Jarmon MKT 319 Exam 2
4 categories of new products
New to the market(first iphone), new category entries (Amazon music), product line extension (crest new toothpaste), revamped projects (bagel bites)
product placement
Putting products into TV shows and movies where they will be seen, used in television like a coke drink in a sitcom
High risks
Quality not to customer standards, supply inadequate to meet demand, not accepted well in the marketplace, inadequate supply of materials (cheetos lip balm, samsung fold)
positioning statement
Succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product
Moderate risks
Supplier cost savings not achieved, product takes sales from existing products, competitors copy products and sell them at a lower price (Heinz EZ Squirt)
positioning
The activities a firm undertakes to create a certain perception of its product in the eyes of the target market
personal selling
The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision
crisis management
a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
promotion mix
advertising, sales promotion, personal selling, public relations
Introduction stage
after launch, innovators begin to purchase, profits low, small number of models, price high, limit distribution, attract channel partners, promote to develop customer awareness
demographic
age, gender, income, family size, marital status
promotion
all the activities that communicate the value of a product and persuade customers to choose it over other options
7 stages of the product development process
1) New product strategy development, 2) idea generation, 3) idea screening, 4) business analysis, 5) product development, 6) test marketing, 7) product launch
Five criteria for effective segmentation
1. Substantial (enough to make a profit), 2. Measurable (size and purchasing power must be measurable and identifiable), 3. Differentiable (segments must respond differently to marketing strategies), 4. Accessible (reach and serve the market), 5. Actionable (ability to develop strategies to attach the segment to the company's product)
3 basic target market strategies
1. Undifferentiated target (marketplace is one big segment), 2. differentiated target (pursues several different target markets at once with different strategies for each), 3. niche marketing (unique products target large share of small market)
Key steps to developing positioning
1. analyze competitors position(how consumers perceive competition), 2. define competitive advantage(price/quality, attributes, applications), 3. evaluate feed back(listen to customers change position to improve)
4 brand strategies
1. brand extension(new category entry), 2. brand revitalization (recapture brand equity), 3. co-branding(two companies issue single product), 4. private label products(store brands)
4 things that make a successful brand
1. deliver a product that provides value, 2. create a consistent brand image, 3. create a consistent brand messaging, 4. capture feedback
Nontraditional advertising
Advantages growing opportunities, disadvantages can be very untargeted
Outdoor
Advantages- Cost-efficient, very easy to see; Disadvantages- Short exposure time
Radio
Advantages- Cost-efficient; Disadvantages- Audio only, easy to change channels
Internet
Advantages- Easy to access, has more options; Disadvantages- Have negative associations
Advantages- Good for specific markets; Disadvantages- Long read time
television advertising
Advantages- Shows product in use, appeals to senses; Disadvantages- Costly to create
quantitative brand equity
can be counted, brand recognition-identify one's you've heard, brand recall-heads phones what brand comes to mind
Messy business of selling meal kits, how it applies to chapter 9
centralized distribution places in unique places, ingredients that don't spoil as quickly, automation, pre-packaged ingredients from suppliers, relationships with special deals with farmers for supply
sustainability
commitment to a lifestyle that meets the needs of the present with out compromising the ability of future generations to meet their own needs
Advertising
communication paid for by company identified in the message
public relations
communication to promote positive relations between company and stakeholders, publicity disseminating unpaid news items
risks and advantages of product line extensions
company brand recognition, manufacturing process established, lower risk
product development
company determines product can be produced/offered in a way that meets customers needs and generates profits long and expensive stage, prototypes and safety tests
push supply chain strategy
company does sales forecast, produces products, then stores them and waits for orders, Ad-economies of scale, satisfied customers with instant goods, Dis-inaccurate sales forecast=too much or little, slow response to demand changes, inventory carrying cost
Product launch
completing all final preparations for making fully tested product available to the market, most expensive stage
nonprofit branding
complex mission hard to measure with number of partners(donors, staff, volunteers, beneficians, partners)
logistics
components of supply chain, plans, implements, and controls flow of goods, services and information between point of origin and final customer
brand loyalty
consumer's allegiance to a brand, shown by repeated purchases
supply chain management
coordinate information flow, integrated supply chains, with relationship based strategies
inventory carrying costs
costs to make or buy a product, tricky to find perfect medium
sales promotions
coupons, rebates, premiums, contests, sweepstakes, samples, loyalty programs
pull supply chain strategy
customer orders first, then product manufactured and distributed, Ad-eliminate risks from inaccurate forecasts customized can respond quickly, Dis- hard to reach economies of scale, need flexible manufacturing and distribution facilities
brand recognition
degree to which customers can identigy a brand
Impact of packaging
designing and producing containers for a product is an opportunity to promote image on packaging
new-product strategy development
direction company will take when it develops a new product, aligned to marketing strategy
Publicity
disseminating unpaid news items through media to gain attention and support
laggards
do not like change, loyal until something no longer available
Growth stage
early adopters and early majority, sales profits and competition all increase, build distribution and brand, bariety of models, many modifications, price begins to fall as competition arrives, intensive effort to expand distribution, promote to build awareness, increase personal selling
Idea screening
evaluate ideas to determine fit, need accurate data, concept test
very high risks
fails to meet needs and wants, product is dangerous or defective (samsung phones on fire, new coke)
qualitative brand equity
free association- what comes to mind, projection- car for this product
early majority
gather more information, spend more time deciding to purchase
Four segmentation bases
geographic, demographic, psychographic, behavioral
Factors for considering target markets
growth potential, level of competition, strategic fit
Innovators
immediately at launch
why brand equity is helpful
increases ability to succeed vs. competitors, helps expansion into new markets, contributes to positive perceptions of a product quality
hybrid supply chain strategy
initial stages of forecasting and inventory are like push, but finishing is on hold until orders received, Ad-economies of scale more accurate sales forecasts at higher aggregate level, Dis-not as cost competitive, inventory costs to store components, have to finish products quickly
Categories of new-product adopters
innovators, early adopters, early majority, late majority, laggards, early and late majority make up 68%
Informative advertising
introduction stage tries to develop demand
Maturity stage
late majority and repeat buyers, focus on profitability and keeping market share, competition increases, longest stage, full line of products, price equal or below competitors, intensive effort to maintain distribution, promote to point out brand attributes and differentiating features
Risks and advantages of new category entries
less risky, development of new part of the company, less money in research
supply chain
linked set of comapnies that perform/support delivery of company 's products to customers, delivers value to end users
risks and advantages of revamped products
lowest risk, customer loyalty and manufacturing process established
geographical
market size in area, customer convenience, location
frequency
measure of how often target market exposed to promotional message during period
brand
name, term, symbol, design, or combination of theses that identify and differentiates a firm's products
Test marketing
new product introduced in final form to limited market, test all of the 4 P's, fine tune marketing plan
5 stages of the product life cycle
new-product development, introduction stage, growth, maturity, decline
how logistics affect and is affected by the 4 P's
place: correct location on time, price: efficient purchasing, inventory and transportation to keep costs down, product: packaging needs and purchasing of raw materials, promotion: ensure enough materials and product to handle increase volume
Diffusion and characteristics of a new product that affects diffusion
process by which a product is adopted and spread across various types of adopters. Awareness, Interest, Evaluation, Trial, Adoption
Business analysis
process of analyzing new products to determine profitability, goes beyond Return on Investment
sustainable sourcing
process of purchasing that takes into account long-term impact on people, profits, and planet
Idea generation
product concept lists, gather internal and external ideas
integrated marketing communications
promotional strategy that coordinates promotion mix elements to provide consumers with clean and consistent messages. ie) apple watch w/ health
psychographics
psychology and personality, lifestyle, opinions interests
understand how logistics related to the supply chain
push(large amounts of product): transportation to handle large loads, big warehouses with efficient processes, pull or hybrid(flexibility and service):supplies that can be delivered quickly, on-time transportation, technology to increase flexibility response time
behavorial
reactions towards products (seasonal, loyalty, usage)
closed-loop supply chain
recovering value from products or material returns, fewer components of products end up in land fill
late majority
rely on others for information, buy something because others already have it
Decline stage
sales profit decrease, no work put into improving or changing product, reduce number of products based on profitability, price to maintain small profit, can increase if product appeals to niche market, phase out unprofitable outlets, reduce promotion to a minimum or eliminate
why consumers engage with a brand
seeking discounts, brand advocates & share brand info, engage with customer service
Early adopters
soon after introduction
target markets
specific customers or segments your company is trying appeal to
4 factors that determine strategy to use
stability of demand (more stable more push), cost competitive, customization, how fast customers need product
narrowcasting
targeting media programming at specific populations within society, think golf channel
repositioning
the act of reestablishing a product's position in response to changes in marketplace
reach
the percentage of the target market that will be exposed to the promotional message
Segmentation
the process of dividing a larger market into smaller groups based on meaningfully shared characteristics
Risks and advantages of new to the market
time consuming and expensive to develop, high risk, monopoly on initial market
Advertising analytics
track the effectiveness of social, mobile, search and display ads, divide ad effectiveness by device, platform, or type
brand image
unique set of associations made with a brand
B2B segmentation
use demographic(industry size, ownership structure), geographic(country, region, state, climate), and behavioral(purchasing patterns, supplier requirements, technological orientation)
persuasive advertising
used in growth stage tries to increase demand
reminder advertising
used in maturity keeps product before public and reinforces pervious promotions
brand equity
value firm gets from customer's positive perception of its products - more likely to purchase vs. another
