question

Generation Y

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1980-1996

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marketing mix includes

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product, pricing, promotion and distribution(place)

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a group of people who, as individuals, or as organizations, have needs for products in a product class and have the ability, willingness, and authority to purchase such products

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market

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a group of people who, as individuals, or as organizations, have needs for products in a product class and have the ability, willingness, and authority to purchase such products

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market

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individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in daily operations.

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business market

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group of people or organizations for which a business creates and maintains a marketing mix specifically designed to satisfy the needs of group members

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target market

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a strategy in which an organization designs a single marketing mix and directs it at an entire market for a particular product a) This mix consists of one type of product with little or no variation, one price, one promotional program aimed at everybody, and one distribution system. b) Often include commodities and some food items such as sugar and salt c) Must have homogenous market

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undifferentiated target strategy

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- a market in which a large proportion of customers have similar needs for a product

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homogenous market

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a market made up of individuals or organizations with diverse needs for products in a specific product class

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heterogenous market

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- the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs

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market segmentation

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- consist of individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively similar product needs

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market segmentation

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a market segmentation strategy, in which an organization targets a single market segment using one marketing mix

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concentrated targeting strategy

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a strategy in which an organization targets 2 or more segments by developing a marketing mix for each segment

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differentiated targeting strategy

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characteristics of individuals, groups, or organizations used to divide a market into segments

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segmentation variables

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income (most used) age, gender, ethnicity, social class, occupation etc

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demographic variables

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region, city size, market density, climate, terrain etc

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geographic variables

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personality attributes, lifestyle, motives

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psychological variables

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volume usage, benefit expectations, brand loyalty etc

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behavioristic variables

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the idea that marital status and the age and presence of children influence household income and product needs

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family life cycle

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the number of potential customers within a unit of land area

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market density

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segmentation method that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information

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geodemographic segmentation

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an approach to market segmentation where organizations focus precise marketing efforts on very small geographic markets

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micromarketing

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the division of a market according to benefits that consumers want from the product • the benefits consumers seek ARE their product needs • ex: Tylenol cold and flu provides the benefit of ridding cold and flu to consumers (segment is for consumers who have a cold or flu)

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benefit segmentation

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total amount of a product that customers will purchase within a specified period at a specific level of industrywide marketing activity a) Expressed in dollars or units

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market potential

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the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product

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company sales potential

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measuring company sales potential based on general economic forecast for a specific period and the market potential derived from it

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breakdown approach

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measuring company sales potential by estimating how much of a product a potential buyer in a geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered

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buildup approach

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are theyre already competitors in the segment? What are their prices, can I compete in this segment? Is it worth to enter this segment?

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competitive assessment

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creating and maintaining a certain concept of a product in customers minds

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product positioning

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changing a products target market and altering the perception of the product and who it is for

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repositioning

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the amount of a product a company expects to sell during a specific period at a specified level of marketing activity

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sales forecast

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5 steps of target market selection process

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• Identity targeting strategy, pick which segmentation variables to use, develop market segment profiles, evaluate relevant profiles, select specific target markets

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• 5 categories of sales forecasting:

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executive judgment, surveys, forecasting surveys, regression analysis, and market tests

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a sales forecasting method based on the intuition of one or more executives (fastest and cheapest)

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executive judgements

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a survey of customers regarding the types and quantities of products they intend to buy during a specific period

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customer forecasting survey

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a survey of a firms sales force regarding anticipated sales in their territories for a specific period a) Sales team is closest to a company's actual customers

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sales force forecasting survey

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sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors

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expert forecasting survey

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experts make forecasts and submit them to the company, the company then compares them with their own and sends them back to the experts for final analysis (most accurate)

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delphi technique

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a forecasting method that uses historical sales data to discover patterns in the firms sales over time and generally involves trend, cycle, seasonal, and random factor analysis (assumes previous sales patterns will keep occurring)

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time series analysis

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Trend analysis

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analysis that focuses on aggregate sales data over a period of many yeas to determine general trends in annual sales

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Cycle analysis

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an analysis of sales figures for a 3-5 year period to ascertain whether sales fluctuate in consistent & periodic manner

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Seasonal analysis

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analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales

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Random factor analysis

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an analysis attempting to attribute erratic sales variations to random, nonrecurring events

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Regression analysis

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a method of predicting sales based on finding a relationship between past sales and one or more independent variables such as population or income

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Market test

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making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts

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Buying behavior

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the decision processes and actions of people involved in buying and using the products

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Consumer buying behavior

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the decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

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consumer buying decision process

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a 5 stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation

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Problem recognition

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Occurs when a buyer becomes aware of a difference between a desired state and an actual condition. (ex: new iphone comes out and you want it)

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Internal search

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an information search in which buyers search their memories for information about products that might solve their problem Ex: memory and past experiences

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External search

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information search in which buyers seek information from sources other than their memories Ex: friends, internet, consumer reports, magazines, etc...

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Consideration set (evoked set)

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a group of brands within a product category that a buyer views as alternatives for possible purchase

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Evaluation criteria

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objective and subjective product characteristics that are important to a buyer

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Framing

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companies use this method to stress certain characteristics about their produce (such as safety of car, or pixels on camera)t to influence buyers

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Cognitive dissonance

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a buyers doubts shortly after a purchase about whether the decision was the right one

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Situational influences

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influences that result from circumstances, time, and location that affect the consumer buying decision process

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Psychological influences

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factors that in part determine peoples general behavior, thus influencing their behavior as consumers

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Perception

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the process of 1)selecting, 2)organizing, and 3)interpreting, information inputs to produce meaning

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information inputs

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sensations received through sight, taste, hearing, smell, & touch

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Selective exposure

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the process by which some inputs are selected to reach awareness and others are not

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Selective distortion

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an individual's changing or twisting of information that is inconsistent with personal feelings or beliefs Ex: Consumer may stay loyal to coke even if statistics were to prove pepsi is better, cheaper, healthier, taste 100% the same etc

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Selective retention

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remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

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closure

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organization method where one mentally fills in the missing elements of a pattern or statement

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Motives

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an internal force that directs a personals behavior towards satisfying needs or achieving goals

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Patronage motives

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motives that influence where a person purchases products on a regular basis

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Maslows hierarchy of needs

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the 5 levels of needs that humans seek to satisfy, from most to least important

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Physiological needs (least)

answer

survival such as food, water, shelter etc

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Safety needs

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life insurance, freedom from physical or emotional harm, air bag

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Social needs

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love, affection, and a sense of belonging

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Esteem needs

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require respect and recognition from others, flying first class

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Self actualization needs

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the need to become all you are capable of & develop

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Learning

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changes in an individual's thought processes and behavior caused by information and experience

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Attitudes

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an individuals enduring evaluation of feelings about and behavioral tendencies toward an object or idea

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Three major components of attitude:

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cognitive, affecting and behavioral

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Attitude scale

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a means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object

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personality

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a set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

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Types of personalities

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compulsive, ambition, gregariousness, dogmatism, authoritarian, introvert, extrovert

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Self concept (self image)

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a perception or view of ones self

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Lifestyles

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an individual's pattern of living expressed through activates, interests, and opinions

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level of involvement

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an individuals degree of interest in a product and the importance of the product for that person

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High involvement products

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tend to be visible to others and expensive Ex: Cars, clothing, furniture, health care, housing, lawyers

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Low involvement products

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less expensive and less social risk Ex: Toilet paper, groceries,

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Enduring involvement

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when a persons interest in a product has been ongoing and long term

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Situational involvement

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temporary and dynamic interest in a product Ex: Need to buy a car after getting into a car accident

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Routinized response behavior

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a consumer problem solving process used when buying frequently purchased, low cost items that require very little search and decision effort

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Limited problem solving

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a consumer problem solving process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category Ex: New laundry detergent by tide

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Extended problem solving

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a consumer problem solving process used when purchasing unfamiliar, expensive, or infrequently bought products Ex: car, home, or college education

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Impulse buying (not a problem solving method)

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an unplanned buying behavior resulting from a powerful urge to buy something immediately

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social influences

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the forces other people exert on ones buying behavior

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5 major areas:

answer

roles, family, reference groups, and opinion leaders

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Roles

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actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons

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Consumer socialization

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the process through which a person acquires the knowledge and set of skills to function as a consumer

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Family making decisions grouped into 4 categories:

answer

autonomic(both equally likely to make decision), husband dominant, wife dominant, syncretic (make decision together);75% of women make the consumer buying decisions

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Reference group

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a group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members.

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3 types of reference groups:

answer

membership, aspirational, disassociative

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Membership:

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individual actually belongs, individual identifies with group members enough to adopt group values and attitudes

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Aspirational

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group where individual aspires to belong to and wants to be in

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Disassociated

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negative group and individual does not want to identify with this group or adopt values

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Opinion leaders

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a member of an informal group who provides information about a specific topic to other group members;Most influential when consumers have high product involvement but little knowledge Ex: opinion leaders could be: sorority president, "movie buff friend", priest

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Social classes

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an open group of individuals with similar social rank; "open" because people can move into and out of each class

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Social stratification

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action of ranking people/groups into classes

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3 major classes:

answer

upper, middle, lower class

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Culture

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the accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society used to cope with its environment and passes onto future generations; Example of objects: food, furniture, clothing;Example of concepts: education, welfare, laws, core values

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Subculture

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a group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in surrounding culture; Example of subcultures: college students, teenage, Asians, west coast

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3 fastest growing subcultures:

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African americans, Hispanics, Asians

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African American subculture:

answer

12.3% of population

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Spending habits

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depreciable products such as food, clothing, entertainment etc

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Hispanic subculture:

answer

15.1% of population

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Spending habits

answer

housing, groceries, telephone services, baby cloths and shoes etc

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Asian American subculture

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4.4% of population

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consumer misbehavior

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behavior that violated generally accepted norms of society Ex: shoplifting, buying drugs, consumer fraud, pirating music and software; Abusive consumers who threatens or does not comply with workers

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international marketing

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developing and performing marketing activities across national boundaries

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CIBER

answer

centers for international business education & research

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Forces that affect the marketing environment include

answer

sociocultural; economic; political, legal, and regulatory; social and ethical, competitive, and technological

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Some cultures influence buying behavior due to different ____

answer

beliefs, values etc

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Import tariff

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a duty levied by a nation on goods bought outside its borders and brought into the country; Used to raise revenue or protect domestic products

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Quota

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a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time

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Embargo

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a governments suspension of trade in a particular product or specific country

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Exchange controls

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government restrictions on the amount of a particular currency that can be bought or sold

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Balance on trade

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the difference in value between a nations imports and exports; Favorable balance = exports > imports

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Self reference criterion (SRC)

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idea that "we" differ from "them; Relates to how people think of other people/business in other countries

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Cultural relativism

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the concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures

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Business for social responsibility (BSR)

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tracks emerging issues and trends, provides information on corporate leadership and best practices, and helps businesses develop practical social and ethical practices

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Switzerland

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______ ranked #1 most competitive country in the world

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2nd

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USA ranked ___ most competitive country in the world

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The north American free trade agreement (NAFTA)

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an alliance that merges Canada, Mexico, and the united states into a single market; Virtually no trade tariffs is trading amongst each other

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European union (EU)

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an alliance that promotes trade among its member countries in Europe;Often called the "European community" or "open market"

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The common market of the southern cone (MERCOSUR)

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an alliance that promotes the open trade and production in its member nations in South America

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The asia pacific economic cooperation (APEC)

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An alliance that promotes open trade and cooperation among member nations throughout the world

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World trade organization (WTO)

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an entity that promotes free trade among member nations by eliminating trade barriers and education individuals, companies, and governments about trade rules around the world;Successor to GATT

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General agreement on tariffs and trade (GATT)

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an agreement among nations to reduce worldwide tariffs and increase national trade; Prevents dumping; Dumping- selling products at an unfairly low price

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successive stages of entering international markets

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1) no regular export activities 2) export via independent representatives (agents) 3) establishment of one or more sales subsidiaries internationally 4) establishment of international production/manufacturing alliances

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importing

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purchasing products from a foreign source

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exporting

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the sale of products to foreign markets

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trading company

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a company that links buyers and sellers in different countries; Does not help in manufacturing the goods

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Licensing

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an alternative to direct investment that requires a license to pay commissions or royalties on sales or supplies used in manufacturing

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Licensee

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the owner of the foreign operation Ex: The Olympic committee gives licenses to certain organizations that make shirts for the Olympics and sells them for a profit. The committee makes money from this by charging for the license and making money on royalties

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franchising

answer

a form of licensing in which a franchiser, in exchange for a financial commitment, grants a franchisee the right to market its product in accordance with the franchisers standards

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contract manufacturing

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the practice of hiring a foreign firm to produces a designated volume of the domestic firms product or a component of it to specification, the final product carries in the domestic firms name

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Outsourcing

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the practice of contracting noncore operations with an organization that specializes in this operation Ex: Google uses a 3rd party accounting firm to do its income statements

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offshoring

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the practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company or third party.

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offshore outsourcing

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the practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold

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joint ventures

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a partnership between a domestic firm and a foreign firm or government

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Strategic alliance

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a partnership that is formed to create a competitive advantage on a worldwide basis

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Direct ownership

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a situation in which a company owns subsidiaries or other facilities over seas

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Multinational enterprise

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a firm that has operations or subsidiaries in many countries Ex: BP is a multi national enterprise as it has stations in USA & Europe

question

3 basic structures of international organization exists:

answer

export departments, international divisions, and internationally integrated structures

question

International divisions

answer

centralizes all of the responsibility for international operations

question

Product division structure

answer

most used; works well with diversified firms with many different products. Ex: proctor and gamble

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Geographic area structure

answer

works well with non diversified firms, world is divided into logical geographic areas

question

Global matrix structure

answer

implements both product and geographic structure at the same time ex: used by a firm called Asea Brown Boveri (ABB)

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globalization

answer

the development of marketing strategies that treat the entire world (or its major regions) as a single entity Ex: MacDonalds and Nike are globalized and produce same products world wide

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Digital media

answer

electronic media that function using digital codes; media available via smartphone, computers, or any other electronic device

question

Digital marketing

answer

uses all digital media, including the internet and mobile interactive channels to develop communication and exchanges with customers

question

electronic marketing ( E marketing)

answer

the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing

question

Characteristics of E-Marketing:

answer

include addressability, interactivity, accessibility, connectivity, and control

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addressability

answer

the ability of a marketer to identify customers before they make a purchase; marketer knows who the customer is and can specifically address that customer

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social network

answer

web based meeting place for friends, family, coworkers, and peers that allow them to communicate for their respective purposes

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interactivity

answer

allows the customers to express their needs and wants directly to the firm in response to its marketing communications ex: online chats, blogs, forums

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accessibility

answer

the ability to obtain digital informaiton

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connectivity

answer

use of digital networks to provide linkages between information providers and users ex: many firms use Facebook or twitter to communicate messages/advertisements

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control

answer

customers' abilities to regulate the information they view and the rate and sequence of their exposure to that information;

question

pull medium

answer

internet is refered to a _____ because users choose what websites that go to and the marketer loses control of which content the user is exposed to and in what sequence

question

"enterprise 2.0"

answer

term used to desrcribe a firms' efforts to use cutting edge technology associated with social networks and blogs to assist in workplace connections-social networks

question

Blogs (weblogs)

answer

web based journals in which writers editorialize and interact with other internet users

question

Wiki

answer

type of software that creates an interface that enables users to add or edit the content of some types of websites Ex: Wikipedia.com allows users to change the content

question

podcast

answer

audio or video file that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers; podcast offer the benefit of convenience, giving customers power to listen or view content wherever they choose. CBC radio, NPR,PBS

question

virtual realities

answer

include role playing games such as SimCity and world of warcraft

question

Creators, critics, collectors, joiners, spectators, inactive

answer

Social technographics profile groups people into 6 categories according to how they interact with digital media:

question

Creators

answer

create their own media outlet such as blogs, podcasts, wikis etc

question

Critics

answer

comment on blogs and post ratings and reviews

question

Collectors

answer

organize and gather information created by creators and critics

question

Joiners

answer

anybody joining myspace or twitter, or FB etc

question

Spectators

answer

read what others produce but do not produce anything of their own

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Inactives

answer

don't participate in any of these activities

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Push and pull

answer

Distribution is a ____ and ____ dynamic

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Content

answer

Marketers push to get the _____ in front of the consumer

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crowdsourcing

answer

refers to the way digital media can be used to outsource tasks to a large group of people Ex: crowdspring.com allows users to post projects they need done and how much they are willing to pay for them and then people are allowed to choose whether to do the work or not

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Ethical and legal issues

answer

...

question

online fraud

answer

any attempt to conduct fraudulent activities online, including deceiving consumers into releasing personal information Known as "cyber criminals"

question

product

answer

a good, service, or idea received in an exchange

question

good

answer

a tangible physical entity ex: book, magazine, video game

question

service

answer

an intangible result of the application of human and mechanical efforts to people or objects ex: hotels trying to accommodate you, manicure/pedicure etc

question

idea

answer

a concept, philosophy, image, or issue ex: Mothers against drunk driving

question

supplemental features

answer

these can include installation, delivery, financing, etc

question

symbolic and experimental benefits

answer

some products provide symbolic meaning ex you can buy a teddy bear anywhere but at "build a bear" you can choose any kind of teddy bear, size, and stuff it yourself ex: a rolex is not simply just to tell time, it provides symbolic meaning of success

question

consumer and business products

answer

2 general categories of products:

question

Consumer products

answer

products purchased to satisfy personal and family needs

question

Business products

answer

products bought to use in a firms operations, to resell, or to make other products

question

Convenience products

answer

relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort; usually found at retail stores Ex: chewing gum, bread, soft drinks, newspapers, gas etc

question

Shopping products- items for which buyers are willing to expend considerable effort in planning and making purchases; buyers spend time comparing brands and prices; last a relatively long time Ex: Furniture, appliances, cameras, shoes etc

answer

...

question

Specialty products

answer

items with unique characteristics that buyers are willing to expend considerable effort to obtain

question

Unsought products

answer

products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think of buying Ex: a new radiator if yours breaks on the highway, medicine if you get the flu

question

Installations

answer

facilities and non-portable major equipment; decisions made by top level management because these products are expensive and intended for long use Ex: buildings, factories, and very large machines

question

Accessory equipment

answer

equipment that does not become part of the final physical product but is used in production or office activities Ex: calculators, tools, file cabinets etc

question

Raw materials

answer

basic natural materials that become part of a physical product Ex: Minerals, chemicals, agricultural products and materials from forest & oceans

question

Component parts

answer

items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly Ex: brakes, spark plugs, tires are all component parts of an automobile

question

Process materials

answer

materials that are used directly in the production of other products but not readily identifiable Ex: Caesar salad dressing has a little bit of vinegar in it; but the vinegar is not identifiable

question

MRO supplies

answer

maintenance, repair and operating items that facilitate production and operations but do not become part of the finished product Ex: paper, pencils, cleaning agents and paint all fall into this category Ex: febreeze is an MRO supply to hotels but is a consumer good to us

question

Business services

answer

intangible products that many organizations use in their operations Ex: Janitorial services, financial services, law services etc

question

product item

answer

a specific version of a product that can be designated as a distinct offering among a firms products

question

Product line

answer

a group of closely related product items viewed as a unit because of marketing, technical, or end- use considerations Ex: Colgate tooth whitening, Colgate cavity control, Colgate sensitive gums, etc Ex: proctor and gamble detergent line includes: tide, bold, cheer, gain, and era

question

product mix

answer

the composite, or total, group of products that an organization makes available to customers

question

Width of product mix

answer

the number of product lines a company offers Ex: GE has different types of products including houseware, healthcare, commercial

question

depth of product mix- the average number of different products offered in each product line

answer

...

question

Product life cycle

answer

the progression of a product through 4 stages: introduction, growth, maturity, and decline

question

introduction stage

answer

the initial stage of a products life cycle; its first appearance in the marketplace when sales start at zero and profits are negative

question

growth stage

answer

the product life cycle stage when sales rise rapidly, profits reach a peak and then they start to decline; Profits start to decline at end of this stage when other competitors enter the market

question

maturity stage

answer

the stage of a products life cycle when the sales and curve peaks and starts to decline, and profits continue to fall

question

• Characterized by intense competition

answer

...

question

• Companies begin using promotional or globalizing

answer

...

question

a)Generate cash flow b) Maintain share of market c) Increase share of customer

answer

3 objectives of companies in maturity stage

question

decline stage

answer

the stage of a product life cycle when sales fall rapidly

question

product adoption process

answer

5 stage process of buyer acceptance of a product: awareness, interest, evaluation, trial, adoption

question

Awareness

answer

buyer becomes aware of a new product

question

Interest

answer

buyer seeks information about new product

question

Evaluation

answer

buyer decides to use new product or not

question

Trial

answer

buyer tries new product to see if it meets his/her needs

question

Adoption

answer

buyer tries product, likes it, and is expected to buy it again

question

Innovators

answer

first adopters of new technology

question

Early adopters

answer

people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters

question

early majority

answer

individuals who adopt a new product just prior to the average person

question

late majority

answer

skeptics who adopt new products when they feel it is necessary

question

laggards

answer

the last adopters who distrust new products

question

Line extension

answer

development of a product that is closely related to other products in the line but is design specifically to meet different customer needs

question

For example the Porsche cayenne S Hybrid V-1 can drive short distance

answer

...

question

Product modification

answer

changes in one or more characteristics of a product. Example: Ford 2011, Ford 2012

question

Quality

answer

changes to a product's dependability and durability

question

Functional

answer

changes affecting a product's versatility, effectiveness, convenience, or safety

question

Aesthetic

answer

changes relating to the sensory appeal of a product

question

New product

answer

an innovative product that has never been sold by an organization, such as the digital camera was when introduced for the first time. A product that a given firm has not marketed previously, although similar products have been available from other companies, such as Crayola School Glue

question

New-product development process

answer

a seven phase process for introducing products:

question

Idea generation

answer

seeking product ides to reach organizational objectives

question

May come from

answer

Internal sources, franchisees in the restaurant business,competitors,advertising agencies,etc...

question

Screening

answer

selecting the ideas with the greatest potential for further review

question

Concept testing

answer

seeking a sample of potential buyers' responses to a product idea

question

Business Analysis

answer

evaluating the potential impact of a product idea on the firm's sales, costs, and profits

question

Product development

answer

determining if producing a product is technically feasible and cost effective

question

Test marketing

answer

a limited introduction of a product in geographic areas chosen to represent the intended market

question

Commercialization

answer

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

question

Roll-out

answer

a product is introduced in stages, starting in one set of geographic areas and gradually expanding into adjacent areas.

question

Product differentiation

answer

creating and designing products so that customers perceive them as different from competing products

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Product Quality

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the overall characteristics of a product that allow it to perform as expected in satisfying customer needs

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Level of quality

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the amount of quality a product possesses

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Consistency of Quality

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the degree to which a product has the same level of quality over time

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Product design

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how a product is conceived, planned, and produced

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Styling

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the physical appearance of the product

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Product features

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specific design characteristics that allow a product to perform certain tasks

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Customer services

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any human or mechanical efforts or activities a company provides that add value to a product.

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Product deletion

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eliminating a product from the product mix when it no longer satisfies a sufficient number of customers

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Phase out, run it out or immediate drop

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A product can be deleted in 3 ways:

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Phase-out

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allows product to decline without change in the marketing strategy, no attempt to give product new life.

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Run it out

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exploits any strengths left in the product

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Product manager

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the person within an organization who is responsible for a product, a product line, or several distinct products that make up a group

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Brand manager

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person responsible for a single brand

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Market Manager

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the person responsible for managing the marketing activities that serve a particular group of customers

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Venture team

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a cross functional group that creates entirely new products that may be aimed at new markets;Responsible for all aspects of developing a product

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Service

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an intangible product that involves a deed, a performance, or an effort that can't be physically possessed.

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a service is dominated by the intangible portion of the total product

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The primary difference between a service and a good is that:

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Customer service

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involves any human, mechanical, or electronic activity that adds value to the product..

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Sevice economy

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U.S. is called the world's first _____.

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Long term economic growth

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One major catalyst in the growth of consumer services has been ______

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Business services

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include support and maintenance, consulting, installation, equipment leasing, marketing research, advertising, temporary office personnel, and janitorial services.

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Risen even farther

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Expenditure for business services have ______ than expenditures for consumer services.

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Business environment

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The growth in business services has been attributed to the increasingly complex, specialized, and competitive _________.

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Distribution

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the decisions and activities that make products available to customers when and where they want to purchase them.

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Intangiabiltity

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means a service that is not physical and therefore can't be perceived by the senses.

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Inseparability of production and consumption

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the production of a service cannot be separated from its consumption by customers.

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Perishability

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the unused service capacity of one time period cannot be stored for future use. For instance, empty seats on an airline flight today cannot be stored and sold to passengers at a later date.

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Heterogenity

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variation in quality. For instance, today you get a great haircut, but next month you go to get a haircut from the same hairstylist and this time around it is terrible.

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increases, increases

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Heterogenity usually _____ as the degree of labor intensiveness ______.

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Client-Based relationships

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interactions that result in satisfied customers who use a service repeatedly over time. For instance, you use a lawyer and receive great service. From now on you decide to keep using him as your lawyer and recommend him to other family members and friends.

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Customer contact

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refers to the level of interaction between service providers and the customer necessary to deliver the service.

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Employee satisfaction is the single most important factor in providing high-service quality.

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...

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Core service

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the basic service experience or commodity that a customer expects to receive.

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Supplementary service

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a supportive one related to the core service and is used to differentiate the service bundle from competitors. For example, when a student attends a tutoring session for a class, the core services is the tutoring. Bundled with the core service might be access to outlines with additional info, handouts with practice questions, or online service.

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no face-to-face contact between the customer and the service provider

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Some services are provided at an "arm's length" meaning _______

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degree of personalization

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When designing service delivery, marketers must pay attention to the ______ customers desire.

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Promotion of services

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typically includes tangible cues that symbolize the service.

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Pricing of services

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should be priced with consumer price sensitivity, the nature of the transaction, and its costs in mind.

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Demand-based pricing

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when demand is high price is high and vice versa.

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Peak demand

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time period when customers tend to desire a service the most

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Service quality

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is defined as customers' perceptions of how well a service meets or exceeds their expectations.

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Search qualities

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tangible attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase.

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Experience qualities

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are attributes, such as taste, satisfaction, or pleasure, that can be assessed only during the purchase and consumption of a service. For instance restaurants and vacations.

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Credence qualities

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attributes that customers may be unable to evaluate even after the purchase and consumption of the service. For instance, surgical operations, automobile repairs, and legal representation.

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Tangibles, reliability, responsiveness, assurance, empathy

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Five dimensions consumer use when evaluating service quality:

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Tangiables

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physical evidence of the service

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Reliability

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(most important) consistency and dependability in performing the service

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Responsiveness

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willingness or readiness of employees to provide service

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Assurance

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ability to convey trust and confidence

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Empathy

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caring and ind. Attention provided by employee

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Analysis of customer expectations

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desired and acceptable expectations. Diff between the two is called the customer's zone of tolerance.

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Nonprofit marketing

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refers to marketing activities that are conducted by ind. And organizations to achieve some goal other than ordinary business goals such as profit, market share, or return on investment.

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Non profit- organization marketing: is the use of marketing concepts and techniques by organizations whose goals do not include making profits.

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...

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Social marketing

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promotes social causes, such as AIDS research and recycling.

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is to obtain a desired response from a target market

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The basic aim of nonprofit organization:

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Target public

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a collective of ind. who have an interest in or a concern about an organization, a product, or a social cause.

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client publc, general publics

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In nonprofit marketing, direct consumers of the product are called ______and indirect consumers are called _______.

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Student body

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The client public for a university is its: , and its general public includes parents, alumni, and trustees.

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Variable pricing

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when a donation-seeking organization will accept a contribution of any size and not their usual fixed donation.

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Opportunity cost

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the value of the benefit given up by selecting one alternative over another.

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Brand

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is a name. term, design, symbol, or any other feature that identifies one marketer's product as distinct from those of other marketers. It may identify a single item, family of items, or all of a seller's items.

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Brand name

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is the part of a brand that can be spoken-including letters,numbers, and words-such as 7Up.Often a product's only distinguishing characteristic.

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Brand mark

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the element of a brand that is not made up of words-often a symbol or design. Examples are: McDonald's golden arches, Nike's "swoosh", and the stylized silhouette of Apple's iPod.

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Trademark

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a legal designation indicating that the owner has exclusive use of a brand or part of a brand, and others are prohibited by law from using it.

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Trade name

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is the full legal name of an organization, such as Ford Motor Company.

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Cultural branding

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explains how a brand conveys a powerful myth that consumers find useful in cementing their identities.

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Branding loyalty

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is a costumer's favorable attitude towards a specific brand.

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Brand recognition, brand preference, brand insistence

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Three degrees of brand loyalty exist:

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Brand recognition

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occurs when the customer is aware that the brand exist and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar.

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Brand preference

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stronger degree of brand loyalty. Customer has definite preference of one brand over all others and will buy it if available. However if not available will buy a substitute.

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Brand insistence

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costumer strongly prefers one brand, will buy no substitute, and will spend the time and effort necessary to acquire it.

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Brand equity

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is the marketing and financial value associated with a brand's strength in a market.

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1.Brand-name awareness 2.Brand loyalty 3.Perceived brand quality 4. Brand associations

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Four major elements underlie brand equity:

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Maufacturer, private, generic, individual

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Types of Brands:

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Manufacturer brands

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are initiated by producers and ensure that producers are identified with their products at the point of purchase-For example, Green Giant, Compaq Computer, and Levi's jeans.

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Private distributor brands

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( store brands, dealer brands) are initiated and owned by resellers- that is, wholesalers or retailers.

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manufacturers

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The major characteristic of private brands is that the _______ are not identified on the products.

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Generic Brands

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indicate only the product category(such as aluminum foil) and do not include the company name or other identifying terms.

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Trademark Law Revision Act

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add value to federal registration system and

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to better protect the public from counterfeiting, confusion, and deception.

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...

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Individual Branding

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is a strategy in which each product is given a different name. For instance, Sara Lee uses individual branding among its many divisions, which include Hanes underwear, L'eggs pantyhose, Champion sportswear, Jimmy Dean, Bali, Ball Park, and other vastly diverse brands.

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Family Branding

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all of a firm's products are branded with the same name or part of the name such as Kellogg's Frosted Flakes, Kellogg's Rice Krispies, and Kellogg's Corn Flakes.

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Brand extension

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occurs when a firm uses one of its existing brands to brand a new product in a different product category. For example, Bic, the maker of disposable pens, employed a brand extension when it introduced Bic disposable razors and lighters.

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Line extension

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same brand on a new product in the same product category. For example the new Extra strength Tylenol P.M.

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Co-Branding

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the use of two or more brands on one product.

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Brand liscensing

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an agreement in which a company permits another company to use its brand on other products for a licensing fee. Examples are: The NFL, NBA, NCAA

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Packaging

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involves the development of a container and a graphic design for a product.

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protecting the product and maintaining its functional form; To offer convenience to consumers ;To promote a product by communicating its features, uses, benefits, and image

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Three main packaging functions:

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Family packaging

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using similar packaging for all of a firm's products or packaging that has one common desing element. For instance, Campbell's soups, Weight Watcher's foods, and Planter's nuts.

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Secondary

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use packaging: can be re used for purposes other than its initial function. For example,margarine container can be used to store leftovers, and a jelly container can serve as a drinking glass.

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