TMC 110 - Marketing Mix

Brand

consists of all the features that distinguish the goods and services of one seller from another; combination of tangible and intangible elements. Brands help simplify consumer choices and create loyalty. an identifier: name, sign, symbol a promise: of what a company or offering will provide the consumer an asset: reputation in the marketplace a set of perceptions: everything individuals believe, think, see, know, feel about a product a 'mind share': unique position company or offering holds in customer's mind A brand can convey multiple levels of meaning like: attributes, benefits, values, culture, personality, user

Integrated Marketing Communication (IMC)

ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications means integrating all the promotional tools, so that they work together in harmony.

Which of the following is the first stage of the new-product development process?

generating new product ideas

How does effective branding typically benefit businesses?

it builds customer loyalty

During the ________ of the product life cycle, companies need to devote a significant marketing budget to create broad awareness and educate the public about the new product.

market introduction stage

Advertising allowance

money that a product manufacturer or service provider pays to a retailer to get the word out about their product.

Brand extension

moves an existing brand name into a new product category, with a new or somehow modified product.

Quantity discounts

reductions in base price given as the result of a buyer purchasing some predetermined amount of merchandise.

Promotion mix

refers to how marketers combine a range of marketing communication methods to execute their marketing activities. The promotional mix is one of the 4 Ps of the marketing mix. It consists of public relations, advertising, sales promotion and personal selling.

Branded house strategy

sometimes called a "house brand" uses a strong brand—typically the company name—as the identifying brand name for a range of products (for example, Mercedes Benz or Black & Decker) or a range of subsidiary brands (such as Lucerne Shredded Mozzarella or Lucerne Cream Cheese). Because the primary focus and investment is in a single, dominant "house" brand, this approach can be simpler and more cost effective in the long run when it is well aligned with broader corporate strategy.

Gross margin

the difference between how much a good costs and the actual price for which it sells.

Promotion flow

the flow of persuasive communication in the form of advertising, personal selling, sales promotion, and public relations.

Net margin

the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue.

Brand Licensing

the process of leasing or renting the right to use a brand in association with a product or set of products for a defined period and within a defined market, geography, or territory. Through a licensing agreement, a firm (licensor) provides some tangible or intangible asset to another firm (licensee) and grants that firm the right to use the licensor's brand name and related brand assets in return for some payment. The licensee obtains a competitive advantage in this arrangement, while the licensor obtains inexpensive access to the market in question.

Unsought products

those the consumer never plans or hopes to buy. These are either products that the customer is unaware of or products the consumer hopes not to need. Examples: pest control services, funeral plots, etc.

A successful IMC campaign could include which of the following items:

Advertising, direct marketing, personal selling, sales promotions, digital marketing, public relations

Trade shows, conventions, and advertising allowances are examples of ________

B2B sales promotions

________ are a direct result of past advertising, promotion, product reputation, and customer experience.

Brand perceptions

________ is an arrangement in which two established brands collaborate to offer a single product or service that carries both brand names.

Co-branding

Specialty products

From the consumer's perspective, these products are so unique that it's worth it to go to great lengths to find and purchase them. Almost without exception, price is not the principle factor affecting the sales of specialty goods. Although these products may be custom-made or one-of-a-kind, it is also possible that the marketer has been very successful in differentiating the product in the mind of the consumer. Examples: hair stylist, Comic Con tickets, etc.

During the ________ of the product life cycle, the company's profitability begins to rise and public awareness increases.

Growth stage

Private-Label or Store branding

In cases where the retailer has a particularly strong identity, the private label may be able to compete against even the strongest brand leaders and may outperform those products that are not otherwise strongly branded.

________ is a major disadvantage of cost-plus pricing strategy.

Inflexibility

Homogeneous shopping products

Take, for example, refrigerators. Each model has certain features that are available at different price points, but the basic functions of all of the models are very similar. A typical shopper will look for the lowest price available for the features that they desire.

Place branding

The developing fields of place branding and nation branding work on the assumption that places compete with other places to win over people, investment, tourism, economic development, and other resources. With this in mind, public administrators, civic leaders, and business groups may team up to "brand" and promote their city, region, or nation among target audiences.

Heterogeneous shopping products

Think about shopping for clothing or furniture. There are many stylistic differences, and the shopper is trying to find the best stylistic match at the right price.

Price-Value Equation from the customer's perspective

Value = Perceived Benefits - Perceived Costs

Wholesalers

Wholesalers purchase very large quantities of goods directly from producers and sell them to retailers. The process of breaking large quantities into smaller lots that will be resold is called bulk breaking. The wholesaler finances the purchase of the goods and carries the cost of the goods in inventory until they are sold. Wholesalers also bear the risk for the products until they are delivered. Wholesalers fill a role in the promotion of the products that it distributes.

Product

a bundle of attributes (features, functions, benefits, and uses) that a person receives in an exchange. In essence, the term "product" refers to anything offered by a firm to provide customer satisfaction, tangible or intangible. Products fill an important role in the marketing mix because it is the core of the exchange.

Line extension

a company introduces a new variety of offering within the same product category. To illustrate with the food industry, a company might add new flavors, package sizes, nutritional content, or products containing special additives in line extensions.

House of brands

a company invests in building out a variety of individual, product-level brands. Each of these brands has a separate name and may not be associated with the parent company name at all. These brands may even be in de facto competition with other brands from the same company. For example, Kool-Aid and Tang are two powdered beverage products, both owned by Kraft Foods.

Trade discount

a discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler.

Consumer sales promotion

a marketing technique that is used to entice customers to purchase a product. The promotions typically last for a set period of time and are used to achieve a specific purpose, such as increasing market share or unveiling a new product.

Contribution margin

a product's price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.

Supply chain

a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.

Co-Branding

an arrangement in which two established brands collaborate to offer a single product or service that carries both brand names.

Convenience products

an inexpensive product that requires a minimum amount of effort on the part of the consumer in order to select and purchase it. a consumer product that takes little thought, is routine, purchased often, appeals to a large target market, and the consumer purchases with little planning. Examples: bread, coffee, power cord, ibuprofen, etc.

Brand Perceptions

are a direct result of past advertising, promotion, product reputation, and customer experience.

Shopping products

are usually more expensive and are purchased occasionally. The consumer is more likely to compare a number of options to assess quality, cost, and features than convenience products. Examples: refrigerators, clothing, tvs, etc.

Franchise approach

brings together national chains and local ownership.

The basic objective of all marketing communication methods is to ________.

communicate, compete, and convince.

Retailers

companies in the channel that focuses on selling directly to consumers. The retail channel is different from the direct channel in that the retailer doesn't produce the product.

Product Life Cycle

1. Product development: investment is made, sales have not begun, new product ideas are generated, operationalized, and tested; product development stages: introduction, generating new product ideas, screening product ideas, concept development and testing, business case analysis, technical and marketing development, test marketing and validation, launch, evaluation 2. Market introduction: product launch, costs are very high, slow sales volumes to start, little or no competition, demand has to be created, customers have to be prompted to try the product, makes little money at this stage 3. Growth: costs reduced due to economies of scale, sales volume increases significantly, profitability begins to rise, public awareness increases, competition begins to increase with a few new players in establishing market, increased competition leads to price decreases 4. Maturity: costs are lowered as a result of increasing production volumes and experience curve effects, sales volume peaks and market saturation is reached new competitors enter the market, prices tend to drop due to the proliferation of competing products, brand differentiation and feature diversification is emphasized to maintain or increase market share, profits decline 5. Decline: costs increase due to some loss of economies of scale, sales volume declines, prices and profitability diminish, profit becomes more a challenge of production/distribution efficiency than increased sales

Which of the following is NOT one of the common pricing objectives?

?A.) product-oriented pricing B.) profit-oriented pricing C.) sales-oriented pricing D.) competitor-oriented pricing

No-Brand branding

A number of companies successfully pursue "no-brand" strategies by creating packaging that imitates generic-brand simplicity. "No brand" branding can be considered a type of branding since the product is made conspicuous by the absence of a brand name.