Marketing 305 Chapter 8,9,10,11
Trade Name
a commercial, legal name under which a company does business
Multi product Branding Strategy (Family Branding, corporate branding)
a company uses one name for all its products in a product class.
Packaging
a component of a product that refers to any container in which it is offered for sale and on which label information is conveyed.
Mixed branding
a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.
A market-product grid
a framework that relates the market segments of potential buyers to products offered or potential marketing actions by an organization
Branding
a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors
To create Brand Equity the following are needed
Develop positive awareness, Establish a Brands meaning, Elicit Proper Response from consumers, Create Intense Brand Loyalty
Market Modification
Find new customers, increase product use
Casual Research
Marketing research to test hypotheses about cause-and-effect relationships
Observational data can exist in these three forms:
Mechanical methods, Personal methods, Neuromarketing methods
Brand Personality
a set of human characteristics associated with a brand name.
A Warranty
a statement indicating the liability of the manufacturer for product deficiencies.
Exploratory Research
a technique that marketers use to generate insights for future, more rigorous studies
Brand Equity
added value a brand name gives to a product beyond the functional benefits provided.
information technology
allows operating networks that can store and process huge amounts of data
Products
are goods, ideas, and services consisting of tangible and intangible attributes Ex. Cars, refrigerators
Services
are intangible activities or benefits that organizations provide to satisfy consumers' needs in exchange of money or something else of value. Ex Tel service
Multibranding
branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment. Ex. Disney uses Miramax and Touchstone Pictures names for adult movies, and Disney name for children.
psychographic segmentation
dividing a market into different segments based on social class, lifestyle, or personality characteristics
Behavioral Segmentation
dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product
trend extrapolation
extending a pattern observed in past data into the future
Convenience products
frequently bought
Market segments
homogeneous groups resulting from market segmentation process.
Trademark
identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
A label
identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.
Product Differentiation
involves changing a product feature (color, packaging, size or even price) to make the product be perceived by customers as different and better than the offerings from competitor firms
Head-to-head positioning
involves competing directly with competitors on similar product attributes in the same target market. Ex. Coca Cola and Pespsi
Brand Licensing
is a contractual agreement whereby a company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee.
Product Line
is a group of product or service items (closely related because they satisfy a class of needs, are used together, or sold to the same customer group, or distributed through the same outlet, or fall within the same price range. Ex. Apple product lines include iPhone, iPad, etc.
Product Item:
is a specific product (unique brand, size, or price with unique identification number to define it or place an order. Ex. A pair of shoes size 8, Denim jeans
Product Manager
is in charge of management of different brands and products throughout their life cycles, developing marketing program and developing and introducing new products, new product categories, media design, and package design, data analysis.
Segmentation
is the grouping of buyers with similar needs, which is useful in directing a firms marketing activities
Organizational synergies
the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently
Marketing research
the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
Market Segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Segments are relatively homogeneous in terms of consumption behavior.
Marketing outcome data
the results of the marketing efforts
Primary data
Facts/data relevant to the research and collected for the research purpose
What are the steps in Marketing Research?
1) Defining the Problems 2) Develop the research plan 3) Collecting relevant information 4) Develop and analyze Data--developing Findings 5) Taking marketing actions
The process of segmenting markets
1) Group potential buyers into segments 2)Group products to be sold into categories 3)Develop a Market-product Grid and Estimate the size of the market 4) Select Target Markets 5)Take Marketing actions
what are the four steps involved in product positing using perceptual maps
1) Identify the important attributes for a product or brand class 2) Discover how target consumers rate competing products or brands with respect to these attributes 3)Discover where the company's product or brand is on these attributes in the minds of potential customers 4) Reposition the company's product or brand in the minds of potential customers
What is the criteria for targeting?
1) Market size 2) Expected Growth 3) Competitive Position 4) Cost of reaching the segment 5) Compatibility with the organizations goals and resources
What are the 7 stages In the new-product process?
1) New-Product strategy development 2) IdeaGeneration 3)Screening and evaluation 4) Business analysis 5)Development 6) Market testing 7) Commercialization
What is the criteria for forming market segments?
1) Simplicity and cost effectiveness of assigning potential buyers to segments. 2) Potential for increased profit 3)Similarity of needs of potential buyers in a segment 4)difference of needs of buyers among segments
5 key steps in segmenting and targeting markets
1. Group potential buyers into segments 2. Group products to be sold into categories 3. Develop a market-product grid and estimate size of markets 4. Select target markets 5. Take marketing actions to reach target markets
How many steps is Marketing research divided into?
5 steps
What does repositioning the product do?
Challenges competitor's, reaches a new market, creates new trend
Packaging and Labeling can provide competitive advantages by providing the following benefits
Communication Benefits (convey info to consumers to where, how, where to find/use the product), Functional Benefits (quality, functionality, storage, etc), Perceptual Benefits (color, shape, good presentation create good impression and affect consumers' perception)
What are the four examples of segmentation?
Demographic segmentation, geographic segmentation, psychographic segmentation and behavioral segmentation
Product Life Cycle (PLC)
Describes the stages a new product goes through in the market place
What are the four challenges package and label designers face?
Continuing need to connect with customers, Environmental Concerns, Health, Safety, and Security Issues, Cost Reducti
Idea Generation May come from
Employee and Co-Worker Suggestions Customer and Supplier Suggestions Research & Development Laboratories (Industrial design and revolution, outside research labs) Competitive Products and Services Smaller Firms Universities and inventors
What are the two types of evaluation for plans once they have been executed?
Evaluation of the decision itself and the Evaluation of the Decision Process chosen
what are the three ways marketing research is done?
Exploratory research, Descriptive research and casual research
Market Testing (Stage 6 of New Product Process)
Exposing new product to prospective consumers Standard Test Markets: attempts to sell product through channels of distribution in selected cities, regions, states, towns) Controlled Test Markets: contracting the entire test program to an outside service Simulated Test Markets: replicate full test market to a limited degree
What are some types of warranties?
Express Warranties, Limited Coverage Warranties, Full Warranties, Implied Warranties
Secondary Data
Have been collected before for other purposes and than can be internal (within the corporation) or external (published by external sources) to the company
Sensitivity Analysis
Hypothetically alter ice variable to see how it would affect sales.
What are the five categories and profiles of product adopters
Innovators, early adopters, early majority, late majority, laggards
Marketing Reasons for New Product failures include:
Insignificant point of difference, No economical access to buyers, Incomplete Market and Product, Protocol Before Product, Development Starts, Not Satisfying Customer Needs on Critical Factors, Bad Timing, Poor Product Quality, Too Little Market Attractiveness, Poor Execution of the Marketing Mix
The screening and evaluation part of the New product process includes two approaches--Internal approach and the external approach, define them.
Internal approach--employees evaluate the product technical feasibility, meets the objectives defined at new-product strategy development stage External approach--Concept tests, consumers preliminary testing of new product idea(s) instead of the new product itself
what are the stages of the product life cycle?
Introduction stage, Growth stage, Maturity stage and decline stage
What are the methods of sales forecasting?
Judgements of the decision maker, surveys of knowledgeable groups and statistical methods
Commercialization (Stage 7 of New Product Process)
Launch the new product in full-scale production and sales Careful commercialization is required because it is the most expensive stage of the process Launching may require regional rollouts - introducing the product sequentially in geographical areas to allow production levels and marketing activities to build up and minimize failure
Evaluation of the decision itself
Looks at increase in sales and profits or any other variable that displays the success of a particular plan
why do businesses need to segment their markets?
Market segmentation allows firms to focus on effectively fulfilling specific needs of a specific group of people. Segmentation is a means of better focusing on whose needs and wants the firm is going to aim at to increase sales and profits
What are the advantages of multi-product branding?
Product line extensions, Sub-branding, brand extension, Co-branding
Product Class
Refers to the entire product category or industry. Ex. Music
Product Form
Refers to the variations with the product class Ex. Pre-recorded music forms include cassette tapes, compact discs, digital musical players.
marketing input data
Relate to the effort expended to make sales.
Business analysis (Stage 4 of New Product Process)
Specify the features of the product and the marketing strategies to bring to the market, Make detail financial projections, Assess the market and product with regard to company's existing operations
Neuromarketing methods
Studying buying processes based on the results of brain scans. This has led to some companies changing their products or packaging with the aim of improving the consumers buying experience
To a Pick a Brand Name, the name should:
Suggest Product Benefits, Be Memorable and Positive, Fit the Company or Product Image, Have No Legal or Regulatory Restrictions, Be Simple and Emotional
Data Mining
The collection of information that was not predictable without an analysis
mechanical methods
The way TV channels measure their broadcasting ratings or websites determine their daily traffic
Unsought goods
consumers having little knowledge about
why do companies segment their market?
To effectively respond to customers' wants/needs with hope that segmentation will increase sales and profits.
Personal Methods
To observe consumers in order to find out how the company can increase consumer value
Brand Extension
Using current brand to enter a different product class
Product repositioning
changing the place a product occupies in a consumer's mind relative to competing products.
Sub-branding
combine a corporate or family brand with a new brand
Product Mix
consists of all product lines offered by an organization/firm. P&G product mixes include product lines such as beauty and grooming (Crest toothpaste and Gillette), and household care (Tide detergent and Pampers)
Evaluation of the decision process chosen
looks at whether or not the right analysis was conducted and were the recommendations effective
descriptive research
marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Brand Name
name is any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's goods or services.
Product Modification
qualify of the product, performance, appearance, etc.
Co-Branding
pairing a two brands of two manufacturers on a single product
Sales Forecasting
predicting future sales levels and sales trends
Development (Stage 5 of New Product Process)
product prototype (product demonstration), Lab testing and consumer tests are performed to ensure product quality, standards/specifications are also met
Product positioning
refers to the place a product occupies in the consumers' minds on important
Specialty goods
require special effort and time to buy
Shopping products
requiring several alternatives and criteria to buy
Differentiation positioning
seeking a less competitive, smaller market niche in which to locate/place a brand.
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
Data
the facts and figures that relate to a specific problem
Product line extensions
using a current brand name to enter a new market segment in its product class
Private branding (private labeling or reseller branding)
when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding. Ex. Great Value , My Essentials, Richfood brands, etc
Cannibalization
when a producer offers a new product that takes sales away from its existing products