The testing of a product in a laboratory setting.
total cost of ownership (TCO)
The total amount of time and money spent to acquire, use, and dispose of an offering.
intermediaries
Third parties that facilitate the supply and sale of products from manufacturers to users.
downsize
To decrease the size of the package or the amount of product in the package.
cannibalization
When a new product takes sales away from the same company's existing products.
merchant wholesalers
Wholesalers that take title to the goods.
