Title: 9 Key Terms
Course: Principles of Marketing > Section: Chapter 9

Key Terms

actual product

product available for purchase

augmented product

product having unseen aspects essential to customers

brand

an intangible asset with tangible value; made up of promotion efforts and customer meaning

brand engagement

measure of how deeply the customer identifies emotionally with a brand

brand equity

the additional value that a brand has over a substitute

brand extensions

products that leverage the brand name to new product categories

brand lift

measure of customer and noncustomer perception of a product over time

brand name

the official name of a brand

brand positioning

the way a brand signals emotions in consumers’ minds

brand preference

measure of the degree to which a brand is preferred over others in the category

brand value

the financial asset associated with a brand

branding

the process of developing a brand

capital items

assets valuable to a business that also have tangible value

co-brand

to bring the equity of two brands together for greater value

convenience products

products that consumers can purchase easily, quickly, and without a lot of thoughtful decision-making

core product

product solution that the customer is actually buying: convenience, ego, ease, flexibility, etc.

cost of goods sold

expenses directly attributable to the product or service

cradle-to-cradle packaging design

product design that eliminates waste from the life cycle of package

customer experience

the overarching impression that customers have of a brand

decline stage

part of the product life cycle characterized by a significant decrease in sales and profitability

divest

to sell a brand or discontinue a product to protect a portfolio

gross profit margin

comparison of profit before expenses to total revenue

growth stage

part of the product life cycle characterized by increasing sales; stage when copycat brands may enter the market

hard-core loyals

tried-and-true customers who will generally only purchase one brand in a category

harvest

to reduce all unnecessary expenses to retain any remaining revenue

introduction stage

part of the product life cycle when consumer awareness is building and sales are starting to grow

licensed brands

brands that provide the likeness of their brand as a fee for use

line extensions

products that create new opportunities for an existing product and brand

manufactured materials and parts

products used to create a product

market modification

an extension of a product to new customers

maturity stage

part of the product life cycle when sales growth slows and profitability levels off

multibrands

new brand names within a company’s existing product category

national brands

name brands that sell a product or service under its corporate name and identity

net profit margin

calculation that deducts all expenses from profitability

new brands

an entirely different brand entity from a parent company

private-label brands

store brands that are similar products to a national brand and labeled privately

product item

a particular good that a company sells

product life cycle

the stages a product goes through, tracking its sales and profitability

product line

a set of products that are similar or complementary

product line depth

the number of products in a line

product line filling

products added to a product line to keep competitors from entering the market

product line stretching

addition of product lines

product mix

all the products a company sells

product mix width

the number of product lines a brand carries

product modification

alteration of products to fit the market

products

tangible items that are part of an exchange between a buyer and a seller

profit margins

a widely used financial measure to determine the profitability of a business; considers costs to manufacture and sell a product or service

rapid penetration pricing strategy

strategy that sets a lower-price strategy; appropriate when volume sales will increase market share quickly

rapid skimming strategy

strategy that sets a high price along with extensive advertising and sales promotion to establish a product in the marketplace

raw materials

products that a business needs to purchase in order to make a consumer good

services

intangible solutions that are an exchange between buyer and seller

shifting loyals

customers who are loyal to one product or service for a time, then turn their loyalty to a different product or service at another time

shopping products

products that require more thought from the consumer as they seek the best quality or price

slow penetration pricing strategy

strategy that sets low prices and little promotion to capture market share slowly in a market not susceptible to promotion

slow skimming strategy

strategy that sets high prices with low advertising and sales promotion investment

specialty products

products that have unique qualities that consumers will make an extra effort to seek out

split loyals

customers who have a consideration set of two or three products or services in a category

supplies and services

goods and services that are typically disposed of and do not contain a tangible value

switchers

customers who continually change their purchasing behaviors

trademarks (service marks)

symbols that show legal ownership of a brand name or brand mark

unsought products

consumer goods that a buyer doesn’t anticipate purchasing