MKT 300 Exam 3 Eaton

Aaker Model (5 levels of customer attitude toward a brand)

1. Devoted to Brand 2. Values the brand (brand as friend) 3. Satisfied and Switching Cost 4. Satisfied Customer (no reason to change) 5. No Brand Loyalty (customer will change)

Types of Private Brand; Combination Brand

Family name plus the individual brand name -ASU Tempe, ASU polytechnic, W.P Carey

Variability

difference in consistency from one service transaction to another; makes it impossible for a service operation to achieve 100% perfect quality on an ongoing basis

Innovation Continuum

discontinuous, dynamically continuous, continuous

Product Mix

entire collection of product lines a company sells; similar to portfolio

Dynamically continuous

entirely new version or new product category from previous version -laptop (different from desktop), tablets

Services are intangible dominant

experience attributes, credence attributes

Persuasive Labeling

focuses on promotional theme, consumer information is secondary

Intangibility

primary source from which the other three characteristics emerge; services can't be seen, felt, tasted, or touched like goods; difficult to evaluate after consuming services

Process

procedure; flow of activities; steps/script one follows to consume the service -set up appointment and do paperwork for doctors appointment

Marketing creates _______ value

intangible

People

interface, buy from people, provide services to people

Service marketing triangle

internal marketing, external marketing, interactive marketing between company, customers, and employees

Product Life Cycle

introduction, growth, maturity, decline

Possession processing

involving something you own; can be separated from the individual and could be left somewhere

Diffusion

process by which the acceptance of an innovation is spread by communication to members of social system over period of time; rate/speed new product is adopted

Marketing Mixes for Services: Product

processing, possession processing, mental stimulus processing, information processing

Discountinuous

product inventions; very first of it's kind; didn't continue from anything else -phonograph, computer, telephone

Types of Consumer Products: Convenience Products

products you can find anywhere, normally inexpensive, minimal purchasing effort -bottle of water or soft drink

Building strong brand image

provide identity, project the right message, saves time

Types of Consumer Products: Unsought Products

purchased to solve sudden problem -vacuum cleaner

Level of a Service Product: Core Product

remains the same; why you are buying

Brand Image

salient and feeling-related associations -image we have of a product and the brand -salient: important associations

Goods are tangible dominant

search attributs

Benefits to Consumers

search cost reducer, signal of quality, risk reducer, symbolic device

Marketing Mixes for Service: Promotion

stressing tangible clues, using personal information sources, create a strong organizational image, engage in post-purchase communication

Importance to long-term success

strong correlation between new product success and a company's profitability and sales growth

Gap 5: service gap

takes place after service has taken place and been finalized; expectations being met, not, or exceeded; greater the disconfirmation the more feelings and emotions play a role

Customer Service

taking requests, answering questions, responding to complaints

Brands are intangible, but they have ________ impact on consumer product experience

tangible

Physical evidence

tangible element; indicates a level of quality -decor in a waiting room

Levels of a Product: Actual Product

tangible features that are necessary for the product to function -(for a car) steering wheel, engine

Managing Service Quality

the effective marketing of services requires that managers learn what customer want and expect in their interaction with the service provider; if expectations do not equal experience, a gap exists

Brand equity

the marketing and financial value associated with a brand's strength; based on loyalty, awareness, perceived product quality, and brand associations; reflective of long-term trust; "strength" of brand and brand "fit"; can be so strong that brand name becomes the category name (master brand)

Packaging

Effective packaging offers protection, economy, safety, and convenience

Brand

a name, term, symbol, design, or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors

Widening the Product Mix

add a new product category to portfolio

Deepening the Product Line

adding another product to the product line

The connecting point for customers?

The brand

Levels of a Product: Augmented Product

all the extra features of the product that might not be necessary for the product to work, but that can enhance the experience -(for a car) AC, phone charging plug in -(for ASU) student organizations, career center

Mental stimulus processing

anything experiential, paying for experience of consuming entertainment

Miami, FL is a huge

brand name

Private Brand

brand names that are owned by the retailer -safeway select soft drinks

Manufacturer's Brand

brand names you can find in any number of retailers -pepsi

Transition to growth stage

break even point

Levels of Service Product: Actual Product

changes; tangible parts of the product have to be there; missing as services are intangible

Functions of Packaging

contain and protect, promote, facilitate storage, use and convenience, facilitate recycling

Brand Extensions

current brand to new product class; widening the mix -coming out of iPhone for apple -cheeto lip balm

Transition to decline stage

decreasing at an increasing rate

Marketing creates, communicates, and ______ the product

delivers

Building strong brands start with

positioning

The name "Apple" is intangible yet worth

$214M

Your brand isn't what you say it is...

it's what they (consumers) say it is

Successful New Products

-Offer a strong relative advantage -Reflect better understanding of customer needs, and beat the competition to market -Exhibit higher performance-to-cost ratios and higher contribution margins -Are launched with larger budgets -Have stronger top management support

New Product Development:

1. Idea generation: get ideas from customers, competitors 2. Idea screening: review ideas 3. Concept development: become more focused on features and benefits of product 4. Business analysis: outline cost of production and forecast 5. Market testing: limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation (crystal pepsi) 6. Commercialization: launching new product into entire market; population has access

Factors that influence the Rate of Diffusion

1. Relative advantage: product perceived as superior 2. Complexity: degree of difficulty 3. Compatibility: matches customer needs, makes sense, solves problems 4. Trial-ability: degree to which product is capable of being used on a limited basis for very low risk; give someone a shot to try product when thy initially weren't going to try (costco samples) 5. Observability: see products benefits

Building strong brand image triangle

1. Values 2. Benefits 3. Attributes -higher emotional connection with consumers as you climb upwards -increasing difficult for competitors to copy positioning when climbing upwards

Service Quality

1. reliability: perform promised service dependably and accurately; done right first time 2. responsiveness: willingness to help customers and provide prompt service; timely 3. assurance: trust 4. empathy: caring, individualized attention 5. tangibles: appearance of physical facilities, equipment, personnel, communication material

Attributes of Strong Brands

A strong brand occupies a distinct position in consumers minds based on a relevant benefits and creates an emotional connection between business and consumers consistent brand message, focus on long-term growth, manage customer experience, and meaning, memorable, and likeable

Creating compelling experiences

Economic value progresses from commodities to goods to services to experiences

Understanding the service experience

All products, be they goods or services, deliver a bundle of benefits to the consumer The benefit concept is the encapsulation of these benefits in the consumer's mind The service experience demonstrates that consumers are an integral part of the service process

Services Marketing

Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything

Brand Equity Model: Brand Asset Valuator (BAV)

Brand Equity is made up of differentiation, relevance, esteem, and knowledge multiple these four things together to get brand equity if one of the four categories is 0, then there's no brand equity

Brand Equity Models: Interbrand's Equity Formula

Brand earnings are objective (brand sales, cost of sales, marketing costs) Brand strength is subjective (leadership, stability, market, geographic spread)

Types of Private Brand: Family Brand

Brands owned by retailer and use company's name to market product; only available at one place -Safeway select -GAP -Kirkland Signature (costco)

Types of Private Brand: Individual Brand

Brands owned by retailer with stand alone brand name -Ol'Roy dog food only sold at walmart

Brand Achetypes

Carl Jung suggests that humans are not a "blank state" but rather a combination of archetypes -universal, archaic patterns and images that derive from the collective unconscious and are the psych counterpart of instinct

Types of Manufacturer's Brand; Combination Brand

Company name is paired with an individual brand name; good chance we know both names -Kellogg's Rice Krispies

Branding

Core benefit: what the customer is buying Value proposition: what the brand delivers that customers value; competitively superior

Does satisfaction = loyalty?

It can build to loyalty but it has to go above and beyond satisfaction to guarantee loyalty

Labeling

Labeling is used for identification, promotional, and informational and legal purposes

Brand Archetypes examples

Nike: hero Disney: magician Oprah: sage Godiva: lover Starbucks: explorer Target: every person AMEX: ruler Apple: Revolutionary Ben & Jerry's: jester Campbell's soup: caregiver

The Services Marketing Mix: 7 P's

Product, price, place, promotion + People, Process, Physical Evidence

Why do firms focus on services?

Services can provide higher profit margins and growth potential than products Customer satisfaction and loyalty are driven by service excellence Services can be used as a differentiation strategy in competitive markets

Brand Archetype Categories

Social, order, ego, freedom

Why do new products fail?

They do not solve a problem

Role of Brands

They stand for something; promise to deliver specific benefits associated with products or services to consumers; represent solutions

Types of Manufacturer's Brand: Family Brand

Use company's name to market their products -General electric -Sony -Samsung

Can package size accelerate usage volume?

Yes -people pour from 15-40% more from large vs small containers

Informational Labeling

helps make proper selections, lowers cognitive dissonance; includes use/care

Services as a product

hotels, telecommunication, banking, consulting, healthcare, software services

Reasons for New Product Failure

ignoring favorable market research, overestimating market size, marketing mix decision errors, and stronger than anticipated competitive actions

Line Extension

improvement; new and improved; deepening the line -new colors -redbull

Types of Consumer Products: Speciality Products

items with unique characteristics, willing to spend considerable effort to obtain, only one option in geographic location -watch, jewelry

Transition to maturity stage

mature product being around forever; growth rate begins to slow down even though it's still increasing; still increasing but at a decreasing rate -soft drinks

Levels of a Product: Core product

need that the product fulfills

Types of Consumer Products: Shopping Products

not every retailer will carry every brand of that product, multiple options but not everywhere -not every car dealership sells honda accords, but a lot do

Information processing

paying for some sort of expertise; paying for someone to do something you don't have the knowledge to do

Profits per product

peaks during growth stage

Sales line

peaks during maturity stage

Package shape

people perceive tall, slender glasses to hold more than short, wider glasses

Processing (service strategy)

people processing; paying for service that provides a physical change to yourself

perishability

service can't be saved; it's unused capacity can't be reserved or inventoried -if unsold, lost revenue

Gap 1: Knowledge Gap

service provides perception & expected service from customer; before the service takes place; don't know what the customer expects; best to communicate exceptions

Product Line

set of items company produces that functions in a similar way to solve the same problem -crest vs colgate

Continuous

similar form but add new and improved features, upgrades; incremental

Inseparability

simultaneous production and consumption of the service; service consumer had to be there at the same time as the service provider to experience the optimal service -hair cut, vet visit

Benefits to Companies

source of competitive advantage, predictability and security of demand, barriers to entry, financial returns

Brand personality

specific "personality-type" traits or characteristics ascribed by consumers to different brands -masculine/feminine -calm/exciting

Adoption

stages through which an individual consumer passes in arriving at a decision to try (or not try), to. continue using (or discontinue using) a new product 5 stages: awareness, interest, evaluation, trial, adoption

Types of Manufacturer's Brand: Individual Brand

stands alone because of the brand name, you don't know the manufacturer name -tide (made by procter&gamble)

Level of a Service Product: Augmented Product

stays the same; bonuses, benefits, add ons

Service as value-added for manufacturing products

training, installation, repair services connected with a physical product

Servicescape

use of physical evidence to design service environments

Intangible value

value you can't hold in your hand; value a film has above and beyond tangible assets; market value is greater than the tangible assets