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