Marketing Chapter 7 Terms

a good brand name should

-suggest something about the product's benefits and qualities (ex: Gain) -should be easy to pronounce (Ex: Hanes) - should be distinctive (Ex: Buster Brown)-should translate easily into foreign languages -should be capable of registration and legal protection

the four manufacturing sponsorship options

1) Manufacturer's brand (or national brand) is created and owned by the producer (Ex: IBM) 2) Private brand (or store brand) is created and owned by reseller of a product or service (Ex: HyVee, Great Value) 3) Licensed brand where a company sells its output under another brand (Ex: Green Giant cans corn under other names under a contract) 4) Co-branding where two companies team up to manufacture one product (Ex: Keebler and Hershey's combine to produce chocolate crumb pie crusts)

product lines can be lengthened by

1) a downward stretch to lower end of the market because of more growth potential, need new product to fill a hole or retaliation against an attack on upper end product. 2) an upward stretch when companies at the lower end of the market want to enter the high end because of better growth, higher margins or positioning as full-line company 3) two-way stretch when companies in the middle range want to stretch lines in both directions 4) product line filling where extra profits, unsatisfied dealers, excess capacity or plugging holes to keep out competition are the goals

service companies must have 3 major tasks

1. Competitive differentiation (offers, delivery and image) 2. Service quality (expectations, empowerment, high standards, good performance) 3. Service productivity (better employee training in quality and quantity)

product line length

A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges. Marketers must make decisions regarding product line length and width.

brand strategy- introduce new brands

Advantages include helping to move away from a failing brand, and get new brands in new categories by corporate acquisitions. (Ex: Ben and Jerry's buys Schwan's Enterprises)

product

Anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. Physical objects Services Persons Places Organizations Ideas

consumer products

Bought by final consumers for personal consumption.

industrial products

Bought by individuals and organizations for further processing or for use in conducting a business. Industrial goods can be classified according to how they enter the production process. Purpose of purchase is the chief distinction between industrial products and consumer products.

product decisions and social responsibility

Companies must observe public policy and regulations such as acquiring or dropping products, patent protection, product quality and safety and product warranties.

convenience Products

Consumer products and services that consumer usually buys frequently, immediately, and with a minimum of comparison and buying effort. Usually exhibit low prices and are placed in many outlets to make them readily available when customers need them. Ex: soap, candy, newspapers

unsought products

Consumer products that the consumer either doesn't know about or knows about but doesn't normally think of buying. Most major new innovations are unsought until the consumer becomes aware of them. These products require a lot of promotional support to be successful. Ex: crane in garage to lift fabric top off convertible car or service to electronically file taxes when first introduced

shopping products

Consumer products that the consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style. Consumers spend time and effort in gathering information about these products. Products are usually distributed through fewer outlets but have deeper sales support. Ex: furniture, clothing and major appliances

specialty

Consumer products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Buyers do not normally compare specialty products. Instead, they only invest the time to reach the outlet that carries the good. Ex: custom-made men's suits, original art

what customers seek

Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers must identify the core consumer needs that the product will satisfy, design the actual product, and find ways to augment the product in order to create the bundle of benefits that will best satisfy consumers

brand strategy- introduce line extensions

Existing brand names are extended to new forms, sizes and flavors of an existing product category. These line extensions may be a low-cost, low-risk way to introduce new products which add variety, meet excess manufacturing capacity or allow the manufacturer to command more shelf space. (Ex: Ben and Jerry's introduces Chunky Monkey ice cream to current product line)

brand strategy- introduce brand extensions

Existing brand names are extended to new product categories. Advantages include helping to enter new product categories more easily, aids in new product recognition, saves on high advertising costs . (Ex: Ben and Jerry's introduces Chunky Monkey ice cream pies to current product line)

idea marketing

Idea marketing (also called social marketing) where ideas such as human rights or equality are promoted to increase the acceptability of the idea.

brand strategy- introduce multi-brands

New brand names are introduced in the same product category. Advantages include more shelf space, offering several brands to capture "brand switchers, developing healthy competition within the organization and encourages new customer following. (Ex: Ben and Jerry's Lite Chunky Monkey)

service parish-ability

Service perish-ability is not a problem when demand is steady but becomes one when demand fluctuates (Ex: No more car hops at drive-in restaurant after summer vacation is over)

service variability

Service quality may vary depending on who provides them and when, where and how (Ex: Customer service when you call Dell with a problem at midnight)

product support services

Services such as good customer service, monitoring customer complaints, designing products that need less service, delivery of product support services, augmenting the actual product

3 groups of industrial products

Three groups of industrial products are: 1. materials and parts, most sold directly to industrial users 2. capital items which aid in the buyer's production or operations, including installations and accessory equipment 3. supplies and services, such as repair, maintenance, accounting or legal services supplied under contract.

product line decisions

a group of products that are closely related because they function in a similar manner, are sold to the same customer group, are marketed through the same types of outlets or fall within given price ranges. Marketers must make decisions regarding product line length and width.

augmented product

additional consumer services and benefits built around the core and actual products.

product strategy

calls for making coordinated decisions on individual products, product lines and the product mix.

actual product

characteristics that combine to deliver core product benefits include quality level, features, design, brand name and packaging

product labeling

consists of printed information appearing on or with the package. Labeling identifies the product or brand, might grade the product, describe attributes, promote the product through attractive graphics. Legal concerns include regulation of labeling and public protection such as unit pricing, open dating and nutritional labeling are recent developments

person marketing activities

create, maintain or change attitudes toward particular persons such as politicians, entertainers, sports figures, lawyers

attributes to important product decision making

define benefits for purchasers which reinforce positioning, including quality such as durability, reliability, precision, ease of operation and repair. Marketers usually highlight features, such as product design, which differentiate the product from the competition

interactive marketing

happens when the service firm recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction. Good technical service isn't enough.

product mix- consistency

how closely related the various product lines are in end use, production requirements, distribution channels, or some other aspect

organization marketing

includes creating, maintaining, or changing attitudes toward churches, colleges, charities, museums, etc. Tool: Corporate image advertising

Tourism marketing

includes promoting destinations, attractions, travel, etc.

5 links of service profit chain

internal service quality, satisfied and productive service employees, greater service value, satisfied and loyal customers, healthy service profits and growth

place marketing

involves activities to create, maintain or change attitudes toward particular places such as the Corn Palace or Falls of the Big Sioux

internal marketing

is practiced by a service firm to train and effectively motivate it's customer-contact employees and supporting service personnel to work as a team to provide customer satisfaction. Internal marketing comes BEFORE external marketing.

branding in important product decision making

names, signs, symbols, designs or combinations of these help identify the goods or services of one seller to differentiate them from those of the competition. Brand names help buyers identify quality products and help sellers segment markets, protect unique product features and promote loyalty. Brand equity is the value of the brand in terms of loyalty, name awareness, perceived quality, strong brand associations and assets such as patents and trademarks. Brands are a good defense against competition, help companies launch brand extensions and may be the company's most enduring asset.

product mix- depth

number of versions offered for each product in the line

core product

problem-solving services or core benefits that consumers are really buying when they obtain a product

service inseparability

services are produced and consumed at the same time and cannot be separated from their providers. Both provider and consumer affect the service outcome (Ex: serving a meal at a restaurant)

service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought. Strategies usually revolve around drawing attention to tangible features (people, prices, equipment or communications) that they can see

5 dimensions of brand personality

sincerity, excitement, competence, sophistication, ruggedness

product packaging

the activity of designing and producing the container or wrapper for a product. The package may include the primary container, the secondary package , and the shipping package. Traditionally packaging decisions were based on cost and production factors, but now has become a promotional value.

product mix- width

the number of product lines an organization offers

product mix- length

total number of items a company carries within its product lines