Classifying The Goods
inexpensive physical goods that are consumed rapidly and regularly
Convenience Goods
series of stages in a product’s commercial life
Product Life Cycle
Step 1
Product ideas
–process of using symbols to communicate the qualities of a product made by a particular producer
Branding
–process of determining what a company will receive in exchange for its products
Pricing
moderately expensive, infrequently purchased physical goods
Shopping Goods
This stage begins when the product reaches the marketplace.
Introduction
Step 2
Screening
–brand-name product produced by, widely distributed by, and carrying the name of a manufacturer
National Brand
–amount added to an item’s purchase cost to sell it at a profit
Mark UP
expensive, rarely purchased physical goods
Specialty Goods
the new product attracts enough customers, sales start to climb rapidly.
Growth
Step 4
Business analysis
–physical container in which a product is sold, advertised, or protected
Packaging
–company’s percentage of the total industry sales for a specific product type
Market Share
tangible and intangible qualities that a company builds into its products
Product Features
Sales growth starts to slow
Maturity
Step 6
Product testing and test marketing
brand-name product for whose name the seller has purchased the right from an organization
Private Brand
–sales volume at which the seller’s total revenue from sales equals total costs (variable and fixed) with neither profit nor loss
Break even Point
group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
Product Line
Sales and profits continue to fall
Decline
Step 7
Commercialization
–promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers
Product Placement
–profit-maximizing, market share
Pricing Objectives