MKT 220 Exam 3 Review

brand, brand name, brand mark

*brand: an identifying name, term, design, or symbol *brand name: the part of a brand that can be spoken (words, letters, numbers) *brand mark: the part of a brand not made up of words (symbols or designs)

what is co-branding? brand licensing? advantages?

*co-branding: using two or more brands on one product to capitalize on the brand equity (customer confidence and trust) of multiple brands --> helps differentiate a firm's product from those of its competitors, helps take advantage of distribution capabilities of co-branding partners *brand licensing: an agreement whereby a company permits another organization to use its brand on other products for a licensing fee --> low-cost and/or free publicity. revenues from royalty fees (2% or more)

service quality

*desired: what the customer really wants *acceptable: the level of service that is adequate *zone of tolerance: the difference between the two levels

line extension vs product modification

*line extension: development of a product that is closely related to existing products in the line but meets different customer needs *product modifications: a change in one or more characteristics of the product and the elimination of the original product from the product line

product item vs. product line

*product item: a specific version of a product *product line: a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

product mix; depth/width

*product mix: the total group of products that an organization makes available to customers *width of product mix: the number of product lines a company offers *depth of product mix: the average number of different products in each product line

trademark, trade name

*trademark: a legal designation of exclusive use of a brand *trade name: full legal name of an organization

stages of product adoption process

1) awareness: the buyer becomes aware of the product 2) interest: the buyer seeks information and is receptive to learning about the product 3) evaluation: the buyer considers the product's benefits and decides whether to try the product 4) trial: the buyer examines, tests, or tries the product to determine if it meets his or her needs 5) adoption: the buyer purchases the product and van be expected to use it again whenever the need for this general type of product arises

classifications of consumer market products

1) convenience products: relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort 2) shopping products: items for which buyers are willing to expend considerable effort in planning and making purchases 3) specialty products: items with unique characteristics that buyers are willing to expend considerable effort to obtain 4) unsought products: products purchased to solve a sudden problem, products of which the customers are unaware, and products that people do not necessarily think about buying

purpose/info provided by label

1) help identify the product: display brand name and unique graphics 2) support promotional efforts for the product: coupons, discounts, product features 3) provide legally required labeling information 4) "green labeling" issues: labeling packaging as made of recyclable materials 5) provide information on product origin

phases of new product development

1) idea generation: seeking product ideas to achieve objectives 2) screening: choosing the most promising ideas for further review 3) concept testing: seeking potential buyers' responses to a product idea 4) business analysis: assessing the potential of a product idea for the firm's sales, costs, and profits 5) product development: determining if producing a product is feasible and cost effective 6) test marketing: introducing a product on a limited basis to measure the extent to which potential customers will actually buy it 7) commercialization: deciding on full-scale manufacturing and marketing plans and preparing budgets

branding policy options

1) individual branding: naming each product differently 2) family branding: branding all of a firm's products with the same name 3) brand extension: using an existing brand name for a new unrelated product

5 major adopter categories

1) innovators: first adopters of new products 2) early adopters: careful choosers of new products 3) early majority: those adopting new products just before the average person 4) late majority: skeptics who adopt new products when they feel it is necessary 5) laggards: the last adopters, who distrust new products

classifications of business market products

1) installations: facilities and nonportable major equipment 2) accessory equipment: equipment used in production of office activities 3) raw materials: basic natural materials that become part of a physical product such as ores, water, lumber, grains, and eggs 4) component parts: items that become part of the physical product 5) process materials: materials that are not readily identifiable when used directly in the production of other products 6) MRO supplies: maintenance, repair, and operating items that facilitate production and do not become part of the finished product such as cleaners, rubber bands, and staples 7) business services: the intangible products that many organizations use in their operations such as cleaning, legal, consulting, and repair service

characteristics of services

1) intangibility 2) inseparability of production and service 3) perishability 4) heterogeneity 5) client-based relationships 6) customer contact

growth strategies

1) intensive growth: growth occurring when current products and current markets have the potential for increasing sales *market penetration: increasing sales of current products in current markets *market development: increasing sales of current product in new markets *product development: increasing sales by improving present products or developing new products for current markets 2) diversified growth: growth occurring when new products are developed to be sold in new markets

stages of the product life cycle

1) introduction: when sales start at zero and profits are negative 2) growth: when sales rise rapidly and profits reach a peak and then start to decline 3) maturity: when the sales curve peaks and starts to decline and profits continue to fall 4) decline: when sales fall rapidly

challenges of packaging

1) lack of functionality: leak, difficult to open/close/seal, hard-to-use designs 2) safety: sharp edges, broken glass, health hazards 3) deceptive: shape, size, colors mask true nature of product 4) cost of packaging: what customers prefer is costly

three categories of brands

1) manufacturer brands: brands initiated by producers 2) private distributor brands: brands initiated and owned by resellers 3) generic brands: brands indicating only the product category

7 P's of marketing

1) product 2) price 3) place/distribution 4) promotion 5) process 6) people 7) physical environment

three primary means of product differentiation

1) product quality: the overall characteristics of a product that allow it to perform as expected in satisfying customer needs 2) product design and features: how a product is designed, planned, and produced; features include specific design characteristics that allow a product to perform certain tasks 3) product support services: human or mechanical efforts or activities that add value to a product

four primary functions of packaging

1) protect the product from damage 2) offer convenience to consumers 3) promote the product by communicating its features, uses, benefits, and image 4) communicates symbolically the quality or premium nature of a product

three main types of product modifications

1) quality: changes in material or production processes related to a product's dependability and durability 2) functional: changes affecting a product's versatility, effectiveness, convenience, or safety; usually requiring redesign of the product 3) aesthetic: changes to the sensory appeal of a product such as altering taste, texture, sound, smell, or appearance

brand loyalty

a customer's favorable attitude toward a specific brand *brand recognition: a customer's awareness that a brand exists and is an alternative purchase *brand preference: the degree of brand loyalty in which a customer prefers one brand over competitive offerings *brand insistence: the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute

market growth/market share matrix

a strategic planning tool based on the philosophy that a product's market growth rate and market share are important in determining marketing strategy *star: high growth market, dominant market share *cash cow: low growth, dominant market share *dog: low/declining market, subordinate market share *question mark: high growth market, low market share

service

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

positioning

fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition *repositioning a product: adjusting a product's present position can strengthen/increase its market share and profitability

high contact vs. low contact

the level of interaction between provider and customer needed to deliver the service *high contact: health care, real estate, spa services *low contact: tax filing, auto repair, dry cleaning

what is brand equity? why is it important?

the marketing and financial value associated with a brand's strength in the market; composed of brand name awareness, brand loyalty, perceived brand quality, brand associations