6.7 Key Terms

Key Terms

Augmented Product: Services and accessories that support the core product. 6.1

Benefit: When a feature satisfies a need or want. 6.1

Brand: Is a name, picture, design, or symbol, or combination of those items, used by a seller to identify its offerings and to differentiate them from competitors’ offerings. 6.4

Branding: The set of activities designed to create a brand and position it in the minds of consumers. 6.4

Brand Extension: Involves utilizing an existing brand name or brand mark for a new product category. 6.4

Brand Manager: The person responsible for all business decisions regarding offerings within one brand. 6.5

Brand Name: The spoken part of a brand’s identity. 6.4

Brand Mark: The symbol, such as Coke’s wave or Apple Computer’s multicolor apple (not to be confused with Apple Records’ green apple), associated with a brand. 6.4

Cannibalization: Occurs when a firm’s new offering eats into the sales of one of its older offerings. 6.4

Capital equipment offering: any equipment purchased and used for more than one year and depreciated over its useful life. 6.3

Category Manager: Has responsibility for business decisions within a broad grouping of offerings. 6.5

Core Product: It is the physical product. 6.1

Convenience Offerings: Products and services consumers generally don’t want to put much effort into shopping for because they see little difference between competing brands. 6.2

Facilitating offerings: Products and services that support a company’s operations but are not part of the final product it sells. 6.3

Feature: Characteristic of the offering. 6.1

Impulse Offerings: Items purchased without any planning. 6.2

Line Depth: Number of offerings that are in a single product line—that is, whether the product line is broad or narrow. 6.1

line Extension: When new but similar products are added to the product line. 6.1

Line Breadth (or Width): A function of how many different, or distinct, product lines a company has. 6.1

Manufactured Material: If iron is turned into sheets of steel, it is called a manufactured material because it has been processed into a finished good but is not a stand-alone product; it still has to be incorporated into something else to be usable. Both raw and manufactured materials are then used in the manufacture of other offerings. 6.3

Maintenance, repair, and operations (MRO): Offerings refer to products and services used to keep a company functioning. 6.3

Market Manager: Who is responsible for business decisions within a market. 6.5

Original Equipment Manufacturer (OEM): A manufacturer or assembler of a final product. 6.3

OEM offerings or components: Components, or parts, sold by one manufacturer to another that get built into a final product without further modification. 6.3

Offering: Products and services designed to deliver value to customers—either to fulfill their needs, satisfy their “wants,” or both. We discuss people’s needs in other chapters. 6.1

Primary Packaging: A single retail unit of a product. 6.4

Price: The amount people pay to receive the offering’s benefits. 6.1

Product-Dominant: Perspective of business, marketers consider products, services, and prices as three separate and distinguishable characteristics. The product-dominant marketing perspective has its roots in the Industrial Revolution. 6.1

Product Manager: Someone with business responsibility for a particular product or product line. 6.5

Product-Oriented: Businesspeople believed that the best way to capture market share was to create and manufacture better products at lower prices. 6.1

Product Line: Is group of related offerings. Product lines are created to make marketing strategies more efficient. 6.1

Product Mix: The entire assortment of products that a firm offers. 6.1

Raw Materials Offerings: Materials firms offer other firms so they can make a product or provide a service. 6.3

Service: An action that provides a buyer with an intangible benefit. 6.1

Service-Dominant: Approach in which  it integrates the product, price, and service dimensions of an offering. 6.1

Shopping Offering: Is one for which the consumer will make an effort to compare and select a brand. 6.2

Specialty Offering: Are highly differentiated offerings, and the brands under which they are marketed are very different across companies. 6.2

Technology Platform: Core technology on which a product  is built. 6.1

Tertiary packaging: Packaging designed specifically for shipping and efficiently handling large quantities. 6.4

Total Cost of Ownership (TCO): Total amount someone pays to own, use, and eventually dispose of a product. 6.1

Unsought Offerings: Are those that buyers do not generally want to have to shop for until they need them. 6.2

Vertical Market: It composes of all customers such as these (retail, wholesale, and so forth) in a particular industry. 6.5

Povertical Market Managers: The managers of vertical market. 6.5


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