actual final study deck Flashcards

Question

Channel length; whats direct and indirect distribution

Answer 1

Channel length. The number of channel members in a particular value chain. Direct distribution. A structure with few or no intermediaries between the manufacturer and the end- customer. Indirect distribution. A longer channel structure with more members.

Answer 2

Channel breadth refers to the number of outlets that participate in distributing the end-product to the consumer. Exclusive distribution - a very limited number of outlets Selective distribution – in between Intensive or mass distribution - as many outlets as possible Channel breadth can range from exclusive distribution through a very limited number of outlets, to selective distribution through more outlets with a certain level of sales training and service, to intensive or mass distribution via as many outlets as possible, which minimizes travel and search costs for the end consumer. 2nd part: Very often the breadth of the channel depends on the type of product attribute the firm is seeking to promote. Cartier watches – distributed by exclusive channel Volvo – sold by selective channel Huggies diapers – distributed by intensive channel

Answer 3

1st Part: * Channel depth refers to the extent to which the channel is controlled, via forward and/or backward integration. * In a highly integrated channel, the company may own firms that perform many different channel functions: raw materials procurement, manufacturing, transportation, warehousing, and/or retail distribution. * In a less-integrated channel, different, independent companies perform each of these functions. 2nd Part (Examples): * Sunkist: Not integrated channel Sunkist Growers, Incorporated is an American citrus growers’ non-stock membership cooperative composed of 6,000 members from California and Arizona. * E. & J. Gallo Winery: Highly integrated channel Gallo Winery owns vineyards, cork and bottle manufacturers, trucks, and distributors, enabling it to control virtually all aspects of the wine production and distribution process. E. & J. Gallo Winery is a winery and distributor headquartered in Modesto, California. It was founded in 1933 by Ernest Gallo and Julio Gallo, and is the largest exporter of California wines. E. & J. Gallo Winery is the largest family-owned winery in the United States.

Answer 4

a A) Ownership of channel members `

Answer 5

Q1. Ans: B Q2. Ans: A Our choice of goal and time frame will also influence our channel strategy. A short-term time frame may lead us to rely on existing indirect channels to quickly build distribution. On the other hand, a profit goal suggests that we might want to remove channel members.

Answer 6

Ans: c Consider a case of exclusive distribution: Cartier watches, distributed only in limited, upscale locations by authorized retailers. These high-end watches are awash in credence attributes, and the channel itself helps establish these attributes for consumers. The exclusive Cartier retailer is thus an important part of the packaging and promotion for the product. Read the following carefully as well! When the firm seeks to emphasize search attributes, particularly for a more complex product such as an automobile, a selective distribution strategy is more appropriate. Here we limit the number of outlets not only to establish an image, but also to ensure our ability to properly educate the sales force as they market our product. The added value of the Volvo dealer is product utility in the form of the salesperson who can identify the needs of the customer and match them to the right product and features. "Credence attributes are product qualities that consumers cannot easily evaluate even after consumption, such as authenticity, prestige, or craftsmanship—things that require trust in the brand or seller. Cartier watches rely heavily on perceived luxury, authenticity, and brand prestige, which are all credence-based. Exclusive distribution enhances these attributes by limiting availability and associating the brand with high-status retail environments."

Answer 7

integrated marketing communication (IMC) & 19 Ad, PR, and sales promotion (about 16 questions)

Answer 8

Any time the consumer encounters the brand, marketing communication can take place. Examples: * Public relations * Customer service encounters * Social media * Event promotions * Sponsorships * Sales material * Sales presentations * Consumer promotions * And of course, advertising "Any time the consumer encounters the brand, marketing communication can take place." It should be consistent. Integrated Marketing Communication (IMC): IMC is to assure that all brand contacts received by a customer are relevant to that person and consistent across all communication channels (media). Marketing communications decisions can be more emotional or logical. However, marketers should consider: * Effectiveness of communication (Does it help achieve our strategic goal?) * Efficiency of communication (Return on our spending) Challenge:Measurement and accountability of marketing communications have been a big challenging issue.

Answer 9

1.Basic awareness (aided recognition) 2.Top-of-mind awareness 3.Information awareness 4.image/attitude 5.Action

Answer 10

Aided recognition:Consumer’s ability, when presented with the brand name or logo, to acknowledge that he or she has seen it before. How to increase basic awareness? we must capture the attention of our target consumers - a creative work-interesting, differentiated -exposure of brand as many times as possible

Answer 11

unaided recall: - customers ability to identify the brand with th ebusiness category -consumers not only recognize our brand but also, they can recall it without aid. "what are the first three brands of EV that come to your mind?" Firms try to increase top of mind awareness when basic awareness is sufficiently high How to increase top of mind awareness? - having memorable names and symbols -reminding the brand that they already know -continually spending money on communications "i cant believe its not butter" is too long of a brand name How to increases top of mind awareness? - product placement -creative and social media campaign

Answer 12

communications intended to provide specific information about the brand The information must be focused on the positioning - a single minded campaign -a benefit differentiating us from the competition Tightly tie our brand to the information, so the brand and the benefit are recalled together ex: walmart's Always low prices, Kinko's open 24 hrs, Subaru has 4 wheel drive

Answer 13

To change an attitude toward or of image of our brand. Image campaigns to capture share of heart, evoking an emotional response in consumers. Most advertising for credence, subjective, emotional benefits has image objective.

Answer 14

Communication with a goal to cause an action or specific behavior in our target audience. Examples: Call and place an order, infomercial advertising. Measurement of an action objective is quite straightforward; we simply assess whether the behavior we are seeking occurs as a result of exposure to our marketing communications.

Answer 15

Strategic Focus (Target Audiences): * Non-adopters * Our customers * Competitor’s customers * Multibrand users Goals for each group: * Attract non-adopters * Increase consumption among current users * Attract competitive users * Increase consumption among multibrand users Acquisition/Stimulate Demand: * Goal: Bring new users to the category and the brand. * Sequence: 1.Awareness objective 2.Information objective (promote the category benefit tied to the brand) Acquisition/Earn Share: * Goal: Compare ourselves to a key competitor. * Objectives: 1.Informational objective: Communicate benefits vs. competition. 2.Behavioral objective: Encourage consumers to try our product and compare with their current brand. Retention/Stimulate Demand Strategy: * Focus on current customers to deepen the relationship. * Objectives: 1. Image objective 2.Behavioral objective: Encourage customers to use more of our product or use it in different situations. Retention/Earn Share Strategy: * Focus on multi-brand users: 1.Convert them from multi-brand users to exclusive users: -Informational or behavioral objective to encourage comparison and reconsideration of why they use two brands instead of just ours. 2. Increase frequency of choosing our brand over the competitor: -Top-of-mind awareness.

Answer 16

Ad Copy Development and Planning: * Once we have established our communications objective, we must: 1.Develop our communication materials 2.Determine how and how much we will spend on media. Creative Responsibility: * Typically, ad agency creatives are the writers and designers responsible for bringing the copy strategy to life. * Marketing communications are part art and part strategy; the strategy part includes strategic focus and STP (Segmentation, Targeting, and Positioning), especially targeting and positioning. Marketing Manager’s Role: The marketing manager is the guardian of the strategy. General AI's Role: Gen. AI could help replace creatives, but it does not replace marketing managers, who have a strategic mind. Creative Work Qualities: * The creative work should be: -Believable: Is the execution believable? -Unique: Is the execution unique, or have we seen the same storyline in other product categories? -Memorable: Memorability goes hand in hand with uniqueness. -Relevant: Is the execution relevant to the target audience?

Answer 17

* Level of competitive spending * Historical spending * Percentage of sales * What’s left over Zero-based approach: Starting from scratch each period, justifying each dollar of media spend based on objectives, rather than relying on past spending. Building a Budget Based on Objectives and Strategies: 1. Identify strategic focus and STP (Segmentation, Targeting, Positioning). 2. Decide target audience size and communication objectives. 3. Estimate how many exposures are needed to achieve the objectives. 4. Decide specifics of campaigns, creative, and media. 5. Estimate total cost. "Advertising spending should be budgeted taking into consideration the number of exposures we require, the number of customers we need to reach, the communications objective, and the media type."

Answer 18

a. to cause an action

Answer 19

c. to increase top of mind awareness

Answer 20

ad pr sales promotion

Answer 21

* Advertising is a pull strategy: A paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver. * Because advertising is paid, we control what we want to say and how to say it. Evolution of Advertising: * Traditionally, advertising was mostly “offline” and “passive.” * But it became widely “online” as well. Examples of Online Advertising: * Google Ad (search portal advertising) * YouTube Ad * Social media Ad Pull vs. Push Strategy: * Pull strategy: Get consumers to pull the product into the marketing channel. * Push strategy: Increase demand by focusing on wholesalers, retailers, and salespeople. Corporation vs. Product Focus: * The focus of advertisements could be not only the product but also the corporation (institutional ad). * The focus of the ad is the corporation when the company uses an umbrella branding strategy. Most Common Communication Objective: * The communication objective is mostly image/attitude. * "Most advertising is product-focused. However, companies like Exxon advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services." Public and Political Ads: * The public also does a lot of advertising (e.g., public service advertising, political campaigns). * Marketing principles work well most of the time, especially behavioral segmentation (e.g., smoker vs. non-smoker, Joe voters vs. Trump voters). Advertising Campaign Structure: * An advertising campaign should have a clear sense of the target audience. * The message should be carefully selected to lead the target audience to have the desired belief. Advertising Belief Framework: * Current do -> Current belief -> Customer proposition -> Desired belief -> Desired do.

Answer 22

* PR is getting more important because consumers have become more skeptical of marketing claims made in other media ads. * Public Relations involves managing communications and relationships to: 1. Build and maintain a positive image of the firm. 2. Handle unfavorable stories or events. 3. Maintain positive relationships with the media. Costs of PR: Typically, PR is unpaid. Influence of PR: The influence of PR has become more powerful as consumers view media coverage generated through PR as more credible and objective. Objectives of PR: Public relations involves managing communications and relationships to achieve various objectives such as: * Building and maintaining a positive image of the firm. * Handling or heading off unfavorable stories or events. * Maintaining positive relationships with the media. * Supporting other promotional efforts by generating free media attention and general goodwill. Cause-related Marketing: Cause-related marketing is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former’s sales and the latter’s cause. Example: "Chili's is proud to support St. Jude and has raised more than $114M since becoming a partner in 2002." Event Marketing and PR: Event marketing should go with PR, and includes: * Event hosting (e.g., Tesla Robotaxi Day event). * Event sponsorship. * Press should be invited. PR Toolkit: A PR toolkit is needed to: * Provide the information upon request. * Generate media attention and disseminate information. PR Toolkit Components: * Print media (press releases, newsletters, brochures, and any reports). * Videos. * Website and social media sites. * Press Kit. Press Kit: A Press Kit should include: * Company details. * Images and headshots. * Bios. * Facts. * Press release. * Anything compelling enough for a journalist to want to cover your story.

Answer 23

Traditionally, the role of sales promotion has been to generate short-term results. Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase product/service such as: * Coupons * Deals * Premiums * Contests * Samples * Loyalty programs * Point-of-purchase displays * Rebates * Product placement Coupons: * Stimulates demand. * Allows for direct tracking of sales. * Traditionally, coupon redemption rates were low. But the redemption rates have increased. Deals: * A short-term price reduction. * Encourages trial. * Reduces consumer risk. * May reduce perception of value. Premiums: * An item for free like a toy in McDonald’s Happy Meals. * Builds goodwill. * Increases perception of value. * Problem! Consumers buy for premium, not product. Contests: * A brand-sponsored competition. * Increases consumer involvement. * Generates excitement. * Social media enable many contests. Example: Domino’s offered $10,000 to Instagram users who could prove themselves to be “superfans” by following the pizza chain’s Instagram page and then posting creative pictures. Samples: * Distributing samples is one of the most costly sales promotion tools but also one of the most effective. * Trials for new services are also considered as samples. What factors should a firm consider when evaluating a sales promotion? * The realized margin from the promotion should be considered. Realized margin = Price – unit cost – promotion unit cost * Demand surge. * The potential loss suffered when customers switch to the promoted merchandise from more profitable products. * The long-term impact on sales of the promotion (expectation of promotion).

Answer 24

personal selling and sales management qualities: -Friendly and sociable -Optimistic -Resilient -Self-motivated -Empathy (care about their customers, their issues and problems)

Answer 25

Personal selling is the two-way flow of communication between a buyer and a seller, designed to influence the buyer’s purchase decision. Personal selling take place in variable situations: -F2F -Telephone -Online meeting

Answer 26

* Sales jobs are numerous. * There is a lot of flexibility. * There is a lot of variety in the job. * Some are highly paid. * Can be promoted to management position quickly. There are a lot of sales jobs in retailing: * General merchandise retailers * Food and beverage retailers * Gasoline material and supplies dealers * Clothing and clothing accessories retailers It can be very lucrative: Example: Top paying for sales and related opportunities: * Securities commodity contracts and other financial investments * Pipeline transportation of crude oil * Computer and peripheral equipment manufacturing * Scientific research and development services * Audio and video equipment manufacturing

Answer 27

Personal selling process is a funnel process! Step 1: Generate and Qualify Leads a. Generate leads – Generate a list of potential customers (leads) and assess their potential (qualify). * Without leads, no sales. Try hard to generate leads! * Outbound – Salespeople initiate contact: 1. Talking to current customers 1. Networking online and offline 1. Cold calls & emails 1. The Internet (LinkedIn, Twitter) 1. Attend trade shows (CES) * Inbound – Potential buyer initiates an inquiry (you don’t go out, you stay in here) b. Qualify leads – After generating leads, qualify those leads. Is it worthwhile to pursue them to turn into customers? * In B2B settings: (i) The costs of preparing and making a presentation are so substantial (ii) The success rate of closing the deal is low Step 2: Pre-approach a. A qualified lead requires a meeting. “You never get a second chance to make a first impression,” so salespeople must prepare carefully. Things to do: * Study the customer’s business * Define how the customer can benefit from our products/services * Examine how the customer is currently addressing their needs * Set the objectives of the meeting * Anticipate potential reservations and prepare responses * Practice sales presentation Step 3: Sales Presentation and Overcoming Reservations a. During the first part of the meeting, salespersons need to get to know the customer, get the customer’s attention, and create interest in the presentation to follow. * Don’t do all the talking. Ask good questions to find out the need and listen attentively. Step 4: Closing the Sale a. - Obtain a commitment from the customer to make a purchase * Often this is the most stressful part of the sales process * A “no” one day may be the foundation for a “yes” another day Step 5: Follow-up a. The sale is just the beginning of a customer relationship. * Follow-up involves ensuring that customers are satisfied with their purchases * Handle dissatisfaction or service failure/problem as soon as possible

Answer 28

segmentation targeting and positioning

Answer 29

Market segmentation is a marketing strategy that involves dividing a broad target market into smaller groups based on common characteristics. (Google) Why do we do segmentation? * To enhance our understanding of customers * To aid targeting and positioning decisions STP is not for discrimination Before STP, marketers should have decided market boundary (or category): What business are we in? (Example of market boundary/category) → Competitive landscape and long-term investments, marketing plan (STP), and day-to-day operation.

Answer 30

Segmentation variables split the market into groups of current or potential customers who are likely to have similar needs with respect to our product or service. There are many variables to segment customers in the market because customers differ in their: 1. demographics 2. behaviors 3. attitudes (feeling toward object/a brand) 4. benefits they seek from the product/service 5. geographic locations 6. aspirations (what’s your desire? if u know u can sell to them at a higher price) 7. lifestyle (Pay attention to 1–4) THESE ARE WHAT WE HAVE TO KNOW: DEMOGRAPHIC -Demographic variables are those we can physically observe and measure. -Demographic segmentation: most common segmentation strategy. Easy to identify. Easy to measure (age, gender, income, education) Examples: age, gender. educational status, household, size, income, marital status, geographic information BEHAVIORAL: Variable that describes the specific actions of consumers or potential consumers Usage: * heavy users and light users * weekday users vs weekend users * coupon users vs non-coupon users * switchers vs loyals ATTITUDINAL: * Attitudinal variables describe the thoughts, feelings, and beliefs of consumers. Risk averse vs. risk takers Satisfied vs. unsatisfied Zealots vs. pagans Why attitudinal variables for segmentation? * Marketing can change and influence attitudes of customers * Attitudes drive behaviors (purchasing and using). * The foundation of marketing is identifying key attitude-behavior linkages and seeking to change behaviors by changing attitudes. Attitudinal data can be unreliable because attitudes may change (Demographic data do not change) BENEFIT (a few questions): * Benefits that customers seek * This is the most useful way of segmenting a market – the segmentation method most directly related to the satisfaction of consumer needs and wants! One of the issues is… There might be so many different benefits that customers may seek from consuming a product/service. Among many potential benefits, marketers should choose/identify: * Main benefit * Dynamic benefit

Answer 31

We build feature-benefit- value ladders by first listing the most important brand features, and then listing their connected benefits and values. Features: A feature is an inherent physical or functional attribute of a product or service. Benefits: A benefit describes what the customer stands to gain from using the product or service. Benefits are directly linked to features. So, for example, if this book is available in digital form (feature), it will be easy to access (benefit). In constructing a feature-benefit-value ladder, we hypothesize which features, benefits, and values of our brand are most differentiating in the eyes of our target customers. A feature-benefit-value ladder is an inside-out look at the brand.

Answer 32

* Undifferentiated targeting strategy (mass marketing): When everyone might be considered a potential user of its product. Adopt this when: 1. Consumer tastes, needs, wants are the same (homogeneous market). 2. The company has strong marketing power and a lot of resources. 3. No strong competitor. * Differentiated targeting strategy (multi-segment marketing): Firms target several market segments with a different offering for each. * Concentrated targeting strategy: When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs. * Micromarketing or one-to-one marketing: When a firm tailors a product or service to suit an individual customer’s wants or needs. This is an extreme form of segmentation.

Answer 33

When marketers have to select one or several target segments, assess each segment is -Identifiable, -Substantial, -Reachable, -Responsive, -Profitable Identifiable: Firms must be able to identify who is within their market to be able to design products or services to meet their needs. It is equally important to ensure that the segments are distinct from one another, because too much overlap between segments means that distinct marketing strategies aren’t necessary to meet segment members’ needs. (some segments are difficult to identify, sometimes it’s hard to identify who they are) Substantial: The market segment size should be substantial. Reachable: Firms should be able to reach customers in the market segment. The best product or service cannot have any impact, no matter how identifiable or substantial the target market is, if that market cannot be reached (or accessed) through persuasive communications and product distribution.(can u reach those segments?) Responsive: Customers in the market segment must react similarly and positively to the firm’s offering. (if youre offering a product, customers will react in many ways. he says its the most important part. Responsiveness of marketing campaign/mix. If they like product they will respond) Profitable: The market segment should profitable.(whether market segment will create profit)

Answer 34

* When describing the target customer, we present: One-line description of target (How much you know about the target customer) * One-line description of Zipcar’s target: Zipcar targets “computer-savvy people who hate cars” * A typical target customer persona is a semi-fictional representation of your ideal customer, created through research and analysis. It includes: 1. Name (Use a specific name — real or fake) 2. Habitat 3. Revealing behaviors 4. Consumption habits (how they consume our products or other) 5. Demographics 6. Attitudes, perceptions, values, aspirations 7. Benefits sought A real person! One person, not aggregated average.

Answer 35

Positioning: * (Once you choose market you have to choose who to serve) * The answer to how product/brand should be perceived in the market among target customers. * You want to be perceived in the market — a positive/good perception. * “To be positioned is to be perceived.” (Sam Min) Positioning Statement:A statement of the desired image/value/benefit of offering to be perceived by customers Part 2: * Segmentation informs us how we will define and segment our market. * Targeting describes specifically whom we will attempt to reach. * Our positioning statement outlines what we will say to them. Part 3: * The positioning statement is much more than a simple hand-off to the communications agency; it is the final step on the bridge between strategy and execution. * Positioning is desired perception * “Marketing mix should be consistent with positioning.” * “Marketing mix should support fulfilling and strengthening the positioning.” * “Marketing mix decisions should be guided by positioning.” * Image: segmentation → targeting → positioning (product, price, place, promotion)(how you want to be perceived in selected target group) Part 4: * The best is if a company’s product offering overlaps with customer needs and wants but no overlap with competitor offerings. * Image: Overlap of customer needs and wants + company offering = value proposition Part 5: * (We have decided how we want to be perceived. Now describe it in just 1 line) * A single, crisp consumer proposition * Sometimes called a “brand promise” or “value proposition” * This statement will marry our entity’s core competence and understanding of the target consumer Part 6: * Positioning statement template examples: 1. Coca-Cola: “To inspire moments of optimism and uplift.” 2. Apple: “Think different.” 3. Tesla: “Accelerate the world’s transition to sustainable energy.” Part 7: * Yes! It helps to know a competitor’s positioning. * Same positioning does not work if a strong competitor already “owns” the positioning. * Nike’s tagline: “Just do it”

Answer 36

Segmentation, targeting, positioning statement

Answer 37

a. Marketing mix, Marketing mix, Marketing mix

Answer 38

a.It includes a name, a habitat, revealing behaviors, and consumption habits, but it excludes demographics, attitudes, values and aspirations.

Answer 39

a.should be a benefit of company’s product, which overlaps with customer needs and wants but does not overlap with the benefits that competitors offer.

Answer 40

main benefit

Answer 41

product and branding

Answer 42

Product = Creating Value What does product in the marketing mix mean? ‘Creating value’ through developing: * Features and benefits * Service related to the product * Branding Core customer value circle includes two parts: 1. Actual product: * Brand name * Quality level * Packaging * Features/design 2. Associated services: * Financing * Product warranty * Product support Product management should support ‘positioning’. * It helps close the gap between existing perception and desired perception. * “Advertising also helps closing the gap between existing and desired perceptions. However, without product backup (right product), the perception change is difficult, costly, and sometimes not possible. Even if it succeeds, it is nothing but a manipulation.”

Answer 43

Product portfolio (or product mix) is the collection of products. Example: * Tide – 59 products * Tide Hygienic Clean * Tide Bleach * Tide Coldwater Product portfolio considers positioning * These products offered by our firm are proof of our brand’s promise. * If our brand positioning is convenience, our products must be convenient; if we are positioned on customization, our products must be customizable. * Thus, our brand positioning should direct our ‘product portfolio strategy.’ Product Portfolio Alignment * Product portfolio contains both positional products and supplemental products. * Positional products are highly aligned to the brand strategy and are most helpful in articulating the positioning of the brand; they are, therefore, at the heart of the brand’s competitive advantage. * Supplemental products round out the product portfolio and can help overcome potential objections to purchase. We need them to be competitive, but they are not the ones we will use to differentiate our brand vis-à-vis our competitors. Within Product Portfolio Alignment, the following get done: 1. List the products in the brand portfolio 2. Evaluate if each product’s relative fit with the company positioning 3. Evaluate if each product is for new customer acquisition or customer retention 4. Evaluate how the product is differentiated from competition Provide more resources if the product: * Has a good fit with the positioning * Has a good fit with strategic focus (acquisition or retention) * Is differentiated from competition

Answer 44

A brand is “a name, sign, symbol, or design intended to identify the products or services of one seller and differentiate them from those of competitors.” A product (or a service) should have a brand name. -Name to be called or remembered -Image (i.e., logo) to be recognized A good brand adds value to the product. ex: sam’s cola ($8.54) vs coca cola ($19.17 for a 24 pack) A strong brand is an intangible asset (brand equity) yes one company can have multiple brands:, compare p&g (charmin,tide,bounty) and tiktok

Answer 45

*A company will have multiple fundamental entities (like P&G). Distinct Branding: * A distinct-branded company has more strategic flexibility throughout the entire marketing framework. * It can deliver diverse and even conflicting benefits through each of its brands. Example – P&G: Tide: * Marketing objective for Tide * STP of Tide * Strategic focus of Tide * Marketing plan for Tide Gillette: * Marketing objective for Gillette * STP of Gillette * Strategic focus of Gillette * Marketing plan for Gillette Umbrella Branding: * The fundamental entity is the umbrella brand. * The umbrella-branded company chooses one overall benefit, and each of its product lines must deliver on or align with that benefit. Example – BMW: * Hopes to move customers along the continuum every 7 years. Which is better? It depends. Umbrella Branding: * Efficient marketing * Constrained positioning options * Engenders long-term thinking * Constrained new market entry * Impact of a product failure on all umbrella products Distinct Branding: * More expensive * Flexible positioning options * Flexible new market entry * Some protection against liability in case of product failure

Answer 46

A brand serves multiple key functions: 1. Memory aid – Brand awareness * A brand makes it easier for consumers to recall and recognize a product. 2. Signal of product quality * A brand name signals superior product quality. * Example: Compare Intel vs. AMD * Intel Inside campaign (1991) was highly successful in branding an electric component. 3. Basis for differentiation * A brand helps differentiate a product or service beyond basic quality. *Example: -Singapore Airlines = luxury -Southwest Airlines = consistent, value-driven service * Yes, services can be branded too. 4. Locus of emotion * People associate brands with emotions. * Advertisers aim to create positive emotional connections. * Example: Mastercard – “There are some things money can’t buy. For everything else, there’s Mastercard.” (emotional ad with baseball game and child) What are 4 things brands do? 1. Facilitate purchases – Helps people remember and choose the product 2. Establish loyalty – Builds long-term customer relationships 3. Protect from competition and price competition – Strong brands attract customers over generic alternatives 4. Are assets – Brands are valuable intangible assets to a company

Answer 47

Packaging elements include: 1. Printed information (e.g., claims, features – “Long lasting whiteness”) 2. Image 3. Color/background 4. Typography and font Packaging should: * Support positioning → Ex: *“Mr. White” printed with whitening claims supports the brand's whitening positioning. * Help with re-positioning → Ex: Lay’s redesigned packaging with Instagram-style images to attract younger audiences. Trends in packaging: * Sustainable packaging is becoming popular. * Avoid excessive packaging – it's wasteful and costly. * Packaging sizes are getting smaller (but not always). * → Ex: MAC Cosmetics offers miniaturized products to manage rising costs while maintaining brand appeal. * Labeling: * Label content is regulated and varies by country. * Terms like “natural,” “organic,” “made in the USA” must meet specific legal standards before they can be printed on packaging.

Answer 48

B. creating value

Answer 49

c)ideal resource allocation of Vitagummy: 20% puregummy:50% Grogummy:30%

Answer 50

c)Serving as a way to dissuade customers from buying a competitor’s product

Answer 51

d)Umbrella Branding

Answer 52

a. printed info

Answer 53

developing new products

Answer 54

Firms create and introduce new products for several strategic reasons: 1. To respond to changing customer needs → Consumer preferences evolve, and firms must innovate to stay relevant. 2. Because some products are one-time purchases/consumption → Firms need a pipeline of new products to maintain customer engagement and revenue. 3. To become a market pioneer → Advantages of being a first-mover: * Greater market share * Strong brand reputation * Early customer loyalty 4. As a growth strategy Ansoff’s Growth Matrix: Current Products New Products Current Markets Market Penetration Product Dev New Markets Market Development Diversification 5. As part of product portfolio strategy → Firms aim to balance their product mix using the BCG matrix: High Market Share Low Market Share High Growth ⭐ Star ❓ Question Mark Low Growth 💰 Cash Cow 🐶 Dog Marketing’s role: * Help identify new product directions * Lead new product commercialization

Answer 55

Managing innovation diffusion starts from customer acquisition / stimulate demand — or attracting potential new customers. Diffusion of innovation is adoption process. From 0% to 100% of adoption rates. People have different level of trying and adopting new product. In general, 2.5% always try new things. They are called “innovators.” They are adventuresome, curious and risk takers. Normal distribution chart: Innovators → Early adopters → Early majority → Late majority → Laggards (Customers are different in terms of when they adopt new product or service) Users: * Innovators (2.5%) * Early adopters (13.5%) * Early majority (34%) * Late majority (34%) * Laggards (16%) * (Bell curve shape) Early Adopters (13.5%) * Don’t take as much risk as innovators do * Purchase product after careful review * Wait for first reviews * Enjoy novelty * Regarded as opinion leaders for particular product categories Early Majority (34%) * Numerous * Influenced by early adopters and innovators * Will not buy if it is not visibly accepted (the chasm) The Chasm: If marketer can not take early adopters, the innovation diffusion often breaks. It is called the chasm (gap between earlier adopters and majority). Some innovations diffuse faster. Perceived attributes of innovations which affect product diffusion: 1. Relative Advantage 2. Compatibility 3. Observability 4. Complexity and Trialability 5. (those are the rate of innovation diffusion)

Answer 56

1.Idea generation: development of viable new product ideas 2.concept testing: testing the new product idea among a set of potential customers 3.product development: development of prototypes and/or the product 4.market testing:testing the actual products in a few test markets 5.product launch: full-scale commercialization of the product 6.evaluation of results: analysis of the performance of the new product and making appropriate modifications

Answer 57

Product has a life! Stages of the Product Life Cycle: 1. * Development 2. * Introduction 3. * Growth 4. * Maturity 5. * Decline Graph: Image – upward curve with stages labeled: Development → Intro → Growth → Maturity → Decline Key Insights: * The life cycle curve shows inflection points where sales accelerate, flatten, or decline. * Helps understand the evolution of products, especially tech products or those affected by consumer fads. * Not all products follow this cycle. Example: Coca-Cola, baking soda — they’ve remained stable over time. Why it matters: Exhibit 12.5 illustrates a typical product life cycle, including industry sales and profits over time. Managers use the product life cycle to plan marketing activities strategically at each stage.

Answer 58

Scenario #1 – Early Majority, Scenario #2 – Innovators, Scenario #3 – Laggards.

Answer 59

a. innovator

Answer 60

e. early adopters

Answer 61

early majority

Answer 62

Candice waited for a more competitive market with lower prices; this occurs when the early majority is adopting the product. d.early majority// “who are early majority customers?”

Answer 63

e. trialability

Answer 64

e.the respondent’s purchase intentions if the product were made available.

Answer 65

c. maturity

Answer 66

c. competition is intense

Answer 67

d) All of the above are valid reasons that over-reliance on Product-life-cycle can lead to problems.

Answer 68

services ( about 3 questions)

Answer 69

1st part: There are a lot of service businesses. Many of you will end up working for a service business. Examples: Ad agency, financial service, accounting firm, consulting, electrical services, travel agency, auto repair, babysitting, etc. Is retailing a service? Yes — adding a service to product increases the value of the product. 2nd part: Productization of services attempts to treat service as product. How? * Standardizing services into modularized “products” * Creating a name/logo/identity for the service * Example: modularized ‘content marketing’ services like monthly service packages 3rd part: Productization of services is a movement for pure services like consulting and financial advising. The opposite movement is “servicization.” “Product as a service” means letting customers use the product instead of owning it. 4th part: Why productization? * To capture more brand equity * To reduce costs and increase margin * To maintain consistent performance Productizing services has generally increased the profitability of service organizations. 5th part: You should consider “something” as a service if: 1. Your product is a one-time purchase (e.g., software) 2. Your product is expensive for many customers 3. Your product requires frequent maintenance or after-services 6th part: Trends: * Service as product * Something as a service * Growth of unhuman service (now or future)

Answer 70

1st part: Services are intangible — we cannot see or touch services. Brand association is low. Memory aids (like logo or tagline) are more important for services. They should appear on websites, envelopes, proposals, business cards, trucks, ads, etc. Example: Prudential Life Insurance — “Own a piece of the rock” It’s difficult to convey the quality and benefit of a service. Service providers give cues to shape perception — e.g., a waiting room with a large TV, beverages, comfortable chairs. 2nd part: Word-of-mouth becomes more important for services than hard goods. Social media increased the speed of info sharing. Customers are consistently asked to rate services (e.g., hotels, restaurants). Marketers must be vigilant about digital reputation — emphasize positives, respond to negatives fast. Rule of thumb (even pre-social media): One extreme service encounter (good or bad) = 10 people told. In the digital age, it’s way more. 3rd part: Services are perishable! They can’t be inventoried or inspected like physical goods. Operational excellence is a necessary core competence for many service businesses. We can’t hold inventory for fluctuations in demand → must plan for demand fluctuations. 4th part: Offload demand = reduce peak time pressure Boost low-period demand = increase revenue during slow times Example: A restaurant bar is classic offloading. People are okay waiting until 9:30pm for a table if there's a comfy bar/lounge to socialize in. Boosting low demand: Offer 5pm dinner specials or happy hour during slow times. 5th part: Long Beach Golf Players Club boosts low-period demand by offering access to 5 lb area courses. 6th part: Other characteristics of service: * Services are generally produced and consumed at the same time. * Some services are co-produced by provider and consumer. * Humans typically perform services. (E.g., A cooperative patient helps a better medical exam; a responsible client helps a lawyer.) 7th part: Unhuman (AI) is starting to provide services. Expect more from AI very soon. Examples in LA area: * Robotaxi (now) * Figure AI * Tesla Optimus * Physical AI * AI will provide more services in the future

Answer 71

1. Service gaps: Customers have certain expectations about how a service should be delivered. When delivery fails to meet those expectations, a service gap results. We have to close: * the knowledge gap * the standard gap * the delivery gap * the communication gap 2. Service Gap Model — to provide great service: 3.Close the knowledge gap – understanding customer expectations 4.Close the standards gap – setting service standards 5. Close the delivery gap – delivering service quality 6.Close the communication gap – communicating the service 3.⭐ The knowledge gap: Understanding customer expectations — understanding what the customer really wants. An important early step in providing good service is knowing what the customer wants. The knowledge gap exists when management misunderstands customer expectations for service quality. Customer expectations are different and changing, so ongoing marketing research is much needed. Zone of tolerance: Customer’s desired level → Customer’s perception of the service → Expected level 4. Service quality dimensions: * Reliability * Assurance * Tangibles * Empathy * Responsiveness Ask questions about each dimension: * Desired level of service * Expected level * Importance * Customer perception of our service vs. competitor's 5. RATER model: * Reliability – perform the service dependably and accurately * Responsiveness – willingness to help customers and provide prompt service * Assurance – knowledge/courtesy of employees, ability to convey trust * Empathy – caring, individualized attention * Tangibles – appearance of facilities, equipment, personnel, and materials Ask customers: * Overall satisfaction * Satisfaction on RATER items Also: collect complaints, analyze them, and put managers on frontlines occasionally 6. Standards gap: The standards gap exists when service standards differ from customer expectations. Close it by: * Setting appropriate service standards * Training employees * Measuring service performance 7. Delivery gap: This is where the rubber meets the road — where the customer directly interacts with the service provider. Can be reduced when: * Employees are empowered to act in the customer’s and firm’s best interest, especially when problems arise. 8. Communication gap: Happens when a firm promises more than it can deliver. If ads overpromise, but the service underdelivers, the customer is disappointed and won’t return. They might also spread negative word-of-mouth. “Promise only what you can deliver. Communicate service expectations.”

Answer 72

Despite a firm’s best efforts, sometimes service providers fail to meet customer expectations. When this happens, the best course of action is to attempt to make amends with the customer and learn from the experience. Effective service recovery efforts can significantly increase customer satisfaction, purchase intentions, and positive word of mouth, though customers’ post-recovery satisfaction levels usually fall lower than their satisfaction level prior to the service failure. Customers can get emotional over a service failure. Often, customers just want someone to listen. * Distributive fairness pertains to a customer’s perception of the benefits they received compared with the costs (inconvenience or loss). * Procedural fairness refers to the perceived fairness of the process used to resolve complaints. * Even if customers eventually receive a solution that seems fair, when they must work hard to get it, their low procedural fairness perceptions may cause them to feel they’re being punished for receiving bad service. The longer it takes to resolve a service failure, the more irritated the customer becomes — and the more people they tell. "By compounding a service failure with long delays in correcting it, the firm creates a hostile customer. Remind students about the strong influence of negative word of mouth." Firms should: * Listen to the customer and involve them in the service recovery * Find a fair solution * Resolve problems quickly

Answer 73

true; Word-of-mouth becomes more important for services than for hard goods. In the absence of a physical product and associated cues such as packaging and logo, word-of-mouth becomes a crucially important factor.

Answer 74

d) To customize customers’ different needs

Answer 75

c. operational excellence

Answer 76

a. word of mouth

Answer 77

a) reliability

Answer 78

c. distributive fairness

actual final study deck Flashcards

(107 cards)