Marketing 301 1st Edition Exam 3 Study Guide Chapters 12 17 Chapter 12 Innovators refers to the first group of people to adopt a new product A service cannot be perceived by the five senses before it is purchased and delivered which describes the intangibility characteristic of a service An evolutionary change to an existing product or service is in product development which best describes a cosmetic change The number of versions of products within a line is the product mix depth The core product is the benefits the product will provide for consumers or business customers The core product describes all the benefits the product will provide for consumers or business customers Legal services are an example of an unsought product A full line product strategy offers a wide range of product lines within a product portfolio Business analysis is in the new product development process where marketers validate that the new product will meet all sales and profit objectives The process of offering a product at a low price to maximize sales volume and market share is known as a penetration strategy In the levels of a product the combination of tangible and intangible attributes make up the actual product Commercialization is the last step in the new product development process Idea generation is the first step in the new product development process Erosion of brand equity or increased competition are reasons that a product most likely falls into the decline stage of the product life cycle The late majority will not adopt a product they consider to be too risky They are generally older and more conservative than other groups Designer clothing is an example of a consumer product Most products fail in the introduction stage of the product life cycle The collection of all products and services offered by a company is a product portfolio Growth is the stage of the product life cycle where sales increase rapidly and products earn a profit Convenience products are products that are bought frequently with little help or no advance planning Raw materials are products like lumber wheat and cotton Chapter 13 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute The trade in price adjustment is when a customer is given cash value for an item in trade toward the new purchase Loss leader pricing is when you sell items below cost to drive floor traffic If demand for a product falls 6 when a price is increased by 2 the product is price elastic The Robinson Patman Act of 1936 outlaws price discrimination A price is the exchange value of a product or service in the marketplace Variable costs are directly attributable to the production of a product or the delivery of a service Cost plus pricing adds a fixed amount to the cost of each item sufficient to earn a desired profit Cost plus pricing is Adding a fixed amount to the cost of each item sufficient to earn a desired profit Monopolistic competition is a market structure where individual firms have a moderate ability to set higher prices depending on customer demand for their specific brand A pricing objective is a goal that keeps marketing actions in alignment with overall business objectives A restriction imposed by the government of Mammoth is an example of a quota The price ceiling is the price below which all products in that line will be priced A forward auction happens when a buyer puts forth what he or she is seeking to purchase and sellers respond in kind with bids When a marketer offers a discount rebate or coupon to one customer and not another with few exceptions this is known as price discrimination The result of a back and forth discussion between a buyer and seller regarding the final price of a product or service is known as the negotiated price In a pure competition market structure a large number of producers sell mostly undifferentiated products Cost transparency is the ability of consumers to understand a firm s true costs The strategy of setting prices as fractional numbers instead of whole ones is called oddeven pricing The price quality ratio describes this relationship Higher priced products are assumed to have better quality Skimming is a pricing strategy that earns the maximum possible margins for each product sold Chapter 14 A marketing channel is the network of parties involved in moving products from the producer to consumers or business customers In the distribution process shippers own the goods being distributed Retailers are channel members that are involved in selling products or services to consumers Software packages that automate shipping processes are known as transportation management systems Breaking bulk is the process of reducing large products into smaller ones more suitable for individual retailers or companies The marketing channel is the network of parties involved in moving products from the producer to consumers or business customers An example of Horizontal channel conflict is when two retailers argue over sales territories Direct marketing channels are when the manufacturer sells directly to the end customer A Universal Product Code UPC is A retailer bar code that contains a series of numbers that uniquely identifies a product The number of outlets or locations where a product will be sold is known as distribution intensity Wholesalers are firms that acquire large quantities of products from manufacturers and then sort store and resell them to retailers or businesses Moving products through the distribution channel is expensive 30 50 of the ultimate selling price of a product is attributed to distribution costs When one firm takes on the role of another channel member either through acquisition or by developing its own distribution capabilities a vertical marketing system is created In a multichannel distribution system the consumer has multiple locations to purchase the product Distribution refers to place in the 4Ps Vertical channel conflict occurs between two channel members at different levels Contact efficiency is the efficiency gained in terms of a reduction in the number of contacts required through the use of channel intermediaries Outbound logistics controls the movement of products from points of production to customers Supply chain management is the management of all firms or organizations both inside and outside a company that impact the distribution process Logistics is The coordination of all