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Marketing 3000 > Chapters 11, 12 > Flashcards

Chapters 11, 12 Flashcards

1
Q

Product

A

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange
Includes goods, services, places, ideas, organizations, people, communities

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2
Q

Types of Products (4)

A

Speciality, Shopping, Convenience, Unsought

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3
Q

Speciality Product

A

Customers show such a strong preference that they will expend considerable effort to search
Ex. Wedding gowns, medical doctor

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4
Q

Convenience Product

A

Consumer is willing to spend minimum effort to evaluate prior to purchase
Ex. Canned goods, shampoo

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5
Q

Shopping Product

A

Consumers will spend a fair amount of time comparing alternatives
Ex. Clothing/shoes, fragrances

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6
Q

Unsought Product

A

Consumers either do not normally think of buying or do not know about
Ex. Fire extinguishers, life insurance

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7
Q

Breadth

A

Number of product lines in a product mix; may be too costly to maintain

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8
Q

Depth

A

Number of categories within a product line; may cannibalize brands

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9
Q

Branding

A

Increases awareness and provides a way to differentiate from competitors
A brand can use names, logo symbols, characters, slogans, jingles, and even distinctive packaging

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10
Q

What is the value of branding? (6)

A
  • Facilitate purchasing
  • Establish loyalty
  • Protect from competition
  • Reduce marketing costs
  • Brands are assets
  • Impact market value
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11
Q

Brand Equity: What is perceived value?

A

How do discount retailers like Target/TJ Maxx/etc create value for customers?

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12
Q

Brand Equity: What are brand associations?

A

The mental and emotional links that customers make between a brand and its key attributes.
Brand associations often result from advertising and promotional efforts.
Ex. “Like a good neighbor, State Farm is there”

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13
Q

Brand Equity: Brand Loyalty

A

Consumers are often less price-sensitive to brands they are loyal to; marketing costs are lower; firm is insulated from competition

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14
Q

What are some branding strategies discussed? (5)

A
  • Whether to use a manufacturer or retailer/store brands
  • How to name brands and product lines
  • Whether or not to extend the brand name to other products/lines
  • Should the brand name be used with another firm or licensed to another firm
  • Whether or not the brand should be repositioned
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15
Q

Brand Ownership: Manufacturer/national brands

A

Ex. Nike, Aquaphor…

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16
Q

Brand Ownership: Retail/store brands

A

Ex. Target’s Up & Up, Walmart’s Equate

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17
Q

Family Branding

A

The name of the brand is repeated
Ex. Kellogg’s Corn Flakes

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18
Q

Individual Branding

A

Not tied together
Ex. Cheez its –> owned by kelloggs

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19
Q

Brand Dilution

A

Excessive brand extension that diminishes brand value, usually after releasing a product that doesn’t align with the company’s original mission

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20
Q

Co-Branding

A

Marketing 2+ brands together
Ex. Doritos x Taco Bell

21
Q

Brand Licensing

A

A contractual agreement where a firm allows another to use its brand name, logos, symbols, etc. in exchange for a negotiated fee
Ex. Dora themed bandaids

22
Q

Brand Repositioning

A

Change a brand’s focus; can improve brands fit with its target segment and boost vitality of old brands, but not without costs and risks
Ex. Kelloggs shift from a weight loss/appearance focused brand to a nutritional value/feel-good brand

23
Q

Packaging

A
  • Contain and protect
  • Promote
  • Facilitate storage, use, and convenience
  • Facilitate recycling
  • Provide information
24
Q

Why do firms create new products? (5)

A
  • Changing customer needs
  • Market saturation
  • Managing risk through diversity
  • Fashion cycles
  • Improving business relationships
25
Q

Product Mix

A
  • Constantly changing
  • Consumers adopt at different speeds
  • Products remain viable for diff time periods
26
Q

Diffusion of Innovation

A

2.5% Innovators
13.5% Early Adopters
34% Early Majority
34% Late Majority
16% Laggards

27
Q

New product introductions: ________ radically change competition and consumer preferences.

A

Pioneers

28
Q

Factors Affecting Product Diffusion

A
  • Compatibility (think casette -> CD -> MP3 -> iPod)
  • Observability
  • Complexity and trialability
  • Relative advantage
29
Q

How do firms develop new products? (12)

A
  • Idea Generation
  • Concept testing
  • Build prototype
  • Market testing
  • Product Launch
  • New Product Marketing Mix
  • Evaluation of results
30
Q

Idea Generation (6)

A

Sources of ideas:
- outsourcing
- licensing
- internal R & D
- R & D consortia
- (legally) rip-off competitors
- consumer input

31
Q

Internal R & D

A
  • high product development costs
  • often the source of technological products
  • often the source of breakthrough products
32
Q

Consortia

A
  • firms join together to research consortiums (common goal)
  • lowers risks and costs
  • benefits spread to all firms
    Ex. pharmaceutical industry research
33
Q

Licensing

A

Firms purchasing the rights to technology or ideas from other research-intensive firms

34
Q

Brainstorming

A

Groups work together to generate ideas; no idea is immediately accepted or dismissed

35
Q

Outsourcing

A

Hiring an outside firm to generate ideas and develop new products/services

36
Q

Competitor’s Products

A

Reverse engineering: taking a product apart without infringing on patents, etc
Copycat products

37
Q

Customer Input

A

Listening to customers in both B2B and B2C markets
Lead Users: innovative product users who modify existing products according to their needs

38
Q

Concept Testing

A

Brief written description of product.
Customer reactions determine whether or not to move forward.
Triggers marketing research process.

39
Q

Product Development

A

Prototype
Alpha testing: in-house with own employees, secretive
Beta testing: recruited as part of testing outside company

40
Q

Premarket Tests

A

Customers are exposed, surveyed –> firm makes decision

41
Q

Test Marketing

A

Mini product launch, more expensive than premarket tests, market demand is estimated

42
Q

New Product Marketing Mix

A

Intersection of promotion, price, place

43
Q

Evaluation of Results

A
  • satisfaction of technical requirements
  • customer acceptance
  • satisfaction of firm’s financial requirements
44
Q

Product Life Cycle

A
  • defines stages that products move through as they enter the market, get established, and ultimately leave
  • most product follow a similar pattern of growth and decline but length varies
  • used for product categories, not brands
  • introduction –> growth –> maturity –> decline
45
Q

Introduction (7)

A
  • sales and profits are low
  • typical customers are innovators
  • one or few competitors
  • high failure rates
  • frequent product modification
  • communication challenge
  • promotion focused on awareness
46
Q

Growth (5)

A
  • sales rising; profits rapidly rising
  • typical customers are early adopters/early majority
  • few competitors but increasing
  • initial healthy profits
  • aggressive advertising of differences between brands
47
Q

Maturity (5)

A
  • sales are peak; profits are peaking to decline
  • typical customers are late majority
  • high # of competitors
  • intense competition; marginal competitors drop out
  • saturated market; lower prices
48
Q

Decline (7)

A
  • sales and profits decline
  • laggards
  • low # of competitors
  • long-run drop in sales
  • inventories of unsold items
  • elimination of all nonessential marketing expenses
  • niche markets
49
Q

Extending time in the PLC

A
  • increase frequency of use (by same customers; market penetration)
  • increase # of users (market development)
  • find new users; identify new applications of the product

Marketing 3000 (10 decks)

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