MKT 10

4 challenges of packaging and label designers

(1) the continuing need to connect with customers (2) environmental concerns (3) health, safety, and security issues (4) cost reduction

The Aspects of the Product Life Cycle

(1) their length, (2) the shape of their sales curves, and (3) the difference between product classes and forms.

2 rolls of price

(1) to affect consumer perceptions (2) to be used in capacity management.

Growth Stage

- characterized by rapid increases in sales. -competitors appear -profit peaks -growing proportion of repeat purchasers -changes in features -broaden distribution

Length of Product Life Cycle

-1st -consumer products have shorter life cycles than business products.

Packaging refers to which two of the following?

-It is any container in which a product is offered for sale. -It has a label on which information is conveyed.

Shape of the Life Cycle Curve

-Not all products have the same shape to their curve. -Each type suggests different marketing strategies.

Decline Stage

-sales drop

Maturity Stage

-slowing of total industry sales or product class revenue -marginal competitors begin to leave -few new customers -Marketing to product differentiation and finding new buyers and uses

1) perceptual 2) functional 3) communication

1) graphics to convey a brand's positioning 2) stackable food containers 3) nutritional and dietary information

packaging

A component of a product that refers to any container in which it is offered for sale and on which label information is conveyed.

branding

A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.

A curve representing groupings of customers who adopt new products over a period of time illustrates the ______.

diffusion of innovation

The way a product spreads through the population is known as ______.

diffusion of innovation

Product Deletion

dropping the product from the company's product line

Capacity management emphasizes ______.

efforts to influence consumer demand, since services are both inseparable and perishable

When Nestle or McDonald's modify their packaging to use more recyclable material, they are responding to ______.

environmental concerns

fad product

experiences rapid sales on introduction and then an equally rapid decline

Honda's established name for motor vehicles has allowed it to employ brand , using its brand to sell products in other categories like snowblowers and marine engines.

extension

Multiproduct branding is also called which two of the following?

family branding corporate branding

During the introduction stage sales are ______ and profit is ______.

growing slowly; minimal

The online retailer Zappos.com requires employees to complete a four-week customer loyalty program in delivering its "WOW" service, which is an example of which P in services?

people

In addition to the traditional four Ps of the marketing mix, what three additional factors also require effective management within service organizations?

people physical environment process

Brand ___, common among successful and established brands, is a set of human characteristics that are associated with the brand name.

personality

When Harley-Davidson advertises to reinforce the perception that the brand is masculine, rugged, and individualistic, it is building brand ______.

personality

risk barriers

physical, economic, or social

Because services are intangible and there may be few other available cues for the customer to judge, they frequently use ________ as an important indicator of a service's quality.

price

Product bundling is one approach that may be used in a strategy to increase a product's value to customers.

product motification

When P&G added vitamins to its Pantene shampoo and conditioner formulas, it used _________ to revamp the brand.

product motification

Nonprofits like public schools and hospitals often use ________ in the form of public service announcements to disseminate their messages.

publicity

The growth stage of product life cycle is characterized by more competition and a ________.

rapid increase in sales

What are two key characteristics of the growth stage of the product life cycle?

rapid increase in sales increasing competition

The process of changing the place a product occupies in a consumer's mind relative to competitive products is referred to as product ______.

reposition

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

Managers often supplement these data with two measures:

(1) a category development index (CDI) and (2) a brand development index (BDI)

brand personality

A set of human characteristics associated with a brand name

trading up

Adding value to the product (or line) through additional features or higher-quality materials.

seven ps of services marketing

An expanded marketing mix concept for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process.

label

An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.

brand name

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services.

Which is an example of a brand extension?

Cosmopolitan magazine and Cosmopolitan clothing line

Why is price an important indicator of quality that consumers use when purchasing services?

Because services are intangible, evaluating quality directly is difficult.

Which of the following are reasons that service marketers rely heavily on branding?

Branding is a means of differentiation. Strong branding makes introduction of new services easier. Branding helps convey an image of quality.

off-peak pricing

Charging different prices during different seasons of the year and different times of the day or during different days of the week to reflect variations in demand for the service.

Product Life Cycle

Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

trade mark

Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.

capacity management

Integrating the service component of the marketing mix with efforts to influence consumer demand.

Fashion product

Introduced, decline, and then seem to return

Product motification

Involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.

Key characteristics of the maturity stage are which two of the following?

Marketing costs are directed at holding market share. Intense competition on price occurs.

A high-learning product

One for which significant customer education is required and there is an extended introductory period

_______ can create customer value by offering communication, functional, and perceptual benefits.

Packaging

product form

Pertains to variations of a product within the product class.

Introduction Stage

Product is introduced to its intended target market. During this period, sales grow slowly and profit is minimal Objective: create consumer awareness and stimulate trial—the initial purchase of a product by a consumer.

trading down

Reducing a product's number of features, quality, or price.

downsizing

Reducing the package content without changing package size and maintaining or increasing the package price.

product class

Refers to the entire product category or industry.

market modification

Strategies by which a company tries to find new customers, increase a product's use among existing customers, or create new use situations.

brand equity

The added value a brand name gives to a product beyond the functional benefits provided.

brand purpose

The reason why a brand exists, the place it has in consumers' lives, the solution it provides to consumers, and the brand's role in making society better off. It focuses on a brand's underlying values and beliefs and its identity and meaning.

harvesting

When a company retains the product but reduces marketing costs.

Packaging and labeling not only provides benefits for the consumer, but if done successfully in a way that puts a firm in a favorable position compared to its competitors, it can provide ______ for the firm.

a competitive advantage

diffusion of innovation

a product diffuses, or spreads, through the population,

For nonprofit organizations, the most common form of publicity is ______.

a public service announcement

Product modification consists of altering the product's quality, performance, or ______.

appearance

Low-learning product

begin immediately because little learning is required by the consumer and the benefits of purchase are readily understood

A product manager is sometime called a(n) _______ manager.

brand

The use of the same brand name for new products being introduced into a different product class is known as ______.

brand extension

Who is responsible for managing existing products through the stages of the life cycle?

brand manager

When an organization uses a name, phrase, design, symbols, or a combination of these to identify products and distinguish them from its competitors it is engaged in ______.

branding

The integration of the marketing mix with efforts to influence consumer demand is known as ______.

capacity managment

Product ________ refers to the entire product category or industry, often illustrated in a product life cycle curve.

class

The product ________ of prerecorded music includes product ________ like cassette tapes, CDs, and digital music.

class; forms

A combination of increasing competition and the inseparability of services lead service businesses to focus on ______.

convenience

Which of the following are strategies to modify the market?

create new use situations find new customers increase a product's use among existing customers

An example of a company connecting with customers in its package redesign strategy is ______.

creating a resealable package in response to consumer habits

cultural barrers

cultural differences or image

Products in the ________ of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth.

decline

In the ______ stage of the product life cycle, demand and sales increase, profits peak, and there are more competitors.

growth

Management of the physical environment for services is sometimes known as _____ management.

impression

The physical environment is important in the delivery of services because ______.

it provides physical evidence, and thus helps convey an image to the consumer

Modifying the product, modifying the market, and repositioning the product are three ways to manage a product through ______.

its life cycle

A ________ identifies the product or brand, the package contents, and other information like where the product was made, when, and by whom.

label

The product life cycle is ______.

made up of the stages a product goes through in the marketplace, from introduction to decline

Services marketing differs from that of tangible goods, and many have adopted a strategy to ______.

manage additional elements, on top of product, price, place, and promotion

brand manager

manages the marketing efforts for a close-knit family of products or brands -engage in extensive data analysis related to their products and brands

What are two responsibilities of a product manager?

managing existing products through the stages of the life cycle developing and executing a marketing program for a product line

In the ________ stage of the product life cycle, most consumers who would buy the product are either repeat purchaser of the item or have tried and abandoned it, making it more challenging to acquire new customers.

maturity

The ____ stage of the product life cycle is characterized by a slowing of growth in total industry sales or product class revenue.

maturity

With ________ branding, a company uses one name for all its products in a product class.

multiproduct

Which two of the following criteria are often used in naming successful brands?

names without legal restrictions emotional names

When a firm uses branding to identify its products and distinguish them from its competitors, its uses what elements to do so?

packaging design unique symbols product names

A trip to a Disney theme park reveals a careful integration of all service activities to connect with customers at each opportunity, which is an example of which P in services?

people

What are two key characteristics of the introduction stage of the product life cycle?

slow growing sales minimal profit

Easy Off, Glass Plus, Cling Free are good brand names because they _____.

suggest product benefits

usage barriers

the product is not compatible with existing habits

The different stages a product goes through during its existence is known as ______.

the product life cycle

value barriers

the product provides no incentive to change

shelf life

the time a product can be stored

Market modification strategies include finding new customers, increasing product ______, and creating a new use situations.

use