Class Notes 2 Flashcards
Types of new product
Modification
Major innovation
Minor innovation
Modification
70%. Ham and cheese pringles
Major innovation
10%
Completely new
Primary demand: tell people why they need it
Minor innovation
20%
Cheep version of major innovation
Institutional demand : why u should buy their products over the major products
Product refinement
Keep tweeting and making one product better
US
Product churning
Shot gun product out see what sticks
Japan
Parallel development
Make iPhone 1 2 3 4 in advance when competitors try to answer back you drop the next product
Freshening
Bringing logo or value prop up to date
Green washing
When people think ur environmentally friendly cause u use green In ur design
JND
Just noticeably different
When a company changes its logos slowly over time
Trade dress
A legal protection where off brand products can steel the design of a big brand to make there product seem trust worthy
Packaging
Silent sales man
10-15% of marketing
Shapes
Feminine : soft round
Masculine / violators: sharp abrupt star shaped
Price
Is a function of value
Value
Is a quality as defined by your customer at the right price
1 whoa may customer
2 how do they define quality
3 how much am I able to charge them for what they say they want
Core product
What the product actually does
Car drives
Actual product
What the product actually is like Mercedes or ford
Augmented product
What else comes with the product
Free oil changes
Reference pricing
What a customer perceived a price should be for a product
Tiffany Walmart syndrome
Death of the middle
Rocketing or trading down
Price positioning
A company implanting a idea of what price products should be in there brand
Walmart : save money live better
Skimming
A company that starts selling stuff real expensive and might over time lower price
Penetration
Company starts selling real cheep eventually increase price
Captive hybrid complimentary
They sell one thing cheep and accessories for a lot
Printer and ink
Monopoly
Price does not matter full control
Oligopoly
A few big players like the big three generally a leader which directs the markets Path
Monopolistic competition
2 or more monopoly’s compete against each other
Ex Big Mac vs whopper
Or Pepsi vs coke
Pure competition
Price is all that matters we don’t distinguish a big difference between the products
Promotion
any communication used to inform persuade or remind
Communication
Delivering a message 1 source 2 message 3 channel 4 receiver
Noise
Anything that interferes with communication
Promotion life cycle curve
Pioneer advertising
Competitive comparative advantage
Remind advertising
AIDA
Attention. Interest. Desire. Action
Pull: attention interested. Customer marketing
Push: desire action
Shopping marketing
Selective exposure
Choose one magazine or only certain websites. Finding right media to promote your project
Selective attention
Ad must pop our grasp attention have to excite people
Selective retention
Relevance repeat it
Co marketing
Two companies coming together to sell their products
Free sheetz coffee when u buy Wall Street journal
2 separate products
Co branding
When two companies make a single product together
Doritos Taco
One product
Co-op
Cooperative advertising
Company that makes and sells product share cost of advertising
Target chocolate
Horizontal
Different sellers combine to sell advertisements
O-o-h
Out of home advertising
Billboards
A B split
Means testing advertisement to see what ad is most useful
Types of PR
Word to mouth. Largest Reviews testimony Product placement Opinion leaders Award ceremonies Incidental suggestion Sponsorship: fit visibility over time goals
Cause marketing
For a good cause toms
Phases of PR
New or interesting talk about it ( being first)
Victory lap talks about success
(Being successful)
Sales promotion
Samples Pop display Premium Games Trade show Free trials
Slotting fees
Pay grocery stores for specific pots in store 50 yard line
POPAI
Specifically planned 30% Generally planned 10% Substitute 3% Impulse 53% 66% happen in the store
Conversion rate
Initial conversion
Sustained conversion
Powell’s rule on selling
Goods marketing and branding makes selling unnecessary
Personal selling mix
Skills
Information
Organization
Skills
Persuasive quick
Most imp good listener good at communicating
Information
Got to know about Product Know about the buyer Know about competitors Market industry and trends Know about policy’s
Organize
Organize by Product Geography Different type of customer Inside sales Outside sales
Old school
Sell sell sell
Door in face
New
Tell tell tell
Foot in door
Three types of sales people
Missionary
Order getter order taker
Missionary
Spread info ask questions give samples ask for recommendations
Ex pharmaceutical rep
Order getter
Come to u ask if u need anything
Order takers
Passively answer questions and close sales you approach them
Selling process
Approach ( prospecting )
Identify Able willing to by
Need identification: ask questions figure out what customer wants
Presentation
Trial close
Close
Follow up
5 reasons people say no
Don’t trust u or store No money No perceived need Not now/ not in hurry No desire
Aperture
The right time and place for a message to be received
