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| the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline |
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a product is introduced to its intended target market
sales grow slowly, profit is minimal |
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| the initial purchase of a product by a consumer |
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| the desire for the product class rather than for a specific brand |
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| preference for a specific brand |
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| using a high initial price to enter the market, helps the company recover the costs of development and capitalize on price insensitivity of early buyers |
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| penetration pricing (lol penetration) |
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| penis in vagina jk its when companies price low to discourage competitive entry, helps build unit volume but the company must monitor costs |
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| characterized by rapid increases in sales - this is when competitors appear, profit is usually at its peak |
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| people who tried the product, were satisfied, and bought again |
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| characterized by a slowing of total industry sales or product class revenue. marginal competitors begin to leave the market. |
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| the decline stage occurs when sales drop - frequently, products enter this stage not because of any wrong strategy on the part of companies, but because of environmental changes |
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| dropping the product from the company's product line - most drastic |
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| when a company retains the product but reduces marketing costs; the product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent |
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| what are the four aspects of the product life cycle? |
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length: no set time to move through life cycle, as a rule consumer products have shorter life cycles than business products
shape of sales curve: 4 types: high learning, low learning, fashion, fad
how they vary with different levels of products: product class and product form
the rate at which consumers adopt products: life cycle depends on sales to consumers, different types of barriers |
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| one for which significant customer education is required and there is an extended introductory period |
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| sales begin immediately because little learning is required by the consumer and the benefits of the purchase are readily understood - easily imitated by competitors |
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| style of the times, are introduced, decline, then seem to return |
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| experiences rapid sales on introduction and then an equally rapid decline |
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| what are product class and product form? |
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product class - refers to the entire product category or industry, such as prerecorded music
product form - pertains to variations within the product class (cassettes, cds) |
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| what are the barriers associated with the life cycle and consumers? |
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Definition
usage barriers - the product is not compatible with existing habits
value barriers - the product provides no incentive to change
risk barriers - physical, economical, or social
psychological barriers - cultural differences or image |
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| involves altering a products characteristic, such as its quality, performance, or appearance, to increase the products value to customers and increase sales |
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| the sale of two or more separate products in one package |
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| company tries to find new customers, increase a products use among existing customers, or create new use situations |
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| changes the place a product occupies in a consumers mind relative to competitive products |
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| involves adding value to the product or line through additional features or higher quality materials |
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| reducing the number of features, quality, or price |
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| reducing the package content without changing package size and maintaining or increasing package price |
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| organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distinguish them from those of competitors |
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| any word, device (design, sound, shape, or color), or combination of these used to distinguish a sellers goods or services |
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| encourages buyers to stock inventory earlier than their normal demand would require |
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| trade (functional) discounts |
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| rewards wholesalers and retailers; reductions off the list price are offered to resellers in the marketing channel on the basis of: where they are in the channel, the marketing activities they are expected to perform in the future |
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Definition
to encourage sellers to pay bills quickly
2/10 net 30
-can take a 2 percent discount if payment is made within 10 days, total is due in 30 days |
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Term
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Definition
| consists of individuals and firms involved in the process of making a product or service available for use by consumers or industrial users |
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