Finale Flashcards
(140 cards)
1
Q
What is a product?
A
Anything can be offered to a market that may satisfy a want or need (tangible objects, events, persons, places, orginizations, ideas and services)
2
Q
What do companies consider to be the three levels of value their product provides customers?
A
Core customer value: What you really buy
Actual product: turn core benefit into an actual product
Augmented product: The actual product + additional benefits and services
3
Q
What are some ways the product can be augmented?
A
Warranty, financing, repair/maintenance, Delivery, customer support
4
Q
What are the two broad categories of products?
A
Business and consumer products (based on the purpose for which the product is bought)
5
Q
What are some typical business products?
A
Capital items, raw materials, supplies, services
6
Q
What are 4 types of consumer products?
A
Convenience products, Shopping products, Specialty products, Unsought products
7
Q
What are the 7 major stages in new product development?
A
- Idea generation
- Concept development (continuing with the good ideas)
- Marketing strategy
- Business analysis
- Techinical Development
- Test Marketing
- Commercialization
8
Q
What are 2 sources of ideasin the idea generation stage?
A
iNTERNAL/External
9
Q
What is Concept development?
A
Reduce generated ideas to good ideas only. ie:
- Describe product/sertvice, target market and competition
- Estimate market size, price, development time and costs, manufacturing costs and rate of return
- Evaluate new product ideas against a set of company criteria
10
Q
What is the concept devlopment stage?
A
Product concept: Detailed version of the new product idea stated in meaningful consumer terms
Concept testing: testing new product concepts via word or picture descriptions or with physical presentations
- Test groups of potential consumer to find out if the concepts have strong consumer appeal
11
Q
What are the 3 components of developing a marketing strategy?
A
- Describe the target market, planned value proposition, sales, market share and profit goals
- Outline the products planned price, distribution and marketing budget
- Describe the planned long run sales and profit goals, marketing mix strategy
12
Q
How do you perfrom the business analysis step?
A
Review the sales, costs and profit projections ot assess fot with company objectives
- If results are positive move to the product development phase
13
Q
What is the Product development stage?
A
Devlops the concept into physical product
- Calls for large investment
- prototypes are developed and tested by R&D
- Prototypes must have required fuunctional features and convey psychological characteristics
14
Q
What is the test marketing step? Is it needed for all products?
A
Not needed for all products.
Product and marketing program are introduced into realistic market setting (provide marketing experience before going going to the full expense of introduction)
15
Q
What is ther commercialization step?
A
Full-scale intro of the product into the market
16
Q
What are the 3 elements to success in new product development?
A
- Customer centric approach
- Team based approach
- Systematic approach
17
Q
What are the 4 stages to the product life cycle? and the pre-stage?
A
- Product development
- Intro
- Growth
- Maturity
- Decline
18
Q
What is the introduction stage
A
- Product is launched
- low sales and negative or low profits, slow growth
- high distribution and promotion expenses
- marketing objective is to create product awareness and trial
19
Q
What is the growth stage?
A
- Sales climb quickly
- unit manufacturing costs fall
- profit increases
- new competitors enter the market
- Marketing objective is to maximize market growth and market share
20
Q
What is the maturity stage?
A
- Experience a slowdown is sales growth
- Competition leads to price mark-downs and increases in advertisisng and promotions
- Drop in profit
- Weak competitors drop out
- Marketing objective is to evolve product to meet changing consumer needs
21
Q
What are some startegies to manage the PLC during the maturity stage?
A
- Modifying the market (find new users or segments)
- Modifying the product (Change features etc)
Modifying the marketing mix (Change one or more of the P’s)
22
Q
What is thye Decline stage?
A
- sALES AND PROFITS DECLINE
- Prices and promotion budgets drop
- Competitors withdraw
- Marketing objective is to determin whether to maintain, harvest or drop decling products
23
Q
What does a style PLC look like?
A
Wavy trend line of ups and downs
24
Q
What does a fashion PLC look like?
A
Downward Parabola
25
What does a fad PLC look like?
sharp and pointy uptick followerd by a sudden decline
26
What are the 4 dimensions of the product mix?
1. Width: Number of product lines in a company
2. Length: Number of items in a product line
3. Depth: Number of versions of each product line
4. Consistancy: How closely related product lines are in end use, distribution channels, production etc.
27
What is Apples product mix in terms of the 4 dimensions?
Width: (# of products in the company) Ipod, Iphone, Mac etc
Length: (Number of items within a product line) Ipod shuffle, nano, touch, classic etc
Depth: (number of versions of each product in the line) ipod versions based in colour, memory etc
Consistency: (How closely related product lines are in end use, distribuytion channels, production etc
28
What are 3 levels of decisoins on products
- Individual product decisions
- Product line decisoins
- Product portfolio decisions
29
What are Individual product decisions include?
- Product attributes such as quality, style, packaging, labelling and design
- Product support services
- Packaging (Product protection, facilitates product use and storage, supplies marketing information)
- Customer support (troubleshooting, repairs endo of product life recycling etc)
30
What do decisions about product line involve?
Product line length
- Filling: Adding more items within the range of the line
- Line stretching: Lengthening the product line beyond it's current range (upwad stretch - adding higher end downward stretch - lower end product)
31
What are 4 special characteristics of services?
1. Intangibility: Cant be touched or held
Variability: vary from on edelivery to the next
Perisgability: Cant be stored for later. One and one
Inseparability: Cannot seperate the service experience from the service provider
32
What is a brand?
Name, term, sign, symbol, design or combination of above that identifies the maker or seller of a product or sevice.
- represented by a name, logo or icon
33
3 additional characterisitcs of brands?
1. Personality
2. Status
3. Value (brand equity)
34
What do logos do for a brand and how can they be designed?
Support the brands positioning and personality. Can be designed to be more approachable, upbeat and engaging
35
What is brand personlaity?
Total of all brand attributes and the emotions it inspires to0 consumers
36
What is a common mistake with brands status?
Confusing status with popularity ie Keds are popular and low status and Chanel is high status and exclusive (not popular)
37
What is brand equity?
$ amount attributed to the value of the bran based on intangible qualiities that create value
38
What is brand strength and how can it be measured?
Another measure of brand value. Measured through:
- Differentiation (How a brand stands out)
- Relveance (The the brand meets needs)
- Knowledge (How much consumers know about the brand)
- Esteem (How customers regard/respect the brand)
39
What are the three main branding strategy decisions?
1. Brand name selection
2. Brand positioning
- Brand sponsership
40
What are some tips for brand name?
- Should suggest something about the product ie Boston Pizza
- Be easy to spell and pronounce (tide, Ziploc)
- Be distinctive ( Google, Blackberry)
- Be capable of registration and trademark protection
- Be extendable (Not tied too closely to one product)
- Be pronounceable in man y languages ( and no unfortunate translations)
41
What is som good ol fashioned brand positioning stratgey?
- Determining the intended image of the product or brand relative to competitors
- How the audiences overall impression results from brand-related communications
42
What attributes can you position things on?
Attributes: Light-weight, durable, ingredients
Benefits: taste, health benefits, sharing/social benefits
Values: makes me a better person
43
wHAT ARE NATIONAL AND PRIVATE BRANDS?
National brands: Created and owned by the manufacturer of the products
Private brands: Created and owned by a reseller
(private brands are growing fastest)
44
What is licensing the brand?
Selling the rights to apply a brand name, logo or image ot another manufacturer
45
What is Co-branding?
When 2 established brand mames are used on the same product (often involves a partnership and one company licensing a logo)
46
What are some pros to licensing?
- Often used in apparel, accessories and children products
- Good alternatives to develop your own brand
- Name and charafcter licensing has grwon rapidly (can include celebs and characters from books/movies)
47
What are some pros and cons to Co-branding?
Advantage: Broader consumer appeal and greater brand equity, expansion of a brand into a difficult category
Cons: Complex legal contracts and licenses, Careful coordination of marketing efforts, Trust in each partner to take care of each others brand
48
What do Strategic brand management decisions involve?
- Brand development
| - Brand communications
49
What are line extensions?
- Extending an existing brand name to new forms such as colours, sizes, ingredients or flavours
eg. Honey Nut cheerios and Multigrain Cheerios
eg. Diet Coke, Coke Zero,
50
What are the advantages and risks of line extensions?
Advantages: Low cost, low risk way to introduce new products. Meets consumer desires for variety, use excess capacity or command more shelf space
Risks: Overextended brand may lose its meaning, Sales of an extension may affect other items
51
What are brand extensions?
-Extending an existing brand name to new product categories eg. Swiss army luggage and Mr clean Magic erasers
52
What are the brand extension pros and cons?
Pros: Gives a new product instant recognition. Saves advertising costs to build a new brand name
Risks: Extension may confuse the main brand image, if an extension fails may harm consumer attititudes, Brand name may not be suitable for new products
53
What are multibrands?
Different brands produced in the same product category by the same manufacturer (P&G sells many brands of dishwasher detergent (dawn, ivory, joy and Cascade) hair products etc
54
What are the pros and cons of multibrands?
Pros: Appeal to different customer segemnts
- Lock up reseller shelf space, Capture larger market share, Generate internal competition
Risks: Each brand may only have small market share and none may be very profitable
55
When are new brands created?
The power of existing brand name wanes
| Entering new product category (Sobeys FreshCo line)
56
What are the advantages and cons of creating new brands?
Pros: Useful when none of a companys current brand names are appropriate
Risks: Too many new brands can spread a companys resources too thin
- Creating too many new brands with too few differences
57
Who are brand advocates?
Customers, employees and others who voluntarily promote their favourite brands
- Companies can benefit from turning customers into brand advocates because they spread brand awareness through word of mouth onlin eor in person and recommendations to others
58
What is required for effective brand advocacy?
- Build trust with potential advocates (Nurture suggestions and opinions online via WOM)
- Create advocates close to home (build a base of supporters)
- Include customers/employees in brand story (customers at the heart of the brand)
- Deliver an experience that gets people talking
- Outperform for advocates where they care the most
59
What 3 ways do brands deliver value to customers?
Familiarity
Consistancy
Reduction (Search costs-time and money, psychological risk, perceived risk)
60
What is a key to communicating brand meaning to consumers to associate the brand with one word, give examples.
Volvo - "Safety"
Coors Light - "Cold"
Red Bull - "Extreme"
61
Whats one con of using celebrities?
The brand can be damaged as quickly as they were created
62
What is branded content?
"Content Marketing" is any form of information or story written and produced by a bradn marketer, with brand clearly and prominently featured
63
Branded entertainment is what tho?
a form of entertainment, usually video, that is created with the cooperation or financial support of a marketer
64
What is place?
Producing an making products available to buyers require buillding relationships with supply chain partners or value delivery network (The company, distributors and customers "partner" with each other to deliver customer value)
65
What are marketing channels?
(aka distribution channel)
- Marketing channels are a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business users
66
What are upstream and downstream channel partners? wats de focus?
Upstream: Firms that supply the raw materials
Downstream: Marketing Channel partners that link the firm to the customer
Focus on downstream
67
What are the two most important channel members?
Retailer and the wholesaler
68
What is retailing?
All activities involved in selling products or services directly to final consumers for their personal non-business use
69
What is wholesaling in relation to channels?
Wholesaling (all activities involved in selling goods and service to those buying for resale or busioness use)
Add value for producers by performing one or more channel functions
70
What are functions performed by Wholesaling?
- Market info
- Sales and promotion
- Assortment building and bulk breaking
- Wharehousing
- Absorb risk
- Transportation and delivery
- Financing and management services
71
What is the length of a channle?
number of intermediary levels in the channel
72
When does channel conflict occur?
- ABout goals, roles and rewards
- Can occur horizontally (Among firms at the same channel level eg retailer to retailer
Vertically: between different levels of the same channel (eg wholesaler to retailer)
73
In what ways can channels be organized?
1. Conventional organization (every channle member is seperate)
2. Vertical Organization (Companies work together)
2. Horizontal Organization (tWO COMPANIES JOIN AT ONE LEVEL)
4. Multichannel Organization (AT least 2 channels)
74
What are some characteristics of conventional distribution systems?
- Typically each player acts independantly
- Often leads to damaging conflict
- No channel member has control over the others
75
What are some characteristics of Vertical distributions?
- One channel member owns the others
| - Vertical integration
76
What are the 3 kinds of vertical distribution systems?
1. Corporate
2. Contractual
3. Administered
77
What is Corporate VMS?
Combine successive stages of production and distribution under single ownership
78
What is Contractual VMS? What is a common example?
- Independant firms at different levels of production/distribution contract together to obtain more economies of scale than each could alone
- Franchise organization are a common form of contractual VMS
79
What is administered VMS?
Leadership is assumed through the size and power of one or a few dominant channel members (i.e not through contracts or ownership) eg Large retailers can exert strong influences on manufacturers and top brands can command support from retailers
80
What are some characteristics of Horizontal marketing systems? What are some examples?
2 or more companies at one level jopin together to follow a new marketing opportunity i.e reach the same market. eg: Tim Hos and Esso, McDonalds and Walmart
81
What are some characteristics of multichannel distribution system?
- Single firm sets up two or more marketing channles to reaqach one or more customer groups eg in one channel sell direct to consumer (ie online) and in another channle sell to consumer via an intermediary
82
What is disintermediation?
Occurs when product and service producers cut out traditional intermediaries or displace resellers with radical new types of intermediaries eg Airline firms now sell tickets directly to consumers cutting out travel agents. Presents problems and opportunities for producers and resellers
83
What is price in a narrow definition?
price is the amount of money charged for a product or service ie the total value of the customers exchange
84
What objectives can pricing affect?
- Increasing sales or market share
- increase profit
- Imgae enhancement (alter price to reflect high qualityu image)
- Competitive effects (Alter price to increase sales relative to a competitor)
- Customer Satisfaction (Alter price to match customer expectatiosn)
85
What are 4 factors in setting price?
1. cOSTS
2. dEMAND
3. Revenue
4. Pricing Environment
86
What environemental factors impact pricing?
Internal factors
The economy
Competition
Govt regulation
87
How might the internal environment affect pricing?
- Need ot consider overall marketing strategy, objectives and the marketing mix
- Company needs to decide overal product strategy before setting price
- company must coordinate pricing decisions with packaging, promotion and distribution decisions
88
How does competition affect pricing?
- Need to consider the competition and industry structure to set price. Price setting varies depending on the nature of the market
4 basic types o fmarkets exist Perfect comp, Monopolistic comp, Oligolpoly and Monopoly
89
How does the economy affect pricing decisions?
- recent recession lead to many being price conciosus
* Cutting price
* Offering more affordable items (firms have engaged in downwards line stretching)
* Holding price but repositioning brands to enhance their value
90
How does govt regulation affect pricing?
Company must abide
91
What are the 3 major pricing strategies?
- Customer value based pricing
- Cost based pricing
- Competition based pricing
92
What is customer value based pricing?
Set price on customers perception of value rather than seller's cost (Customers needs and values perceptions are assessed -> Target price is based on value perception -> Determine costs that can be incurred -> design product to deliver desired value at target price)
93
What are the 2 general types of value based pricing?
Good-value pricing: Offering just the right combination of quality and service at a fair price
Value added pricing: Attached value-added features and charging a higher price
94
What is cost based pricing?
- Setting prices based on production, distribution and selling costs at a fair rate of return
- (Design a good product -> Determine product costs -> Set price based on cost -> Convince buyers of products value)
- costs set tyhe floor for the price that the company can charge
- product driven rather than value driven
95
What are the main types of cost based pricing?
```
Cost plus (markup) price
Break even pricing (setting price to break even at certain point)
Target return pricing (setting theprice in order to earn a targeted return)
```
96
What is competition based pricing?
Sewtting prices based on competitors prices, strategies, costs and market offerings
- Assessing competitors pricing strategies (How do they compare in terms of customer value?)
- Should your offering cost more or less? (What are their costs and pricing strategies?)
97
What are some special pricingt situations?
1. New Product pricing
2. Product mix priciing
3. Pric e adjustments
4. Price changes
98
What are some new product pricing strats?
Market skimming: Setting a high price to "skim" revenue from segments willing to pay the high price
Market Penetration: Setting low price to penetrate market quickly and deeply - can attract a large number of buyers quickly and win large market share
99
When is Market skimming a good strategy?
Useful when:
- Products quality and image support a high price
- Costs of low volume do not cancel the benefit of higher price
- Competitors cannot easily enter the market and undercut price
100
When is market penetration a good strategy?
Useful when:
- Market is price sensitive; low price produces market growth
- Costs fall as sales volume increases
- Competition can be kept out the the market with low pricing
101
What is Product mix pricing?
The strategy for setting a price can depend on whether hte product is part of a product mix
102
What are 5 product mix pricing strategies?
1. Product line pricing
2. Optional Product pricing
3. Captive product pricing
4. By-Product pricing
5. Bundle pricing
103
What is product line priocing?
Setting prices between various products in a line based on cost differences, customer evaluations aof features and competitors prices
- positioning of the brand or product
104
What is Optional product pricing?
- Pricing optional or accessory products sold with the main product
105
What is Captive-product pricing?
Pricing products that must be used with the main product
106
What is By-product pricing?
- "turning trash into cash"
| - Pricing by-products to make a main products price mor attractive
107
What is Product bundle pricing?
Combining several products and offering the bundle at a lower price
108
What are 7 price adjustment strategies?
1. Discount and allowance pricing
2. Segmented pricing
3. Psychological pricing
4. Promotional pricing
5, Geographical pricing
6. Dynamic pricing
7. International pricing
109
How are some ways you can give discounts and allowances?
Discounts:
- Cash (discount if paid promptly)
- Quantity (discount for buying in bulk)
-Seasonal (Off season discount)
Allowances:
- Trade-in (return old product when buying new one)
- Promotional (Price reductions to reward retailer for promoting product)
110
What are 4 types of segmented pricing>
1. Customer-segment
2. Product form
3. Location based pricing
4. Time-based pricing
111
What is psychological pricing?
Price gives you infor about the product
112
What does promotional pricing genereate?
temporary excitement and urgency
113
What is Geographical pricing?
Pricing based on where customers are located when they make their purchase (may cost more to ship to certain locations)
114
What are 3 types of geographical pricing?
1. Free on board (FOB): The shipping cost os paid by the purchaser - items placed on board a carrier
2. Unifrom delivery pricing: Company charges the same price to everyone eg flat rate shipping
3. Zone pricing: Costs depend on what zone you are in
115
Dont forget about dynamic pricng or "real_time pricing"
Ok.
116
What factors influence international pricing?
```
Economic and competitive factors
Laws and regulatiuons
The wholesaling and retailing system
Consumer perceptions and preferences
Different marketing objectives
Costs
```
117
Why might a company initiate price cuts?
1. Excess capacity
2. Falling demand in face of strong competition or weakened economy
3. Drive to dominate market through lower costs
118
Why might a company initiate price increases?
1. Cost inflation
| 2. Over demand
119
What are the rules to priicing in the free market?
1. No deceptive pricing
2. No unfair price fixing (Collusion)
3. No price discrimination
4. No predatory pricing
120
In the communication process what is encoding?
The process by which a source translates an idea into a form of communication that conveys the desired meaning
121
Decoding is what?
the process by which a reciever assignes a meaning to the message
122
What is the medium?
The communication vbehicle (tv radio etc)
123
What is noise?
Anything that interferes with effective communication
124
What is feedbakc?
The recievers reaction to the decoded message
125
What is the blend that makes up the promotion mix?
- Advertising
- Public relations
- Digital/Internal marketing
- Direct marketing
- Sales Promotion
- Personal selling
126
What is direct marketing?
Direct connections with individuals - many forms exist but all forms are less public, customized and interactive (catalogues, direct mail etc)
127
What makes for an effective way to send communicate?
-Integrate communication channels to deliver a consistant message
- All touch points must be recognized
- Must ensure the brand contact delivers consistant and positive messages
(called integrated marketing Communications)
128
What must marketers do when developing an advertising budget?
- Set advertising objectives (inform , persuade or remind)
- Set the advertising budget
- Develop the advertisaing strategy
- Evaluate advertising campaigns
129
What is informative advertising?
```
Introduces a new product
Communicate customer value
Build brand image
Explain how something works
inform about a price change
correct false impressions
```
130
What is Persuasive advertising?
Comparitive advertising (attack advertising)
Build brand preference
Encourage switching to your brand
Convincing consumers to tell others about the brand
Convincing customers to purchase now
131
What is reminder advertising?
Maintain relationships
Remind customers where to buy the product
Remind customers they need the product
Keeping brqand in the consumers mind during the offseason
132
What are the different methods to setting the advertising budget?
```
Objective and Task: Determine your objectives and tasks, estimate expenses and then create budget
Arbitrary method
Affordable method
Percentage of sales method
Competitve parity method
```
133
What kind of methods can you use to communicate through advertising?
1. Straight method
2. Slice of life ("typical" people in "normal" setting)
3. Lifestyle (How a product fits it)
4. Fantasy (create fantasy around the product)
5. Personality (create a character to represent the product)
6. Technical expertise (show that the company is the expert)
7. Mood or image (build a mood; love serenity etc)
8. Musical (jingles, songs; especially with cartoons or brand mascots)
8. Scientific evidence (4/5 dentists recommend)
9. Testimonials
134
What are the steps in choosing advertising media selection?
```
1. Deciding on reach, frequency and impact
•
Choosing among media types
•
Selecting specific media vehicles
•
Deciding on media timing
```
135
Whats the difference between reach and impact?
Reach: % of ppl exposed to the ad campaign in given time period
Frequency: Number of times a person is exposed to advertisement
136
What is media impact?
Qualitative value of a message exposure through a given medium
137
What are factors when choosing media vehicles?
1. Cost
2. Audience quality
3. Audience engagement
4. Editorial quality
138
How is PR different from other elements of the promotion mix?
- It does not usually promote a specific product/service
| - It is often difficult for consumers to make a link between the PR communications and its intent
139
What happens in the idea generation step of new product development?
- GENEREATE 100S OF IDEAS from suppliers and distributors, employees, competitors, customers etc.
140
What happens in the idea screening step of new product development?
- reduce ideasthe number of ideas to just good ones by asking:
* does it solve a real problem?
* Can we win? (Competitive advantage)
* Is it worth doing?
