BA Chapter 12- Marketing strategy
specialty products
require greater research and shopping effort; consumers unwilling to accept a substitute. Such as ethnic foods, automobile, designer clothing and shoes.
Price
- A key element in the marketing mix as it related directly to revenue and profits. - Probably the most flexible variable; can be sey of changed in a few minutes.
Marketing Statement
- Description of the target market - Marketing Mix elements - Sales and profit goals.
Two major categories of brands are
1. Manufacturer brands: - Initiated and owned by the manufacturer to identify products from the point of purchase - ex: Sony, Texaco. 2. Private distributor brands: - May cost less then manufacturer brands, they are owned and controlled by a wholesaler or retailer. - ex: Great value (Walmart)
Developing marketing strategies steps
1. Marketing strategy 2. Marketing statement 3. Business analysis
What makes a product succeed?
1. They are able to meet the need or solve a problem better than products already available. 2. They add variety to the product selection currently on the market.
Pricing Objectives
- Specify the role of price in an organization's marketing mix and strategy. - 4 common pricing objectives: + maximizing profits. + boosting market share. + maintaining the status
Packaging
- The external container that holds and describes the product; influences consumers' attitudes and their buying decisions. - Provides: protection, economiy. convenience and promotion.
Labeling
- The presentation of important on a package; closely associated with packaging. - Contains: ingredients, nutrients facts, warnings, instructions and manufactures' address.
Marketing strategy
- a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers. - consists of: + the selection and analysis of a target market. + the creation and maintanence of an appropriate marketing mix (a combination of product, price, distribution, and promotion developed to satisfy a particular target market)
- the most valuable vrand worldwide, - owns a variety of brands: search engine Google, web browser Chrome, video sharing site YouTube, and social networking site Google+
Generic products (another type of brand that has developed)
-Products with no brand name at all that often come in plain simple packages that carry only the genetic name of product. -Appeal to customers willing to sacrifice quality or product consistency to get a lower price. - ex: peanut butter, tomato juicy, aspirin, dog foods.
Why are brands important to consumers?
1. Brands provide peace of mind. 2. Brands save decision-making time. 3. Brands create difference, 4. Brands provide safety. 5. Brands add value. 6. Brands express who we are. 7. Brands give consumers a reason to share.
Calculating the Value of a Product
1. Identify target customers. 2. Identify their best alternative. 3. Determine the product's difference. 4. Calculate value based on its differentiation. - Almost anything of value can be assessed by a price. - Consumers vary in their response to price. - The product's perceived value in the marketplace added to the production costs help determine price.
Stages of Product Life Cycle
1. Introduction stage: marketers focus on making consumers aware of the product and its benefits. 2. Growth stage: the firm tries to strengthen its market position by emphasizing benefits. 3. Maturity stage: severe competition and heavy costs. 4. Decline stage: firms may eliminate models, cut costs and finally phase out products.
New product process
1. idea development: new ideas come internally from marketing research or employees and from external sources such as ad agencies, consultants and customers. 2. new idea screening: management looks at company's resources and ability to produce and market the product; most ideas are rejected in this phase. 3. business analysis: analyze the product's affects on sale, costs and profits. 4. product development: the few products to reach this stage get prototypes and the development of a marketing strategy. 5. test marketing: a trial mini-lauch of a product in limited areas that represent the potential market. 6. commercialization: the full intriduction of a complete marketing strategy and the lauch of the product for commercial success.
Why do products fail?
1. poor design 2. priced incorrectly (too high or too low) 3. Ineffective promotion 4. Overestimation of market size 5. High development costs 6. Competition
Trademark
A brand registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm
Quality
Refects the degree to which a good, service, or idea meets the demands and requirements of customers. Quality products are often referred to as reliable, durable, easily maintained, easly used, a good value, or a trusted brand name.
Thousands of products are introduced each year
LESS than 10% succeed
The key to developing a marketing strategy is
Selecting a target market and maintaining a marketing mix that creates long-term relationships with customers.
product mix
all the products offered by an organization
The marketing mix
The marketing mix is the part of the marketing strategy that involves decisions regarding controllable variables. After selectiong a target market, marketers develop and manage the dimensions of the marketing mix to give their firm an advantage over competitors. Successful companies offer at least one dimension of the marketing mix that surpasses all compatitors. These companies must also maintain acceptable, and if possible distinguishable, differences in the other dimensions as well.
Brading is
The process of naming and identifying products. A brand is a name, term, symbol, design or combination that identifies a product. A brand name is the part that can ve spoken and consists of letters, words and numbers. A brand mark is the part of the brand that is a distinctive design.
Why are brands important to businesses?
They create a sustainable competitive advantage.
Business products
Used directly or indirectly in the operation or manufacturing processes of businesses Includes raw materials, equipment, and supplies,
Product line
a group of closely related product items that are treated as a unit because of similar marketing strategy, production or end-used considerations. ex: Colgate: toothpaste, toothbrushes, mouth wash, dental floss.
Business Analysis
a review of the sales, costs, and profit projections to find out whether they satisfy the company's objectives.
convenience products
items bought frequently with no planning, such as eggs, milk, bread and newspapers
consumer products
products intended for household or family use, they are not intended for any purpose other than daily living.
shopping products
purchased after consumer has "shopped around" such as clothing, furniture, electronics.