New-Product Development
The amount of time a firm can call a product new.
What is six month?
An early sample or model built to test a concept.
What is a prototype?
Direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
What is direct marketing?
A firm that owns and manages more than one store.
What is a corporate chain?
The 3 General Types of Branding.
What are Corporate, Product and Personal?
A conflict between the supplier and the retailer
What is vertical conflict?
The product life cycle stage where industry sales typically level off and competition becomes tougher.
What is market maturity?
The stage, new products replace the old. Price competition from dying products becomes more vigorous—but firms with strong brands may make profits until the end because they have successfully differentiated their products.
Market decline.
The difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
What is discrepancy of quantity?
Stores that specialize in certain lines of related products rather than a wide assortment.
What are single-line or limited-line stores?
Using a single marketing strategy to reach all customers.
What is mass marketing?
Products that are bought often, routinely, and without much thought—such as breakfast cereal, canned soup, and most other packaged foods used almost every day in almost every household.
What are staples?
The four major stages of the product life cycle.
What are Market Introduction, Market Growth, Market Maturity, Sales Decline?
The philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities, to better serve customer needs.
What is total quality management?
Collecting products from many small producers.
What is accumulating?
A type of conventional limited-line store—is usually small and has a distinct “personality.
What is a specialty shop?
Consumer willingness and ability to buy products.
What is demand?
Selling some of what the firm produces to foreign markets.
What is exporting?
New products that require that customers adopting the innovation significantly change their behaviors
What are discontinuous innovations?
New products that require minor changes in customer behavior
What are dynamically continuous innovations?
Dividing larger quantities into smaller quantities as products get closer to the final market.
What is bulk breaking?
Large self-service stores with many departments that emphasize “soft goods” (housewares, clothing, and fabrics) and staples (like health and beauty aids) and offer lower prices to get faster turnover
What are mass-merchandisers?
The process of classifying people who form a given market into even smaller groups.
What is market segmentation?
Strengths and Weakness
What are the internal Factors analyzed in a SWOT analysis?
Items the customer sees as basically the same and wants at the lowest price.
What are homogeneous shopping products?
The three ways ROI can be increased.
What are increase the profit margin, increase the sales revenue, and decrease the investment in the new product?
Putting together a variety of products to give a target market what it wants.
What is assorting
Carrying any product lines they think they can sell profitably.
What is scrambled merchandising?
The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products.
What is product liability?
Decisions about how much to charge for a good or service in order to maximize profits.
What is pricing?