Exam 2 Flashcards
(86 cards)
1
Q
- What is a product?
A
Everything, both favorable and unfavorable (i.e., value), that a person receives in an exchange.
2
Q
- What is associated in product “P” decisions?
A
a. Core Customer Value
b. Actual Product
c. Associated Services
3
Q
a. Core Customer Value
A
i. What are the basic problem solving benefits that you want your product to have
4
Q
b. Actual Product
A
i. Brand name
ii. Packaging
iii. Quality level
iv. Features/design
5
Q
c. Associated Services
A
i. Financing
ii. Product warranty
iii. Product support
6
Q
- How does the product “p” relate to the other p’s?
A
a. It comes before all of the other p’s
7
Q
- What is a brand?
A
Includes a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
Gives a personality to a non-living object
8
Q
- What are some aspects of branding?
A
Brand name
Brand mark
Brand equity
9
Q
d. Brand name
A
that part of a brand that can be spoken, including letters, words, and numbers.
i. Examples
1. Nike, 3m, Pepsi
10
Q
e. Brand mark
A
the elements of a brand that cannot be spoken.
i. Examples
1. The golden arches, nike swoosh, mickey mouse ears
11
Q
f. Brand equity
A
the value (assets and liabilities) of the brand name; ability to create demand and secure future earnings
12
Q
- Brand awareness
A
measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it.
13
Q
g. Trademarks
A
the exclusive right to use a brand
14
Q
h. What is a registered trademark?
A
i. A governmental office declares whether or not you are worthy of getting a registered trademark
15
Q
ii. What parts of a brand can be registered for trademark protection?
A
- Name, sounds, products, etc.
16
Q
iii. How do you continuously protect it?
A
- You must re-register for a registered tm every 10-12 years
- You must actively use the brand and actively fight if someone is using your tm
17
Q
iv. What happens if you don’t continuously protect it?
A
- You run the risk of your brand becoming generic
- Examples
a. Aspirin, thermos, cola, zipper, trampoline
18
Q
i. Licensee
A
the people who want to borrow the brand
19
Q
j. Licensor
A
the people who own the brand
20
Q
k. What are royalties?
A
i. When the licensee pays the licensor in order to use their brand
21
Q
i. Infringement
A
l. What is it called when you use someone else’s brand without permission?
22
Q
p. What is cobranding
A
The practice of marketing two or more brands together on the same package or promotion
23
Q
o. Private brand
A
Brands developed and marketed by a retailer and available only from that retailer
24
Q
Manufacturer brand
A
Brands owned and managed by the manufacturer
25
What is a market
A group of people with the same general need/want that also have the ability and willingness to buy
26
What is a segment
A smaller group of the market with a specific need/want
27
What is the step after segmentation
Pick a segment to target
28
What is the step after picking a segment to target
Develop your marketing mix for that segment
29
Why do companies bother with segmentation
To refine the needs/wants and develop the 4 p's that connect better with the consumers needs/wants
30
What is a segmentation variable
Characteristics of individuals, groups, or organizations used to divide the total market into segments
We segment people, not products
31
Common segmentation variables
Geography, demographics, psychographics, usage rate, and occasion/situation of use
32
Geography segmentation
Where will the consumer use the product
33
Demographic segmentation
Age, gender, ethnicity, income, family size
34
Psychographic segmentation
Lifestyle, attitudes, interests, AIO (attitudes, interests, and opinions)
35
Usage rate segmentation
How often will the product be used
36
Occasion/situation of use segmentation
When will the product be used
37
Family life cycle
Combines 3 demographic variables:
Age, married (Y/N), and children (Y/N)
38
Young and single (Family life cycle)
You buy products that you specifically want
39
Young and married without kids (Family life cycle)
People come together with different brand preferences and they will eventually come to a common household brand
40
Young and married with kids (Family life cycle)
Now the parents kids will continue with their parents preferences
41
Middle aged married with kids (Family life cycle)
More focused on durable goods
42
Middle aged married without dependent kids (Family life cycle)
Focus on self improvement
Cooking classes, vacations, remodeling, more education
43
Older and married (Family life cycle)
More focused on healthcare
44
Older and unmarried (Family life cycle)
Focused on attention and affection from family members
45
Geodemographic segmentation
Segmenting potential customers into neighborhood lifestyle categories; combines geography, demographics, and psychographics
46
What are the different targeting strategies
Undifferentiated/mass marketing
Concentrated/niche
Differentiated/multi-segment
Micromarketing/1-1/mass customization
47
Undifferentiated/mass marketing
Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix
Ex. commodities (sugar, salt, water)
48
Undifferentiated/mass marketing advantages/disadvantages
Potential savings on production and marketing costs
Unimaginative product offerings and more susceptible to competition
49
Concentrated/niche
A strategy used to select one segment of a market for target marketing efforts
50
Concentrated/niche advantages/disadvantages
Can charge higher prices
All eggs are in one basket, very small market
51
Differentiated/multi-segment
A strategy that chooses two or more well defined market segments and develops a distinct marketing mix for each
52
Differentiated/multi-segment advantages/disadvantages
Greater financial success (bigger market share), economies of scale (cost/unit decreases as you produce more), lower overall risk (all of your eggs are not in your basket)
Higher costs and cannibalization (when sales for one product eat into the sales of another product)
53
Micromarketing
When a firm tailors part of the marketing mix to suit an individual customers wants/needs
Theoretically meets the needs/wants the best
It is individualized, expensive, relies heavily on technology, and difficult to execute
54
Positioning
A process of defining the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product does or what the company represents in comparison with the competition
55
Value proposition
Communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it
Includes the target market, brand name, product/service category, and unique benefits/differences from the competition
56
Product lines
A group of closely related products
Ex. SUV's (Ford), trucks (Ford), or sedans (Ford)
57
Product item
A specific version of a product that can be designated as a distinct offering among an organization's products
Ex. Ford Escape, Ford Taurus, Ford F-150
58
Product mix
All product that an organization sells
Ex. Ford --> SUV's, Sedans, trucks
59
Product mix width/breadth
The number of product lines in a mix
Adding a line would be going after a new market
60
Increasing product mix width/breadth would...
Diversifies risk
Capitalizes on established reputations
Brand extension - Adding a new product line with the same brand name
61
Adding product mix width/breadth would be like...
Apple going from iPod --> iPhone --> iPad --> iMac
62
Product line depth
The number of product items in a line
63
Increasing product line item depth would...
Attract new buyers with different preferences
Increase sales by further market segmentation
Capitalize on economies of scale (as you produce more of a product, the cost/unit goes down)
64
Increasing product line item depth would be like...
Adding a product line item would add a segment
65
Product line extension would...
Increase depth
66
Product line contraction would...
Decrease depth
67
What is innovation
The process by which ideas are transformed into new offerings including products, services, processes, and branding concepts that will help firms grow
68
Why do firms innovate
If they don't change, then the competitors will
Wants and needs are constantly changing
Things go out of style
69
What is the product life cycle
A concept that provides a way to trace the stages of a product's acceptance from its introduction (birth) to its decline (death)
70
What is the point of the product life cycle
It is one of the most helpful tools for marketing managers becasue it tells them what the 4 p's look like over the life of a product
71
What stage of the PLC has the highest sales
Maturity
72
What stage of the PLC are profits the highest
Growth
73
Introductory stage
Price is high, costs are high, sales are low, and usually have a negative profit
High failure rates. Only 3% of new products survive this stage
Little competition
Limited distribution
High ad and production costs
Promotion focuses on awareness and information of the product category benefits
Intensive personal selling to channels
74
Growth stage
Increasing rate of sales
Initial healthy profits
Entrance of competitors
Prices normally fall
Market becomes more segmented
Aggressive advertising of the difference between brands
Wider distribution
75
Maturity stage
Defined by sales increase at a decreasing rate
Saturated markets
Annual models appear
Lengthened product lines
Go after new geographic markets and segments
High promotion and distribution costs
Prices and profits fall
76
Decline stage
Defined by long run drop in sales
Elimination of all nonessential marketing expenses
Organized abandonment (Every 2-3 years, you should review all your product items and ask if we knew what we knew now, would we start making the product)
77
What is diffusion of innovation
The process by which adoption of an innovation spreads throughout a market, over time and a cross various categories of adopters
Tells us how consumers change
78
Pioneers/breakthrough products
New to the world products that create their own market/industry because they drastically change the way consumers do things and their preferences
79
What is an adopter
Someone who used the product
Someone who was satisfied by the product
Someone who intends to buy the product again/keep using the product
80
Categories of adopters
```
Innovators
Early adopters
Early majority
Late majority
Laggards
```
81
Innovators
High socioeconomic status
Has ties outside the community with manufacturers
Like to take risks
Obsessed with being first
82
Early adopters
Heavily involved in the community
Less risky but still somewhat risky
Opinion leaders (ones who influence others)
83
Early majority
Do a lot of research
Very deliberate
Don't like risks
84
Late majority
Very skeptical
Little bit older
Only get the product if it is a gift or they are peer pressured into buying it
85
Laggards
```
Lower socioeconomic status
Old
Forced into buying the product
Very suspicious of the new product
Get ignored by marketers
Still uses the old version of the product even with the new product available
Typically one PLC behind
```
86
Product characteristics that affect the rate of adoption
```
Complexity
Compatibility
Relative advantage
Observability
Trialability
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