Marketing Exam 3

brand

A name, term, design, symbol, or other feature that identifies one seller's product and differentiates them from competitors products

distributor

Brands initiated and owned by resellers ex. Target, Payless

manufacturer/service provider

Brands initiated by producers of products or services ex. Lululemon, Hilton

generic/store

Brands that are not typically promoted, allowing products to be offered at a lower price ex. Kirkland, Great Value

core product

This is the need that the product fulfills

Product Adoption Process

awerness interest evaluation trial adoption

Types of Consumer Products

convenience products, shopping/considered products, specialty products, unsought products

Packaging Considerations

cost effective, tamper-resistant, consistence with brand, promotional role, reseller needs, environmentally responsible, not deceptive, functional, labeling needs, safety

product differentiation

creating and designing products so that customers perceive them as different from competing products

complexity

degree of difficulty to use/understand - the easier to use, the easier to adopt

trialability

degree to which product is capable of being tried on a limited basis; leads to product loyalty

branding

endowing products and services with the power of an idea or image that customers connect with

trade name

full name of the organization

compatability

matches consumer needs

criteria for brand names and marks

memorable, adaptable, distinctive, protectable, meaningful, likable

planning

organizational and systemwide coordination of marketing-channel partnerships to meet customer needs

Key tasks in supply chain management

planning, sourcing, facilitating delivery, building relationships

using product to reinforce brand

product positioning, product differentiation, product packaginf

observability

product's benefits, attributes can be seen by others, imagined, or described

unsought products

products that potential customers don't yet want or know they can buy ex. apple watch

convenience products

purchased frequently ex. eggs, coffee, fruit

sourcing

purchasing the necessary resources, goods, and services, from supplies to support all-chain members

product modification

quality, functional, aesthetic

factors that influence the rate of diffusion

relative advantage, complexity, compatibility, trialability, observability

the 5 dimensions of service quality(RATER)

reliability, assurance, tangibles, empathy, responsiveness

benefits of branding to customers

speed purchase decisions, provide form of self-expression, evaluate product quality, reduces purchase risk

types of marks

strong work marks(ex. coca cola), abstract design(ex. mercedes), literal representation of brand name(ex. apple)

product

target market offering

brand name

that part of a brand that can be spoken, including letters, words, and numbers

brand promise

the marketer's vision of what the brand must be and do for consumers

the service frame works

the marketing triangle, gaps model of quality, 5 dimensions of quality

price

the most closely regulated element in the marketing mix

brand mark/logo

the part of a brand not made up of words, such as a symbol or design

logistics

the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption

vertical channel integration

two or more stages of the marketing channel are under one management

building a strong brand

values, benefits, attributes

Designing a Marketing Channel System

1. Analyze customer needs 2. Establish channel objectives 3. Identify major channel alternatives 4. Evaluate major channel alternatives

Brand Equity

The differential effect that brand knowledge has on consumer response to the marketing of that brand

Benefits of developing new products

-Enhances product mix - Captures market share from competitors

product deletion

-Slow sales create higher per-unit production costs, inventory costs, and distribution costs. -Negative feelings about a particular product can affect the company's other products.

product packaging

-an integral part of the overall value-a way to convey brand positioning-your only advertisement

risks of developing a new product

-expensive to develop -creates risk of market failure -loss of market share without new products

line extension

-more precisely satisfy needs of current segment -focus on a different segment -capture market share from competitors

value

=benefits-cost

Brand Loyalty

A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior

facilitating delivery

All activities designed to move the product through the marketing channel to the end user

building relationships

All marketing activities related to sales, service, and the development of long-term customer relationships.

augmented product

All of the extra features of the product that might not be necessary for the product to work, but that can enhance the experience

brand extensions

An established brand name or trademark is used on new products/services, so as to benefit from existing brand equity and increase sales for the new product.

functional

Changes affecting a product's versatility, effectiveness, convenience, or safety; usually requiring redesign of the product

quality

Changes in material or production processes related to a product's dependability and durability

aesthetic

Changes to the sensory appeal of a product such as altering taste, texture, sound, smell, or appearance

product positioning

Creating and maintaining a certain concept of a product in customers' minds.

trends in logistics

Increased automation, outsourcing of logistics functions, electronic distribution.

characteristics of services

Intangibility, Heterogeneity, Simultaneous Production and Consumption, Perishability

horizontal channel integration

Organizations at the same level of operation are combined under one management.

actual product

Tangible features that are necessary for the product to function

marketing channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

trademark

a legal designation of exclusive use of a brand, registered with the U.S patent and trademark office

individual branding

a marketing strategy in which every product a company sells has its own unique brand name

co- branding

a marketing strategy that involves strategic alliance of multiple brand names jointly used on single product or service.

distribution

activities involved in making products available to customers when and where they want to purchase them

the promotion mix

advertising, personal selling, public relations, sales promotion, public relations, direct marketing

retailing

includes all transactions where the buyer is the end-user and intends to use the product for personal, family, or household purchases

benefits of branding to firms

increased profitability, reduced vulnerability, more opportunities, increased effectiveness of marketing mx

service

intangible product involving a deed, performance, or effort that cannot be physically possessed

product life cycle

introduction, growth, maturity, decline

family branding

is a marketing practice involving the use of a single brand name for the sale of two or more related products.

brand licensing

is when a company leases or rents their brand to a licensee. The licensee then may produce, distribute, and promote offerings with the licensed brand associated with the offering while the licensor receives royalties for the licensee's use of the brand. Typically these agreements restrict the use of the brand to a specific timeframe or territory.

specialty products

items that the consumer makes a special effort to search out and buy ex. concert tickets

considered products

less frequent purchase ex. tv

price competition strategy

moving up or down the existing demand curve by raising or lowering the price

relative advantage

new product is perceived as superior to existing substitutes

Why some products fail

no discernable benefits, incorrect positioning, price too high or too low, inferior product, failure to match products to needs, failure to send the right message, technical / design problems, poor timing, overestimate market, ineffective promotion, insufficient distribution, insufficient organizational buy-in

Simultaneous Production and Consumption

•Customers participate in and affect the transaction•Customers affect each other•Employees affect the service outcome•Decentralization may be essential•Mass production is difficult

perishability

•It is difficult to synchronize supply and demand with services•Services cannot be returned or resold

heterogeneity

•Service delivery and customer satisfaction depend on employee and customer actions•Service quality depends on many uncontrollable factors•There is no sure knowledge that the service delivered matches what was planned and promoted

Intangibility

•Services cannot be inventoried•Services cannot be easily patented•Services cannot be readily displayed or communicated•Pricing is difficult