Marketing exam #3

Product positioning

-A product's position is based on consumer perception of it the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer needs, competitive pressures, available communication channels and carefully crafted key messages.

Criteria in picking a good brand name

-Product benefits - Easy Off, Cling-Free, Tidy Bowl -Memorable, distinctive, positive - Thunderbird, Mustang -Fit company or product image - Sharp, Excedrin, Eveready -No legal or regulatory restrictions - "Heart", infringement -Simple and emotional - Bold, Axe, Joy

Product differentiation

-takes us back to 4 P's process of distinguishing a product or service from others, to make it more attractive to a particular target market

Brand personality

A set of human characteristics associated with a brand name. Edgy, cool, hip, mature, rugged, romantic

Brand name

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services. May or may not be spoken.

Product repositioning

Changing a brand's status in comparison to that of the competing brands. Repositioning is effected usually through changing the marketing mix in response to changes in the market place, or due to a failure to reach the brand's marketing objectives. -must change attributes, marketing or both.

PLC would look like?

Fad= goes through entire cycle very fast Fashion products= multiple entire cycles Low learning=growth comes early, decline comes late High learning= somewhat normal curve

Two approaches to product positioning

Head-to-head=a product needs to compete directly with competitive brands for the same target consumers. Usually this is because the products are similar in attributes and benefits, and most people want essentially the same things. For example, a pizza restaurant might choose to compete head to head by touting the freshness of its ingredients or the value of its price. differentiation= the pursuit of these new buyers by introducing features or functions distinctive from competition. For example, some fast food marketers differentiate their menus by offering low-fat options. Beach hotels try to attract business travelers by adding conference centers and executive services.

product adoption curve

Innovators early adopters early majority late majority laggards

Reasons new products fail

Insufficient product protocol "Blinders" caused by bias Inadequate competitive analysis, Doesn't meet consumer needs, Too small a target market, Insufficient differentiation, Poor product quality/performance, Poor positioning, Inadequate budget, Insufficient access to market, Bad timing, Poor execution of marketing

Product life cycle

Intro=Awareness, differientation Growth= differientation, brand loyalty, awareness Maturity= loyalty, differientation, awareness Decline=harvest, Differientation,Brand loyalty, awareness

five dimensions of services

Reliability - Do we deliver on our promises? Tangibility - Do we present a professional image/appearance? Responsiveness - Do we respond to our customers in a high quality manner? Assurance - Do we know and do we appear to know what we are doing? Empathy - Do we listen, take customer needs/concerns seriously, and really care about each customer?

Steps in segmenting and targeting markets

Step 1: Group potential buyers into segments Young drivers, Parents of young children, Senior citizens Step 2: Group products to be sold into categories Small, fuel-efficient cars, Sports cars, Medium-sized sedans, Large sedans, Mini-vans, SUV's Step 3: Develop a market-product grid and estimate size of markets Compare segments to products Step 4: Select target markets Market size, Expected growth, Competitive position, Cost of reaching the segment, Compatibility with the organization's objectives and resources Step 5: Take marketing actions to reach target markets

Brand equity

The added value a brand name gives to a product beyond the functional benefits provided. Provides a competitive advantage and premium prices.

Branding

When an organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distinguish them from those of competitors.

Types of supports products

a service provided by many retailers of various products, primarily electronics, that provides the end-user with a resource for information regarding the product, and help if the product should malfunction.

consumer vs business products

business products= products and services that companies purchase to produce their own products or to operate their business. Unlike consumer products, business products are classified on the basis of their use rather than customer buying habits. consumer products=products purchased for personal, family, or household use. They are often grouped into four subcategories on the basis of consumer buying habits: convenience products, shopping products, specialty products and unsought products.

Derived demand (when it comes to business demand)

describes the demand placed on one good or service as a result of changes in the price for some other related good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question.

Perceptual map

helps producers/marketers know how best to reposition their product.

uniqueness of services

intangibility(not a phisical object), inseparability(provider vs service), inconsistency(quality varies with provider), inventory(pertains to service).

convenience products

items that buyers want to purchase with the least amount of effort, that is, as conveniently as possible. Most are non-durable products of low value that are frequently purchased in small quantities.

Specialty Products

items that consumers seek out because of their unique characteristics or brand identification. Buyers know exactly what they want and are willing to exert considerable effort to obtain it. These products are usually, but not necessarily, of high value. This category includes both durable and non-durable products. Specialty products differ from shopping products primarily because price is not the chief consideration. -wedding dress, antiques, golf clubs

role of a product manager

often considered the CEO of the product and is responsible for the strategy, roadmap, and feature definition for that product or product line. The position may also include marketing, forecasting, and profit and loss

reasons for repositioning a product

price competitor attributes brand attributes consumer expectations consumer perceptions

Market segmentation

process of dividing a broad market, normally consisting of existing and potential customers, into subsets of consumers (known as segments), that have, or are perceived to have, common needs, interests, and priorities.

Product line

product line is a subset of the product mix. The product line generally refers to a type of product within an organization. As the organization can have a number of different types of products, it will have similar number of product lines. Thus, in Nestle, there are milk based products like milkmaid, Food products like Maggi, chocolate products like Kitkat and other such product lines. Thus, Nestle's product mix will be a combination of the all the product lines within the company.

Product Mix

product mix is a combination of total product lines within a company. A company like HUL has numerous product lines like Shampoos, detergents, Soaps etc. The combination of all these product lines is the product mix.

shopping products

purchased only after the buyer compares the various products and brands available through different retailers before making a deliberate buying decision. These products are usually of higher value than convenience goods, bought less frequently, and are durable. Price, quality, style, and color are typically factors in the buying decision. Televisions, computers, lawn mowers, bedding, and appliances are all examples of shopping products

unsought products

those products that consumers are either unaware of or have little interest in actively pursuing. Examples are new innovations, life insurance, and preplanned funeral services. Because of the lack of awareness of these products or the need for them, heavy promotion is often required.