Marketing Flashcards
Brand Definition
a name, a term, a symbol, or any other unique element of a product that identifies it as the firm’s product and sets it apart from the competition
Ways to name a brand (6)
- Representative of someone’s name (Ford, McDonald’s)
- Symbol (Nike)
- how it operates or delivers (Drain-O)
- Perceived benefit (Brawny, Fantastik)
- Short & Memorable (Tide, Cheer)
- Persona (Dinty Moore, Col. Sanders)
4 branding strategies
Individual Brands (P&G, Mars)
Family or Umbrella (Kraft)
Store Brands (GoodValue, Trader Joes)
Generics (basic labels)
innovation
product consumers perceive to be new and different. The perception of change = “new”
Types of Innovation (3)
Continuous
Dynamically Continuous
Discontinuous
Continuous Innovation
Modifications of existing products that separates the brand from the competitor
Minimal new learning is needed to adopt innovation
e.g. Cheerios: original → frosted → honey nut etc
Dynamically Continuous Innovation
Convergence of 2 or more technologies to deliver more benefits
Moderate learning curve
e.g. Smart Phone (phone+camera etc)
Discontinuous Innovation
Totally new product
Needs new learning
e.g. internet
Process of developing new ideas
- Idea generation & first screening
- Product concept development & second screening
- Marketing strategy development
- Business Analysis
- Technical development
- Market testing
- Commercialization
idea generation & first screening
New Product Development
Process people go through to come up with new product for new benefits
Get rid of ideas that are not possible/practical (first screening)
Product concepts development & second screening
New Product Development
Expand raw idea into concept that highlights key consumer benefits and concepts. Could it be made? Could we sell it?
second screening: focus on ideas that pass this stage
Marketing Strategy development
(New Product Development
Develop 4 Ps at this stage
perceptual map, basic marketing focus, key product positioning, target market
Business analysis
(New Product Development
assess product’s commercial viability
potential demand?
profit?
does firm have expertise to make product?
cannibalize existing products?
Technical development
(New Product Development
Money spent at this stage
New products refined, perfected
test products
Market Testing
New Product Development
Spending increases, very expensive stage
Commercialization
New Product Development
Launching new product into market: production distribution advertising sales promotions
very expensive
Price definition
value that customers give up or exchange to obtain a desired product
Price Planning process (6)
- Develop pricing objectives
- Estimate demand
- Determine costs
- Evaluate pricing environment
- Choose a pricing Strategy
- Develop pricing tactics
Promotion mix (6)
Advertising Public Relations Personal Selling Sales Promotion Direct marketing Interactive/Digital
Advertising definition
non-personal communication paid for by identified sponsor using 3rd party media to persuade or inform
Advertising objective
AIDA
Awareness
Interest
Desire
Action
Integrated marketing communications
Coordinate communication to surround customer with clear, concise, consistent message
***Traditional Model of communication
Sender creates message → encodes message → sends message via medium → receiver gets message → decodes message
line from botton to top
also include noise
campaign
series of advertisements delivered over a period of time based around a strong central theme or idea
***Reach
percentage of audience of target market who sees ad at least once during time period
Will never attain 100% reac
***Frequency
Average number of times consumers will see your ad
3 impressions = minimum needed to stimulate remembrance
***Gross rating points
Reach x Frequency
RxF=GRPs
minimum F=3
appeals 4
Emotional/psychological stimuli
- Fear
- Sex
- Humor
- Slogans & Jingles
***4 budget planning methods (for advertising)
Affordable method-whatever management says we can afford to spend
Percentage of sales-a % of sales, usually 1-3
Competitive parity-see spending on advertising for all companies in aggregate–>give us % you’re spending in market. this is market voice. Compare SOM to SOV.
Objective end task (Kalan’s favorite method)-what you want to accomplish (certain amount of awareness). Build from bottom up to reach method
Factors to consider in budget process 5
Where you are in product life cycle Market share and consumer-based loyalty Competition and level of clutter Advertising frequency Product sustainability
Promotion definition
The coordination of a marketer’s communication effort to influence behavior
Challenge: create synergistic message that supports a consistent and recognizable or memorable idea
Communication Objectives
Awareness - Inform Knowledge - Educate market Desire - Generate positive feelings Purchase - Stimulate trial Loyalty - Repurchase
sales promotions
2 legs:
Push - companies incentivize trade
Pull - end user asks for product
PR definition
Communication functions that seeks to build good relationships with stakeholders (anyone with a vested interest in our company)
5 PR tools
Press release Press/news conference Sponsorships Events Guerrilla marketing
name some sales tools
Coupons Price Deals Loyalty programs Special packs contests and sweepstakes Premiums for proof of purchase Trial/sample size, free samples Point of Purchase promotions Product placement (in movies/tv etc)
7 steps of selling
Prospect and qualify -prospect (ID potential area and customers) -See if they qualify Pre-approach Approach Presentation Handling objections, Q&A Closing -have to ask for business Follow-up -leads back to approach
***Marketing Definition
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives in a dynamic environment
***Need definition
A state of felt self-deprivation which presents as the difference in the present state of a consumer and where he/she desires to be.
***Benefit definition
The perceieved outcome of purchase of product or service. This is why a product is purchased
***4 P’s of Marketing Mix
Product-ideas, goods, or services
Price-assessment of value
Place-where and when available
Promotion-activites to inform or incentivize a sale
***Product definition (Marketing Mix)
*a good or service that is purchased to satisfy a need
***Price definition (Marketing Mix)
*The amount a consumer is willing to pay in exchange for a product
***Placement defintition (Marketing Mix)
*The process at which the right product needs to be available to the right customer and the right time at the right price
***Promotions (Marketing Mix)
*use of marketing tools to create awareness of a product or service and provide incentive for purchasing the product/service
***SWOT Internal
Strengths
*Core competencies of a company that help achieve their goals and exceed expectations
Weaknesses
*Areas of needed improvement that hinder the growth of a firm. Things that a firm does not do as well as their competitors
***SWOT External
opportunities
*Areas that the firm needs to exploit in the market to create market share
Threats
*Obstacles faced by the firm to maintain existing operations and business share
5 Steps of the consumer buying process/buying behavior (first 3)
Problem recognition
*When consumer recognizes a need. Can be triggered by internal stem (hunger) or external (ads)
Information Search
*Gathering info that allow customer to make better informed decision. (e.g. internet)
Eval alternatives
*Consumer looking at different options that can satisfy the need. 1. Consumer self select alternates/options. This is the evoked or consideration set 2. Eval-Consumer looks at each options and evals pros and cons using subjective criteria. Selects best suited option based on dimensions of importance.
5 Steps of the consumer buying process/buying behavior (last 2)
Product Choice
*the consumer purchases the product or service from above. Decision made by heuristics (the consumers method for feeling what is the correct choice)
Post purchase eval
*After the purchase is made and product is evaluated, the customer is either happy or unhappy with purchase. This can result in cognitive dissonance or Buyer’s remorse.
***Maslow’s Hierarchy of Needs all 5
- Physiological-food/water/shelter/sex-basic needs req to survive
- Safey/security-Needs for safety of oneself and people they care for
- Social Needs-Need to feel accepted in society (e.g. companionship or sexual intimacy)
- Ego-Need to satisfy the way one wants to be perceieved
- Self actualization-when all basic and mental needs are fulfilled and “actualization” (or attainment) of the full person’s potential occurs
Three layers of a product
Core (middle most)
*Benefit derived from purchase of product/service. Main reason for purchase (transportation for car)
Actual (layer 2)
*Physical elements that go into making of the product (materials that go into making car)
Augmented (layer 3)
*Extra benefits derived from product (warranty/status/free oil change)
4 targeting strategies
Undifferentiated
*Mass marketing. One strategy for every potential consumer
Differentiated
*use of different strategies for different products in the industry (Different detergents marketed to different customer segments)
Concentrated *Offering an array of products in the same market segment (tiffany high class everything)
Customized
*targeted at specific customers?
3 levels of business planning
strategic
*Matching the core competencies of a firm with thier specific capabilities and resources. States mission statement in first line. Carried out by upper management of strategic business units
tactical
*Planning of tactics that need to be appliedd in order to achieve strategic plan. Carried out by middle mgmt.
operational
*Planning of the day-to-day operations that need to be carried out to achieve the strategic and tactical goals set by the company. Carried out by functional groups or the general (blue collared) workforce
mission statement
First line of the firm’s strategic plan (usually)
What the firm plans to achieve in terms of products, employees, customers, and resources in order to maintain long term sustainability of growth and profit
BCG portfolio matrix
Market growth high
- market share
- -high=stars..low=?
market growth low
- market share
- -high-cash cows…low=dogs
be able to draw
Cash Cows (BCG Portfolio Matrix)
high market share and low market growth
Volume of sales is responsible for making the option viable
e.g. Dell laptops
Dogs (BCG Matrix)
low market share and low market growth. Products in declining phase. Mostly not profitable
Eg (P+G sold PB to smuckers–>someones dog can be another persons star)
Stars (BCG Matrix)
products with high share and high growth.
Innovative products. Require a large amount of cash flow.
Eg Apple
***Innovation definition
*Ease at which a particular customer segment adopts to changes in products or service.
Signifiies the kinds of costomers marketers should target and the different strategies to apply to that market segment
***Innovation segments and %
2.5 innovators
13.5 early adopters
34 early majority
34 Late majority
16 laggards
***IS innovators and early adopters
innovators-*adveentrous risk takers who are always willing to try a new product/service the moment it is avail. Important to marketers
EA-Not as fast adopters as innovators but are among the earliest to try a new product/service. Most (?) important group to marketers
***IS Early majority, Late majority, laggards
EM-group that adapts upon the reviews of innovators and EA. Important to marketers
LM-Group that only adapts because most around them have/price reduction. not important to marketers
laggards-essentially averse to change, may change 2/2 fall in price. least important to marketers
demand definition
desire for stuff coupled with the ability to pay for it
3 levels of competition
Discretionary income
Product
brand decision
4 types of competition
perfect competition
monopolistic competition
oligopoly
monopoly
Marketing Information System
Process developed by a firm to continuously Gather Sort Analyze Store Distribute Relevant and timely information
Market Research Process
Define the problem Determine the research design Sample Collect data Analyze and interpret Present the findings
***Product Life Cycle (4)
Introduction
- To get consumer to try product, investing time/effort to create awareness and stem innovator and early adopter. No profit, just spending. high R+D. Products can die here
Growth-exponetial growth, profits increase at highest rate, R+D down, segments start to occur
Maturity-Others entered marketplace, profits decline faster than sales 2/2 competitors, longest stage, look for new markets, longer you stay the better
Decline-sales decreased, consumers want something new, can stay if profitable
Product life cycle decline
3 ways to get out of business
phase it out
stop immediately
sell to someone else
marketing process (3 steps)
plan, execute, Eval and alter
Growth strats table
existing market
- existing product–>market pen
- new product–>product dev
new market
- existing product–>market dev
- new product–>diversification
steps in buyer decision (or) Adoption process 6 steps (picture)
awareness and need recognition-learning something exists
interest and info search-when we stimulate consumer to learn more
eval alternatives-cost worth vs other options
trial-experience product for first time. can be stimulated (test drive)
adoption-customer chooses your product and begins to purchase
confirmation-purchase couple of times, weights costs and benefits to continue buying, can lead to loyalty
