Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
79 Cards in this Set
- Front
- Back
Product
|
Good, service, idea, or place consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value
|
|
Core product
|
Actual benefits received by consumer
Ex: Basic benefits - car gets you from point A to B, watch tells time, etc. |
|
Actual product
|
Quality level, features, design, packaging, and brand name of the product; The thing that delivers the core benefit
Ex: BMW is a high quality luxury car, Rolex is high quality watch, Starbucks is high quality coffee |
|
Augmented product
|
Associated service, warranty, delivery, credit, after-sale service associated with the product (Non physical aspect)
Ex: Warranties/services, coupons, etc. |
|
Desired product
|
The product consumers really want or think they want
Ex: Desserts with great taste and no calories, cars that use alternative fuel but power like gas powered cars, etc. |
|
Where marketers differentiate product from competitors
|
Augmented plus actual product
|
|
Industrial products
|
B2B; products sold from one business to another to serve organizational needs (includes installation, accessories, materials, etc.)
Ex: Ford buying plastic from Exmay Plastic Company |
|
Consumer products
|
B2C; Consumer buys from a company
Product satisfies individual needs Typically repetitive purchases Low expenditures |
|
Product line
|
Group of products closely related
Ex: P&G laundry detergents; Kellogg's read to eat cereal, etc. |
|
Product mix
|
Number of product lines offered by a company
Ex: P&G has household cleaners, dental products, laundry detergents, etc. |
|
Depth of product line
|
More depth means the firm carries a large assortment of each item; Number of items within each product line
Ex: Kelloggs has 56 types of cereal |
|
Breadth of product line
|
Refers to the variety of different items a firm carries; Number of different product lines
Ex Kelloggs has cereal, crackers, cookies, etc. |
|
Critical questions for all products (new and old)
|
1-What is the competitive advantage - why would customers buy this over another?
2-Is the product's CA something the target segment is seeking? 3-Is the CA sustainable? 4-Will customer pay a price that matches the value of the product with the CA? |
|
Brand
|
Name, symbol, or design used to identify the products and differentiate them from competitive offerings
|
|
Characteristics of brands
|
Intangible
Unique Timeless A relationship |
|
Characteristics of products
|
Tangible
Easily copied Become irrelevant A transaction |
|
National Brand
|
Ex: Dr Pepper or Mountain Dew
|
|
Store brand
|
Cheaper, low quality
|
|
Copycat brand
|
For example, purchased at CVS
Ex: Dr. Thunder (imitation of Dr. Pepper) |
|
Brand name
|
Words or letters of the brands
Ex: Apple, Nike |
|
Brand mark
|
Pictorial part of the brand
Ex: Nike swoosh |
|
Purpose of brands
|
Differentiate
|
|
Trademark
|
Brand that has been given legally protected status exclusive to the owner
Ex: We can't use the Nike swoosh and put a different name above the swoosh |
|
Brand vs Product - importance
|
Brand is more important than product
|
|
Weak brands
|
Low price, low sales volume
|
|
Strong brands
|
Higher price, sell larger volume
|
|
Brand equity
|
The added value of the firm, the channel, or the consumer with which a brand endows a product
-High equity = high preference, insistence, and recognition |
|
Brand recognition
|
Some knowledge of the brand; One aspect of brand loyalty
-Increase by promotion, distribution, and increase brand exposure |
|
Brand preference
|
Stage where consumer will prefer one brand over another but won't demand that brand each time (can switch)
-Increase by advertising with favorite celebs, offer benefits |
|
Brand insistence
|
Stage where no alternatives will suffice
-Increase by providing exceptional benefits |
|
Behavior loyalty
|
Purchase but no emotional connection
|
|
Fake loyalty
|
You have no other choice
|
|
Emotional loyalty
|
Have emotional connected to the brand
|
|
Brand extensions
|
New products in *different* product categories that often carry the same brand name
Ex: Dole OJ, Dole Pineapples, Dole Salad Ex: Apple iPod, Apple iPhone, Apple computer |
|
Product line extension
|
New products that closely resemble the firm's existing products within *one* product category
Ex: Coke, Diet Coke, Vanilla Coke |
|
Cannibalization
|
Drawback of product line extension; when one product may eat up your own product share
Ex: Diet Coke vs Coke - people start drinking Diet Coke instead, it eats up its own market share |
|
Co-branding
|
Marketing 2 or more brands together on the same package, promotion, or store
Ex: Disney Crocs |
|
Product life cycle
|
Describes the stages a new product goes through in the marketplace
Introduction, growth, maturity, and decline |
|
Four premises of product life cycle
|
1-Limited life
2-Distinct stages 3-Profits vary 4-Require different life cycle stages |
|
Newness
|
The level of consumer learning required for a product
|
|
Continuous innovation
|
No new learning
Ex: New flavors, packaging, colors -Builds customer awareness |
|
Dynamically/Dramatically Continuous Innovation
|
Disrupts normal routine but doesn't require totally new learning
Ex: Electric toothbrush, CD player, automatic flash for cameras -Promote points of different between old and new |
|
Discontinuous innovation
|
Requires new learning and consumption patterns by consumers
Ex: Cars, planes, phones, wireless communications -Educate consumers through trial and personal selling |
|
Greatest return on investment potential?
|
Discontinuous innovation
|
|
Least return on investment potential?
|
Continuous innovation
|
|
Greatest risk for innovations?
|
Discontinuous innovation
|
|
Most common innovation?
|
Continuous risk - low risk , little change, easy to innovate
|
|
Idea Generation
|
Stage one of New Product Development Process
-Many good ideas come from consumers Ex: Coke Freestyle - What did consumers mix the most |
|
Screening
|
Stage two of New Product Development
-Separate ideas that have merit from those that don't |
|
Concept development and testing
|
Stage three of New Product Development
-Measure consumer attitudes in relation to the product/attitude analysis Ex: Surveys that ask "would this type of product be of interest to you?" |
|
Rough marketing strategy
|
Stage four of New Product Development
-Develop a strategy that describes target market, price, promotion, planned sales, etc. |
|
Development
|
Stage five of New Product Development
-Physical product now exists and results can be analyzed by the company |
|
Test marketing
|
Stage six of New Product Development
-Selecting a specific geographic area to be generalizable to the product's overall target market Con: expensive, risky |
|
Commercialization
|
Stage seven (final stage) of New Product Development
-Most expensive stage in the process; Decide channels to use, promotion, pricing, etc. |
|
Promotion
|
The process of communicating product and services information to target customers and other stakeholders of the firm
|
|
Aspects of promotion mix
|
Advertising
Sales promotion Personal selling Direct marketing |
|
Hierarchy of Effects Model
|
Awareness
Familiarity Consideration Purchase Satisfaction Loyal/Repeat purchase |
|
Advertising
|
Paid, non-personal communication initiated by a marketer to create or maintain a relationship
Ex: TV, banner ads, pop ups, radio, print, etc. |
|
Informative advertising
|
Used for *new* products
-build awareness -induce trial |
|
Persuasive advertising
|
Used for *established* brands
-Remind people -Increase frequency of buying |
|
Product/service advertising
|
Objective is to increase purchases
-Specific brand/product Ex: Ad for ketchup, ad for car, ad for UPS |
|
Institutional advertising
|
Objective is to highlight the organization
-Promote organization image, build industrial good will Ex: Breast cancer ad, Got Milk ads |
|
Reminder advertising
|
Reinforce purchasing behavior
Ex: Candy ads at Halloween time |
|
Advocacy advertising
|
Communicates a marketer's position on an issue
Ex: Don't drink and drive |
|
Comparative advertising
|
Creating a differential advantage by comparing a product with a competitor
Ex: Coke VS Pepsi |
|
What makes an effective ad campaign?
|
-Attract attention
-Message clearly -Modify attitudes/beliefs -Change behavior |
|
Research - improves remembering in an ad
|
Print size increases
Color ads Shorter headlines |
|
Research - does NOT effect ads
|
Length of commercial
Believe them |
|
Research on market share
|
-Response to advertising is greater for low market share brands because of market saturation
-For established products, advertising doesn't increase sales |
|
Aided recall
|
Ask people about the ad and prompt them about different parts of the ad and where they saw it
|
|
Attitude test
|
Measure whether people's attitudes have changed after seeing the ad
|
|
Sales test
|
See how advertising effects actual sales
|
|
Social media and buzz marketing
|
Facebook ads or make a video that everyone talks about
|
|
Purpose of sales promotion
|
Encourage purchase
Specified time period Short term objectives |
|
Objectives of sales promotion
|
Build awareness
Provide info Economic incentive Create invitation to buy now |
|
Examples of sales promotion
|
Contests/sweepstakes
Money off/Rebates Loyalty programs Samples Product placement Coupons |
|
Types of contests/sweepstakes
|
Instant win
Offers an experience as a prize |
|
Point of purchase
|
Located in high traffic areas near the cash register or end of aisle
|
|
Research on sales promotion
|
Price reductions increase sales
High market share brands less promotion elastic Heavily promoted products lose brand equity In store displays build sales |