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