marketing 3 Flashcards
Product Benefit is
The need for satisfying qualities of a product
Tangible
A object that exists physically and can be touched
A good
Examples: phones, shoes
Intangible
Something that exists but is not physical and cannot be touched
A service
Example: Disney plus subscription, car wash
Market research indicates that consumers want a new product or a modification of an existing one.
This happens in the stage of:
Idea Generation
Testing of consumer reaction to the new idea and competitive situation in the market.
This happens in the stage of:
Idea Screening
Prototype is developed
Marketers may test-market the prototype.
This happens in the stage of:
Concept Development
Establish the markets to target
Development of a marketing plan to implement a marketing strategy.
This happens in the stage of:
Market Strategy
With the finance department, marketers will calculate the cost of advertising, promotion, distribution, transportation, storage, packaging and all other expenses The company must feel that they can product and sell the product at a competitive price and make profit .
This happens in the stage of:
Feasibility Study
Product design includes all the details that the target market would want in the product
Also, warranty, packaging, etc.
This happens in the stage of:
Product Design
Marketers must test consumers’ acceptance of the product using samples, surveys, etc. If responses are positive, the company will launch the product.
This happens in the stage of:
Test Marketing
The product then enters the product life cycle
This happens in the stage of:
Market Entry
stages of Product life cycle:
Introduction, Growth, Maturity, Decline
Types of product Life Cycles
Traditional, Niche, Fad Product, Seasonal.
Niche usually stay consistent and lowkey throughout all stages
Fad rises only during Intro stage, barely makes it to growth and maturity
Seasonal rises when its time comes only (Christmas trees, Beachballs)
Five Characteristics of Packaging:
Packaging: Packaging contains the product or ingredients
Products are easier to ship, store, and display when in packages
Protection: Packages are intended to protect products from breakage or contamination
Examples: Tylenol, Maple Leaf Prime Chicken
Information: The law requires that labels on food packages list the following:
Ingredients (in order by what weighs the most to the least)
Nutritional information
Name and address of the manufacturer
Quantity
Bilingual information
Companies may voluntarily include the following items:
UPC barcode, storage instructions, best-before date, health warnings, cooking instructions, recipes, coupons, etc
Branding: Packaging is often referred to as a salesperson
This is especially true for packaged
A unique package shape, or a proprietary design, can be protected by trademark laws. For example, Coca-Cola’s Hobble Skirt bottle design
Promotion: Occasionally, the package may be the reason why a consumer purchases a product
For example:
Packages may have tie-ins with movies or special events
Packages may be designed as limited editions to make it collectible
Packages may be designed as environmentally friendly
What is a brand, what are the three aspects that make up a brand?
A brand is a identity,
Brands are created by using…
A name, A logo A slogan
What are the three goals of branding?
Create a unique brand identity
Create a positive image of brand
Develop brand loyalty
What is Brand Loyalty
Is a situation in which the customer will buy only a certain brand of a product
What could I get to protect my brand?
Trademark ™ can protect a combination of words, sounds, or designs used to distinguish your goods or services from those of others.
Six elements of branding
Voice: Consistent personality and emotion that you infuse into your company’s communications.
Consists of the words and language you use, and the personality and image
Identity: Aspects of your company that are recognizable in the eyes of consumers
Refers to a company’s colour palette, logo, and fonts/lettering, packaging.
Promise: How you articulate the unique value that your business provides customers with
Includes the company’s vision and mission statements, brand principles and value proposition
Values: The guiding principles and beliefs that your company stands for
Articulating your values and aligning your brand with something bigger
Targeting: Determining what segment of the market you want to reach
Identifying the characteristics of your target customer
Positioning: Where your brand stands in the market in the eyes of consumers
How your brand differs from industry competition
What occurs in the communication process in promotion?
When a company wants to tell people about a product or service, they send a message through a special way (like advertising or social media). The message goes to the people the company wants to reach (like you!), and the goal is to make you interested and want to buy the product or service
Product Promotion
Is marketing communication that focuses on the product and selling the product. Promotions for breakfast cereals, a band concert, and safety messages are product promotions.
Institutional promotion
focuses on the image of the organization, rather than specific products. The goal is to create positive feelings about the organization, which can increase interest in their products.
Why do Businesses Use Sales Promotion?
Build Traffic
Motivate staff
Introduce a new product or generate brand trial
Clear old or discontinued stock
Advertising vs Promotion
Advertising
* Creates brand value over time
* Adds intangible value
* Contributes to longer term profitability
Promotion
* Creates immediate action
* Adds tangible value
* Contributes to short-term profitability
Customer Behaviour Drivers
Urgency (“Act now.”)
Availability(“ It won’t last, so don’t miss out”)
Exclusivity (“ This is an offer just for you”)
70-20-10 Rule
Social Media Marketing should be 70% informational, 20% emotional, 10% promotional
6 Essentials of a successful social media marketing strategy
Knowledge of your audience
Brand identity
Content Strategy
Analytics
Regular activity
Inbound approach
Key Performance Indicators of Social Media
Reach ( the # of ppl who saw your post )
Impressions ( the # of times your post was seen )
Engagement ( how many likes, shares, comments, etc… )
Conversions ( clicks, follows, forms filled out… )
3 Types of Prices
List Price: The established price of a product, as established (listed) in a catalogue, on a price tag, or on a price list
Market Price: The actual price you pay for a product, after any discounts or coupons are deducted
MSRP Price: The price the manufacturer recommends to a retailer
5 of the factors that affect price
Company goals
Expenses
Competition
Government regulations
Supply and demand
Price competition vs non-price competition
Price Competition
A strategy that implies reducing prices to compete with rivals
Non-price competition
Involves encouraging consumers to buy a good by making it appear different or better to the other products
Achieved through: advertising, branding, location packaging, loyalty programs
Price wars
Where two or more firms try to undercut each other. Often seen in airline industry.
Price fixing
Competitors get together to set (fix) prices at very high or very low prices. Canadian bread industry.
Price discrimination
Charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.
Elastic vs In-elastic demand
Elastic demand
Demand changes greatly based on price changes. Ex: luxury items, certain food and bevs change prices based on demand.
In-elastic demand
Demand changes very little based on price changes. Ex: Gas and prescription drugs as demand often remains constant despite price changes.
Five common pricing objectives
Maximise profit - charge as high as possible
Maximise sales - Low price, high volume
Increase market share - Take sales away from competition
Meet competition - compare to competitors
Maximise ROI - Positive return on investment
ROI formula, calculate ROI
Profit and Invesments
Formula: ROI = profit/investment x 100
Example: A company spent 100,000 on marketing throughout the previous fiscal year. Their marketing campaign has directly resulted in $12,000 of profit for the company. What is the ROI on their marketing campaign so far?
ROI = profit/investment x 100
= $12,000 / $100,000
= 0.12x100
= 12%
Pricing Strategies
Price Skimming
The producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it. Then gradually reduces price to attract the next layers of the market.
Examples: iPhones, PS5
Negotiated Pricing
When both the buyer and seller of a product discuss the price of a good or service
Two roles that arise: buyer and seller
Examples: real estate, food market
Penetration Pricing
Used to attract customers to a new product or service by offering a lower price during its initial offering -> helps penetrate the market and attract customers away from competitors
Examples: Rogers plan deal
- Super Sizing
Super sizing is offering a large amount of product for a small increase in the price
The consumers pays a little extra gets what seems to be a lot more
Example: Large fries, large coke
