4 Ps - correct answer 1. Product- variety, quality, design, features, brand name, packaging
2. Price- list price, discounts, allowances, payment
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3. Promotion- advertising, personal selling, sales promotion, public relations
4. Place- channels, coverage, locations, inventory, transportation, logistics
Product - correct answer anything that can be offered to a market for attention, acquisition that might satisfy a want or a need (example: purchasing draino)
Service - correct answer an activity, benefit, or satisfaction offered for sale that does not result in the ownership of anything (example: hiring a plumber)
Three levels of a product - correct answer CORE customer value
Actual product
Augmented product
CORE Customer Value - correct answer what is the buyer really buying?
-Identify the problem and solve it with benefits that customers seek
-Example: The customer is tired -> Starbucks coffee
Actual Product - correct answer what are the physical attributes of the product itself?
-Brand name, quality, packaging, features, and design
-Example: Starbucks has a brand name, is high quality, designs cups
Types of consumer products - correct answer convenience
shopping
specialty
unsought
unsought products
-customer buying behavior
-price
-promotion
-distribution
-example - correct answer -Customer buying behavior: Little product awareness or knowledge (or if aware, little or even negative interest
-Price: Varies
-Promotion: Aggressive advertising and personal selling by producer and reseller
-Distribution: Varies
-Examples: Life insurance, American Red Cross
Speciality products
-customer buying behavior
-price
-promotion
-distribution
-example - correct answer -Customer buying behavior: Strong brand preference, special purchase effort, low price sensitivity, strong brand loyalty
-Price: High price
-Distribution: Exclusive distribution in one one or few outlets per market area
-Promotion: More carefully targeted promotion by the producer and reseller
-Example: Lamborghinis, Rolex watch (Brand name items)
Shopping products
-customer buying behavior
-price
-promotion
-distribution
-example - correct answer -Customer buying behavior: Less frequent purchase, much planning and shopping effort, comparison of brands on price, quality and style
-Distribution: Selective distribution in fewer outlets
-Promotion: advertising and personal selling by both the producer and resellers
-Price: Higher price
-Examples: Car, major appliances, furniture, televisions and clothing
Convenience
-customer buying behavior
-price
-promotion
-distribution
-example - correct answer -Customer buying behavior: Frequent purchase, low customer involvement, little comparison or shopping effort
-Price: Low price
-Distribution: Widespread, convenient locations
-Promotion: Mass promotion by the producer
-Examples: Soda, toothpaste, magazines and laundry detergent
5 Individual Product decisions - correct answer product attributes- quality, features, style, design
branding- ways to identify maker/seller
packaging- designing and producing the product wrapper
labeling- identifies, describes and promotes product
product support services- call center, surveys, social media
Product line - correct answer a group of products that are closely related, function in a similar manner, sold to same customer groups, marketed the same way and within the same price range
Two ways to lengthen a product line - correct answer i. Line Stretching- make new products for upper/lower class users (Example: Toyota, Lexus and Scion)
ii. Line Filling- adding more products within product range to get more profits, fill missing items, keep out competitors (Example: Oreo, Klondike Oreos, Oreo Cereal, Oreo Dunks)
Width - correct answer number of different product lines the company carries
length - correct answer total number of items a company carriers within its product lines
dept - correct answer number of versions offered for each product in the line
consistency - correct answer relativity of various product lines in end use
Service Marketing characteristics - correct answer 1. Intangibility- services cannot be seen, tasted, or smelled before purchase
2. Inseparability- services cannot be separated from their providers
3. Variability- quality of services depends on who provides them, when, where...
4. Perishability- services cannot be stored for later sale or use
profits are directly associated with _____ - correct answer customer satisfaction
three types of service marketing - correct answer 1. internal marketing- employees and company
2. interactive marketing- employees and customers
3. external marketing-company and customers
brand equity - correct answer the differential effect that knowing the brand name has on customer response to the product or its marketing
positive brand equity - correct answer consumers respond more favorably to the brand vs. unbranded version of the same product (example: ShopRite water v. Dasani)
negative brand equity - correct answer consumers react less favorably to the brand vs. an unbranded version
brand value - correct answer i. total financial value of a brand
a. Difficult to measure- must consider geographic presence, net earnings before taxes and the role that brand plays in that specific industry
Major brand strategy decisions - correct answer 1. brand positioning
2. brand name selection
3. brand sponsorship
brand positioning - correct answer attributes, benefits, beliefs and values
a. Mission and vision for the brand
b. What does your brand stand for in the customer's minds?
c. Example: Huggies, Nike, Pampers
brand name selection - correct answer selection and protection
a. Desirable qualities for a brand name: based on products benefits and qualities, easy to pronounce, distinctive, easily translated
brand sponsorship
-national brands
-store brands
-licensing
-co-branding - correct answer a. National Brands- Marketed under the manufacturer's own name
-Example: Tide
b. Store Brands- created/owned by a reseller of a product or service
-Example: Wegmans pasta
c. Licensing- use names and symbols created by other companies or well known movie characters/celebrities for a fee (Dora Bandaids)
d. Co-Branding- use the established brand names of two different companies on the same product (Nike Apple watch)
brand development strategies/matrix - correct answer 1. line extension
2. brand extension
3. multi brand
4. new brands
line extension - correct answer introducing a product similar to what is already offered (Example: golden oreos, skinny oreos, double stuffed oreos)
brand extension - correct answer broadening the market's understanding of the brand (Example: McDonalds selling coffee and breakfast food-not just burgers)
multi brand - correct answer brands under the same company compete against each other (Example: Lexus, Toyota, Scion or Suave, Garnier [all under P&G])
new brands - correct answer needed when existing brands of company are waning
New products are developed through an organizations ______ - correct answer R&D efforts
-can drive a company's growth but is risky and expensive
creating successful new products require - correct answer i. Understanding consumers, markets and competitors
ii. Developing products that deliver superior value to customer
stages in new product development - correct answer 1. idea generation
2. idea screening
3. product concept, testing and development
4. marketing strategy development
5. business analysis
6. product development
7. test marketing
8. commercialization
commercialization - correct answer introducing product to the market
-need to determine timing of intro and where to introduce
idea generation - correct answer systemic search for new product ideas
-internal idea sources
-external idea sources
-strategic intuition
strategic intuition - correct answer 4 Step Method for Innovation
1. Examples from history- study history, other industries
2. Presence of mind- abandon preconceived notions; expect the unexpected
3. Flash of insight- not a new idea, combine past ideas
4. Resolution- willingness to move forward without a detailed plan, willingness to change
internal idea source - correct answer i. intrapreneurial programs, internal social networks, R&D department
external idea sources - correct answer i. customers, distributors and suppliers, competitors, other industries, crowdsourcing
a. Crowdsourcing: open innovation programs
idea screening: RWW framework - correct answer R- Real, is there real customer need?
W- Win, does the product offer a sustainable advantage?
W- Worth, Does the product fit the overall growth strategy?
Product concept development - correct answer i. develop alternative concepts, product concept testing alternatives, choose the best
product concept testing - correct answer i. test a group of target consumers to find out the degree of consumer appeal toward the concepts
- Present concepts to consumers symbolically or with a picture/ word description
- Ask customers about their reactions to the concept
the marketing strategy statement - correct answer 1. target market
2. 4 ps
3. strategic objectives
target market - correct answer a. describes the target market, value proposition, sales, market-share, and goals for first few years
strategic objectice - correct answer a. describes the planned long term profit goals
business analysis - correct answer 1. review of the sales, costs, and profit projections for a new product, to find out whether the projections satisfy the company's objectives
product developmetn - correct answer develop product concept-> physical product
-prototype
test marketing - correct answer 1. product and proposed marketing campaign are introduced into realistic marketing settings
a. Gives the marketer an experience with marketing a product before the introduction
b. Tests the product and its marketing program as well as markets (minimize costs and time needed)
team based product devleopemt - correct answer an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
customer centered new product development - correct answer focuses on finding new ways to solve customer problems and create more customer satisfying experiences
product life cycle - correct answer the course that a products sales and profits take over its lifetimes
Product lifecycle: product development - correct answer 1. finds/develops new product ideas
a. No sales, increasing investment costs
Product lifecycle: introduction - correct answer 1. product introduced to the market
a. Heavy investment costs, no profits, few competitors, slow sale growth
Product lifecycle: Growth - correct answer 1. rapid market acceptance
a. Increasing profits, more competitors
product lifecycle: maturity - correct answer 1. product achieved acceptance by most potential buyers
a. Slow down in sales growth
b. Profits level off & start to decline
c. Increased marketing costs to defend against competitors
d. Stable number of competitors beginning to decline
Product lifecycle: decline - correct answer 1. sales drop off, declining number of competitors
style - correct answer a basic distinctive mode of expression
fashion - correct answer currently accepted or popular within a given field
fad - correct answer temporary period of unusually high sales
PRICE - correct answer amount of money charged for a product or service
1. Determines a firm's market share and profitability; the only "p" that produces revenue
Price ceiling - correct answer maximum price, the consumer's perception of value
Price floor - correct answer minimum price, the company's production costs
considerations in setting price - correct answer a. Price is impacted by competitor's strategies and prices, marketing strategy, objectives and mix, as well as nature of market and demand
b. Target price is between a firm's incentive to sell and a customer's incentive to purchase
customer based value - correct answer good value pricing, value added pricing
i. Starts with the ceiling
ii. Based on buyers' perceptions of value rather than on the seller's cost
iii. Price is considered before the marketing program is set
good value pricing - correct answer offering the right combination of quality and good service at a fair price (Marshalls)
value added pricing - correct answer attach value added features and services to differentiate offers and support higher prices (AMC dine in theatres)
cost based pricing - correct answer i. Starts with the price floor
ii. Based on costs of producing, distributing and selling the product, plus fair rate of return for effort and risk
cost-plus pricing - correct answer i. ass a standard markup to the total cost of the product [simple method, ignores customer demand]
breakeven pricing - correct answer setting price to break even on total costs of making a product or setting prices to make a target return
• Helps determine minimum prices
• Ignores consumer demand
• Example: fixed costs=1000, VC=$5/attendee
i. Minimum admission price if 50 people attended
TC=1000+250=1250/50=30/attendee [Show Less]