MKT Exam 3 (8-10)

Intensive Distribution Strategy

When a firm sells through every potential outlet that will reach its target market

McDonald's put together a focus group to get reactions from customers about whether a midnight snack line of products would satisfy their needs. At this point, McDonald's is doing

concept testing

Licensed brand

an agreement allows one brand to use another's name, image, and/or logo for a fee

____ overlays a computer-generated image, sound, text, or video on a user's view of the physical world. It can augment a customer's experience of a product.

augmented reality

consumer product class

based on how consumers think about and shop for a product

Brand Familiarity (5 levels)

brand rejection --> brand non-recognition --> brand recognition --> brand preference -> brand insistence

dealer brands (private brands)

brands created by intermediaries

manufacturer brands (national brands)

brands owned and managed by the manufacturer

accumulating

collecting products from many small producers

Why Direct Channels?

greater control, lower cost, internet has made it more accessible, direct customer contact, no suitable intermediaries

Why exclusive distribution?

greater producer control, less costly, best for shopping goods w/ lots of assistance required, more common early in product life cycle

For heterogeneous shopping goods, like automobiles, marketers should employ an intermediary that has

knowledgable salespeople who can provide insight

MRO supplies (business product)

maintenance, repair and operating items that are not part of the final product

family brand

marketing several different products under the same brand name

raw materials (business product)

natural materials that become part of physical product

Sales decline stage

new products replace old price competition from dying products conservative buyers switch late to new products

If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), the product is a

staple product

As compared to services, most goods are

tangible and produced in a factory far from consumers

discrepancy of assortment

the difference between the lines a typical producer makes and the assortment final consumers or users want

conditions favorable to branding

- product quality and best value - dependable, widespread availability - market price can be high - economies of scale - favorable shelf or display space - easy to label and identify

Why intensive distribution?

-convenience products, widespread availability

Selective Distribution Strategy

A product is distributed in preferred locations, where it will get special attention.

Which three things need to be considered when deciding whether or not to offer a warranty?

Competitors' offerings The legal environment Customer needs

Idea evaluation

Concept testing Reactions from customers Rough estimates of costs, sales, and profits

Convenience products

Consumer products. Staples, impulse products, and emergency products

_______ refers to a commitment to constantly make things better one step at a time.

Continuous improvement

4 groups of consumer product classes

Convenience, Shopping, Specialty & Unsought

At which stage of the product life cycle, will profits be highest?

Market growth

Commercialization

Finalize product and marketing plan Start production and marketing "Roll out" in select markets Final ROI estimate

component parts and materials (Business product)

Finished business products of one producer that become part of the final products of another producer.

Which stage of stage of the product life cycle characterized by informative promotion?

Market introduction

New couch is an example of what kind of porduct?

Heterogenous shopping product

market growth stage

Innovation attracts competition Monopolistic Competition develops Competition increases, profits peak & then decline Consumers become more price sensitive

6 Business Product Classes

Installations, accessories, raw materials, component parts and materials, MRO supplies and Professional services

Exclusive Distribution Strategy

Limits the number of outlets employed to one or two intermediaries within each market/region

Market introduction stage

Low sales High distribution and promotion expenses Negative or low profits Marketing objective is to create product awareness and trial

Market maturity stage

Persuasive, more costly promotion Greater price competition/price sensitivity Maturity may last a long time Must have developed competitive advantage Usually the longest phase

Within the context of marketing, the power of a product to fulfill a customer's requirements is called its _____.

Quality

Idea development

Research and development develop prototype test marketing mix revise plans as needed estimate ROI

In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today?

Sales decline

A SWOT analysis is most likely to be used in which stage of the new-product development process?

Screening

Product life cycle patterns apply to the sales of a given product idea in a(n) _____

Specific product-market

discrepancy of quantity

The difference between the quantity of products it is economical for a producer to produce and the quantity final consumers want

unsought products

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

Specialty products

a consumer product with unique characteristics or brand identification for which a buyer is willing to make a special purchase effort

discontinuous innovation

a totally new product that creates major changes in the way we live

4 reasons intermediaries exist

accumulating, bulk-breaking, sorting and assorting

Shopping products

consumer products. Homogenous and heterogenous.

Why indirect channels?

convenient, store/outlet loyalty, lower initial investment

dynamically continuous innovation

disrupts consumer's normal routine but does not require totally new learning

bulk breaking

dividing larger quantities into smaller quantities as products get closer to the final market

If a waiter or waitress at Jack's Bar and Grill thinks it makes sense, they are allowed to give customers a free drink without checking with management. This is an example of:

empowerment

Apple's iPad and iPod were successful (in part) because they were?

fast second-movers in the market

generic brand

general name for a product rather than a specific brand name given by the manufacturer

business product classes

how buyers think about products and how they'll be used

New Product Development Process

idea generation, idea screening, idea evaluation, development and commercialization

4 stages of product life cycle

introduction, growth, maturity, decline

producer-led channel

producer handles more of the marketing mix

assorting

putting together a variety of products to give a target market what it wants

product class

refers to the entire product category or industry

Continuous innovation

requires no new learning by consumers

Idea Screening

screening new-product ideas to spot good ideas and drop poor ones as soon as possible, utilize SWOT

idea generation

seeking product ideas to achieve organizational objectives, no bad ideas

sorting

separating products into grades and qualities desired by different target markets

professional services (business product)

services like accounting, office maintenance, etc.)

Accessories business product class

short lived capital items like tools and production items)

Why selective distribution?

special effort from retailer, may become more intensive over time

Lanham Act (trademark act)

spells out what kinds of marks can be protected and the exact method of protecting them

Installation business product class

unique and require special negotiation at each sale, like new office building

individual brand

using different brand names for different products