Marketing Chapter 7

Product Classification

Associate the product with a particular category of products. Ex. Pork- "The other white meat."

Indirect Competition

Business competes with a product that is outside its product classification group. Ex. McDonalds convenient food vs. micrwaveable foods

Direct Competition

Competition in a market segment with business that offer the same type of product or service.

Name four common ways to segment people geographically.

Country, City, Zip Code, Neighborhood

Attribute

Highlight a product feature or attribiute. Ex. Toothpastes with whitening ingredients.

Why is it important to know about competitors' product/service planning processes?

If your competitor is introducing a new product, does your company have one to compete effectively with it?

Price and Quality

May stress high price as a sign of high quality or emphasize low price as an indictation of value. Ex. Mercedes Benz

Non-price competition

Occurs when businesses decide to emphasize factors of their marketing mix other than price, such as quality, brad, location, or service.

How do psychographics differ from demographic chractersitics?

Psychographics refers to people's values and interests, and how they spend their time and make lifestyle choices. Demographics refers to the descriptive characterisitcs, such as age, gender, race, income, etc.

How to gain information about competitors:

1. Ask salespeople. 2. Buy competitor's products/Shop in competitor's business. 4. Suscribe to information services. 5. Study customers. 6. Attend trade shows.

Benefits of Competition

1. Consumer recieves the best price. 2. Encourages improvements in products with addition of unique features and benefits. 3. Availability of newest products. 4. Wide variety of products to choose from.

Market segments should be evaluated on the following criteria:

1. Number of potential consumers. 2. Interest in the product or service and other mix elements. 3. Money availbale to make the purchase. 4. Ability to communicate with consumers through the promotional mix.

Under what circumstances do businesses engae in non-price competition?

1. Price Controls 2. Higher Priced Product

Competitor

Demonstrate how they are positioned against competitors. Ex. 7-Up's "Uncola Campaign"

Product User

Encourages use of a product or service by associating it with a personality or type of user. Ex. Pepsi Cola- "Pepsi Generation"

Market Position

Refers to the unique image of a product or service in a consumer's mind relative to similar competitve offerings.

Price Compeition

Rivalry among firms on the basis of price and value

Use or Application

Stressing unique uses or applications. Ex. Arm and Hammer Baking Soda can be used to clean and bake with. Also deodorizes.

Market Share

The portion of the total market potential that each company exppects to get in relation to its competitors.

Marketing Intelligence

The process of gaining competitive market information.

Market Potential

The total revenue that can be obtained from the market segment.