Marketing Exam #2
•A good MIS _____ the information users would like to have against -What they really need -What is _____ to offer -(too much info is as bad as too little info: need to think about what you need not just what you can get) •_____ , _____, ____ and ____ information is costly. -Firms must decide whether the ___ of the insight is worth the ____ (however it is difficult to asses these things)
Balances - -feasible Obtaining, analyzing, storing, and delivering -value ; cost (difficult to asses value and cost)
-Factors impacting pricing strategies: --> Boom or recession --> ____ -->_____ _____ *Recession = like value for the $ pricing
- --> --> inflation --> interest rates
Distributing and Using Marketing Information: -MIS must make information readily available for decision making. -->_____ information for decision making (performance reports, intelligence updates, and reports on the results of research studies) -->________ information for special situations (trouble w large customer: may want summary of account sales) -Intranets (inside) and extranets (outside: suppliers, customers, etc.) facilitate the information-sharing process. --> Incr allowing key customers and value-network members to access account, product, and other data on demand through extranets
- --> routine --> non-routine
International Pricing: -Price decisions of international companies: --> Set a ______ worldwide price --> Adjust prices to reflect ____ _____ conditions and cost considerations -Prices charged depend on many factors: -->______ conditions --> ______ situations --> Laws and regulations --> Nature of the ____ and _____ system --> Consumer perceptions and _____ --> Company's ______ objectives --> Costs of______ in another country
- --> uniform --> local market conditions - --> economic --> competitive --> --> wholesaling and retailing --> preferences --> marketing --> selling
Marketing Consideration: Customer Buying Behavior --> Convenience Products: ____ purchase; ____ planning; ____ comparison; ___ customer involvement --> Shopping Products: ____frequent purchase; ____ planning and shopping effort; comparison of brands on ____ , _____, and ____
--> C: frequent; little; little; low --> S: less; much; price, quality, style
Research Instruments: -Questionnaire: most common used; can be admin in person, phone, online, email --> Closed-ended questions: include all the possible ____ , and _____ make choices among them. --------> provide answers that are easier to ____ and _____ --> Open-ended questions: allow respondents to answer in their ____ -___. -------> especially useful in ______ research, when the researcher is trying to find out what people think but is not measuring ____ ____ ___ think in a certain way.
--> answer, subjects make choices -------> interpret and tabulate --> own words -------> exploratory; how many people
-Alternatives to standard (extensive and costly) test markets --> ____ ____ markets: new products and tactics are tested among controlled panels of shoppers and stores (know being watched: act different) --> _____ ____ markets: measure consumer responses to new products + marketing tactics in lab stores or simulated online shop enviro (don't know being watched) -Reasons for using alternative test markets --> Reducing the ____ --> _____ up the process
--> controlled test markets --> simulated test markets -Reasons for using alt: --> costs --> speeding
Mail, Telephone, Personal Interviewing (Primary Data): -Personal interviewing methods include: --> ____ interviewing (3-4 times as much as telephone): flexible --> _____ interviewing (most popular): 6-10 ppl meet with trained moderator to talk about product -____ Groups: small groups of consumers who interact directly and informally with product designers without a focus group moderator present. --> For example, The Mom Complex uses "Mom Immersion Sessions" to help brand marketers understand and connect directly with their "mom customers" on important brand issues.
--> individual --> group -Immersion Groups
Marketing Information System (MIS) : -Consists of people and procedures to: --> Assess ______ needs --> Develop the needed _______ --> Help decision makers use the information to generate and validate ______ customer and _____ _____
--> information --> information --> actionable; market insights (what do we need; what do we have; what are we going to do with it)
Online Marketing Research: (collecting primary data): -Data is collected through: --> ____ surveys --> online ____ ____ --> Web-based ____ --> Tracking consumers ____ ____
--> internet --> focus groups --> experiments --> online behavior
Planning Primary data Collection: more expensive and time consuming but really give you the answer to the ? --> Research Approaches:_____, _____, experiment --> Contact Methods: mail, phone, _____, online --> Sampling Plan: sampling ____, sample ____, sampling _____ --> Research Instruments: _____, mechanical instruments
--> observation, survey, experiment --> personal --> unit; size; procedure --> questionnaire
Secondary Data: •Information that ____ ______ (most of the time its cheaper and faster than primary data) •Collected for another purpose •Sources: -Company's _____ ______ -Purchased from outside ______ (external) --> 1. _____ ______databases --> 2. _____ _____ engines: can also be very frustrating and _____
-already exists sourcs: -internal database -suppliers --> 1) commercial online --> 2) internet search; inefficient
-Company must consider several other factors in its external environment when setting prices. --> ____ (need to make a profit and the company wants their support) --> ______ (price gouging?) --> _____ concerns (what is right to do? - could face backlash if companies seem to be greedy): how do customers view you -----------> Short term sales, market share, and profit goals may need to be tempered by broader societal considerations
--> resellers --> government --> social concerns
Online marketing research (primary): -Internet-Based Surveys: --> Adv: ___ and ___ costs; more ____ and easier to ____and less _____ --> what type of research: -Online focus group: --> what type of research: --> see, hear, react to each other in real-time, face-to-face discussions -BOTH quantitative and qualitative Internet-based research have disadv: --> ____ who's in the online sample --> Overcome sample and context problems: use ___-___ communititeis and ____ panels. Also developing own custom ____ ____
--> speed and low costs; engaging, complete, less intrusive --> quantitative -online focus: --> qualitative --> -BOTH --> controlling --> opt-in ; respondent . social networks
Major considerations in setting prices: -3 major pricing strategies: --> customer ____ -____ pricing --> ____-_____ pricing -->______-_____ pricing. - If customers perceive that a product's price is greater than its value, they won't buy the product. If the company prices the product below its costs, profits will suffer. Between the two extremes, the right pricing strategy is the one that delivers both value to the customer and profits to the company.
--> value-based --> cost-based --> competition-based
8 major steps of new product development process: -New product development starts with good new product ideas. A company typically generates hundreds or even thousands of ideas to find a few good ones. The remaining steps reduce the number of ideas and develop only the best ones into profitable products. -1) idea ______ -2) idea _______ -3) concept ____ and _____ -4) marketing _____ _____ -5) business _____ -6) product _______ -7) test _____ -8) _______
-1) idea generation -2) idea screening -3) concept development and testing -4) marketing strategy development -5) business analysis -6) product development -7) test marketing -8) commercialization
-_____: is a name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service. Consumers view it as an important part of a product, and it can add value to a consumer's purchase. --> Names help consumers identify products that might benefit them. They also say something about product ____ and _____ -_____: involves designing the container or wrapper for a product. Increased competition means that packages must now perform many sales tasks—from _____ buyers to communicating brand positioning to closing the sale. --> 1) protect the product; 2) promote the product -_____: help to identify and describe the product or brand as well as promote the brand, support its positioning and engage customers. -The first step in designing product support services is to _____ customers periodically. Once the company has assessed the quality of various support services, it can take steps to fix problems and add new services that will both delight customers and yield profits to the company. --> Are their too many ppl, do you need more ppl bc a lot of ppl are on hold for a while; things to help consumers get something fixed or offer longer warranty
-Brand --> quality and consistency -Packaging: attracting -Labels -survey
-A brand with high brand equity is a very valuable asset. ____ ____ is the total financial value of a brand. --> High brand equity provides a company with many competitive advantages. --> A powerful brand enjoys a high level of consumer _____ _____ and loyalty. -A powerful brand forms the basis for building strong and profitable customer relationships. The fundamental asset underlying brand equity is ****______ ______: the value of customer relationships that the brand creates. --> The proper focus of marketing is building _____ _____, with _____ management serving as a major marketing tool. -According to one estimate, the brand value of Google is a whopping $159 billion and Apple is at $____ billion. (246 bilion v 235 billion???)
-Brand Value --> --> brand awareness -*** Customer Equity: --> customer equity; brand management -148 billion
Step 5 and 6: Business Analysis and Product Development: -Business analysis: A review of the sales, costs, and profit _____ for a new product --> To find out whether these factors satisfy the company's _____ --> If the projections satisfy company objectives : product can move to product development stage -Product development: Developing the product concept into a ____ _____ --> To ensure that the product idea can be turned into a ____ market offering --> R &D will develop and test one or more physical versions of the product concept; hopes to design a prototype that will satisfy + excite consumers and can be produced ____ and at budgeted costs
-Bus Analysis: projections --> objectives -Product development: physical product --> workable --> quickly
-Marketing Consideration: Customer buying behavior --> Specialty Products: ___ brand preference and loyalty; ___ comparison of brands; ___ price sensitivity --> Unsought: _____ product awareness -Marketing Consideration: Price --> Specialty: ___ price --> Unsought: ____ -Marketing Consideration: Distribution --> Specialty: ____ distribution in few outlets --> Unsought: ______ -Marketing Consideration: Promotion --> Speciality: _____ targeted promotion by produce and reseller --> Unsought: ____ advertsising and personal selling -EXAMPLES: --> S: luxury goods, Rolex --> U: Life insurance and tombstones
-Customer buying --> S: strong; little; low --> U: little -Price --> S: high --> U: varies -Distribution: --> S: exclusive --> U: varies -Promotion: --> S: carefully --> U: aggressive
-______: is a currently accepted or popular style in a given field. --> For example, the more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s and 2010s. -->Fashions tend to grow ____, remain popular for _____ , and then decline _____
-Fashion --> --> grow slowly; remain popular for a while; and then decline slowly
MATURITY: -Sales: ____ -Costs: ____ -Profits: _____ -Customers: ____ -Competitors: ____ -Marketing Objectives: -Product: diversify ___ and ____ -Price: to ____ or ___ competitors -Distribution: build more ____ distribution **stress brand differences and benefits; increase sales promotion to encourage brand switching
-PEAK -low cost/ customer -HIGH -middle majority -stable # beginning to decline -max profit while defending market share -brand and models -match or beat -intensive
-MIS begins and ends with ____ _____ -The information users are _____ ____, internal and external _____, and others who need marketing information. -***Marketers start by assessing ____ _____ ____. Next, they develop _____ _____ using internal company databases, marketing intelligence activities, and ______ research. Finally, the MIS helps users to ____ and ____ the information to develop customer insights, make marketing decisions, and manage customer _____ and _____. ***
-Information users -marketing managers, partners -info needs; needed information; marketing research; analyze and use; engagement and relationships --> Start by assessing info needs (what do we need) --> then develop needed information (internal database, marketing intelligence / research) --> analyze it --> use it to make ppl buy the product
-______ factors --> A. Overall marketing strategy, objectives, and mix --> B. Organizational considerations •______ factors --> C. Market and D. demand --> E. Economy --> F. Impact on other parties in its environment
-Internal factors -External factors
-Line extensions: when a company extends ______ brand names to new forms, colors, sizes, ingredients, or flavors of an______product category. --> Introduce line extensions as a ____-_____, _____-_____ way to introduce new products. Or it might want to meet consumer desires for variety, use excess capacity, or command more shelf space from _____. --> KFC: 1st started out with just chicken breast: finger licking good à then add new chicken items -Brand extension: extends a _____ brand name to _____ or _____ products in a new category. It gives a new product instant recognition and faster ______. But an extension may also ______ the image of the main brand. --> The Nest: thermostat that google came up with; now a bunch of different Nest products --> cameras , locks
-Line extension: existing; existing --> low-cost, low-risk -Brand extension: existing; new or modified; acceptance;confuse
Major product line decision: involves product ____ ____, which is the number of items in the product line. - A company can expand its product line in two ways: line _____ and line _____ -Line filling: involves adding more items within the ____ _____ of the line. --> There are several reasons for product line filling: reaching for extra ____, satisfying dealers, using excess capacity, being the leading ____-____ company, and plugging holes to keep out competitors. -Line stretching: occurs when a company lengthens its product line beyond its ____ _____. --> The company can stretch its line downward, upward, or both ways. A reason for downward product line stretching is to plug a market hole that would attract a potential _____. The reason for upward product line stretching is to add _____ to the current product.
-Line length -line filling and line stretching -Line filling: present range --> profits; full-line -Line stretching: current range --> competitor; prestige
-Market-skimming pricing : ---> setting a high price for a new product to skim maximum ______ from the segments willing to pay the ____ price. ----> The company makes _____ but _____ profitable sales. ---> The product's quality and _____ must support its higher price, and enough buyers must want the product at that price. Second, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. Finally, competitors should not be able to enter the market _____ and undercut the high price. -Market-penetration pricing: ---> Setting a ____ price for a new product in order to attract a large number of buyers and a large market share. ---> The high sales volume results in falling ____, allowing companies to cut their prices even further. ---> First, the market must be highly ___ sensitive so that a low price produces more market growth. Second, production and distribution costs must _____ as sales volume increases. Finally, the low price must help keep out the competition, and the penetration pricer must maintain its low-price position. Otherwise, the price advantage may be only temporary
-Market skimming ---> revenues; high ---> fewer but more profitable ---> quality and image ; easily -Market penetration ---> low ---> costs; decrease
-Multibranding: way to establish different features that appeal to different _____ _____, lock up more reseller shelf space, and capture a larger market share. ****____ brand name; _____ product category --> A major drawback of multibranding is that each brand might obtain only a small _____ _____, and none may be very profitable. --> Pepsi: has many brands of soda : new is name (different names of soda) ; product category = existing carbonated soda -New brands: ____ brand; ___ product category --> For example, Toyota created the separate Lexus brand aimed at luxury car consumers and the Scion brand, targeted toward Millennial consumers.
-Multibranding: customer segments; **new brand name; existing product category --> market share -New brands: new brand; new product category
Research Approaches: -Observational research: Gathering _____ data by observing relevant _____, ____, and ____ --> _______ research: Sending trained observers to watch and interact with consumers in their natural environments -Survey research: Asking people questions about their _______, _______, _______, and buying behaviour --> best suited for gathering _____ info --> major advantage: _____ --> disadvantage: ____ -Experimental research: Selecting ____ groups of subjects, giving them different ______, controlling related factors, and checking for differences in group responses --> best for gathering ____ information --> explain ____ relationships
-Obs: primary; people, actions, situations --> ethnographic -knowledge, attitudes, preferences, buying behaviour --> descriptive info --> flexibility --> unwilling to respond -matched; treatments --> causal --> cause-and-effect
-Organization marketing: activities undertaken to create, maintain or change the attitudes and behaviors of ____ _____ toward an organization. --> Business firms sponsor ____ ____ or corporate image marketing campaigns to market themselves and polish their images. -Person marketing: activities undertaken to create, maintain, or change attitudes or behavior toward _____ ____. --> The skillful use of marketing can turn a person's name into a _____ brand. (Rachel Ray)
-Organization: target consumers --> public relations -Person: particular people --> powerhouse
Concept Development: -Developing a new product into ______ product concepts (different models of electric cars) --> Find out how ____ each concept is to customers --> Choose the best one
-alternative --> attractive
-Marketing Consideration: Price --> Convenience Products: _____ price --> Shopping Products: ____ price -Marketing Consideration: Distribution --> Convenience Products: ____ distribution --> Shopping: ____ distribution -Marketing Consideration: Promotion --> Convenience Products: ____ promotion by producer --> Shopping: ____ and personal ____ by both the produce and resellers -EXAMPLES: --> Convenience: toothpaste, magazines, detergent --> Shopping: major appliances, televisions, furniture, clothing
-Price --> C: low --> S: high -Distribution --> C: widespead --> S: selective -Promotion: --> C: mass --> S: advertising and personal selling
Diff types of samples: 2 categories: ____ and ____ samples -Probability Samples: --> Simple random sample: Every member of the population has a ____ and ____chance of selection. --> Stratified random sample: The population is divided into ____ ____ groups (such as age groups), and random samples are drawn from each group. --> Cluster (area) sample: The population is divided into ____ ____ groups (such as blocks), and the researcher draws a sample of the groups to ____. -Nonprobability samples: --> Convenience sample: The researcher selects the ____ ____ members from which to obtain information. --> Judgment sample: The researcher uses his or her _____ to select population members who are good prospects for _____ information. --> Quota sample: The researcher finds and interviews a ____ ____ of people in each of several categories. -When probability sampling costs too much or takes too much time, marketing researchers take nonprobability samples, even though their ___ ____cannot be measured. The best method to use depends on the needs of the research project.
-Probability and Nonprobability -Prob: --> known and equal --> mutually exclusive groups --> mutually exclusive; interview -NonProb: --> easiest population --> judgement --> prescribed # -sampling error
Idea Screening: RWW -R: Is it real? Is there a real need and desire for the product and will customers buy it? Is there a clear ____ ____ and will such a product satisfy the market? -W: Can we win? Does the product offer a sustainable _____ _____? Does the company have the resources to make such a product a success? W: Worth doing? Does the product fit the company's overall _____ strategy? Does it offer sufficient _____ potential? -The company should be able to answer yes to all three R-W-W questions before developing the new product idea further.
-R: product concept -W: competitive advantage -W: growth; profit
-The solution to price competition is: ______ _____: develop a differentiated offer, delivery, and image. --> Dick's customers can sample shoes on Dick's indoor footwear track, test golf clubs with an on-site golf swing analyzer -Managing Service Quality: can differentiate itself by delivering consistently _____ _____ than its competitors provide. Service providers need to identify what target customers expect in regard to service quality. --> Good service recovery can turn angry customers into ____ ones. -Managing Service Productivity: With their costs rising rapidly, service firms are under great pressure to increase service productivity. --> . They can train current employees better or hire new ones who will work _____ or more _____. --> They can increase the quantity of their _____ by giving up some _____. --> Harness the power of _______ However, companies must avoid pushing productivity so hard that doing so reduces quality.
-Service Differentiation: -Service Quality: higher quality --> loyal -Service Productivity: --> harder or more skillfully --> service; quality --> technology
4 Service Characteristics: -Service ________: means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. To reduce uncertainty, buyers look for signals of _____ ______. --> They draw conclusions about quality from the place, people, price, _____, and communications that they can see. -Service ______ : means that services cannot be separated from their providers, whether the providers are people or machines. --> Customer ______ makes provider-customer interaction a special feature of services marketing. Both the provider and the customer affect the service outcome. -Service _______: means that the quality of services depends on who provides them as well as when, where, and how they are provided. --> For example, within a Marriott hotel, one registration-counter employee may be cheerful and efficient, whereas another standing just a few feet away may be grumpy and slow. -Service ______: means that services cannot be stored for later sale or use. --> Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up.
-Service intangibility: service quality --> equipment -Service Inseparability --> coproduction -Service Variability: --> -Service Perishability
-Obtain new products in 2 ways: _____ ; new ____ _____ efforts --> Developing new products through the firm's own ____ and _____ efforts (or by acquisition - buying a company, or a patent) -New products are original products, product ______, product ______ and ____brands developed from own research -**New products : _____ or ______ different (6 month rule--> advertise it's new)** (toothpaste) -Creating successful new products requires: --> Understanding consumers, markets, and _______ --> Developing products that deliver _____ _____to customers -toothpaste: new color = NO; new cavity elimintation = YES
-acquisition; new product development --> research and development efforts -improvements; modifications and new brands -**functionally or significantly different -requires: --> competitors --> superior value
Secondary Data: •Advantages --> Low ____ --> Obtained ______ --> Cannot collect otherwise •Disadvantages --> Potentially _____ --> _______ --> Dated --> ________
-adv --> low cost --> quickly --> cannot collect otherwise (like data that is not available directly or too expensive to collect) -disadv --> irrelevant --> inaccurate --> dated --> biased
Big Data and Marketing Analytics: -Marketing analytics consists of the ____ tools, technologies, and processes by which marketers dig out meaningful ____ in big data to gain customer ____ and gauge marketing performance.
-analysis tools; patterns; insights
-Product: is anything that can be offered to a market for _____, acquisition, use, or ______ that might satisfy a want or need. -DEFINITION: services, _____ , persons, places,_______ , and ideas --> or a mixture
-attention; consumption -events; organization
Desirable qualities for a brand name should be: -Based on the product's ____ and ____ (Slimfast) -Easy to pronounce, recognize, and ______ (Tide) -______ (Nest) and ______ (Amazon) -Easily translated into foreign languages (Coca-Cola) -Capable of _____ and legal protection
-benefits and qualities -remember -Distinctive and extendable - -registration
1. Customer Value-based Pricing: -Based on ______ perceptions of value rather than on the _____ cost as a key to pricing -Price is considered before the marketing program is set. -1st asses customer needs and value perceptions; then sets its ____ _____ -Types of value-based pricing: --> ____-_____ pricing: offers just the right combination of quality and good service at a fair price ----------> Introducing less expensive versions of est. brand name products or new lower price lines ----------> Redesigning existing brands to offer > quality for a given price or same quality for less --> ____-____ pricing: attaching a value-added features and service to differentiate a company's offers and then charging higher prices (more memory)
-buyers; sellers - -target price -types: --> good-value --> value-added
-Product line: is a group of products that are ______ related because they function in a similar manner, are sold to the same _____ ______, are marketed through the same types of _____ , or fall within given price ranges. --> For example, Nike produces several lines of athletic shoes and apparel.
-closely; customer groups; outlets
Types of Cost-Based Pricing: -____-____ pricing (markup pricing) --> Adding a standard markup to the cost of the product --> Popular bc: 1) sellers are more certain about ____ than about ____ --> by tying price to cost: sellers simplify pricing. 2) when all firms in industry use this pricing method: prices tend to be similar and price ______ minimized -____ _____Pricing (Target return pricing): -1. Setting price to break even on the costs of making and marketing a product, or 2. setting price to make a target return -Break even chart: shows total cost and revenue expected at different sales volume levels
-cost-plus pricing: --> --> 1) costs than demand; 2) competition -Break even Pricing:
Today's Big Data: -presents marketers with both big opportunities and big challenges. --> Companies that effectively tap this glut of big data can gain rich, timely _____ _____. Far from lacking information, most marketing managers are ______ with data. --> For example, when a large consumer brand such as Coca-Cola online discussions about its brand in social media posts, it might take in a stunning 6 million public conversations a day, more than 2 billion a year.
-customer insights -overloaded
DECLINE: -Sales: _____ -Costs: _____ -Profits: _____ -Customers: _____ -Competitors: _____ -marketing objectives : -product: phase out ____ ____ -price: ____ price -Distribution: go _____--> phase out unprofitable outlets **reduce advertising to retain hard core loyals; reduce sales promotion to min. level
-declining -low cost/ customer -declining -laggards -declining # -reduce expenditure and milk the brand -weak items -cut price -go selective
-Measure of the sensitivity of ____ to changes in _____ --> ______ demand: Demand hardly changes with a small change in price. --> ______ demand: Demand changes greatly with a small change in price. (more common today, as consumers find it easy to get price info from the internet)
-demand --> inelastic --> elastic
-Reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product -Adjusting prices to allow for differences in customers, products, or locations -Adjusting prices for psychological effect Temporarily reducing prices to spur short-run sales -Adjusting prices to account for the geographic location of customers -Adjusting prices continually to meet the characteristics and needs of individual customers and situations -Adjusting 4 international markets
-discuont and allowance -segmented -psychological -promotional -geographical -dynamic -international
-Psychological pricing: refers to pricing that considers the psychology of prices and not simply the _____. The price is used to say something about the product. -Another aspect of psychological pricing is _____ prices: which are the prices that buyers carry in their minds and refer to when looking at a given product. --> Might be formed by noting current ____, remembering past ____, or assessing the buying situation. Sellers can influence or use these consumers' reference prices when setting price.
-economics -Reference Prices --> prices; prices
Service Profit Chain: links service firm profits with ____ and ____ satisfaction -The chain consists of five links: 1) _____ _____ quality 2) satisfied and productive ____ ____ 3) Greater _____ ____ 4) Satisfied and loyal ______ 5) Healthy service _____ and _____
-employee and customer - 1) internal service 2) service employees 3) service value 4) customers 5) profits and growth
Research Plan: •Outlines sources of _____ ____ •Spells out --> Specific research approaches --> ______ methods --> _______ plans --> Instruments that researchers will use to gather new data -Research objectives must be translated into specific information needs. Suppose that Chipotle wants to know how consumers would react to the addition of drive-thru. The proposed research might call for the following specific information: •Demographic, economic, and lifestyle characteristics of current Chipotle customers •Characteristics and _____ _____ of the broader population of fast-food and fast-casual diners •____ on the Chipotle customer experience •Chipotle employee reactions to drive-thru service •Forecasts of both inside and drive-thru sales and profits
-existing data --> --> contact --> sampling --> -characterisitcs and usage patterns -impact
-_____: temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. -->May be part of an otherwise normal life cycle. Or it may comprise a brand's or product's ____ life cycle. Pet Rocks are a classic example.
-fad --> entire (rises quick; spikes; then rapid decline)
3 levels of product:
1) core customer value 2) actual product 3) augmented product
Consumer products: bought by ____ consumers for ______ ______ . --> Consumer products include _____ products, _____ products, specialty products, and _____ products. --> These products differ in the ways consumers ___ them and, therefore, in how they are _____ .
-final; personal consumption --> convenience; shopping; speciality; unsought --> buy; marketed
Techniques for Competitive Marketing Intelligence: •Observing consumers _____ •______ the company's own employees •________ competitors' products •Conducting _____ research •Monitoring ____ ____buzz -Good marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands.
-firsthand -quizzing -benchmarking -online -social media
Managing New Product Development: -Requires a ______ approach: --> ____-______ new product development --> ____-_____ new product development -_____ new product development Holistic: all the parts are interconnected and should be viewed as a whole, and not separate parts
-holistic approach: --> customer-centered --> team-based --> systematic
-Industrial products: products purchased by ___ or ____ for further _____ or for use in _____ a business. -The three groups of industrial products and services are: ____ and ____, _____ items, and _____ and _____.
-individual or orgnaization; processing; conducting -marterial and parts; capital items (assembly line); supplies and services
Information needed to develop makerting information can be obtained from: - - -
-internal databases -competitive marketing intelligence -marketing research
Mail, Telephone, and Personal Interviewing (____ data): -Mail questionnaires are used to collect ____ amounts of information at a ___ cost per respondent. (___ and ___ return) but may give more honest answers -Telephone interviewing gathers information _____, while providing _____ . (more ______ than mail) --> introduces ____ ____: the way interviewers talk, how ask questions, other differences that may affect answers
-large; low (expensive and low return) -quickly, flexibility (expensive) --> interviewer bias
INTRODUCTION: -Sales: ____ -Costs: ____ -Profits: ____ -Customers: ____ -Competitors: ____ -Marketing objectives: -Product: offer a ___ product -Price: use ___-____ -Distribution: built ____ _____ **product awareness among early adopters; use heavy sales promotion
-low -high cost/ customer -negative -innovators -few -create product awareness and trial -basic product -cost-plus -selective distribution
Customer Relationship Management (CRM): -utilized to _____ detailed information about individual customers and Carefully manage customer ____ _____ to maximize customer loyalty -Consists of software and analysis tools that: --> Integrate _____ _____ from all sources --> Analyze ____ in depth --> _____ the results -By using CRM to understand customers better: companies can provide higher levels of customer service and develop deeper customer relationships. --> CRM provides a 360-degree view of the customer relationship. Firms can use CRM to pinpoint ____-___ customers, target them more effectively, ___-___ the company's products, and create offers ____ to specific customer requirements.
-manage; touch points -software: --> customer information --> data --> apply --> high-value customers; cross-sell; tailored
-_____ decides who should set prices. -Varies depending on the ____ and _____ of company --> ____ companies—Top management --> ____ companies—Divisional or product managers --> Industries with price as the key factor—_____ departments (report to the marketing department of top management)
-management -size and type --> small --> large --> Pricing departments
Defining the Problem and Research Objectives (usually hardest step): -______ best understands the decision for which information is needed, whereas the ______ best understands marketing research and how to obtain the information. -The statement of the problem and research objectives guides the entire research process. The manager and the researcher should put the statement in writing to be certain that they agree on the purpose and expected results of the research.
-manager; researcher
Interpreting and Reporting Findings: -Market Researcher: --> ____ the _____ --> Draw _____, and --> _____ _____ to management. -The best research means little if the manager blindly accepts faulty interpretations from the researcher. In many cases, findings can be interpreted in different ways, and discussions between researchers and managers will help point to the best interpretations. ***-Thus, managers and researchers must: --> work together closely when _____ research results, and --> both must share responsibility for the ____ ____and resulting decisions.
-market researcher: --> interpet the findings --> conclusions --> report findings -together: --> interpreting --> research process
Research Instruments: -Mechanical instruments: used to monitor ____ ____. They include: --> ____ meters (Nielson for TV: track whether watch commercials or not, etc.) --> _____ ____(barcodes: can send products and info to you if enter information) --> Neuromarketing: measuring ____ activity to learn how consumers feel and respons (MRI, blood pressure, etc.: doing the experiments -> do you stay on one slide more than another, are you bored?)
-monitor consumer behavior --> people meters --> checkout scanners --> neuromarketing: brain acitivity
Manufacturer has 4 Sponsorship Options: -______ brands: Marketed under the manufacturer's own name (Lipton Tea; Kellogg's) -Store brands (private brands): Created and owned by a _____ of a product or service (Acme brands) --> Compete with store brands: national brands sharpen _____ _____- esp with frugal consumers -_________: Use names and symbols created by other companies or well-known movie characters or celebrities for a fee (Mizuno; Louisville Slugger) ; make sure do quality check often -___________: Use the established brand names of two different companies on the same product (Taco Bell and Doritos) --> broader consumer appeal +brand equity
-national brands -store brands: reseller --> value propositions -licensing -co-branding
Marketing Information: -Customer ____ and ____ for buying are difficult to determine -Required by companies to obtain customer and market ______ -Generated in great quantities with the help of information technology and _____ sources -Marketers don't need ____ info: they need ____ info -The real value of marketing research and marketing information lies in ________—in the customer insights that it provides.
-needs and motives -insights -online -more: better -how it is used
Step 4: Marketing Strategy Development: -Initial marketing strategy for a ____ _____ -Three parts of the marketing strategy statement: 1) Describes the ____ ____, planned value proposition (an innovation, service, or feature intended to make a company or product attractive to customers), _____ , market-share, and profit _____ 2) Determines product's planned price, distribution, and marketing _____ 3) Develops ___-____ sales, profit goals, and _____ _____strategy
-new product -3 parts: 1) target market ; sales; profit goals 2) budget 3) long-run sales; marketing mix
Step 8: commercialization: -*Commercialization: Introducing a ___ ____ into the market --> face high costs -Considerations for launching a new product: --> ______ to launch: ------> A: If the new product will eat into the ____ of other company products, the introduction may be delayed ------> B: if can be improved further or ______ down --> may wait till next year; and ------> C: company may push to introduce its new product ____ --> ______ to launch ------> Single location, region, national market, or international market
-new product -considerations: --> when to launch: -----> A: sales -----> B: economy -----> C: sooner --> Where to launch:
Competitive Marketing Intelligence: •Offers insights about consumer____ and their association with the brand •Provides early warnings of _____ _____ and potential competitive strengths and weaknesses •Helps firms to protect their own ______ •Raises _____ ____(so much info is available there is no need to break the law) -tracking consumer convo abt competing brands often as revealing as tracking convo about company own brand -obtain impt intelligence from ____, ____, and key customers
-opinions -competitor strategies -information -ethical issues -suppliers, resellers, and key customers
In addition to tangible products and services, marketers have broadened concept of a product to include other market offerings: - - - -
-organizations -persons -places -ideas
-Pricing decisions must coordinate with ____, _____, and distribution decisions. -_____ may be based on price. --> Target costing starts with an ideal selling price, then targets costs that ensure the price is met. -______ positions can be created to differentiate the marketing offer. (deemphasize price and differentiate the marketing offer to make it worth a higher price)
-packaging, promotion -positioning -nonprice
-Brand: represent consumers ____ and ____ about a product and its performance -Brand Equity: differential effect that knowing the ____ ___ has on customer response to the product and its _____ -Positive brand equity: when consumers react more favorably to the ____ than to an _____ version of the same product
-perceptions and feelings -brand name; marketing -brand; unbranded
-Place marketing: involves activities undertaken to create, maintain, or change attitudes or behavior toward particular ____ -Ideas: social marketing --> which consists of using _____ business marketing concepts and tools to create behaviors that will create individual and societal ____-_____. --> Social marketing involves much more than just _____ . It involves a broad range of marketing strategies and marketing mix tools designed to bring about beneficial social change.
-place -social marketing: traditional; well-being --> advertising
Managing Brands: -Communicate the brand's ________ (major brand marketers spend lots on advertising to create brand awareness and build preference and loyalty) --> need everyone in the company to live the brand -Manage all brand _____ points -Train employees to be ______ _____: can go further and encourage distributors and dealers to serve customers well -_____ the brand's strengths and weaknesses --> brand audit may turn up brands that need more support, ones that need to be dropped, or repositioned bc of changing customer preference or new comp
-positioning -touch points -customer centered -audit
Demand curve: # of units the market will buy in a given time period at different ___ (2 axises: ____) -Demand and price are _____ related—that is, the higher the price, the _____ the demand. --> ___ sloping --> Understanding a brand's price-demand curve is crucial to good pricing decisions. Most companies try to measure their demand curves by estimating demand at different prices. The type of market makes a difference in demand curves.
-prices (price and quantity) -inversely; lower --> downward
2) Cost-Based Pricing: -Based on the costs of ____, _____, and _____ the product plus a fair rate of return for effort and ____ -Lower costs: lower prices = smaller margins but greater sales and profits -Higher costs: add value and claim higher prices and margins -Types of costs: --> Fixed costs (overhead) (rent) --> Variable costs (vary directly with the level of production): total varies --> Total costs (total of fixed and variable costs)
-producing, distributing, and selling; risk
-______ ______ is an idea for a possible product that the company can see itself offering to the market. -_______ _______t is a detailed version of the new product idea stated in meaningful consumer terms. -_______ _______is the way consumers perceive an actual or potential product.
-product idea -product concept -product image
Product Mix Decisions: -A company can increase its business in four ways. It can add new ____ _____, widening its product mix. The company can lengthen its existing product lines to become a more ___-____ company. It can add more versions of each product and thus deepen its _____ ____. Finally, the company can pursue more product line consistency or less depending on whether it wants to have a strong ______ in a single field or in several fields.
-product lines; full-line; reputation
PRICE: -Amount of money charged for a ____ or _____ -Determines a firm's ______ and ______ -_____ of 4 P's to change -Only element in the marketing mix that produces ______; all other elements represent cost)
-product or service -market share and profitability -easiest -revenue
-The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs is known as: ______ ______ -______: is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.
-product quality -TQM - Total Quality Management
-____ competition (many, many competitors, same products, no control over pricing (corn)) -_____ competition (many competitors), prices can vary based on differences in product, some control over price (jeans)) -_____ competition (few competitors, prices vary, can have substantial control over prices (auto, airline, oil companies)) -____ monopoly (total control over pricing, no competitors, illegal in the US)
-pure -monopolisitc -oligopolistic -pure monopoly
GROWTH: -sales: _____ -costs: _____ -profits: _____ -customers: _____ -competitors: _____ -Marketing objectives: -Product: offer product ____, service, and ____ -Price: price to ____ market -Distribution: build _____ distribution **build engagement and interest in the mass market; reduce to sales promotion
-rapidly rising -avg cost/customer -rising -early adopters -growing # -maximize market share -extensions, service, warranty -penetrate -intensive
Industrial Products: -Materials and parts: include ____ materials as well as _____ material and parts. Raw materials consist of ____ products and natural products. Manufactured materials and parts consist of _____ materials and parts. -Capital items: aid in the buyer's _____ or ______ , including _____ and accessory ______. --> Installations consist of major purchases such as buildings and fixed equipment. -Supplies and services. Supplies include operating supplies and ____ and maintenance items. Supplies are the _____ products of the industrial field because they are usually purchased with a minimum of effort or comparison.
-raw; manufactured; farm; component -production or operation; installations and accessory equipment -repair; convenience
Step 7: Test Marketing: -Introduces the product and its proposed marketing program into ____ _____ _____ (movies) -Gives the marketer an experience with marketing a product before ____ _____ -Tests the product and its ____ _____ - targeting and positioning strategy, advertising, distribution, pricing, branding + packaging, and budget levels -Testing takes ___, and costs can be high. (negative aspect)
-realistic market settings -full introduction -marketing program -time
-Product life cycle (PLC): the course that a product's ____ and _____ take over its lifetime. The PLC has five distinct stages. 1. _____ ______ : begins when the company finds and develops a new product idea. During this, sales are ____, and the company's ____ costs mount. 2. _________: is a period of slow sales growth as the product is introduced in the market. Profits are _____ in this stage because of the heavy _____ of product introduction. 3. ______: is a period of rapid market acceptance and increasing profits. --> great sales; reach MAX ______ 4. _____: is a period of slowdown in ____ ____ because the product has achieved acceptance by most potential buyers. -_____ level off or decline because of increased marketing outlays to defend the product against competition. --> profit start to fall; -_____ peak and then start to go down (everyone who wants a new phone will have it; sales go down: profits go down) 5. _____: is the period when sales ____ and profits ____. (sales eventually hit 0 and profit can lose money bc leaving it on shelf and not selling) -Profits start at 0: develop product --> goes down because of research and development ; Break even at start of growth; then make money from growth à decline
-sales and profits 1) Product Development: 0; investment 2) Introduction: nonexistent; expenses 3) Growth: MAX PROFIT 4) Maturity: slowdown sales growth -profits level off -sales peak 5)Decline: sales fall off and profits drop
Sampling Plan: -A _____ is a segment of the population selected to represent the population as a whole. -Decisions required for sampling design: --> Sampling ___ - People to be studied --> Sample ____- Number of people to be studied --> Sampling _____ - Method of choosing the people to be studied
-sample (to make accurate estimates) -->sampling unit --> sampling size --> sampling procedure
Online Behavioral and Social Tracking and Targeting: -Online listening: Provides valuable insights into what consumers are ____ or _____ about a brand --> provides the ___ and spontaneity of unsolicitied consumer opinions -Behavioural targeting: Uses online consumer tracking data to target _____ and _____ _____ to specific consumers (CVS: target ads based on what you buy) -Social targeting: Mines individual online social connections and conversations from ____ ____ ___ --> instead of just having a zappos shoe that you searched pop up (behavioral), you have an add for a specific pair bc a friend on twitter bought them (social)
-saying or feeling --> passion -advertisements and marketing offers -social networking sites -->
•A _______: is an activity, benefit, or satisfaction offered for sale; it is ______ and does not result in ownership of anything.
-service -intangible
Promotional Pricing: -Temporarily pricing products below the list price to increase _______sales -Forms of promotional pricing: --> _____ (increase sales and reduce inventory) and ____ event pricing (draw more customers) --> ____-_____ offers (online flash sale: buy urgency) and cash rebates (buy from dealer within specific time) --> ____-interest financing and longer warranties (reduce consumer prices) --> Free _____
-short run -forms: -->discounts; special event --> limited-time --> low-interest --> free maintenance
-Discount Pricing: a _____ reduction in price on purchases during a stated period of time or of larger quantities --> Cash (reduction if pay timely) , _____ (reduction if buy a lot), ______ (trade discount: selling, storing, record keeping), and seasonal discounts -Allowance Pricing: _____ money paid to retailers for an agreement to feature the manufacturer's products in some way (Coke in front of the store) --> ______-____ (car): price reduction for turn in old item when buy new and ______ allowances (Home Depot for sales support): price down to reward dealer for participating in advertising
-straight --> quantity; functional -allowance: promotional ----> trade-in ; promotional
The goal of competitive marketing intelligence: to improve _____ ____ ____ by understanding the consumer _____, assessing and tracking _______ actions, and providing early warnings of ______ and _____. DEFINITION Competitive Marketing Intelligence: systemic _____ , ____, and _____ of info (about consumers, competitors and dev in marketing enviro)
-strategic decision making; environment; competitors; opportunities and threats -monitoring, collection, and analysis of information
3) Competition- Based Pricing: -Setting prices based on competitors' ____, costs, prices, and _____ offerings -Company should ask several questions to assess competitors' pricing strategies: --> How does the company's market offering compare in terms of ____ _____? (with the competitor's offerings) --> How _____ are current competitors? --> What are their current _____ strategies?
-strategies; market offerings - --> customer value --> strong --> pricing
-_____: basic and distinctive mode of expression. --> For exampleL homes (colonial, ranch, transitional), clothing (formal, casual), and art (realist, surrealist, abstract). --> May last for generations, passing in and out of vogue. --> Has a cycle showing several periods of _____ interest.
-style --> --> --> several periods of renewed interest (goes up and down a little then up again --> curved)
PLC concept can be applied to what are known as ____, ____, and ____ (see figure 8.3)
-styles, fashions, and fads
Concept Testing: -Testing new product concepts with groups of _____ _____ (give you feedback) -Methods: --> Presenting the concepts to consumers _____ (picture) or _____(increase reliability of the concept test) --> Asking customers to respond by answering questions about their _____to the concepts --> answers help decide which concept has the strongest appeal
-target consumers -methods: --> symbolically or physically --> reactions
Team-Based and Systematic New Product Development: get new products to market more quickly -Team-based new product development: --> Various company departments work together, overlapping the steps in the product development process. (______________ teams) --> If one area hits snags, it works to resolve them while the team moves on --> Limits: org ____ and _____ -Systematic new product development (instead of _____ and _____): --> _____ _____ systems collect, review, evaluate, and manage new product ideas. (one step at a time - ideas will be more systemically developed, producing more new product success) --> 2 favorable outcomes: helps create _____ oriented company culture; yield _____ ____of new product ideas
-team based: --> cross-functional --> --> tension and confusion -systematic: (instead of compartmentalized and haphazard) --> innovation management systems --> innovation-oriented ; larger #
See breakeven figure 9.3 -At break-even point: total ____ = total _____
-total revenue = total cost
-Segmented pricing: company sells a product or service at ____ or more prices, even though the difference in prices is not based on differences in _____. Segmented pricing takes several forms. -->_____-segment pricing: different customers pay different prices for the same product or service. (senior discount) --> _____ _____ pricing: different versions of the product are priced differently, but not according to differences in their costs. (seats in an airplane) -->____ -_____ pricing: involves a company charging different prices for different locations, even though the cost of offering each location is the same. (wine in wealthy town) --> ____-_____ pricing occurs when a firm varies its price by the season, the month, the day, and even the hour. For example, movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts.
-two; costs --> customer --> product form --> location-based --> time-based
Step 2: Idea Screening: -Screening new product ideas to spot good ones and drop poor ones as soon as possible (save money) -Ways of screening new ideas: --> New idea ____-____ reviewed by a committee --------> describe the product, value proposition, target market, competition -------->est. market size, product price, development time and costs, manu. Costs, rate of return -------->committee evaluate against set of general criteria --> R-W-W framework—____, ____ ,_____
-ways --> write-up --> RWW: real, win, worth doing
-____: # of different product lines the company carries -____: total # of items a company carries within its product lines -____: # of versions offered for each product in the line -_____: relativity of the various product lines in end use, production requirements, dsitribution channels, or some other aspect
-width -length -depth -consistency
Research Plan Contin: •Should be presented in a _____ proposal •Topics covered in a research plan: --> Problems and research objectives --> Information to be obtained --> How_____ will help decision making --> Estimated _____ costs --> Type of _____ required (can call for gathering secondary data, primary data or both)
-written --> --> --> results --> research --> data
-3 Types of Service Marketing: 1) 2) 3) (see figure ) -Internal marketing: means that the service firm must orient and motivate its _____ -_____ employees and supporting service employees to work as a team to provide customer satisfaction. --> For example, Zappos starts by hiring the right people and carefully orienting and inspiring them to give unparalleled customer service. -Interactive marketing: service quality depends heavily on the quality of the _____ -_____ interaction during the service encounter. In services marketing, service quality depends on both the service deliverer and the quality of delivery. --> All new hires at Zappos —at all levels of the company—complete a four-week customer-loyalty training regimen. -External Marketing: 4 P's
1) Internal Marketing 2) Interactive marketing 3) external marketing -Internal: customer-contact -Interactive: buyer-seller
3 Levels of Product: 1) Core customer value: deals with what is _____________. -->People who buy a iPad are buying entertainment, self-expression, productivity, and connectivity with friends and family—a mobile and personal window to the world. 2) Actual Product: need to develop product and service 1) _______ 2) a _____, 3) a ______ level, a 4) ___ _____, and 5) _______. 3) Augmented product: around the core benefit and actual product by offering additional consumer services and benefits. --> 1) ____ and _____ --> 2) Product _____ --> 3) ____-_____ service --> 4) _______
1) bought by the customer 2) features; design; quality level, brand name, packaging 3) delivery and credit; product support; after-sale service; warranty --> For example, when consumers buy an iPad, Apple and its resellers also might give buyers a warranty on parts and workmanship, quick repair services when needed, and a Web site to use if they have problems or questions. Apple also provides access to a huge assortment of apps and accessories.
Major Brand Strategy Decisions: 1) ___________: attributes; benefits; beliefs and values 2) ___________: Selection; protection 3) ___________: manufacturer's brand; private brand; licensing; co-branding 4) ___________: line extensions; brand extensions; multibrands; new brands
1) brand positioning 2) brand name selection 3) brand sponsorship 4) brand development
5 Geographical Pricing: 1) FOB-origin pricing: the goods are placed free on board a carrier, at that point the title and responsibility pass to the _____, who pays the freight from the factory to the destination. 2) ____-delivered pricing: is the opposite of FOB pricing. Here, the company charges the same price plus freight to all customers, regardless of their location. The freight charge is set at the average _____- cost. 3) Zone pricing: falls between FOB-origin pricing and uniform-delivered pricing. The company sets up two or more zones. All customers within a given zone pay a ____total price; the more distant the zone, the higher the price. 4) ____-____ pricing: the seller selects a given city as a "basing point" and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped. 5)_____-_____ pricing: the seller absorbs all or part of the actual freight charges to get the desired business. --> Used for market penetration and to hold on to increasingly competitive markets.
1) customer 2) uniform -delivered 3) zone pricing: single 4) basing-point: 5) freight-absorption
-measure brand strength along 4 consumer perception dimension: 1) ________ (what makes it stand out) 2) ________ (does it meet consumer needs) 3) _________ (what do consumers know about the brand) 4) ________ (How highly consumers regard the brand)
1) differentiation 2) relevance 3) knowledge 4) esteem
Defining the Problem and Research Objectives: -3 types of research: 1) 2) 3)
1) exploratory 2) descriptive 3) causal
Product and Service Decisions: -3 levels:
1) individual product decisions 2) product line decisions 3) product mix decisions
Marketing Research Process (4 Steps): 1) defining the_____ and ____ ____ (the most difficult but also the most important) 2) ______ the research plan for collecting information 3) _______ the research plan - collect and analyze 4) interpreting and reporting the _____.
1) problem and research objectives 2) developing 3) implementing 4) findings
- Marketers can position brands at any of three levels. 1) Lowest level: position the brand on _____ _____. 2)Next level: brand can be better positioned by associating its name with a _______ ______. 3) Final level: the strongest brands go beyond attribute or benefit positioning. They are positioned on strong _____ and _____ and engage customers on a deep, emotional level.
1) product attributes 2) desirable benefit 3) beliefs and values
Marketing Tasks for Service Companies: Increase their.... 1) 2) 3)
1) service differentiation 2) service quality 3) service productivity
Cost-Based Pricing: 1) design a good product --> 2) determine ____ costs --> 3) set price based on ____--> 4) convince buyers of products _____ Value-Based Pricing: 1) assess customer ____ and ____ perceptions --> 2) set target ___ to match customer perceived value --> 3) determine ____ that can be incurred --> 4) design product to deliver desired value at target price
2) product; 3) cost; 4) value Value 1) needs and value; 2) price; 3) costs; 4)
_______ ______: Fresh marketing information-based understandings of customers and the marketplace --> Become the basis for creating customer ____, _____ and ______ •______ _____ teams collect customer and market information from a wide variety of sources, ranging from traditional research studies to mingling w customers to monitoring online convo
Customer Insights --> value, engagement and relationships -customer insight teams
__________________: give managers the right information, in the right form, at the right time and help them to use this information to create customer value, engagement and stronger customer relationships.
Marketing Information System (MIS)
Individual Product Decisions:
Product attributes --> branding --> packaging --> labeling and logos --> product support services
Step 1: Idea Generation:______ search for new product ideas -Internal idea sources: --> Internal ____ ______ --> _______ programs (employees develop new ideas) -External idea sources: -->______ and _____ --> Competitors --> ______
Step 1: systematic -Internal: --> social networks --> intrapreneurial -External: --> distributors and suppliers --> competitors --> customers
Market offering includes both ____ and _____ goods and services. -At one extreme: market offering may consist of a pure ____ ____ and at the other extreme a pure _____. -Between these two extremes, however, many goods-and-services combinations are possible. -As products and services become more commoditized: many companies are moving to a new level in creating value for their customers. --> To differentiate their offers, beyond simply making products and delivering services, firms are _____ and_____ customer experiences with their brands or companies. --> if you differentiate: can charge more money!
Tangible and intangible -tangible good; service - --> creating and managing -->
•__________: refers to the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies.
big data
refers to setting a price for by-products in order to make the main product's price more competitive.
by-product pricing (cut a tree down: then sell the wood)
refers to setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.
captive-product pricing (blades for a razor)
Implementing the Research Plan: This involves ____, ____, and ____ the information 1) Data Collection: carried out by research staff or outside firms - Researchers should guard against various problems: --> Techniques and ______ --> Data _____ --> ______ -Must process and analyze collected data to ____ important info and insights 2) Processing Data: -Check for _____ -Code for _____ 3) Analyze Data: - ____ results -Compute ____ measures
collecting, processing, analyzing 1) --> technologies --> quality --> timeliness -isolate 2) -accuracy -analysis 3) -tabulate -statistical
2 Broad classes of products and services based on the types of consumers who use them:
consumer products and industrial products
__________: invites broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the innovation process.
crowdsourcing
Promotional pricing, however, can have adverse effects. Used too frequently, price promotions can create "____-____" customers who wait until brands go on sale before buying them. In addition, constantly reduced prices can erode a brand's value in the eyes of customers. Marketers sometimes become addicted to promotional pricing, especially in tight economic times. They use price promotions as a quick fix instead of sweating through the difficult process of developing effective longer-term strategies for building their brands.
deal-prone
Marketing Research: Systematic ____, ____ ,____ and ____ of data relevant to a specific marketing situation facing an organization -Approaches followed by firms: --> Use own _____ _____ --> Hire outside research _____ --> Purchase ___ collected by outside firms -marketing research gives marketers insights into customer_____, purchase behavior, and ______. It can help them to assess market potential and _____ or measure the effectiveness of pricing, product, distribution, and promotion activities.
design, collection, analysis, and reporting --> research departments --> specialists --> data -motivations; satisfaction; market share
-_______ pricing: Adjusting prices continually to meet the characteristics and needs of individual customers and situations -Prevalent online where the Internet introduces a new age of fluid pricing (Amazon) -Can't discriminate based on age, gender, location
dynamic
_______ research •Used to gather preliminary information •Helps to define problems and suggest hypotheses _______ research •Used to better describe the market potential for a product or the demographics and attitudes of consumers _________research •Used to test hypotheses about cause-and-effect relationships
exploratory descriptive causal
_______ _____: are collections of consumer and market information obtained from data sources within the company network. --> usually can be accessed more ___ and ____ than other info sources but they also present more problems --> it may be ____ or in the wrong form for making marketing decisions --> data ___ quickly: keeping the database current requires a major effort --> managing mountains of info a large company produces requires ___ ____ equipment
internal databases --> quickly and cheaply --> incomplete --> ages --> highly sophisticated
4 choices that a company has when it comes to developing brands: (SEE FIGURE 7.6)
line extension brand extension multibrands new brands
2 Pricing Strategies:
market skimming pricing market penetration pricing
refers to the pricing of optional or accessory products along with a main product.
optional - product pricing (any boat)
___ ____: no profits below this price ____ ____: no demand above this price
price floor price ceiling
refers to combining several products and offering the bundle at a reduced price.
product bundle pricing (computer)
refers to determining the price steps to set between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
product line pricing (ford trucks)
_____ _____ is one of the marketers major positioning tools --> characterisitics of a product or service that bear on its ability to satisfy stated or implied cutsomer needs -_____ _____ ____: an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes. -A product can be offered with _____ features. -Another way to add customer value is through _____ product style and design.
product quality -Total quality management (TQM) -varying -distinctive
Product mix has 4 important dimensions:
width, length, depth, consistency