Marketing Fundamentals With Bob Final Exam – Flashcards

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Independent retailer
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one of a few units under the same ownership, 10 or fewer stores Ex. A small pet store
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Retailing
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where all activities directly relate to the sale of goods and services ultimately to the final sale for personal use
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Chain Store
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11 or more stores under the same owner Ex. Starbucks
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Franchise
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independent owner-operated licensed by a larger support organization. Ex. McDonald's
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Product & trade franchising
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Contractual vertical marketing arrangement, physical product manufactured, exclusive territory to manufacture
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Business format franchising
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A recognized name that has expertise, product or service, like H&R Block Ex. You'll stop at a shell before you stop at a mom and pop gas station.
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Department Store
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Large stores organized into many departments with limited lines that would be a competitive line with a store in the mall. Ex. Dillards
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Scrambled merchandising
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Merchandise that is a little from everywhere, allows to sell merchandise at a higher margin because it is convenient, like in a grocery store. At Walgreens they have cheap merchandise to drag in customers to buy expensive drugs. Ex. playing cards, patio furniture
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Specialty Store
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Single-limited lines/High margin/High Service Ex. Foot locker, lush
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Supermarket
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Large departmentalized self-serve retailer that specializes in food and some non-food items Ex. WinnDixie
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Drug Store
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Pharmacy related items, very scrambled merchandising
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Convenience Store
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Limited lines, high margin, high turnover, fast and convenient. Will pay more for convenience
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Discount Store aka mass merchandiser
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Full-line discount store, moderate to low prices with less atmosphere and service than a department store with high volume and turnover. Ex. Walmart, Target
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Category superstore aka specialty discount store
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Single to very limited line, low prices, high turnover, more-or-less self service (category killers) Ex. Toys-R-Us
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Category Killers
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Destroy profit potential for all others in their category's for a better option for you. Ex. When you need something that will be cheaper at home depot but takes more time to get, so you can go to a specialty retailer and get more convience but pay more. Niche
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Warehouse membership club
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Limited assortment in bulk to members only Ex. Sams, Costco
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Off-price retailer
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Buy the unsold merchandise from other retailers and sell it Ex. Marshalls, big lots
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Factory Outlet Store
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verticalls-integrated off -price retailer, cheaper than in a regualr store. Ex. Kate Spade, MK
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Vending
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Ex. Pepsi machines
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Direct Retailing
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FACE TO FACE Ex. Door to door selling
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Direct Marketing
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No intermediaries, comes by a mail catalogue, shop at home, telemarketing
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Retailing Mix
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The 4 P's: 1. Product 2. Promo, this gives you an opportunity to enhance partnership with co-op advertising 3. Place of Locations 4. Price personell
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Ted Turner
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Ran TV when no one else did over night, 24/7 news channel
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Profit Maximization
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Total revenue as large as possible relative to total costs, activities directed sales to have max profit Ex. If a hotel is 99% full, they should probably raise the prices.
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Market Share aka penetration pricing
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Gain trial, establish distribution and dominant position
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Sales Maximation
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Need to raise cash or clear out volume, total dollars Ex. Easter merchandise that needs to be cleared out after the holiday is over
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Status guo
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Maintaining existing prices aka satisfactory prices Ex. CVS will take lower prices by not selling pharmacy drugs at higher prices, so the government is not up their ass, no troubles Ex. Auto repair store not charging enough money, do better work, that way the customers are taken care of first
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Follow the leader pricing
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Aka meeting competitors Ex. Auto and steel pricing, waiting for one company to release something and seeing what their prices are Ex. Tom thumb Raises prices when shell raises prices
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Establish pricing goals
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Better stated, establishing marketing goals, trade offs
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Break even analysis
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How much must you sell to cover fixed prices? Are you better off buying treasuries instead of selling?
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Break Even Example on test
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Selling price is $225 VC is 145 Gross profit= $80 FC= $8000 Break even at $100
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Setting the Price
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1. Est pricing goals 2. Est Sales and profit at different prices 3. Decide if demand is elastic or inelastic
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Price Skimming
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Price maximization strategy, come in with high initial price, lowering it when and if competition occurs
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Penetration Pricing
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Come in with low initial price to match or pre-empt competition
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Unfair trade practices
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Floor on overall prices, generally ignored unless you practice retail, 6% retail mark-up, 2% whole sale market (a joke, not enforced)
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Predatory Pricing
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Specifically attempting to drive competition out of business, not allowed to do but what you want to do Ex. 1906 Standard oil: Marketplace for oil but didn't want competition so you sell gas for 2.75 when dodges is selling for 3.25. When dodges goes out of business then you raise your prices.
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Price Fixing
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2 or more firms conspire to set prices Ex. 2 Airlines run high everyday prices Ex. Medical care set a minimum fee for service CANNOT DO
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Price Discrimination
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Charging different prices for the same item to different customers, quantity discounts make it legal
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FOB (Free on Board)
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Point at which title passes
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FOB Origin
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Title passes at seller's dock
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FOB Origin pricing
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Buyer pays for transportation, price will be higher the further it travels
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Uniform delivered pricing aka Freight absorption pricing
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Same price for everyone everywhere, shipping is included in price
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Zone Pricing
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Different prices depending on the zone you live in Ex. Charging shipping by zip code
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Basing point pricing
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Select one or more points as bases and charge shipping from there, irregardless of where is shipped from Ex. Buying something from a company in Huston, charging shipping from Huston even know they have to send it from Washington.
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Captive Pricing
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Give you something or ill sell it to you cheap and make the money selling component parts Ex. Giving a free paper towel holder so you buy paper towels Ex. Selling a printer cheap but charging expensive prices on cartridges
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Leader pricing aka Loss leader pricing
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Product priced below cost as traffic builder Ex. Making customers happy with a coupon so they get into the store and buying more than the coupon covers
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Bait pricing aka bait and switch
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Luring you in for something that they don't really have Ex. Only having a few tv's on stock for $75
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Price bundling
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Package multiple items together so you have to buy them all Ex. Tv channels include Disney, nick, abc all for one price
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Intro stage
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High levels of advertising to gain awareness/trial
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Stages of advertising
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1. Intro stage 2. Growth stage 3. Maturity to Early Decline
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The promo mix
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1. Advertising 2. Publcity/PR 3. Sales Promotion 4. Personal Selling
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Advertising
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Marketer paid , impersonal mass communication
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Competitive advertising
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Persuade, secondary demand
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Pioneering advertising
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inform, primary demand
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PR publicity
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Ex. CNN running a story on their employees volunteering
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Growth Stage
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Fighting it out for market share (persuade), Early: reduce sales promo to increase profits, Later: more sales promo to defend turf
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Maturity to Early Decline
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Remind if you are a master brand or have a cash cow Ex. a small commercial that shows your brand to remind there is still room for jello Divest when the cash cow becomes a dog
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Factors influencing the Promo mix
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1. Type of product 2. Nature of Target Market 3. Funds available
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Institutional advertising
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Promotes a company image, a product class, or advocates a position Ex. Got milk, even when you see got Jesus Ex. cigarettes company trying to defend buyers for their rights
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Product advertising
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Promotes a specific product or service, Pioneering, primary demand, inform, try something new
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Direct-action advertising
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Seeks immediate action Ex. an 800 # on an infomercial
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Indirect-action advertising
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Builds image, position, long term awareness, loyalty Ex. 30 sec spot on tv that you arent going to run out and get the product, effect is later with encounter
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Comparative advertising
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Us vs them Ex. A laundry detergent says our brand is 10x better than downy
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Cooperative advertising
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Costs shared between producer and retailer Ex.
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DAGMAR
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Defining advertising goals for measured advertising results Ex. you want 66% of target to be aware, survey was conducted 90 days after campaign launch
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What is the first thing to do in developing an ad campaign?
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Determine campaign objectives
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Adverting appeal aka unique selling proposition aka Commercial positioning concept (CPC)
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Phrase that ties directly to your propositioning/ differential advantage Ex. "Good till the last drop"-Maxwell house Ex. When you hear Just do it, you think Nike
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To reach a wide diverse audience:
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Tv, magazines
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To reach a narrow specialized audience:
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Specialty cable channels like Golf Network
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Other ways to reach major advertising media
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1. Customers must find you doing a Google search 2. Product placement in other forms of media
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Coupons
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Price reduction at the time of purchase, low redemption rates and high cost, redeemed by current shoppers
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Sales Promotion
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Incentive to consumers for the short term to increase sales
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Rebates
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direct from the manufacture Ex. Pepsi used to do a $10 super bowl if you bought 4 boxes of soda.
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Premiums
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A free item when you buy something else. Ex. Free bread when you buy pasta
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Self-liquidating premium
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Costs factored into promo deal, YOU CAN BUY THE PREMIUM ITEM SEPERATELY
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Contests
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Must complete a task to win
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Sweepstakes
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Random choice winner
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Loyalty marketing programs aka frequent buyer program
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Have a long-term objective, long term relationships Ex. hotels give a free night with 10 hotel purchases
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Sampling
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You get to try something in store in hopes they will buy in the future, can come by mail or in store
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Point of purchase aka display equipment
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Something you want to sell as an impulse buy Ex. que line at Marshalls
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Trade Allowances
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Price reduction, rebate, free merchandise for some type of PERFORMANCE
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Push Money
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Financial incentives to inside sales people in retail outlets, Ethically questionable Ex. w/ panasonic worker going into a best buy trying to get them to sell more tvs and will give $20 for every tv sold
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Non discretionary items
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Ex. toilet paper, salad dressing Running a buy one get one free, not using both items twice a day. TRAFFIC BUILDER
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Discretionary items
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People don't need to product buy will use more. Ex. Coke, when you have 2 12 packs you'll drink more when you don't have just half a 12 pack.
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Trade Shows
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Where business see each other ideas
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Push Strategy
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Promotional money directed to channel members and you must do this if your product is undifferentiated and you are not a category leader Ex. push it in the door on a display to sell it out
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Pull strategy
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Promotional money directed to the ultimate consumer and you MAY do it if you have a competitive advantage or you are a category leader Ex. Get customers coming in looking for an item
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Marketing
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An organized system of activities designed to get the money out of someone else's pocket, into yours. PRODUCT, PROMOTION, PLACE, PRICE,
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Exchange
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Trading something of value to someone else and gaining something of grader value to you
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Production Orientation
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Focus on internal capabilities of the organization and what it can most readily produce. Primary focus: cut costs and keep prices low Ex. planting trees and in 10 years hoping there is a market for them
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Sales Orientation
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Employment of sales force and aggressive sales tactics to push that which the organization can most readily produce. Ex. producing bird feeders and they stop selling a lot, having school boys go around the block and help sell them
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Market Orientation
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Focus on the wants and needs of the target customers and create offerings to satisfy those wants and needs. you want the message behind the gift, walmart employee's know exactly where the item is that you are looking for
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Societal Marketing Orientation
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Having the organization committed to contributing to the best interests of customers and society. Ex. making levis without chemical dyes, mercury free batteries
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Production Orientation is from
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after WW2, oldest
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Sales Orientation is from
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50's and 60's, 2nd oldest
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Marketing Orientation is from
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Late 60's, 3rd oldest
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Societal Marketing Orientation
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Early 90's, newest
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Marketing Concept
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All focus is on the customer to make them happy Ex. Home Depot offering an alternative that is much cheaper
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Preconventional Morality
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A child state or instant gratification, what can I get away with, not concerned about repeat business
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Conventional Morality
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Do it because everyone else does it
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Postconventional Morality
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Being ethically-focused and holding a personal value system
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External marketing environment aka uncontrollable variables
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All the elements including social, demographic, economic, technological, political-legal, and competition, outside the organization
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What variables are the most difficult external variable to forecast and influence?
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Social
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Demographics
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Sex, age, race, income, location, family status. Be careful of segmenting.
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Consumer Product safety Commission (CPSC)
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protects health and safety of consumers that are in and outside of your home
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Federal trade commission (FTC)
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Prevents unfair trade practices including anti-trust and deceptive advertising. Ex. Advertising a free trial of internet and the only way to cancel was to call an unavailable 800 number. FTC will intervene and put it to rest.
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Corrective Advertising
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Clarifying statements that could be misleading ex. "You must exercise and eat right for this pill to work"
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Cease and desist
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Stop it immediately
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Food and Drug Administration (FDA)
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Safety of food and drug products
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Ethnic communities and identities
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Back in the old days, America was a melting pot, now it is a mix of evrything and places grow by being more diverse.
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What is a downside to globalization?
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loss of jobs, outsourcing, and lower wages
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Culture
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values, norms, attitudes, behaviors, and other meaningful behaviors that characterize a nation or people. The normal way to act in a specific group of people.
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Global Marketing Standardization
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Selling the exact same product everywhere in the world
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Tariff
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A tax levied on goods ENTERING a country
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Quota
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A limit on what can be IMPORTED into the country
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Boycott by nations:
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Exclusion of all products from certain nations or organizations
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Boycott by individuals or groups:
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Refusal to buy products from certain nations or organizations
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Exchange Control
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Having a difficult time bringing your money from another country into another, sometimes bartering instead (Pepsi and vodka)
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Marketing grouping
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2 or more nations working together to form a common trade area (NAFTA)
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What is the lowest risk and return global marketing strategy?
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Exporting
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What is the highest risk and return global marketing strategy?
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Direct investment
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What are the 5 components to global marketing strategy?
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export, licensing, contract manufacturing, joint venture, and direct investment
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Trade agreement
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An agreement by 2 or more nations trying to reduce or eliminate tariffs, quotas, boycotts, and exchange control.
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Exporting
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LOWEST RISK AND RETURN, selling domestically produced products to overseas
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Licensing
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Allowing another firm to use your name, recipes, trademarks
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Contract manufacturing
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Outsourcing your manufacturing process to a foreign or domestic firm Ex. Asia manufacturing New Balance shoes
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Joint venture
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2 organizations working together using each others advantages to make one great company
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Direct Investment
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HIGHEST RISK AND RETURN, buying another firm out or starting your own business.
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Need Recognition
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INTERNAL STIMULI Ex. "I'm hungry, where should I go eat" Figuring out where you are at currently, and deciding what you want to be, what you want to do about it
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Information Search
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Being on your way to hardies (internal stimuli, you decided where you would go before you left the house), and seeing a buffet on the way with a good deal (external stimuli, only seeing it on the way there, no internal stimuli used in the decision making.)
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Evaluation of alternatives
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When the information search is completed, or at least for the time being
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Evoked Set
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What is still in the pool for consideration
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Purchase
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Based on the products attributes and intangibles it offers
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Cognitive dissonance
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Tension or anxiety that happens after the purchase. Ex. Worrying you spent too much money
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Routine response behavior
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The least complex with the lowest involvement and low cost impulse items
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Limited Decision-making
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Moderately quick limited-consequence decision. Ex. you need a fridge and you'll go find one when yours brakes, you don't generally plan it
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Extensive decision making
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Major decision with significant risk consequences Ex. buying a car, condo, you'll think about it a lot
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Subculture
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MOST IMPORTANT groups of consumers with similar component lifestyles
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Component lifestyle
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Lifestyles will vary from one person to another
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Reference group
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groups that influence an individuals AIO's and purchasing behavior
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Primary membership group
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direct, people who meet regularyl, family co-workers
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Secondary membership group
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direct, meet with less frequently, like in clubs
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Direct membership group
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You actually belong to it
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aspirational group
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indirect, desire to belong and want to emulate, you aspire to belong to it
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Nonaspirational group
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indirect, You want NOTHING to do with it or its members
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Opinion leaders
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Persons looked up to and who influence opinions of others
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Selective exposure
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Chose what you want a customer to see or not Ex. you wouldn't advertise on hip hop tv to reach bob
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Selective perception
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Only noticing certain things but another person could see it differently
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Selective Distortion
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Distorting what you hear or see to create consistency
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Selective retention
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Only remember what matches your beliefs, lifestyle Ex. A gambler only notices his wins, not his losses
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Decision support system
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In house data and info system (dss). Where you go to update info or manipulate it to see where your next step is. Also sees trends
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Marketing Research
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Process of planning, collecting, analyzing data relevant to a specific marketing decision.
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Defining the problem
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First thing you should do, can be the hardest.
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Situation analysis
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What is happening in the external environment? Ex. Weather, financial problems
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Tentative hypothsis
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Cause and effect Ex. smoking a cigarette and getting erectile dysfunction
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Correlation
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numbers running together ex. shark attacks and ice cream sales. More people in the water and sharks come
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Secondary Data
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Info already available in house or online. Quick and dirty, preliminary, quality and accuracy issues.
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Plan research design
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Questions to be answered and how and what data should be collected and analyzed. This is information collected for the first time.
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Collect primary data
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precisely relevant to the problem at hand
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In-home interview
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High costs, high quality data, can demonstrate, but rapidly disappearing
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Mall intercept
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Might not attract the right group, moderate cost needs to be brief, you can demonstrate. Wouldn't be able to do for a political survey but a vacuum would be okay.
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Telephone interview
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highly refused, cost is rising, not many people have a land line, no demonstration, low reliability, good for political events.
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Mail survey
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Low quality and cost, might not reach the right group. non-response errors
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Executive Interview
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a b2b equivalent of an in interview. Might be viable because you can use a smaller sample size, high costs
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Focus groups
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7-10 people, might have an unintentional bias that will pollute results. Not always reliable.
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Watching customers
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traffic patterns, shopping habits, how the customers use a product. Ex. putting children in a room and giving them toys and seeing how they interact with them and how they sue them, if they do.
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Mystery shopper
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Not known to employees who they are, good way to collect research to see how employees deal with customers.
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Experiment
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Verify cause and effect relationships employing scientific method.
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Universe
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Total population
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Representative Sample
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An exact proportional representitive of the universe, in minature
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Probability Sample
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Every element has known non-zero likelihood of being selected. Ex. Voters in Escambia, if you sample less men then women you need to adjust the sample when the research is complete
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Random Sample
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Every element has an equal likelihood of being selected
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Non-probability sample
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non representative
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Convenience Sample
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Convenience
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Measurement error
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Info provided not reliable Ex. If you have them look over the product and ask them if they would buy it, they normally say yes, but they probably wont buy it. Ex. If you ask a kid if they do drugs they'll probably lie and say they don't
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Sampling error
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Sample is not representative of the universe
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Non-response error
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Those who do not respond are different than those who do
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Frame error
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When you assume the most popular car in Pensacola is a Buick but you've only looked at a retirement community.
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Random error
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Any sample that will yield a + or - the actual universe Ex. Political polls
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External validity
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Everything about research is done right, but results are not projectable to the real world Ex. a taste test is hard to predict, a 6 pack would be a better test.
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Strategic Planning
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Managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.
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Mission Statement
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Defines what the business mission is.
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Marketing myopia
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Narrow such statement defining the firm in terms of present products and services rather than benefits customers seek
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Strategic Business Unit
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SBU. A company within a company Ex. The bookstore and food services at school
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SWOT
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strengths, weakness, opportunities, threats. Assess how you are doing and the external environment to determine your competitive advantage and your objectives. Looking at your current advantages and how to work with those and how to improve weakness.
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Portfolio Matrix
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star, problem child, cash cow, dawg
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Star
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high share within a high growth segment. The future for your company, all your hopes for growth
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Problem Child, question mark
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low share within a high growth segment. Ex. If you are second into the market and 3 months in you don't have a big share in the company, you have a problem child on your hands. If it has 60% of the share, you have a star on your hands
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Cash cow
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High share withing a low growth segment. You want to milk the cow to support your future star.
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Dawg
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Low share within a low growth segment
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Set objectives
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to exploit whatever differential advantage you enjoy
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Market penetration
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present product and present market Ex. Campbell's sending out coupons
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Market development
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Present product and a new market Ex. senior night at a resturant
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Product development
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A new product and a present market Ex. Selling to the same people that normally come in but have a different product
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Diversification
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New product and new market
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The 4 P's
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Product, place, promotion, price
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Implementation/evaluation/control
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In bottom up marketing, this is where you BEGIN. Identify competitive advantage first
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Sacred Cows
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All those formulas/beliefs/practices which built success in the past, but wont take you to the future. If it isn't broke, brake it.
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Business Marketing
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marketing of goods and services to individuals and organizations for purposes other than personal consumption. B2b
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Producers aka original equipment manufactures (OEM's)
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Manufacture products and provide services used by business customers Ex. P&G making products sold through WinnDixie
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Resellers
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Buy finished goods and sell them to the final customers or other business customers. Sometimes use brokers
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government and institutions
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schools, health care, public service. Main goal in the end is to see what return on investment is when they build a new building.
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North American Industrial Classification System (NAFTA)
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Numbering system to identify business by classes. Ex. 33:manufacturing 334: computer and electronic products manufacturing 334611: software reproduction If you find a business similar to you in code, it may be a good prospect for you
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Derived demand
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Demand for consumer products drives demand for business products. Ex. Meat sales go up, so does poly wrap.
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Inelastic demand
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Item comprises a small percentage of final product Ex. Insulin Price can go up, but sales do not get affected much.
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Joint demand
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1 to 1 relationship Ex. a desk handle and a desk, comes together
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Fluctuating Demand
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aka multiplier effect, accelerator principle. Drop in demand for final product has an inordinary strong effect on the marketing organization and its suppliers Ex. after 911, airline travel went down 20% and it diminished the profits for air lines. New planes were not being bought.
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Major equipment
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aka installations. Expensive capital goods that will last a long time. This is the biggest of them all. Includes heavy equipment, building a new office building
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Accessory equipment
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Less expensive but significant, short life span. Ex. a computer
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Raw materials
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Unprocessed, agricultural Ex. fresh tomatoes
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Component Parts
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Finished items that becomce part of the final product Ex. A motor in a lawn mower, outsourced
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Processed materials
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Some processing Ex. High fructose corn syrup
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Supplies
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Things necessary for production but do not become the final product Ex. office supplies, copy paper
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Business services
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Outsourcing to specialists Ex. cleaning crews
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new buy
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New need to buy certain products or service for the first time Ex. buying all new computers
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Modified rebuy
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modest change in specs from current supplier, same thing but a different supplier. Ex. buying a computer from office depot instead of best buy
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straight rebuy
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Low involvement buying the same things again from the same vendor Ex. rebuying copy paper, staples
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Intangible
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You can't see, feel or taste the purchase. You want to tangibleize a product. ex. making sure the employees at McDonald's and the building is clean
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Inseperable
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Simultaneously sold, produced, consumed. Ex. a hair cut, flight You must be there to recieve the service
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Heterogeneous
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Often wide variation in performance, not something you want. Ex. At a groomer one person is really good but not another
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Perishable
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Cannot be stored Ex. if a plane takes off with an empty seat, that money is lost from a fail purchase of a ticket. Fix with differential pricing: cheaper movie tickets before 6
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Service quality
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Degree to which service performance matches customer expectations. Ex Always deliver more than customer expects, provide a full buffet instead of a continental breakfast
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Core offering
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The most basic customer benefit, essentially a commodity
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Supplemental offering
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The extras that build value and customer loyalty through the marketing of your differential advantage. Ex. Lush being all natural, handmade, cruelty free
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Mass customization
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Offering a cost effective context of standardization. Ex. When you buy jeans sometimes they don't fit in all the right places, you can order some that fit you perfectly.
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Nonprofit public service organizations
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1. start by defining objectives 2. Avoid over-generalized objectives (Say you want to help the homeless find jobs, not just help the homeless) 3. Possible challenge: may be dealing with apathetic or even strong opposed target markets 4. In the marketing mix, seek to promote with PSA's
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Market segmentation
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Starts with a market: people and organizations who want or need your product or service and are qualified to buy. You break them into market segments and choose one or more to address.
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Criteria for segmentation
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Is it Substantial?Identifiable or measurable?Accessible?Responsiveness?
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Bases for segmentation
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geography, demographics, benefits sought/usage rate, *pschyographics, geodemographics
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Geography
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Electric blankets will be sold more in Michigan, not Miami
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Demographics
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Age, gender, family status
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Benefits sought/ usage rate
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Heavy users of beer, male under 29
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*Psychographics
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Persons with similar personalities and lifestyles and motives
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Geodemographic
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Particular neighborhoods feature similar psychographics and similar component lifestyles
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When segmenting markets
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Select a market, choose a bases and description, profile segmentation, select target markets, develop marketing mix.
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Strategies for selecting target markets
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Undifferentiated, concentrated, niche, majority fallacy, multi segment, cannibalization, position, repositioning
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Undifferentiated
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One market for everyone Ex. Model t ford only in black
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Concentrated
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Target a single segment most receptive to your differential advantage.You want the on with the most differential advantage
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Niche Marketing aka guerilla marketing
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Target a segment small enough to defend that the "big guys" wont mess with you
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Majority fallacy
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Go after the biggest segment, just like everyone else
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Multisegment
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More than one target market, with a seperate marketing mix for each. Beware of cannibalization.
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Cannibalization
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Sales are coming from existing lines, making them undesirable
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Positioning
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Where your product or company fits in the mind of the customer. Ex. When you think of shipping, you think of UPS.
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Repositioning
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Change where you are in the customers mind, if you can. It is easier to expand a position, rather than change it.
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Product
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All the tangibles and intangibles a customer receives in an exchange
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Convenience product
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Usually relatively inexpensive, routinely purchased with little shopping effort. Ex you need a tire right now, you'll settle for a different brand from the one you are loyal to because it is convenient and faster.
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Shopping product
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More expensive, less intense distribution, requires some shopping effort
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Homogeneous shopping product
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All basically the same, price is the key. A washer is a washer
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heterogeneous shopping product
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Identifiable differences such as style, quality, image Ex. Clothing, Furniture
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Specialty product
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Perceived as unique, brand loyal, will accept no substitutions Ex. A rolex or Royals Royce
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Unsought product
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A plumber, cemetary plot Not out looking for it until you need it.
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Product item
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specific version of a paticular product or service Ex. V8, a specific item in a line
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Product line
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Group of closely related product items Ex. Campbell's, line of soups
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Product Mix
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Everything is included
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Product mix width
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How many lines do you have
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Product line depth
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How many items are in the line
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Product modification
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Functional improvement or change in style Ex. eliminating trans fats
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Line extension
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Adding new products to a line
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Line contraction
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Getting rid of the DAWGS, bad products
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Brand
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Use of name or term or symbol or design to identify a product.
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Brand name
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The word Cadillac
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Brand Mark
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The nike swoosh
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Logo
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A symbol or script of the name Ex. How ford writes their name
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Trademark or service mark
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Legally protected brand name, logo, phrase, mark Ex. Cadillac's name is not protected but you cant use their script or crest
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Brand equity
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reputation or loyalty for which customers are willing to pay more
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Generic Product
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No physical difference Asprin, sugar, all the same
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Generic brand
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No brand Ex. physically just says ketchup
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Generic product name
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Common name, which used to be trademarked but is no longer Ex. Cadillac never trademarked
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Manufacturer's brand
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named by its producer who distributes it Ex. Kellogg's
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Private brand
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Brands specific to specfic stores, Baer at Home Depot
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Individual brand
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Different names for different products Ex. General mills: betty crocker, biscuick
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Family Brand
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Same band name identifies different product items in product lines Ex. Craft: cheese, Philadelphia,
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Master brand
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Positioning of the brand is synonymous with the category itself Ex. bleach: Clorox, Ketchup: Hines
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Co-Branding
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Dell computers with Intel inside
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New to the world products
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New products that change the world
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Idea generation
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This is where you start, take ideas come from customers and employees
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Idea screening
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Double check that the compatibility with the organization's objectives and markets and overall new product strategy
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Concept tests
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Cheap, run as a focus group of potential customers
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Story Boards
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Sunday comic style simulation of a tv ad so you can get the point across and see it visually, much more cheaper and faster than running an ad and realizing its a dud.
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Business analysis
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What is the impact on the present line? Will it cannibalize your other products?
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Development
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Making a prototype, maybe testing in a lab with potential customers
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Test marketing
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Introduce into limited areas to monitor reactions of potential customers to the product and marketing program in an actual market situation. Be sure this is the product you want to create to insure you don't loose anymore money
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Simulated market test
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evaluates one variable comparisons vav competitive offering Ex. a retail ad, only works for comparisons of sales of coke and Pepsi
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Commercialism
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Full scale market launch, 90% of the products that have made it to commercialism fail within a year, 90% fail before reaching commercialism
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Innovators
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2%, young, better educated, higher income, more cosmopolitan, they are eager to try new things, they are the first to try it, they are different, ad they help get the product out there.
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Early adopters
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14% more oriented to social community norms. Respected by others, opinion leaders, will affect many
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early majority
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34% More deliberate, collect info from scientific evidence, will affect many, look at alternatives. a middle class citizen
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Late majority
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34% Older, below average income and education for traditional
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Laggards
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16% suspicious of new ideas and products
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Non-adopters
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Never do adopt
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Intro stage PLC
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invest $ in hope of future profits. Advertising promo, primary demand "try the category" ONLY IF YOU'RE THE FIRST
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Growth Stage PLC
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sales grow fast and profits emerge, peak and then begin to decline. Advertising and promo, secondary demand, try my brand
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Maturity Stage PLC
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Early part: sales increase at decreasing rate Latter part: Sales begin to decline, niche entries appear Heavy advertising and promo to fight for market share and stave off declining stage
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decline stage
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new products replace old
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Supply chain
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Everything involved in moving materials to and within the production facility
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Marketing Channels
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Everything involved in moving the final product from the production facility to the final customer
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Accumulating
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Buying in small quantities to sell in large
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Bulk breaking
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Buy and produce in large quantities and sell smaller
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Discrepancies of assortment
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Combine products from several to many sources to be available at one location Ex. a whole seller of healthcare products available in drug stores, b2b Ex. A drug store and grocery b2c
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Temporal discrepancy
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Difference in time produced and time needed Ex. Seasonal items are produced around the year but you can outsource a warehouse to store it all in
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Channel intermediaries
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Retailers, drop shppers, rack jobbers, agents brokers
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retailers
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independently owned and take title to the goods the sell. Ex. Winn-Dixie owns the product they sell
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Drop shippers
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Take orders and have producer ship directly to buyer, never have posestion
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Rack jobbers
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Handle products and sections in the store that chain management don't want to do. Ex. greeting cards
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Agents or brokers
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Facilitators who handle selling and negotiating functions or who bring buyers and sellers together but who do not take title of the goods
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Levels of distrubution intensity
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intensive, selective, inventory control, JIT manufacturing
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Intensive LDI
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everywhere potential cstomers may be inclined to buy Ex. impulse items
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Selective
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limited number of outlets who will give product special attention and create superior product image Ex. panasonic only wants to be in a store of a good image
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Exclusive
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Most restrictive, for goods customers will go out of the way for Ex. Rolex, blue dog food
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inventory control
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minimize inventory levels while maintaining adequate supply to meet customer and manufacturing reuirements
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jit manufacturing
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Manufacture perspective, dell computers
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Total cost apprach
answer
minimizes costs of transportation and loss, damage, security, warehousing carrying inventory at a pre determined level of customer service
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Air
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time of the essense, high value to weight,high security, minimum damage
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Truck
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Time somewhat important, not as high value to weight, door to door delivery
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rail
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Time less important, often low value to weight, heavy and bulky to inland areas
question
Water
answer
If available and time constraints not great an alternative to rail
question
Pipelines
answer
For products such as gas and oil, slow, dependable super cheap
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