Marketing Exam 2

Positioning-

A company's market position is the customer's perception of a company's efforts, including its products, services, and even ideas.

Disney Mickey Check-

A nutritional seal of approval program to combat childhood obesity after survey feedback revealed parents' concern about childhood health.

Total Quality Management-

Approach that involves constantly improving the quality of products/ services

Brand Association-

Are consumer thoughts connected to the consumer's memory about the brand

Product Mix-

Assortment of product lines and individual product offerings - beds, armchairs, mirrors, etc.

Positioning Strategies Examples:

Banana Republic positioned as a fashion forward retailer where one may shop for professional clothing. Old Navy positioned as access to affordable fashion for the entire family

Private (Store) Brand-

Brand created/owned by reseller (Kroger)

Intangible-

Cannot be seen, tasted, felt, heard or smelled before purchase

Perishable-

Cannot be stored for later sale (cannot maintain inventory)

Early Majority-

Careful in their approach, more competitors have entered the market by this time so they have some choice as to which product to buy

Psychographic Segmentation-

Divides a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral Segmentation-

Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Geographic Segmentation

Divides groups based on physical location "Birds of a feather flock together"

Demographic Segmentation-

Divides the market into segments based on variables such as age, generation, life-cycle stage, gender, income, occupation, education, religion, & ethnicity

Step 3:

Evaluate Consumer Feedback and Understand Its Importance

Less for much less:

Family Dollar and Dollar General stores offer more affordable goods at very low prices.

Competitive Analysis-

Firms must understand the position other competitors have taken in the marketplace. Competitive analysis becomes even more important when competitors all appear to offer a similar good or service

Concentrated (Niche)-

Focus effort on a large share of one/few segments (niches). Harry's Shaving products - Convenience

Conformance Quality-

Freedom from defects & consistency in delivering a targeted level of performance: Zero Defect or 6-sigma (3.4 defects per million) philosophy

Step 2:

Highlight Competitive Advantage

Value Proposition-

How company will create differential value for targeted segments, and the position it will occupy based on the full mix of benefits upon which a brand is positioned.

Differentiation-

How offering are differentiated based on the Value Proposition - Benefits/values it promises to a target market compared to competitors

Positioning-

How the product is defined by consumers on important attributes - the place it occupies in the consumer's mind relative to competitors

Geo Demographic-

Hybrid form of segmentation that considers geographic and demographic factors

Labeling & Logos-

Identifies the product or brand, describes attributes, and provides promotional value

Competitive Advantage-

Identify competitive advantages & select the ones consistent with consumer beliefs

Quality Levels-

Level of quality that will support positioning (high price/high value)

Manufacturer Brand-

Manufacturer sells under their own brand name (Apple)

Positioning-

Marketers need to position brands clearly in the target market's mind. There are three levels:

Strategic Fit-

Marketers should work to ensure that the selected target markets fit with what the organization is and wants to be

Measurable-

Measure elements that define segment (Size, income)

Online Classes-

More universities began to offer due to fluctuating student work schedules, high gas prices, a weak economy, and most recently the pandemic

Substantial-

Must be Profitable or Large enough to support separate marketing mix

Product Item-

Single, specific Product

Style & Design-

Style: describes the appearance of the product (eye catching, attention grabbing,) but does not necessarily make the product better

Product Quality-

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. (Positioning attribute)

Brand Recognition-

The degree to which customers identify the brand under a variety of circumstances. Firms like Nike & Apple employ brand marks, which are elements of the brand not expressed in words

Brand Equity-

The differential effect that knowing the brand name has on customer responses. Ability to capture consumer preferences and loyalty. High brand equity provides competitive advantage

Growth potential-

The higher the future growth rate, the more attractive is the segment

Service-

The intangible part of the product bundle of benefits that satisfies needs/wants (no ownership) Service sector represents 80% of U.S. GDO)

Level of Competition-

The more intense the competition within a segment, the less attractive the segment is the marketers

Laggards-

don't like change, may remain loyal until no longer available

Innovation

is the creation of a new or significantly improved product offering.

Co-branding -

occurs when two or more companies issue a single product to capitalize on the equity of each company's brand.

Perceived Quality-

Is a consumer's perception of the overall quality of the brand

Step 1:

Analyse Competitors' Positions

Positioning Strategies-

A firm may focus its positioning strategy on certain product attributes, features, or value perceptions.

Services-

A form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Performance Levels-

Ability to perform its function (Mercedes vs. Chevy)

Product Features-

Characteristics that describes the product. A competitive tool for differentiating a product from competitive products

Communications-

Communicate important attributes and deliver on promise

More for the same:

Companies can attack a competitor's more for more positioning by introducing a brand offering comparable quality at a lower price. For example, Toyota introduced its Lexus line with a more for the same value proposition versus Mercedes and BMW.

Licensed Brand-

Companies extend their brand by licensing (Nike)

Types of Consumer Products-

Convenience products, Shopping products, Specialty products, Unsought products

Marketing Strategies-

Develop marketing strategies consistent with offering's competitive advantages (Product, Price, Place, Promotions)

Undifferentiated (Mass Marketing)-

Ignore segments & sell one offer to entire market (Rarely used)

Packaging-

Involves designing and producing the container or wrapper for a product. Primary function is to hold and protect. Retail clutter requires it attract buyers

Stage 1: New Product Development Strategy-

Involves determining the direction a company will take when it develops a new product. Guidelines, Fit, Characteristics of types of products, & Target markets to be served

Length-

Number of different products a firm sell

The same for less:

Offering the same for less can be a powerful value proposition—everyone likes a good deal. Discount stores such as Walmart and "category killers" such as Best Buy, PetSmart, David's Bridal, and DSW Shoes use this positioning.

Attributes-

Often a product will have multiple attributes that create a unique position in the market. (Nike- Active lifestyle, inspirational and cool)

Price/Quality Relationship-

Optionally priced according to quality (Walmart- quality goods at low prices)

More for less:

Positioning Its Brand to Speak to Its Markets

Family life cycle-

Process of age-related family formation & dissolution

Inseparable-

Produced & consumed at same time & cannot be separated from their provider (employee part of service).

Application-

Product/brand positioned in terms of how it is used (Apple-Devices work seamlessly together (Ecosystem))

Consumer Products-

Products and services bought by final consumers for personal consumption. Classified according to how a consumer shops, pays for, or uses the product

Actionable-

Programs can be designed for attracting & serving segment

Perceptual Map-

Provides a valuable tool for understanding competitors' positions in the marketplace. It creates a visual picture of where products are in consumers' minds.

Early Adopters-

Purchase product soon after it is introduced, wait for product reviews and info before purchasing

Variability-

Quality depends on who provides them, when, where, & how

Return on Equity-

Quality is an investment, holding quality efforts accountable for bottom line results

Accessible-

Reached and served

Differentiable-

Respond differently to different marketing mix elements

Product Lines-

Series of related products - Beds (different versions of a product within a category

Differentiated-

Targets several market segments & design separate offers (marketing mix) for different segment (Marriott: 30 Brands)

Micro-Marketing-

Taylors offers to needs of individuals and local customer segments: Rolls-Royce Bespoke -Custom Made

Late Majority-

Tend to be cautious about new things and ideas, often older

The Cohort Effect-

Tendency of members of a generation to be influenced and bound together by significant events in their formative year, ages 17 to 22

Branding-

The name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service. Marketers believe that brands provide value, above & beyond the benefits of the product itself.

More for more:

This positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. Although more for more can be profitable, this strategy can also be vulnerable. It often invites imitators who claim the same quality but at a lower price.

Perceptual Maps-

Tool used to show the customer's perception of a brand relative to competing brands on important attributes

Width-

Total Number of different product lines a firm offer

Co-Branded-

Use brand name of two different companies (Taco Bell and Doritos)

Depth-

Variation in each product the firm offers (number of versions offered of each product in the line)

Design:

broader measure, contributes to the products usefulness & looks (more that skin deep)

Innovators-

first to try, unafraid to take risks - Influencers