MGMT EXAM 2

Product life cycle stages

1. Market introduction 2. Market growth 3. Market maturity 4. Market decline

Market Potential

- Screen ideas for rough estimate of value - Who is the target segment?

Market introductory stage

- Single new product - Inform customers

Goods

- Tangible - Search - Manufactured and inventoried - Standardized

Innovation Approaches

- Top-down or inside-out innovation - Bottom up, outside in, Co-creation innovation

Branding Strategies

- Umbrella brands - House of Brands

Early Adopters

- influential - sizable group

Innovators

- like to try new ideas - willing to take risks - relatively educated and confident about assessing product on their own.

Laggards or non-adopters

- more risk averse and skeptical of new products - often lower income - has little relevance to them

Digital Sales Funnel

1. Brand Awareness 2. Consideration 3. Free Trial 4. New Customer 5. Customer Loyalty

How do you value brands?

1. Financial Performance 2. Role of Brand in Purchase Decision 3. Brand competitive strength

NPD Process (New Product Development)

1. Idea Generation 2. Market Research 3. Concept testing 4. Design and Development 5. Beta testing 6. Launch

Conjoint analysis

Conjoint procedure allows for different attributes to be compared in order to determine trade-offs.

Image Ads

Conveys can image, more abstract. Often uses a package "beauty shot"

Persona

Fictional character that is created to represent a user type that might use a product, brand or website in a similar way

Crawl

Find every URL that they can that could be a potential answer to the question

Design and Development: Product

Formulas, product design

AIDA Definition

Framework for what you are trying to accomplish with advertising

Design and Development: Packaging

Function, form, graphics

Introductory stage goal (Product life cycle)

Get first time buyers to try (trial)

Cognitive Ads

Gives the consumer a reason to buy the brand that is rational or functional.

Design and Development: Logo

Good simple design, legally available

Emotional Ads

Humor/fear

Top-down/ Inside out approach to NPD

Ideas come from inside the company, Product is developed first, feedback from outside comes later in the NPD process, Role of marketing is in launch planning Common in technology-oriented companies

Frequency

The average number of times a target saw the ad (within set duration)

Brand benefits

Product benefits: "the Job" the attribute does for the customer.

Diffusion of Innovation Model

Theory regarding how new projects spread through the marketplace.

Index

Store and organize content. Once page is in the index, it is in the running to displayed as a result to a search query.

Product attributes

Tangible characteristics of a product that influences its purchase. - Size - Color - Design - Materials

Goods are tangible or intangible?

Tangible- there is something concrete to take home.

Reach

The % share of your target audience that has seen your ad at least once.

Market decline stage

- Reduce number of products - Decreases to stay profitable

Inseparability

Services are simultaneously produced and consumed.

Umbrella brands

- Attaches brand name to all products - Product introductions are easier to understand and accept - Stronger financial outcomes for company - Much cheaper ex. Nike, Honda

Core offerings (Hotel)

- Bed - Safety -Blankets

Beta Testing

- Beta-testing simulates a real-world environment - A beta version of the product is produced - Ads are run and sales are tracked

Companies care about brands because:

- Build customer loyalty - bring higher prices - protect from competitors - encourage channel partner support - lower financing costs - Attract, retain and motivate employees

Customers

- Consistent quality - Align w our values - Can depend on it

Search Engine Optimization (SEO) Ways to improve organic search results

- Content (relevant): providing up to date content - Technical: Quick, goes to the right place - Backlinks: links to other websites that link to other websites helps with authority

External sources

- Customers - Business partner - Competition

Brand Association Network

- Depicts cognitive brand connections - When activated, associations are triggered - Links closet to brand retrieved first - Distinguish product attributes, product benefits, and emotional benefits

Engagement

- Distinctiveness: uniquely own able assets and experiences - Remains authentic to brand narrative (Patagonia) - Encourage involvement and collaboration

Value-Added offerings

- Easy check-in - Fluffy beds - Movies - Spa shower

Late Majority

- Even more cautious - Often older and more conservative - Want to buy proven products

Launch

- Forecast is developed - Product manufactured - Sales and marketing plans are executed

What is a Product?

- Goods - Goods and services - Multiple products (product line) - One of the 4P's - All 4P's

3 Approaches companies typically use to establish a marketing budget.

- How much do we spend? - When do we spend? - Which media do we use?

Idea Generation

- Ideas come from inside and outside the company - Internal and external sources

Cognition Advertising

- Increasing awareness and knowledge of the brand. Ex. Duck Duck Go

Services

- Intangible - Credence - Perishable - Variable

Brand strength factors

- Leadership - Engagement - Relevance - Customers

Customers/consumers care about brands because:

- Make a purchase decision easier - bring consistent quality - align with their values - reduce risk - convey information - bring a sense of community

Internal sources

- Management - R&D, in houses, brainstorming - Feedback from the front line

4 Ways to drive strategic growth

- Market penetration: Sell more of the same products to current markets. New ways to use the products, better pricing, better reward program, etc. - Market development: Sell existing products to new markets more internationally, appeal to younger segment, etc. May need to modify image, expand channels. - Product development: Sell new or modified products to current markets. Brand and line extensions or new variations of existing products. - Diversification: Pursue new markets with new products. More difficult.

Early Majority

- More risk averse than the first two groups - Waiting to hear that the early adopters had favorable experiences

House of brands

- New brand for every major line of product - One brand won't negatively affect others - Can reach multiple segments Ex. P&G

Market maturity stage

- New features - Reminder advantages

Search Engine Marketing (SEM)

- Paid Ads- when advertisers pay for social media ads ex. billboards, social media

Relevance

- Presence- omnipresent, easily recalled, talked about positively - Trust- delivers on expectations, acts with integrity and with customers' interests in mind - Affinity- feel a positive connection to the brand

Market growth stage

- Product tweaks - Heavy advantages ward off competitors

Design and Development

- Product, product design - Logo, Name - Marketing campaign- advertising tv, digital

Leadership

- Purpose with a plan, values that guide execution - Empathy to customer & stakeholder needs - Speed to market

Brand name

A brand is first and foremost a name - Some names immediately convey information - Some names suggest their benefit - Some names are those of their founder

AIDA (what do letters stand for?)

A= Attention: Do customers know about us? I= Interest: Would customers consider us? D= Desire: Do customers want us and look for us? A= Action: Do customers buy us, talk and post about us?

Endorsements

Ads that feature a spokesperson on behalf of the brand

Marketing campaign/comms

Advertising (tv, radio, print), digital, point of sale, events, PR

"Incrementally new" products

An improvement over a previously launched product. Ex. laptop

Credence qualities

Are difficult to assess even post-consumption, so you have to believe they are good. (trusting your doctor)

Maturity stage goal (Product life cycle)

Attract additional new buyers

Search qualities

Can be evaluated prior to purchase (seeing the merchandise)

Celebrity endorsement

Company wants positive associations to transfer to the brand

Concept testing

Concept is developed and tested with customers. 1. Concept statement 2. Concept board 3. Product prototype

Category extensions

Different product line (breadth)- Nike

Breadth

Different product lines

Growth stage goal (Product life cycle)

Encourage product loyalty

Influencer Endorsements

Endorses brands on social media

Affect Advertising

Enhancing attitudes and positive associations about the brand.

Seasonal media

Infrequent and focused on the preterm season for the product (holiday, back to school)

Services are tangible or intangible?

Intangible- you do not take home a concrete product.

"New to the world" products

Inventions that create a new category of products. Ex. flip phone *Not many "new to the world" innovation*

Brand extensions

Leverage brand's good name to get customers to buy something new

Bottom up (outside-in or co-creation)

New products created "with the customer" Feedback from outside can come throughout the process, common in marketing-oriented companies, Marketing is involved throughout the New Product Development process, typically leading it.

Ingredient branding

One company and product is the primary host and the other adds value to the host - Intel inside

Experience attributes

Ones that need some trial or consumption before evaluation.

Decline stage goal (Product life cycle)

Preserve as much profitability as possible

Depth

Products within the product line

Rank

Provides the pieces of content that will best answer a searcher's query.

Expert endorsements

Purchase is less risky because of advice of a knowledgeable, credible person.Ex. doctor

GRP's

Reach X Frequency

Continuous media

Regularity in ad exposure depending on purchase cycles

Occasional media

Run ads from time to time

Line extensions

Same product line (depth)- Ben and Jerrys

Testimonial Endorsements

Satisfied customer that customers can relate to

Perishability

Services are more perishable than goods.

Product Mix

The companies assortment of products

Focus Groups

The market research technique that brings together a small group from the target market to gain feedback on a new product or marketing program - 8-10 target customers - Gives early feedback on a topic - Qualitative research

User journeys

The pathway a person follows as they discover a product, service, or brand, learn about it, consider spending money on it, and then make a decision.

Retargeting

The process of targeting users who have previously accessed a website, browsed an eCommerce store, or made a purchase online.

Co-Branding

Two companies collaborate in a joint venture to create a good or service. - Cole Haan shoes with Nike Air technology

Behavior Advertising

Ultimately encouraging the desired behaviors. Ex. purchase clicks