MKT Chapter 9&10

Price elasticity

-If demand hardly changes with a small change in​ price, we say that demand is inelastic. If demand changes​ greatly, we say that the demand is elastic. -refers to how responsive demand will be to a change in price

Team-based new-product development

Company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness. (Save some time here to increase effectiveness if it's managed correctly)

Cost-Based

Cost-based pricing involves setting prices based on the costs of​ producing, distributing, and selling the product plus a fair rate of return for the​ company's effort and risk.

Consumer Product Safety​ Commission

Established by the U.S. Congress in​ 1972, the​ ________ has the authority to ban or seize potentially harmful products and set severe penalties for manufacturer violations of federal law.

Idea screening

Identify good ideas and drop poor ideas R-W-W Screening Framework: Is it real? Can we win? Is it worth doing?

Second

In cost-based pricing, determining product costs is the

Growth Stage

In which PLC stage does a product's sales start climbing quickly?

customer-centered new product development

New product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences.

Value Added

Rather than cutting prices to match​ competitors, firms adopting​ value-added pricing provide customers with additional features and services to differentiate their offers and support higher prices.

Profit Margin

Ratio of profit after taxes to cost-of-sales, often expressed as a percentage. It is one of the measures of the profitability of a firm, and an indicator of its cost structure. Formula: After-tax profit x 100 ÷ cost of sales.

Third

Setting the price based on cost is the __________ step in cost-based pricing.

What is commercialization?

The introduction of a new product into the market

intraprenuership

The named examples are corporate intrapreneurial​ programs, designed to encourage employees to develop and present new product ideas

Concept Testing

The process of testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

Total Cost

The sum of the fixed and variable cost at any given level or productions

Demand Curve

The​ ________ shows the number of units the market will buy in a given time period at different prices that might be charged The typically inverse relationship between the price charged and the resulting demand level is depicted graphically by a demand curve.

Fashion

Which term refers to a currently accepted or popular mode of expression in a given field?

Experience Curve

Which term refers to the drop in the average per-unit product cost that comes with accumulated production experience?

Marketing Strategy Development

__________ involves designing an initial marketing strategy for a new product based on the product concept.

Offering a basic product

__________ is a product strategy in the introduction stage of the PLC.

Cost-based pricing

__________ is based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Idea Generation

__________ is the systematic search for new product ideas.

First

designing a good product

product development

developing the product concept into a physical concept to ensure that the product idea can be turned into a workable market offering.

style

is a basic and distinctive mode of expression

Product concept

is a detailed version of the idea stated in meaningful consumer terms (midsize sporting compact car appealing to young singles)

fad

is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.

Crowdsourcing

is inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.

introduction stage

is the PLC stage in which a new product is first distributed and made available for purchase.

decline stage

is the PLC stage in which a product's sales fade away.

maturity stage

is the PLC stage in which a product's sales growth slows or levels off.

In the introduction stage of the PLC, a __________.

new product is first distributed and made available for purchase

good-value pricing

offering just the right combination of quality and good service at a fair price

Target Costing

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

Price

​________ is typically considered the most flexible of the marketing mix elements AND is the only element in the marketing mix that produces revenue.