UF MAR3023 Exam 2 – Flashcards
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Product
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A good, service or idea consisting of a bundle of tangible/intangible benefits
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Product Item
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A specific product, identified by its ordering code - SKU (Stock Keeping Unit)
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Product Line
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a group of closely related product
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Product Mix
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The set of product lines sold by a company
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Product Life Cycle
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Introduction, Growth, Maturity, Decline
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Different PLC Levels
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Class - Form - Brand
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Product Class
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All of the similar types of products - regardless of brand
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Product Form
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Similar products with different characteristics
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Brand
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Last split based on company making product
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Market Penetration
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A marketing strategy that tries to increase market share among existing customers -- without changing the product
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Market Development
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Selling to new groups of consumers -- exporting
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Product Modification
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changing a product to continue it's PLC - ex - Barbie
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Product Repositioning
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keeping the same product but advertising it differently
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Brand Development Index
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Brand Sales per Capita in Territory ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ × 100 Brand Sales per Capita Nationally (Brand Sales)/(# Consumers) ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ × 100 (Natl Brand Sales)/(# Natl Cons)
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Category Development Index
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Category Sales per Capita in Territory ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ × 100 Category Sales per Capita Nationally (Category Sales)/(# Consumers) ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ × 100 (Natl Category Sales)/(# Natl Cons)
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Brand Name
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Verbal label placed on a product by a firm
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Brand Mark
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A distinctive symbol, design, sound, or group of letters which is seen or heard but cannot be spoken
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Trade Character
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Personified symbol to represent brand name - ex: Ronald McDonald, Albert/Alberta
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Logo
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Special symbol of the company - ex: Walmart's Smiley Face
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Trademark
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Putting a copyright on your firm's symbol - so no one else can use it.
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Family Branding
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Use the same name on all products a company makes - ex: Nike
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Multiple Branding
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Different name on every product made by the SAME company
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Co-Branding
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2 different companies come together to promote/create a product - Brings together consumers from both companies
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National Brands
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Sold nationally - the popular ones (Nike, Proctor&Gamble) - More expensive
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Private Label Brands
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Brand name, not very famous - Cheaper ex: Publix Brand, Great Value (Walmart)
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Licensing
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Manufacturer pays for the right to use another company's brand name Pays royalties to the company
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Brand Equity
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The added value a given brand name provides for the product
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Components of Brand Loyalty
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Awareness Associations Perceived Quality Loyalty
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Awareness
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To what degree do people recognize the brand/symbol
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Associations
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Concepts that are linked (Idaho = Potatoes)
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Perceived Quality
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What consumers think the quality of the product is
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Loyalty
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People buy the same product/brand because it meets their requirements
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Line Extension
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A different variation in the same parent product - ex: Barbie, Malibu Barbie, Doctor Barbie etc
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Category Extension
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Different products - same parent company - ex: Honda: Cars, Tractors, Lawn Mowers
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Packaging Functions
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Contain/protect Facilitate use Communicate Fit channel needs Innovation
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Contain/Protect
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Producer has to make sure it is user friendly/product doesn' get ruined by packing
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Facilitate Use
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Producer can change packaging to make it easier for consumers to use
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Communicate
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Product clearly states how to use the product, warnings, discounts. Aka important info
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Fit Channel Needs
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Producer has to create packaging that is easy for the seller (supermakets) to sell - doesn't take up a lot of floor space
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Innovation
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Creating a memorable package
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Packaging Disasters
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Coors - messed up - their tin cut people Tropicana - people wanted their orange with a straw in it
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Brand Communities
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Brands are friends - ex: Halo Computer Communities/Forums
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Levels of Innovation
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Continuous Dynamically continuous Discontinuous
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Continuous
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Brands/extensions of brands that are on the same basic level of a life cycle - not changing the product form - consumers are comfortable with this
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Dynamically Continuous
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New product form introduced - similar product with different characteristic - better than the previous model - ex: DVD→DVR; Nintendo Wii → Xbox Kinect
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Discontinuous
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New product class introduced - meaning completely DIFFERENT product - consumers find it harder to adopt - ex: internet, smartphones, TV
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New Product Planning Process
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New Product Strategy Idea Generation Screening/Evaluation - Feasibility Screen - Concept Testing Business Analysis Prototype Development Marketing Testing Commercialization
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New Product Strategy
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A company decides to produce a new product for various reasons -ex: Apple wanted to make technology more user friendly
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Idea Generation
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Comping up with product ideas to back up the reason for making the product Ideas come from: - Research/Development - Crowdsoucing - asking consumers for ideas in exchange for compensation - Accident 60 ideas for 1 product
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Screening/Evaluation
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Thinking about each idea and being realistic about them - about 80% of ideas are removed from list
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Feasibility Screen
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Company establishes if they can afford/will it appeal to consumer
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Concept Testing
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Random consumers are sent a questionnaire/description of the product - their response determines fate of product
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Business Analysis
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Company establishes the cost of producing a product/ amount of investment required
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Cannibalization
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A situation that occurs when sales of a new product cut into sales of a firm's existing products -ex: Gatorade → G2
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Prototype Development
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Develop product on a limited basis and have consumers test it - find flaws and correct
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Marketing Testing
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Releasing the product in limited quantity in a few cities and waiting on the result
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Commercialization
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The product enters the market on a wide scale
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Adoption Process
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The mental process through which an individual passes from first hearing about an innovation to final adoption - Awareness - Interest - Evaluation - Trial - Adoption
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Awareness
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Promoting a product so consumers hear about it
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Interest
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Consumer thinks the product will be useful to them
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Evaluation
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Consumer weights various products based on what their needs are
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Trial
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Trying a product - like it = buy more - Cars - test drive
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Adoption
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Buying a product
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Factors Influencing Rate of Diffusion
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Relative advantage Communicability Complexity Compatibility Risk
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Relative advantage
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How much better a new product is compared to the previous one - ex: CD vs iPod
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Communicability
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A company's ability to voice the advantage of the new product - done via demonstrations and videos
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Complexity
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When a product has too many functions/cannot be understood by the consumer
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Compatibility
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Modifying the product to serve a certain consumer segment
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Risk
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When a BRAND NEW product is introduced to the market
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Characteristics of Services
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Intangibility Inconsistency Inseparability Inventory
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Intangibility
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Services don't always end in a psychical object - ex: Legal advice
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Inconsistency
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Service is reliant upon various factors; therefore every single time a consumer receives service cannot be the same
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Inseparability
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Producer of service and consumer of service are both present at the time of the service - ex: Haircut Cocreation - consumer/producer work together to provide acceptable service
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Inventory
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Service cannot be manufactured/packaged Happens in real time
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Industrialization
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Breaking down the service of a company provides so inconsistency can be lowered
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Dimensions of Service Quality
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Reliability Assurance Tangibles Empathy Responsiveness
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Reliability
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Consistency of the service - usually always what the consumer expects
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Assurance
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Letting the consumer know that as a producted you can/will help them
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Tangibles
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Making over the location at which the service is provided
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Empathy
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Warm, fuzzy - producer is nicer to consumer
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Responsiveness
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Day to day aspect - ex: more cooks at the lunch/dinner rush
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Service Recovery
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Problem Severity → Company Responsibility High → Low = Hero Low → Low = Empathy High → High = Red Carpet Low → High = Fix it
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Hero
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Boy pees in pants NOT Disney's fault - but "Hero it". Disney employee gives boy free clothes from the shop. Family is happy
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Empathy
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Rains on a family's vacation to Disney, NOT Disney's fault but they apologize anyways
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Red Carpet
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Disney overbooks the Honeymoon Suite - Disney's fault. Offers each couple comp rooms and tickets to parks
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Fix It
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Family gets a hamburger instead of a cheeseburger - Disney's Fault. Fix it by giving them what they ordered.
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The Extended Gap Model: Sources of Poor Quality Service
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Knowledge Gap Standards Gap Delivery Gap Communications Gap
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Knowledge Gap
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Difference between what consumers except and what managament thinks they expect Gap: Customer Expectations → Management Perceptions
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Standards Gap
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What producer tells the employees to do and what it's impact is - ex: producer to employee: be nice when a customer walks in. Consumer thinks is really pushy Gap: Management Perceptions → Service Specifications
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Delivery Gap
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What the producer wants from the employee and what the employee does (in relation to the consumer) Gap: Service Specifications → Implementation
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Communications Gap
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What is delivered and what the producer told the consumer they were receiving Gap: Implementation → Communications
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Frequency Marketing
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A technique that reinforces regular purchasers by giving them prizes with values that increase along with the amount purchased Hard/Soft Benefits
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Hard Benefit
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Discount/Monetary value
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Soft Benefit
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Any benfit not involving money
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Database Marketing
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Using consumer info to personalize promotions of products
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The Customer Pyramid
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Lead→Iron Base→Gold Mine→Platinum Least profitable customer to most profitable
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Levels of Market Offering
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Commodity Good (Product) Service Experience
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Commodity
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Raw/Primary product - before final good is created
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Good (Product)
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The good is produced/packaged and shipped to various sellers
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Service
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Being able to purchase the good from another seller - ie a supermarket
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Experience
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Atmosphere that comes with purchasing a product - ex: Build a Bear
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Promotional Mix
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Advertising Personal Selling Sales Promotion Public Relations Direct Marketing
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Advertising
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Paid media insertions
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Personal Selling
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Direct interactive communication between a producer and a seller - ex: business to business (life insurance policies, brokers)
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Sales Promotion
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Tries to give a boost to short run sales - via coupons, free samples
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Public Relations
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A third party organization that controls the publicity of a certain firm
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Direct Marketing
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Marketing that goes directly to manufacturer to consumer - ex: promo mails sent to houses, telemarketing, junk mail
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Some other IMC tools
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Sponsorships Product Placement Infomercials Branded Entertainment
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Sponsorship
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Third party companies pay for another firm's accessories - ex: football stadiums, Olympic Sponsors
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Ambush Marketing
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When a non-official sponsor does something at an event and steals the official sponsor's thunder
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Product Placement
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Placing brands into entertainment vehicles - movies, videos games
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Straight Fee
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Brand pays movie producer to put them into the film
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Barter
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Brand doesn't pay for placement, only provides the good - ex: Wilson in Castaway
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Reciprocal Cross Promotions
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Brand is in movie; brand promotes the movie. Both win - ex: Heineken and Skyfall
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Infomercials
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Airtime to sell/demonstate products
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Long Form Infomercials
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30 min segments
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Short Form Infomercials
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30 seconds/1 minute AKA Direct Response TV (DRTV)
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Branded Entertainment
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Try to entertain the consumer while promoting the product - ex: Redbull and Space Jump
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Viral Marketing
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Interactive website/popular ones that promote a product
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Event Marketing
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Instead of sponsoring an event a firm, the firm makes their won event - ex: Nathan's Hotdog eating contest
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Consumer Generated Media
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Consumer helps promote product/comes up with ideas - ex: Doritos ad challenge
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Promotion is Communication
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Source - Encoding Message Channel - Decoding Audience Feedback (goes from Audience to Source)
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Source
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Where the communication will come from - ex: Manufacturer
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Encoding
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Taking ideas from a source and turning into a message
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Message
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Promotional message/ad/sales pitch - goes out to the consumer
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Channel
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Mechanism through which we get the message into the market - ex: Advertising media
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Decoding
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consumer extracts the info from the message Noise - consumer misinterprets what the manufacturer means
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Audience
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Consumer (successful when audience understands what source meant)
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Feedback
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What does the source learn about the audience - face to face selling - feedback instantaneous - Advertising - do market research to get idea of consumers idea's of the brand
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Sources
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Personal → Marketer Controlled Personal → Independent Impersonal → Marketer Controlled Impersonal → Independent
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Personal → Marketer Controlled
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Salespeople
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Personal → Independent
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Word of Mouth - ex: Friends
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Impersonal → Marketer Controlled
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The company - advertising & sales promotion
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Impersonal → Independent
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Publicity - ex: Newspapers
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Sources
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Company Spokesperson - Celebrity Endorser
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Company
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Primary source of info about a company's products/brands
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Spokesperson
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Paid person to endorse a product in a commercial - usually a celebrity
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Basic Factors of a Spokesperson
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Credibility Expertise Trustworthiness Attractiveness
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Credibility
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Can this person give you useful info about the product
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Expertise
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Endorser knows a lot about the product is an "expert" on it - ex: MJ and Gatorade
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Trustworthiness
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Do we trust this individual - are they telling the truth
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Attractiveness
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Likeability - not just psychical looks
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Message Factors
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Objectives Strategy Tactics
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Objective Formulation
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Compute the ratios between the steps ratio 1/ratio 2 ratio 3/ratio 2 ratio 1/ ratio 3 Highest ratio = step the company should focus on
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3 Possible Strategies
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Rating Change Importance Weight Change Add a new attribute
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Types of Appeals
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Informational Comparative Image Fear Humor Sex
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Informational
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Straight-forward way of conveying info about product to consumer
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Comparative
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Specifically contrasting our brand with a rival brand
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Fear
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Evoking mental fear - product is the solution to fear
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Humor
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Commercial is funny/creates a good feeling about the ad
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Ad Tasks
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Inform Persuade -Institutional Advertising Sell Reinforce Remind
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Inform
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Simply give info about the product - straight-forward
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Persuade
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Convince consumer OUR brand is superior
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Institutional Advertising
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Promotes the image of a company, not necessarily a product
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Sell
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Hard Sell - convincing the consumer to buy the product right now Soft Sell - informing the consumer about the product - they'll make the decision to buy
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Reinforce
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To remove "buyers remorse" Aimed at consumers who already own the product
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Remind
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Remind the consumer to use the product - so they have to buy more -ex: Lysol, soup
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Hierarchy of Effects
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Aware Knowledge → (Cognition) "THINK" Liking Preference → (Affect) "FEEL" Intent Purchase → (Conation) "DO"
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Low Involvement Hierarchy
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THINK-DO-FEEL Cognition, Conation, Affect
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Dual Mediation Theory
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Exposure to Ads → Ad Liking → Brand Attitude/Purchase ↓ Brand Perception
