MKT 410 Final Exam Cheat Sheet
New Product Launch Process: Market Research
To Determine: -Market Needs -Target Markets-Positioning -Marketing Mix To prepare for:-Competitors' Reactions
New Product Launch Process: Pre-Launch
To Prepare: -Marketing Plan-Training materials Conduct:-Test Marketing-Training sessions Collaborate with:-Channels -Ad, news agency
Brand Architecture
To be effective, each brand needs its own strategy. Brand architecture establishes the optimal interrelationships of brands within a single company. It also describes the role of each brand in the brand portfolio and specifies the linkages between brands.
Test marketing is intended to offer...
Typical market conditions, thereby allowing the best sales forecast and the best evaluation of alternative marketing strategies.
Ch 8: Forecasting Sales using A-T-A-R Model
Units Sold= Potential Market (P) x % who become Aware (Aw) x % who would try product (T) x % to whom product is available (Av) x repeat measure: 1+(the % of triers who like the product enough to repeat their purchase x number of units repeaters buy in a year) (R)
Endorsed brands are
endorsed by another brand, usually an organizational brand. provides credibility. Example:Michael by Michael Kors
Points of parity (POPs) are not
necessarily unique to the brand but may be shared with other brands.
A brand's strategic purpose reflects the intention of the company for maintaining the brand in the portfolio. Understanding strategic purpose helps
prioritize marketing investments and effectively manage a brand portfolio.
Criteria of a Good Brand Name
six general criteria of memorability, meaningfulness, likability, transferability, adaptability, and protectability in mind.
Line extension
the parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. coke (direct stretch) to diet coke with bacon (adjacent markets)
New Product Launch Process: Post Launch
Analyze: -Market responses -Competitive responses Revise: -Marketing Plan (if necessary)
Ch 8: Forecasting Sales using Purchase Intention:
Based on the historical data, we assume that 50% of (5), 40% of (4), and 20% of (3) will buy the product.
Finance-Based Brand Equity
Brand equity refers to the value added to a product or service by its association with a brand name and or/symbol
7P's of Service: Place description
Channel Type-Exposure-Intermediaries -Outlet location-Transportation-Storage
Consumer response to marketing is the
Choice of a brand, Recall of copy points from an ad, Response to a sales promotion, Evaluation of a proposed brand extension
Through what test will you gain knowledge on the probability of success, whether consumers like the idea and the best concept?
Concept Testing. The risk is: The product might be too radical and consumers might not understand it
The differential effect of brand knowledge on consumer response to the marketing of that brand. What is the term?
Consumer-Based Brand Equity. The differential effect is the differences in consumer response. Brand knowledge is a result of consumer awareness about the brand
For consumer goods, the maker directly sells the new product to the end-consumers by means of the mail, TV, web
Direct Selling
7P's of Service: People description
Employees-Customers-Communicating culture and values-Employee research
7P's of Service: Physical Evidence
Facility design-Equipment-Signage-Employee dress other tangibles
What are the three levels of brand positioning?
Firms can position their brands based on 1Product attributes 2Benefits 3Beliefs and values
Why Many Product Launches Fail: 5 flaws
Flaw 1: The new item exists in "product limbo" (coke2) Flaw 2: The product falls short of claims and gets bashed (Windows) Flaw 3: The product defines a new category and requires substantial consumer education—but doesn't get it (Scentstories) Flaw 4: The product is revolutionary, but there's no market for it (segway) Flaw 5: The company can't support fast growth (west nile)
7P's of Service: Price
Flexibility -Price Level-Terms-Differentiation-Allowances
7P's of Service: Process
Flow of activities -Number of steps-Level of customer involvement
house of brands strategy
Has the policy of giving individual names to each of its products. Thus repuatation of one product is not tied with others or the company's larger name. (Example P&G)
A rollout has many advantages including...
It gives management most of the knowledge from a test market It has an escape clause without losing the full budget if things bomb Yet.... We are well on our way to national availability as early rollout results start coming in.
New Product Launch Process
Market Research, Pre-Launch, Launch, Post Launch
Through what test will you gain knowledge on support from retailers, cannibalization, validity of the launch plan (e.g. price, distribution)
Market Testing. The Risk is Competitors may move fast enough to reach the entire market.
The firm selects several outlets where sales of the new product would be desirable. That is, instead of using cities (as in test marketing), the firm uses each store as a minacity
Minimarkets
Ch 9-Economic Analysis of New Products: Net Present Value
PV=1/ (1+DR)^N Where PV = Present value of $1.00 N = Number of periods before the $1 will be received DR = Discount rate (cost of borrowing or desired rate of return)
Market Testing
Test of the entire launch strategy (e.g. price, promotion, distribution channels, packaging, brand name) (testing Product & its marketing plan)
Brand extension
The parent brand is used to enter a different product category from that currently served by the parent brand. Stretch to more distinct markets
Factors Influencing the Success or Failure of a Brand Extension
-Create a fit (Product category similarity and Relevance of specific associations) -Preserve brand authenticity (preserve brand essence, heritage and value)
What are the advantages of advertising to marketers
1. Distinctiveness: Though the article is the same but it creates different impressions upon the users 2. Publicity: Branding helps to advertise the product and once the brand name becomes popular people remember it for a long time 3. Wide Market: Branded products are quite popular and have wide markets 4. Customer Loyalty: Branding Ensure better quality at competitive prices. Customers ask for the goods by their names 5. Control over process: Marketer can fix the prices and print on the packed branded products 6. Protection against imitation: Through a registered brand name and mark
Choose the Right Point of Difference: Deliverability (Firm Point of View)
1. Feasibility (Can we actually do it?) 2. Communicability (Will we be able to communicate this to the consumers credibly?) 3. Sustainability (Is this defensible against future attacks?)
What are the main characteristics of services?
1. Intangibility 2. Services have no physical form. 3. Customers cannot see services before they buy them; nor can they take them home once they made their purchase.4. Inseparability 5. Services are typically produced and consumed simultaneously. 6. Heterogeneity 7.Services are never delivered the same way twice. 8. Perishability 9. Services can not be stored.
What are 7Ps of services?
1. Product 2. Place3. Promotion 4. Price5. People 6. Physical Evidence 7. Process
What are the advantages of advertising to top customers?
1. Product identification: If he is satisfied he need not take close inspection every time 2. Protection of Goods: Branded products are packed in containers which provide protection to goods and also ensure quality 3. Consumer Protection: Prices of branded goods remain fixed at different places and over considerable period of time. The retailers cannot charge more than the printed price 4. Status Symbol: Some highly advertised branded products create status consciousness among customers 5. Easy Shopping: Customer knows what product to buy 6. Psychological Satisfaction: If LG microwave has already been used without any trouble. Buying LG refrigerator enhance psychological satisfaction
Choose the Right Point of Difference: Desirability (Consumer Point of View)
1. Relevance (Is it important?) 2. Distinctiveness (Is it distinct and superior?) 3. Believability (Is it credible?)
7P's of Service: Product description
Physical good features-Quality level-Accessories -Packaging-Branding-Warranties-Product Lines
Through what test will you gain knowledge on reactions to color, size, credibility, bugs and if it works?
Product Testing: The Risk is Customers have to learn how to use the product and competitors might imitate
Ch 9-Economic Analysis of New Products: Profit Formula
Profit formula Profit = Unit Sales * (Price - Variable Cost) -Fixed Cost
7P's of Service: Promotion
Promotion blend-Salespeople-Advertising-Sales promotion-Publicity
New Product Launch Process: Launch
Send:-Launch letters-Video news-Sales force support Organize:-Press Conference-Educational Programs (if necessary)
When potential buyers are asked to pick the item off the shelf of a make-belive store this is....
Simulated test marketing. Using the A-T-A-R model. The central idea is to get estimates of trail rate and repeat rate.
branded house strategy
Sony uses its brand for all the products it offers. Need for name search or heavy expenditure on brand building is overcombed (Example: Apple)
When you give a pitch on a product, answer questions, discuss pricing and ask "if we make this product available as I have described it, would you buy it?"
Speculative Sales. Anywhere from $25,000 to $100,000. full scale test market which would be $100,000 or more.
When are Brand Extensions Appropriate?
When prior brand equity exists, Consumer must see some "connection" between the proposed extension and the parent brand, The proposed extension contributes to and reinforces the overall brand equity of the parent brand.
Linked Name
Where a name with common elements creates a family of brands with an implicit or implied endorser. (example: McDonald's has McMuffin, Big Mac, McRib)
Points of difference (PODs) are the
benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.
