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Final Flashcards

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1
Q

market share=

A

awareness x distribution x preference

in branding

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2
Q

what should functional values be balanced with in branding?

A

psychological value. If every brand has the same amount of function, it is the psyc that stands out. Black and Decker worked perfectly fine, but it was associated with homeware and not industrial work

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3
Q

strategic alternatives in branding in B&D case

A

harvest: maintain the same plan. low risk, little effort. Not profitable, allows other cos to come in
sub brand: enough distance?
new brand: B&D already owned dewalt, which had recognition among pros

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4
Q

4 types of branding strategy

A

house of brands, endorsed brands, sub-brand, branding house. Range from individual to umbrella

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5
Q

house of brands

A

Each entity has its own separate brand, there is nothing in the name that brings them together
“The Carlyle”

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6
Q

endorsed brands

A

Each entity has its own name with the umbrella brand somewhere in it
“The carlyle by Rosewood”, Courtyard mariott

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7
Q

sub-brand

A

The umbrella brand is clear, the sub-brands are smaller.
Rosewood Carlyle
Gillette Fusion, Gillette Venus

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8
Q

Branding house

A

Everything is one brand

The Rosewood

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9
Q

building strong brands

A

awareness -> associations -> relationships
need to go past recognition to have positive associations
relationships- emotional as well as behavioral connection- forms psychological contract
Ex- people hated new coke

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10
Q

experiential branding

A

promise + experience = relationship

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11
Q

associations

A

image.
ex: burberry focused on maintaining a clear image. Removed anything that did not reinforce the image.
People gave word associations like British and plaid

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12
Q

brand personality

A

goes beyond brand image to describe brand as if it were a person

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13
Q

5 personality dimentions in the US

A

sincerity (coke), excitement, competence, sophistication (chanel), ruggedness (marlboro)
the US is the only place with ruggedness. replaced with peaceful or trendy in other countries
Two products which are functionally the same could have a distinction.
Ex: Whirlpool ad features a suburban woman- sincerity
kitchenaide features fashionable career woman-sophistication

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14
Q

hierarchy of brand

A

relationships, reactions (judgement/feelings), meaning (brand attitude/personality), awareness
goes from bottom of pyramid of awareness, which is most shallow relationship to point of relationship, which is the deepest and ideal

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15
Q

awareness (hierarchy of brand)

A

consumer qs- who are you? Knowledge
brand measures- category identification, recall and recognition
ideal outcome- deep, broad brand awareness

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16
Q

meaning(hierarchy of brand)

A

consumer qs- what are you? Associations
brand measures: brand attributes- Quality, Reliability, Durability, Price
brand personality- user imagery, usage imagery
ideal outcome- point of parity, point of difference

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17
Q

reactions (hierarchy of brand)

A

consumer qs- What about you? Attitudes
brand measures: Judgments- Quality, Credibility, Consideration, Superiority
Feelings- Warmth, Fun/ Excitement, Security, Social Approval, Self-respect
Ideal outcome- strong, favorable, unique

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18
Q

relationship (hierarchy of brand)

A

consumer qs- What about you and me? Resonance
brand measures- Loyalty, Attachment, Community,
Engagement
Ideal outcome- active loyalty

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19
Q

key drivers of strong brand

A

awareness, differentiated associations, relationships

consistent experience, authenticity, intimacy

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20
Q

brand not made in the boardroom but…

A

in the minds of consumers
conscious and unconscious
reinforce associations with brands: brand name, product, packaging, sumbols, ads, etc

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21
Q

price ceiling

A

customer perception of value

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22
Q

price floor

A

product cost (usually, but sometimes lower)

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23
Q

price planning

A
  1. develop pricing objectives- what tirying to accomplish? Max sales, revenue, reinforce brand?
  2. estimate demand- as price goes up, demand goes down and vice versa, but not at same rate
  3. determine costs- variable, fixed, break even
  4. evaluation pricing environment- PEST
  5. choose pricing strategy (our focus)
  6. choose pricing tactics- execution
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24
Q

cost plus

A

determining costs and margin- simplistic

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25
Q

competition-based pricing

A

going rate- what are prices of stubstitutible offerings
price leadership- generally means low price leader in the market. Nobody is cheaper. if you see a low price, we will beat it.
con- price war, race to the bottom

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26
Q

skimming

A

charging high price for a new product. Narrow targeted marketing- skimming the top of the market
Often tech

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27
Q

penetrating

A

more basic product- spread to as many people as possible as quick as possible

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28
Q

trial

A

take a loss on initial product in hopes that customers come back. communicate value clearly and show how its a good deal. If the trial is too long people get used to the low price.
example- free-mium like spotify, where it is free for basic service and it costs for more

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29
Q

value-based

A

infuse value into price, use price to show value
EDLP- every day low price- walmart.
customer shops around to get each item at the best price, but if the store has the lowest prices, gets 100% of the purchase. Saves customer time, effort, stress, and regret that they could have gotten it at a lower price. The co gets more revenue per customer and more retention
promotional pricing- discount to bring people in.

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30
Q

EVC, economic value to customer

A

if can communicate that a product brings high value to the customer, can sell at a very high price. Does it savethe cust lots of money?
ex- iphone. says value of ipod and smartphone plus so much more. so price is ipod+smartphone at $499. more than double any other phone

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31
Q

dynamic pricing

A

type of demand-based pricing
setting prices for good or service based on demand for it at the moment based on availability of supply
ex: uber is very transparent to use surge pricing with high demand

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32
Q

captive/competitive pricing tactic

A

lose money on something knowing that the customer will go back and buy more replaceable things
ex: lose money on razor bc need to buy blades

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33
Q

psychological pricing tactics

A

price-ending- 299 instead of 300
odd/even- odd=decimal, even= full dollar price. 8.99 is closer to 8 than 9
suggests savings to end odd. suggests quality to end even.
price-quantity- people are more sensitive to change in price than change in quantity

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34
Q

collaborating with partners add value

A

If a manufacturer goes directly to consumers, it is complicated bc the manufacturer has to appeal to all groups of consumers and consumers have to shop around to the different manufacturers to find the brand/product they prefer. But if the company sells to just one intermediary/distributer/store, it delivers value bc the company sends its products to fewer places. and the customer only has to go one place where they can make their decision of what to buy

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35
Q

channel

A

path that enables products/services to flow from producers to end users
includes intermediaries- organizations/partners
functions- activites

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36
Q

value delivery network

A

company, suppliers, distributors, and customers partner to improve performance of entire system
customers are involved for example by sending their packages to an amazon locker so amazon doesnt have to worry about the last mile

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37
Q

transactional functions (in channel)

A

buying, selling, risk-taking

agents, brokers, wholesalers

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38
Q

logistical functions (in channel)

A

transporting, storing, sorting (breaking bulk) and creating assortments
distributers, wholesalers, retailers

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39
Q

facilitating functions

A

financing, payment processing, shipping, info/research, promotion, inspecting/testing, data
facilitating and logistical agents- alibaba, google, amazon, ups

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40
Q

marketing channels

A

can be simple, like producter to consumer, or producer to wholesaler to retailer to consumer
but probably more complicated, where it can go in any combo of manufacturer, distributer, wholesaler, distributer, agents/brokers, retail outlets, consumers
All at the same time. A company will sell online directly to customer, sell in its own stores, sell in department stores etc

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41
Q

Why are channels connected to marketing?

A

everything impacts the customer experience and relationships, retention, etc

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42
Q

density of coverage

A

how wide do we want our producs available? more wide is more complex and more variation in customer experience

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43
Q

intensive (density of coverage)

A

distribution through every reasonable outlet in market
high coverage, convenient for end customers, high conflict potential
ex: Coke is sold in every store, vending machine, etc that is available

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44
Q

selective (density of coverage)

A

distribution through multiple, but not all, reasonable outlets in market
resellers compete to sell the product. Less reseller loyalty. It is a weird relationship bc the reseller wants your product to get people in the door but doesnt care what brand the customer buys once they are in
Ex: nike- sold at own stores, as well as department stores and sneaker stores. but not everywhere

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45
Q

exclusive (density of coverage)

A

distributed through single wholesaling middleman and/or retailer in the market
ex: new car- it is lots of work to sell a new car so there it little competition at the point of sale

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46
Q

brand portfolios/coverage

A

A company will have a wide range brand portfolio so it can sell to different segments and also take up more of the shopping aisle. it may all looks like different things but it is all for one company. The company doesn’t want to merge to fewer brands bc that makes room for competition
Ex: P&G- many different detergents. Tide makes themost money, so they put more money into it. PUt it on the highest shelf. Era is cheaper to buy and sell so they put it on the bottom shelf. But either way you are buying P&G
Ex: mariott will put two different brands that are exactly the same at the same intersection to take up space for competition

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47
Q

trends and issues in channels

A

move toward direct to consumer mktg- Zara and uniqlo
Taking intermediaries out-but cant take out their function. Now the co needs to take care of customer service, returns, etc
Data and analytics- know who bought what, whenm how much. Empowers retailers like amazon and walmart. nobody goes to tide.com so P&G doesnt have the same data

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48
Q

omni channel, channel conflict

A

Selling through all channels to reach the most people
Nike.com, nike stores, nike in macys, nike in small stores through wholesalers
Conflict- if Nike sold in different stores in the same mall, creates competition. Nike wants to keep those distribution points to reach different customers. Whta do they do? Keep the price high at the Nike store to maintain the price point, or offer exclusive deals to footlocker

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49
Q

vertical integration

A

one single ownership- combines successive stages of production and distribution
AKA VMS- vertical marketing system
ex: Luxottica- owns lenses, frames, ray-ban, lenscrafters, sunglass hut, Vision care (insurance)
Pros- blcok competitors, cut costs bc not paying 3rd party, more control
cons- high costs- hard to build scale and expertise at all levels

50
Q

Administered VMS-

A

tightly, geographically clustered and controlled suppliers. Preferred suppliers with guaranteed sales. suppliers comitt to be controlled.
Ex: zara controlls all suppliers in one city in spain. theyare their only client

51
Q

Li & Fung

A

flatworld philosophy- own nothing
helps other entities like target and Khols source and manufacture, ship, create retail ready products
helps coordinate just in time coordination. Helps these companies become assett-like.
Sourcer- connect western brands with eastern sources of manufacturing
Spin off Global Brands Group: Private label, licensed brands (e.g., Hello Kitty, Frye, Juicy Coutre, Calvin Klein)

52
Q

How to communicate value

A

pull- company brings consumers in. Engage end users directly, ads
push- engae collaborators to do marketing for you. Within channels, the actual customers/distributers
ex: selling partnering pepsi with wawa or restaurants

53
Q

product life cycle

A

sales as funtions of time

intro, growth, maturity, decline

54
Q

innovation-diffusion S curve

A

innovators, early adoptors, early majority (drastic incline) late majority, laggards

55
Q

retail

A

low barrier to entry
replication and scale (ex starbucks)- start with 1 and grow
cash flow and growth- most margins are low but high revenue.
With big scale comes negotiation with suppliers- everyone wants their products to be sold in walmart. they can pay suppliers later. So they use that money to grow new stores with no debt

56
Q

traditional metrics

A

cash flow- total revenue- top line
gross margin- want to maximize
revenue per square foot- the most expensive thingis the store real estate
inventory turn- how quickly items sell

57
Q

inventory turn=

A

cost of goods sold (COGS) per year/ cost of current inventory

58
Q

inventory turn

A

want to balance between sufficient variety (slow turn items) and stock out items.
Places like CVS have things you know will be there with lots of variety bc they dont sell quickly. it attracts people to the store.
Stock outs reveal bad inventory management. Bad for store because
1/3 of the time people will buy a substitute (which is bad for brand)
1/3 of the time people will go to a different store. 1/3 of the time people dont buy at all. So 2/3 of the time the store is losing the business

59
Q

Long tail

A

bad for brick and morter retailers to have too much variety and have the one item that only two people are gonna buy because it is a waste of shelf space. But online retailers like amazon can stock those long tail books. there are also more customers for the long tail bc they can sell to anyone regardless of geo area.
Ex- diapers.com has diapers from every brand in every size. retail stores dont carry every size so built up a good customer base

60
Q

Walmart

A

world’s biggest retailer
If were a country, would be 26th largest in world
Biggest employer in world and US
Even a big co like hershey is at their mercy bc they need to sell there to be successful
How did they get here?
1. geographic segmentation- small towns in south. No competition, dominated retail in town and rural customers from afar
Close to distribution centers- lowest cost structure in industry. Time to get from dist center to shelf is faster and lower cost
2. EDLP- every day low price- delivers value to customer monetarily, time, effort, better retention, biggest wallet share of customer
call themselves an agent for the customer because the reduce the cost of living by driving down everyone elses prices
BUT pay employees less, put small stores out of business

61
Q

whole foods

A

positioning: target affluent, liberal, educated
higher prices and higher margins
If health conscious, need to read labels in walmart but not whole foods
Used data to find where these people live
Amazon purchased in 2017 for 13.7 bil
$874/sq ft vs walmart 400
now physical layout of store is conducive to online ordering- can use as a distributin point
unique product assortment and private label brands like 365

62
Q

retailers want to create their own brands

A

before, linear relationships- manufacturer, retailer, customer
Ex Amazon basics, Walgreens’ Nice!
Why?
Greater profit opportunity- reduces double marginalization (manufacturer adds cost then retailer adds second cost). Can split savings with customers
Placement/slotting advantage- eye level, best spots
Increasing bargaining clout with national brand suppliers. ONlye so much store space so brands can be squeezed out to fit store brand. So big brands get more competitive for the slot. Same with online, willing to pay to be at top of webpage

63
Q

brands want to become retailers

A

store is huge billboard for brand. Flagship stores are just marketing, not making money. Lots of foot traffic and builds brand. Sell more online. Lose money bc real estate so expensive
greater market coverage
control over brand message- control customer experience, education, image. Department store employees sell oher brands so not experts.
Profit- reduce double marginalization- dont split with customers and keep all

64
Q

apple

A

retails stores original aim was not to sell product but introduce customers to products. Built beautiful stores to lure people in so they go buy at best buy. But the experience so great, people kept buying.
Now over a million visitors per day, more than Disney
Retail is so important, took to the Burberry CEO to be the SVP of retail. Highest paid person at apple

65
Q

retail trends

A 
disintermediation
integration/vertical brands
retailers creating brands
brands becoming retailers
omni-channel distribution
online to offlinee- ex Warby Parker
66
Q

Online to offline (O2O) growth

A

new model- showrooming (see in person, buy online)
own customers
delivery/pickup point to save the last mile
growth in convenience,
better experience

67
Q

Kahn reselling success matrix

A

product benefits, increase pleasure: product brand- LV, sax, nike
customer experience, increase pleasure: experiential- sephora, eataly
product benefits, eliminate pain points: low price- walmart, costco, tjmaxx
customer experiece, eliminate pain points: frictionless. Comprehensive customer understanding and total convenience- amazon

68
Q

integrated marketing communications (IMC) flow chart

A 
strategy -> tactics
marketing plan (long range strategy)
promotional goals
promotional strategy (push vs pull)
communications mix (resourcing)
execute and evaluate (refinement-metric driven)
69
Q

channels in integrated marketing communications (IMC)

A

from high to low control by firm:
advertising, sales promotion, persona selling, public relations, word of mouth
not necessarily under one branch of the company
personal selling= business to business, insurance
PR= free media coverage- getting others to talk about it
We want all these to be connected with a similar message but not always unified in firm bc diff departments
control is high with ads bc firm can make every part of ad, control where it goes, who sees it, etc
some control over sales promotion bc they are their own people and maybe different incentives

70
Q

influence continuum in relations to IMC control continuum

A

opposite of IMC control- highest influence is word of mouth, lowest is ads
we see tons of ads every day but we dont act on them, much more likely with reviews from friends etc

71
Q

why IMC approach?

A

Extend brand relationship through every touch point
improve overall effetiveness
integrated approach is largest impact, relevance
more effectively manage marketing resources
drive results and return on investment- at least +31%

72
Q

media landscape

A

paid- traditional- print, tv, magazine, etc
paying to show up in other’s media
owned- brochure, catalogues, company website, facebook page, mobile app
company owns so full control, direct communication with customers
earned- word of mouth, reviews, social media
what other people are saying

73
Q

advertising planning flow chart

A
  1. objectives
  2. budget
  3. message and media
  4. evaluation
74
Q

5 Ms

A

motivation, money, message, media, metrics

75
Q

objectives

A

what are we trying to accomplish?
build awareness, strengthen preference, incite action (from book)
redefining:
inform: build awareness, help customers understand value, educating
persuade: preference, change attitude, motivate customer to take action
remind- keep value proposition at the top of mind and protect against brand decay

76
Q

budget

A

3 approaches, best to use all 3:

  1. percentage of sales- top down- best used to benchmark.
    ex: 10% for toysm liquor, consumer package goods
  2. parity- spendnig relative to competitors
  3. objective and task- bottom up- spend exactly what is needed to reach specific objective
77
Q

ex of clicks with objective and task

A

objective- want 100 sales- have 5% conversion rate (aka 5% of ppl on site buy)
so need 2,000 ppl on site. only 1% click through rate
so need to make 200,000 impressions. what is budget for that?
at $5 for 1000 impressions, budget is $1000 for this objective
`

78
Q

message brief

A

document created as blueprint for creative people to translate business objectives
components:
background/overview- key facts, key problem
objectives (specific customer aquisitions/metrics)
target audience (segment definition, key customer insights)
competitive positioning (target, parity, superiority)
key promise- whats the most important thing to say? aka unique selling proposition (USP)
supporting facts- rational and/or emotional reasons to believe
creative consideration- mandatory requirements- tonality, colors, logos, etc

79
Q

media spending

A

internet 38.4%, tv 33.4%
spending almost a perfect correlation to where people are
newspaper huge decline, magazines and radio smaller decline
who is spending? Comcast/NBC, P&G, AT&T, amazon

80
Q

total spending vs measured spending

A

total includes sponsorship, influencers, etc and other non traditional
media is traditional

81
Q

digital media

A

display ads- banner, desktop, social media, mobile
online video- preroll on youtube (owned by google) forced to watch
search

82
Q

Search engine optimization (SEO)

A

organic search
best, most effective results in search. companies will try to figre out what algorithms are to make site better to come at the top

83
Q

search engine marketing (SEM)

A

pay per click (PPC) on side and top of search page
pay to show up there. click thigh rates high bc ppl already searching for this product
most eye tracking on paid ads, google can putit where people look

84
Q

advantages and disadvantages of digital media

A 
pros:
highly selective targeting, (contextual, behavioral, look alike, psychographic)
user selects info- interactive
direct response
metrics (views, clicks, conversions, sales)
disadvantages:
limited reach, fragmented
low click through/attribution
limited creative, esp on mobile
privacy and transparencyissues
85
Q

reach

A

percent of target audience

86
Q

frequency

A

number of times ad in front of customer in 13 week cycle- exposure

87
Q

CPM

A

cost per 1000s impressions

cost/impressions x 1000

88
Q

PPC/CPC

A

pay/cost per click

bid based PPC- auction based SEM

89
Q

CTR

A

click through rate

avg CTR is .06-.12

90
Q

CPA

A

cost per action/aquisition

cost per lead, cost per download

91
Q

attribution in digital media

A

Where is the causality ascribed for a sale, conversion, or acquisition?
Weakness of last touch or last click
Interactive and cross-channel attribution models/platforms

92
Q

BBVA case: if online AC are high and customers are worse, why spend money online?

A

importance of omni-channel
rise of internet
ignoring fixed costs of building a store in offline AC
online reaches different customers
measurable
brand awareness (last click attribution)
improvement for paid search with display ads

93
Q

maximizing customer experience

A

own customer over all experience and systematically understand CX to facilitate aquisition,enhance statisfaction, increase retention, and reduce attrition
Companies are losing money when not maximizing CX
Could significantly increase total revenue with only 1 point increase in experience
How? retention/reduced attrition, increase cross sell, increase advocacy, positive word of mouth (NPS)- driving metrics in customer loyalty

94
Q

Forrester Scoring Customer Experience

A

take into account:
CX quality- effectiveness (experience delivers value), ease (easy to get value), emotion (feel good about experience)
Customer Loyalty- Retention, enrichment (buying additional products and services), advocacy (recommending to others)

95
Q

positive and negative emotions drive a customer’s experience

A

appreciated, confident, grateful, respected, valued
annoyed, disappointed, frustrated
they do not manifest the same way in each co and industry. But it is true across all that CX affects $

96
Q

growth potential and CX score

A

linear relationship- insurance, internet providers, big box retailers
diminishing relationship- OTT providers like Netflix- grows but tapers off bc not buying new subscription. Airlines, credit cards
exponential relationship- auto manufacturers, banks, hotels
customers can be cross-sold so need to keep up with CX once they are customers

97
Q

highest CX scores

A

Navy Federal credit union, USAA- very targeted military customers
Trader Joes
Internet providers are lowest

98
Q

Customer Journey Map

A

primary tool used to understand CX
visual depiction of customer’s interaction with organization
horizontal axis is journey
then find touch points among them through customer research
not all touch points are equally relevant, so want to reduce to key relevant interactions
vertical metric is often satisfaction :) :/ :(
vertical metric can be more, such as emotional, sensory, rational, behavioral, social, activities, motivation

99
Q

example horizontal axis of customer journey map

A

awareness, consideration, purchase, retention, advocacy

100
Q

Journey map from business perspective

A

business satisfaction is high when awareness, direct sales, stable paying customer
low at involuntary churn, costly service inquiries
can put the business and cust perspectives on top of each other and identify key places for improvement

101
Q

external, front stage, back stage

A

external, customer experience
front stage, what the customer sees that the company does
back stage- what the user doesn’t see

102
Q

steps in creating map

A

brainstorm- personnel from multiple departments, layout hypothetical journey
validate with customer research- create horizontal axis
focus groups, interviews, surveys: key themes, needs, goals, touch points
reduce to critical touch points
create vertical axis for insights and innovation
evaluate and iterate, keep working and changing

103
Q

alternative journeys

A

can depend on different targets
what is (what we have been looking at)
what if (what would it look like if x changed)
what wow (what would be ideal/perfect)
zoom in on specific step- onboarding, problem resolution, renewal/repurchase
B2B- decision makers- multiple levels of approval
different customers/segments
different archetypes- classic (majority), gifting (didn’t know the store, different journey), shopping, habit

104
Q

innovations

A

dominoes pizza tracker- CX goes down when waiting for delivery bc stressful to not know what is happening with food. thought this was out of control but improved experience
Westin put cameras to see what people actually do. The first thing is to throw away bedspread so they made it white to seem clean. also avoided shower curtain so made it curved
goldman opened digital consumer banking- did “what is” on other competitors and “what wow” and designed from the ground up based on customer journey

105
Q

PEST

A 
political and legal
economic
social
technological
context- 5Cs
taken into account in pricing
106
Q

Things that contribute to authenticity

A

Continuity (history, origin)
Credibility (honest, transparent)
Integrity (cares and is true to its values, environment, family)
Symbolism (connects with people, adds meaning to people’s lives)

107
Q

Brand repositioning

A

Involves changes to the identity and meaning of a company’s brand
Not changing is not changing cosmetic attributes
Focused on changing what customers associate with the brand

108
Q

Brand extensions:

A

The strategy of using the same brand name in a different context
Vertical: stretch the brand to a product or service in a different price tier.
Horizontal: involve applying the brand to a different product category, typically within the same price tier

109
Q

Attribute value map:

A

goes beyond the two-attribute representation of the positioning map to provide a multi-attribute scenario illustrating the performance of the individual offerings on all relevant attributes. This allows a more accurate picture of the similarities and differences across the product line offerings on all relevant attributes.

110
Q

3 of the most popular competitive product-line strategies

A

Fighting-brand strategy: Popular strategy to compete with low-priced rivals involves launching a fighting brand – an offering that matches or undercuts the competitor’s price
Sandwich strategy: Involves both the introduction of a downscale offering and upscale repositioning of the core brand, effectively sandwiching low-priced competitors
Good-Better-Best strategy: Involves introducing a downscale offering as well as an upscale offering while preserving the core brand. Similar to the sandwich strategy but instead of repositioning the core it just adds a premium offering

111
Q

3 stages of Brand Intimacy

A

Sharing: when the person and the brand engage and interact. Knowledge is being shared and the person is informed about what the brand is all about and vice versa. At this stage, attraction occurs through reciprocity and assurance
Bonding: bonding is when an attachment is created and the relationship between a person and a brand become more significant and committed. This is a stage of acceptance and trust is established
Fusing: fusing is when a person and a brand are inexorably linked and co-identified. In this stage, the identities of the person and the brand begin to merge and become a form of mutual realization and expression

112
Q

We use six archetypes, or markers, to measure the character and nature of emotional bonds between a person and a brand.

A

Fulfillment: always exceed expectations; deliver superior/quality service; good value for the money
Identity: values the customer identifies with; projects a desirable lifestyle
Enhancement: makes life easier; helps the customer be more effective, smarter, more capable, more connected
Ritual: becomes a part of the customer’s daily routine, as a vitally important part of their lives (more than a habit)
Nostalgia: reminds the customer of fond memories and associated warm feelings from the past
Indulgence: pamper the customer with a sense of personal luxury; appeals to the senses

113
Q

4 key product life cycle stages

A

Introduction: product awareness is low and there are few competitors
companies typically offer a single product variant targeted to the most likely adopter
communication campaign aims at creating awareness among early adopters and channel partners
Growth: number of competitors entering the market increases
to address the diverse needs of current and potential customers, companies add product extensions designed to better meet the need of various customer subsegments
shifts to creating awareness within the mass market while differentiating its offerings
Maturity: number of competitors tends to peak, the market becomes saturated, and industry profitability starts to decline because of intensifying competition
product variant peak at maturity
focus on differentiating the company’s offering by highlighting its benefits vis-a-vis the competition
Decline: characterized by falling demand for the product, relatively low profitability, and a decreasing number of competitors stemming from consolidation and exit from the market. Often due to dominant replacement technology
companies focus on best selling products
overall communication tends to decline

114
Q

Maloney’s 16% Rule

A

: once you have reached adoption of any innovation, you must change your message and strategy from one based on scarcity to one based on social proof in order to get through the chasm

115
Q

Porter’s 4 basic strategies to manage decline

A

Withdraw/divest: if you don’t see remaining benefits, get out; sometimes this means cannibalizing yourself
Harvest: microsoft does this; invest just enough to capture last bit of profit
Niche: there are niche pockets of demand people can target
Market leadership: starbucks

116
Q

STEPPS: good model for what content of message are good for pushing it past the chasm

A

Social currency: if something is timely and new, people will want social currency from sharing
Emotion: messaging with emotional content is more likely to be shared
Triggers: Thanksgiving is a trigger for people to search the word “turkey”
Public: things that are more visible are more likely to be shared
Practical Value: things that have practical value are more likely to be shared
I.e. why listicles are so popular
Stories: when things conform to a story, things are more easily transmitted

117
Q

ACCORD Model

A 
Relative Advantage to what it replaces
Compatibility with current behaviors
Complexity of communicating the benefits
Observability of the products benefits
Risk of product failure
Divisibility or trialability
118
Q

When to skim

A

high price
selective place
complex ACCORD
selective promotion, focus on education

119
Q

when to penetrate

A

low price
extensive place
simple ACCORD
Intensive promotion, focus on awareness

120
Q

Yield management

A

type of demand-based pricing

prices change based on capacity ex. Gas prices

121
Q

Target-costing:

A

type of demand-based pricing
start with demand-based ideal price and designs an offering to deliver desired value at target price ex. P+G spinbrush that came from lollipop

Marketing 101 (3 decks)

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