Marketing 301 Test #3 10 & 11

perishability

unused service capacity of one time period cannot be stored for future use. ex. unbought plane tickets -> plane seats once the plane takes off.

immediate drop

used when losses are too great; stop producing the product immediately

Co-branding

using a brand name component in another product. Hershey's chocolate in Betty Crocker Brownie Mix

Odd-even pricing (psychological pricing)

using odd numbers for price signifies a bargain. using even numbers for price signifies quality or prestige.

Convenience Products

relatively inexpensive, frequently purchased

Brand Mark

the part that is not made up of words, such as a symbol or design (bottle shape)

Comparison Discounting (promotional pricing)

the pricing of a product at a specific level and simultaneously comparing it to a higher price

Specialty products

unique characteristics; buyers are willing to expend considerable effort

Brand Extension

using the brand name in a different product class. Tide has dry cleaning - saw in Naples, FL, this is an extension of the name into a different type of product (dry cleaning) not too far off the original

Heterogeneity

variation in quality

functional modifications

changes that affect a products versatility, effectiveness, convenience, or safety

Categories and types of pricing strategies

1. New product Pricing - price skimming, penetration pricing. 2. differential pricing - negotiated pricing, secondary market pricing, periodic pricing, random discounting. 3. psychological pricing - odd number pricing, multiple unit pricing, reference pricing, bundle pricing, everyday low prices, customary pricing. 4. product-line pricing - captive pricing, premium pricing, price lining. 5. promotional pricing - price leaders, special event pricing, comparison discounting

new product development process

1. idea generation. 2. screening. 3. concept testing. 4. business analysis 5. product development. 6. test marketing. 7. commercialization.

four characteristics of service products

1. intangibility. 2. inseparability. 3. perishability. 4. heterogeneity.

Diffusion of Innovations Model

2.5% - Innovators 13.5% - Early Adopters 34% - Early Majority 34% - Late Majority 16% - Laggards

Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton's Grilled Fish. This is an example of a. family branding. b. shared naming. c. individual branding. d. brand extension. e. single branding.

Answer: A

If the company who produces Garnier Fructis shampoo and conditioner were to introduce Garnier Fructis dryer sheets with the same scent, this would be called _______ branding. a. brand-extension. b. family. c. differentiated. d. individual. e. new-product.

Answer: A.

Which of the following statements about non-price competition is false? A. Companies that use non-price competition do not need to keep track of their competitor's prices. B. A company must be able to distinguish its brand through some unique feature in order to successfully engage in non-price competition. C. A firm using non-price competition can build loyalty to both its company and its products. D. When using non-price competition, a company should promote the distinguishing characteristics of its brand. E. Buyers must view the distinguishing characteristics of a product offered through non-price competition as being important.

Answer: A.

aesthetic modfications

changes the sensory appeal of a product

McDonald's golden arches are a classic example of a a. brand. b. trade name. c. brand name. d. brand mark. e. trademark.

Answer: D

In a brand licensing arrangement, the licensee is responsible for a. providing a brand name to another organization for use in promoting products. b. collecting the royalties from sales of the licensed products. c. half of the financial losses in the event that the licensed brand is a failure. d. the production, but not the marketing of the licensed product. e. the manufacturing, marketing, and financing of the licensed product.

Answer: E.

Brand Loyalty - 3 Degrees

Brand Recognition. Brand Preference. Brand Insistence.

product item

a specific version or brand

Supplemental features

added value or attributes. type of water in bottle - source is spring water

Cost-based pricing

adding a dollar amount or percentage to the cost of the product

markup pricing

adding a predetermined percentage of the cost to the price of the prodcut

Early Majority

adopt just prior to the average person; are deliberate and cautious when trying new products

Special-event pricing (promotional pricing)

advertised sales or price-cutting is used to increase sales volume and is linked to a holiday, a season, or other event

Brand Licensing

agreeing to let your brand name be used on another product

Product Mix

all items in portfolio

phase-out

allows a product to decline without a change in marketing strategy; keep making products but don't add anything

prestige product curves

are not like the classic demand curve. these products tend to sell better at higher prices, partly due to the fact that the customer equates higher prices with higher quality or image

Generic Brands

brands indicating only the product category

Manufactured Brands

brands that are owed by the producer (also called national brands)

strategic considerations for unsought products

build trust with consumers prior to need, recognizable brand, superior performance

Shopping products

buyers are willing to expend more effort in planning and making purchases; bought less often

Factors that can influence demand

changes in buyer's needs. variations in the effectiveness of other marketing mix variables. presence of substitutes. dynamic environment

Product Modifications

changing one or more characteristics of product. new product replaces existing product. old product no longer produced. can be: quality, function, aesthetics

Price Skimming (New-product pricing)

charging the highest possible price that buyers who most desire the product will pay

Early Adopters

choose new products carefully, viewed as the people to check with by those in the remaining categories

demand-based pricing

customers pay a higher price at times when demand for the product is strong and a lower price when demand is weak. marketers must be able to calculate how much customers will buy at different price points

depth

the number of product variations in line

cost-plus pricing

determine the seller's cost and add a specified dollar to it. is used when production costs are difficult to predict

Family branding

each product in the line has a similar name or part of the name. Tide to Go Tide with Bleach Tide Pods

Individual branding

each product is branded separately . P&G Laundry Detergent Line - Gain, Tide, Cheer

Price Competition

emphasizes a product's low price and sets a price that equals or beats the competitor's prices. needs to be a low-cost seller. need to be able to change prices easily. may lead to price wars.

Nonprice competition

emphasizing factors other than price to distinguish products through their distinctive features from competing brands. can use service, quality, location, hours of operation, store experience, etc.

Brand

everything that can be identified as part of the brand. name, design, symbol, or other feature

run-out

exploits any strengths left in the product; plan on using whats left, but don't make any more

Symbolic & experiential benefits

extra benefits for the customer, such as image, experience, or brand value. is the bottle made from green materials?

Innovators

first to adopt; enjoy trying new products, and tend to be venturesome

Core Benefit

fundamental purpose for the product. core product of water bottle? Satisfies thirst

Product line

group of products in a single product class

Classic demand curve

is that as price increase, most sales decrease

Laggards

last to adopt new product, oriented toward the past, adopt because they must, old product may no longer be available or has been replaced by new technology

strategic considerations for specialty products

limited retail outlets, lower inventory turnover, high gross margins

strategic considerations for shopping products

no brand loyalty, fewer retail outlets than convenience, lower inventory turnover, channel members demand higher gross margins, personal selling, producer and channel member cooperation

search considerations for unsought products

no search, price not important, purchase compelled

width

number of product lines in a mix

competition-based pricing

organization considers costs to be secondary to competitor's prices. importance of this method increases when competing products are homogeneous.

Private Distributor Brands

owner by a reseller; produced by a 3rd party (also called store brands, private brands)

ways of product deletion

phase-out. run-out. immediate drop.

What is the easiest of the 4P's to change?

price (product, price, place, promotion)

Reference Pricing (psychological pricing)

pricing a product at a moderate level and displaying it next to a more expense model or brand

Product Line Extension

product closely relates to existing products. new product usually has specific features. is usually targeted to a different segment or different needs. most "new products" each year are actually line extensions. both old and new products remain in the product line. ex. cheerios, honey nut cheerios, apple cinnamon

Business products

products bought to use in a firm's operations, to resell, or to make other products

Late Majority

quite skeptical of new products, eventually adopt them because of economic necessity or social pressure

Strategic Considerations for convenience products

require little to no search, many retail outlets, low per-unit gross margins, heavy brand promotion, limited retailer promotion, packaging important, reliance on self-service, available at many retailers, usually low price points

Product Manager

responsible for a product, a product line, or several distinct products that make up an interrelated group

Brand Manager

responsible for a single brand

venture team

responsible for all aspects of developing a product 1. research and development. 2. production and engineering. 3. finance and accounting. 4. marketing.

Intagibility

service is not physical and cannot be touched

Penetration Pricing (New-product pricing)

setting the price below those of competing brands to penetrate a market and gain a significant market share quickly

inseparability of production and consumption

shared responsibility between the customer and service provider in giving and receiving the service ex. haircut.

unsought products

solve a sudden problem; customers are unaware of, or don't think of buying until there is an emergency

eliminating product from the product mix

systematic review allows an organization to improve a product or delete a product

Brand Name

that part that is spoken, including letters, words, and numbers

Trade Name

the full legal name

Trademark

the legal designation, the part that can be protected

Recognition

you are aware of the brand, and will buy it or another

Preference

you will always buy the brand if it is in stock, but if it isn't, then you will choose something else (will buy Pepsi, unless Coke is on sale)

Insistence

you will always buy the brand, and if it is NOT in stock, you will go to another store to buy it (will always buy Pepsi, and if it not in the store, will go somewhere else)

A co-branded product from Sony and Martha Stewart would likely fail because A. neither of these brands is very well known to consumers. B. their products are not complementary. C. they are both food products. D. this co-branding will not provide product differentiation. E. the market segment for this product is too vast

Answer: B

A distinguishing factor between a brand name and a brand mark is that a brand name..... a. creates customer loyalty. b. consists of words. c. identifies only one item in the product mix. d. is registered with the U.S Patent and Trademark office. e. implies an organization's name

Answer: B

A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called a. family extension. b. family packaging. c. overall packaging. d. package extension. e. selective packaging.

Answer: B.

The most important function of packaging is a. offering convenience to customers. b. protecting the product and maintaining its functionality. c. covering the product. d. communicating information to the customer. e. attracting the attention of the customer.

Answer: B.

Jeff went to his local supermarket to purchase cola, chips, dip, and salsa for the weekend's gathering to watch the football game. As far as the cola goes, Jeff thinks they all taste the same and buys either Coke or Pepsi, whichever is on sale. However, for the chips, he likes to buy Doritos White Corn when the store has them. While at the store, he picks up Coke and Santidas Corn chips because the store did not have the Doritos. When he gets to the salsa aisle he finds that his favorite brand, Pace's is out of stock. Rather than buy a different brand, he goes to another store to find the Paces. Jeff's brand loyalty on this shopping trip can be described as ___ for the cola, ___ for the chips, and ___ for the salsa. A. recognition; preference; loyalty B. recognition; preference; insistence C. awareness; preference; insistence D. preference; awareness; insistence E. awareness; insistence; preference

Answer: B. Cola - recognition Chips - preference Pace - insistence

Private distributor brands are owned by retailers and do not identify the manufacturer of the product. Which of the following is an example of private distributor brand? a. green giant corn. b. dell computers. c. sears kenmore washers. d. little debbie snack cakes. e. nike air jordan basketball shoes.

Answer: C.

The Carsons are going on vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plants to buy two boxes at first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ________ product. a. convenience. b. shopping. c. specialty. d. unsought. e. durable.

Answer: C.

When Silk Soymilk began packaging its chocolate milk in single serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were sold only in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they began also offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla. If Silk Soymilk were to begin offering Silk Soymilk Chocolate Ice Cream Bars, this would be an example of a. a product line extension. b. individual branding. c. a brand extension. d. a private distributor brand. e. co-branding.

Answer: C.

When Silk Soymilk began packaging its chocolate milk in single serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were sold only in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they began also offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla. Silk Soymilk's strategy of packaging its single-serve boxes of chocolate milk to look like its half gallon cartons is known as a. a brand extension. b. individual packaging. c. manufacturer branding. d. family packaging. e. multiple packaging.

Answer: D.

When Silk Soymilk began packaging its chocolate milk in single serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were sold only in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they began also offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk? a. its protects and preserves the product. b. it offers convenience to customers. c. it's size and shape help make storage easier d. it is less harmful to the environment. e. it most likely appeals to children and those with active lifestyles.

Answer: D.

When a cellphone manufacturer uses a policy of naming each of its phone products differently, such as the neon, the star, the fanfare, and the illusion, this strategy is called ________ branding. a. brand-extension. b. family. c. differentiated. d. individual. e. new-product.

Answer: D.

Which of the following should be the least important concern for marketers when selecting a brand name? a. choosing a name that is easy to say and recall. b. positively suggesting the product's major benefits. c. designing a name that can be used in all different types of media. d. developing an advertising campaign to introduce the name. e. checking to see if the name is already trademarked by another company

Answer: D.

A light bulb can be all of the following except a. consumer product. b. business product. c. either a consumer product or a business product. d. business product if it is used to light an assembly line in a factory. e. consumer product if it is used to light the office of the board of directors

Answer: E.

When Silk Soymilk began packaging its chocolate milk in single serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were sold only in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they began also offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla. Silk Soymilk probably increased demand for its single serving by facilitating increased consumption of the product through its practice of ______ packaging. a. innovative. b. category-consistent. c. handling-improved. d. secondary-use. e. multiple.

Answer: E.

Quality modifications

changes relating to a product's dependability and durability