exam II marketing

Disney Mickey Check

A nutritional seal of approval program to combat childhood obesity after survey feedback revealed parents' concern about childhood health.

Total Quality Management

Approach that involves constantly improving the quality of products/ services

Private (Store) Brand

Brand created/owned by reseller

Measurement Role

Brand price compared to unbranded price

Behavioral Segmentation

Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Geographic Segmentation

Divides groups based on physical location -"Birds of a feather flock together"

Demographic Segmentation

Divides the market into segments based on variables such as age, generation, life-cycle stage, gender, income, occupation, education, religion, & ethnicity

Targeting

Evaluate segments & Select the segment(s) to enter (serve) -customers to serve?

distribution - specialty

Exclusive in one/few outlets per mktg. area

Competitive Analysis

Firms must understand the position other competitors have taken in the marketplace. Competitive analysis becomes even more important when competitors all appear to offer a similar good or service.

Conformance Quality

Freedom from defects & consistency in delivering a targeted level of performance: Zero Defect or 6-sigma (3.4 defects per million) philosophy

buying behavior - convenience

Frequent purchase, little planning or comparison, shopping effort, low involvement

examples - specialty

High-end electronics, Wedding dress, Sports equipment, designer clothes, vinyl records

Value Proposition

How company will create differential value for targeted segments, and the position it will occupy based on the full mix of benefits upon which a brand is positioned.

Differentiation (competitive advantage)

How offering are differentiated based on the Value Proposition - Benefits/values it promises to a target market compared to competitors

Positioning (competitive advantage)

How the product is defined by consumers on important attributes - the place it occupies in the consumer's mind relative to competitors

Geo Demographic

Hybrid form of segmentation that considers geographic and demographic factors

Competitive Advantage

Identify competitive advantages & select the ones consistent with consumer beliefs

Length

•Number of different products a firm sells

buying behavior - shopping

Less frequent purchase, more planning, price comparisons, quality, style, Moderate Involvement

Quality Levels

Level of quality that will support positioning (high price/high value)

examples - unsought

Life insurance,, funeral services, fire extinguishers,

buying behavior - unsought

Little product awareness/ knowledge, if aware little or even negative interest, requires lots of marketing

examples - shopping

Major appliances, TVs, furniture, cars

Manufacturer Brand

Manufacturer sells under their own brand name

value

Marketers believe that brands provide _______, above & beyond the benefits of the product itself.

Positioning - brand strategy

Marketers need to position brands clearly in the target market's mind. There are three levels:

promotion - convenience

Mass promotion by producer

Measurable

Measure elements that define segment (Size, income)

Online Classes

More universities began to offer due to fluctuating student work schedules, high gas prices, a weak economy, and most recently the pandemic

Substantial

Must be Profitable or Large enough to support separate marketing mix

buying behavior - specialty

Strong brand preference, special effort, little comparison, low price sensitivity High Involvement

Product Lines

•Series of related products - Beds (different versions of a product within a category)

Product Item

•Single, specific Product

Differentiated

•Targets several market segments & design separate offers (marketing mix) for different segment - (Marriott: 30 Brands)

Micro-Marketing

•Taylors offers to needs of individuals and local customer segments: Rolls-Royce Bespoke -Custom Made

Brand Recognition

•The degree to which customers identify the brand under a variety of circumstances - Firms like Nike & Apple employ brand marks, which are elements of the brand not expressed in words

Branding

•The name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service.

Width

•Total Number of product lines a firm offer

Depth

•Variation in each product the firm offers

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. (Positioning attribute)

Brand Equity

The differential effect that knowing the brand name has on customer responses - Ability to capture consumer preferences and loyalty - Ability to capture consumer preferences and loyalty -High brand equity provides competitive advantage

augmented product

additional features that exceed expectation -experiences -product support -financing -warranty

actual product

benefits translated into product form - branding -features -design -packaging

Style

describes the appearance of the product (eye catching, attention grabbing,) but does not necessarily make the product better

price - specialty

highest price

price - convenience

low price

strategic fit

marketers should work to ensure that the selected target markets fit with what the organization is and wants to be

requirements for effective segmentation

measurable accessible substantial differentiable actionable

Brand Loyalty

Is a consumer steadfast allegiance to a brand by repeatedly purchasing it

Positioning (speak to markets)

A company's market position is the customer's perception of a company's efforts, including its products, services, and even ideas.

Perceived Quality

Is a consumer's perception of the overall quality of the brand

Product Features

- Characteristics that describes the product - A competitive tool for differentiating a product from competitive products

Communications

- Communicate important attributes and deliver on promise

Marketing Strategies

- Develop marketing strategies consistent with offering's competitive advantages (Product, Price, Place, Promotions)

Packaging

- Involves designing and producing the container or wrapper for a product. - Primary function is to hold and protect - Retail clutter requires it attract buyers

Consumer Products

- Products and services bought by final consumers for personal consumption - Classified according to how a consumer shops, pays for,or uses the product

market targeting at different levels

- undifferentiated (mass marketing) - differentiated - concentrated - concentrated (niche) - micro-marketing *very broad to very narrow

Positioning Strategies

A firm may focus its positioning strategy on certain product attributes, features, or value perceptions.

Services

A form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Performance Levels

Ability to perform its function (Mercedes vs. Chevy)

promotion - shopping

Ads, promotions & personal selling both producer & resellers

promotion - unsought

Aggressive ads, personal selling by both producer & reseller

Licensed Brand

Companies extend their brand by licensing

Differentiation (target marketing)

Differentiate offering to create superior value -value proposition?

Segmentation

Divide total market into smaller, similar segments with distinct needs, characteristics or behaviors -customers to serve?

Psychographic Segmentation

Divides a market into different segments based on social class, lifestyle, or personality characteristics.

Attributes

Often a product will have multiple attributes that create a unique position in the market.

Price/Quality Relationship

Optionally priced according to quality

Positioning (target marketing)

Position offering in the minds of the target consumers vs. competition -value proposition?

Family Life Cycle

Process of age-related family formation & dissolution

Application

Product/brand positioned in term of how it is used

Actionable

Programs can be designed for attracting & serving segment

Perceptual Map

Provides a valuable tool for understanding competitors' positions in the marketplace. It creates a visual picture of where products are located in consumers' minds

Return on Equity

Quality is an investment, holding quality efforts accountable for bottom line results

Accessible

Reached and served

Differentiable

Respond differently to different marketing mix elements

distribution -shopping

Selective distribution in few outlets

promotion - specialty

Targeted promotions by both producer & reseller

The Cohort Effect

Tendency of members of a generation to be influenced and bound together by significant events in their formative year, ages 17 to 22

Product (Offering)

This includes a specific combination of goods, services, or ideas that a firm offers to its target market

Perceptual Maps

Tool used to show the customer's perception of a brand relative to competing brands on important attributes

Examples - convenience

Toothpaste, magazines, caddy, fast food

distribution - convenience

Widespread, convenient locations

Undifferentiated (Mass Marketing)

•Ignore segments & sell one offer to entire market - (Rarely used)

Design

broader measure, contributes to the products usefulness & looks (more that skin deep)

product components

core product actual product augmented product

targeting consumer groups

growth potential level of competition strategic fit

price - shopping

high price

core product

purchase benefits (why purchasing)

market segmentation, targeting, and positioning

segmentation differentiation targeting positioning -create value for targeted customer

growth potential

the higher the future growth rate, the more attractive is the segment

level of competition

the more intense the competition within a segment, the less attractive the segment is to marketers

Labeling & Logos

•Identifies the product or brand, describes attributes, and provides promotional value

distribution - unsought

varies

price - unsought

varies

Brand Association

§Are consumer thoughts connected to the consumer's memory about the brand - Tesla is electric, Apple is different, Downy is soft

Product Mix

•Assortment of product lines and individual product offerings - beds, arm chairs, mirrors, etc.

Types of Consumer Products

•Convenience products •Shopping products •Specialty products •Unsought products

Concentrated (Niche)

•Focus effort on a large share of one/few segments (niches). - Harry's Shaving products - Convenience