MARKETING EXAM FINAL. Flashcards
goods vs. services variability
goods : invariable
services: change across customers / time
TECHNOLOGY REDUCING VARIABILITY
goods major qualiteis
search and expereince
what is product mix
a comapny’s product lines
pricing objectievs
PICCS profit image enhancement customer satisfaction competitive effect sales and market share
what is brand equity
the worth of a brand
distribution
the right product at the right time,availabile to the right customer at the right price
how much distribution? wide
- heavy promotion
- lower prices
- average/ lower quality products
market maturity stage in PLC
- competition increase
- industry sales level off
- promotion focus on product superiority
- product line extended
- marketing cost increase, price fall
diffusion of innovation normal curve order
IEELL innovators early adopters early majority late majority laggards / non- adopters
brand extensions
attaching popular brand name to a new product in an unrelated product category
main service qualities
- intangible
- inseparable
- perishable
- variable
what directly affects pricing
the Cs of marketing:
- CUSTOMER
- COMPETITOR
- COMPANY
old products possibilities in market decline stage
divested - sell early to get best price
harvested - support reduced
rejuvenated - refurbished with new beenfits
how advertising goals relate to PLC
introduction = AWARENESS/ INFO growth = ENHANCE positive attitudes maturity = REMIND customers decline = REDUCE ad spending
self branding
branding own ingredient to differentaite quality from competitors
ex. tide everfresh
intro stage in PLC
- low sales
- heavy marketing
- low price
- limited distribution
AIDA goal model
attention, intrest, desire, action caption attention pique interest make customers desire product get customer to act / buy
what is co branding
two companies create a product from both companeis
exclusive distribution channel
- extremely selective
- manufacturers = most control
- might become monopoly
what is price elasticity
- how much does demand increase or decrease with a price change
market decline stage in PLC
- sales and profit decline
- new products replace older generations
- old products : divested, harvested, rejuvenated
search qualities for goods and services
attributes that can be evaluated prior to purchase as the customer learns about competitive offerings
growth stage in PLC
- sales, distrubution, price incerase
- competitors enter and kill each other off
- product needs competitive advanatge
emotional ad types
humor, fear, subliminal ,spokesperson,image
positive benefits of branding for customers
- identfiy company ownership
- allow for predictable quality
- easier for customers to make decisions
- status symbols
2 reasons for advertising
- facilitates customers’ awareness
- tries to persuade potetntail customer
transaction cost analysis
- wants to minimize production and governance costs
- production = bringing product to market
- governance = involved wih relation issues incurred by controlling partners
pruned product lines
no distinctions between brands or lines
what is the product life cycle
evolution and duration of a product in the marketplace
- shows creation and demise of products
advertising goals categories
cognition : increasing awareness of brand
affect : enhance attitudes / positive associations
behavior : encouraging more buying of brand
elasticity equation
Q2-Q1 / Q1 OVER
P2-P1/P1
supplemented product liens
opportunity for producing something customers will value
what is depth
number of products in a line. example different size refrigerators
define core and value added
core = essential to product. expected. can change
value added = supplemental
- used to differentiate and improve satisfaction
- identify competition
globalization vs global brands
globalization : diffrent names in different countries
global brands : same brand in all countries
elastic
demand changes
PRICE of item goes down and consumers buy twice as much
elasticity results
E> 1 elastic
E between 0 and 1 inelastic
E = 1 unitary
goods and services qualities
- search qualities : goods
- experience qualities: goods and services
- credence qualities: services
inelastic
demand barely changes with a price change.
PRICE of item geos down and consumers buy same amount
selective distribution channel
limited distrubution - complex / expensive products EX. cars, computers - push strategy. they want partners to push goods to consumer - manufacturer has more control
how much distribution? exclusive
- less promotion
- higher prices
- higher quality
types of activities in a channel
customer-oriented (ordering)
product-oriented (storage)
marketing centric (promotion)
advantages of private label brands
decent quality for lower prices due to reduced ad. costs
interbrand - brand measuring approach
assessment of the value of a firm, after subtracting its physical and financial assets
what is a brand
portfolio of qualities associated with a name
- promises to customers
- signal info to customers
evaluating advertising
day after RECALL tests (which brands did u see last night) RECOGNITION tests ( do you remembere seeing \_\_ ad)
credence qualities for goods and services
qualities difficult to judge even post consumption.
- ex. did the psychologist improve you?
- professional service providers
ingredient branding
cobranding in which one company adds value to a host product.
ex. intel in many PCs
retailers classified by
- level of service provided
- product assortment carried
brand extensions : product category extensions
increase breadth, new product line
- ex. amazon sells different things
what is breadth
the number of different product lines a company has
ex. company sells refridgerators, washers, dryers
break-evens
determine the number of products that must be sold at a specific price to generate enough revenue to cover total cost
image ads
more abstract message
- positioning
- distinguish itself
positive beenfits of branding for company
- loyalty
- premium prices
- single firm to pursue multiple market segments
experience qualities for goods and services
attributes that need trial/consumption before evaluation.
- ex. if friends recommend new restaurant
intensive distribution channel
widely distributed
ex. drugstores, supermarkets, convenience stores
- simple, inexpensive products
- pull strategy
house of brands approach
introducing a new brand name for every product line
- reason = any probelms with one brand should not influence other brands
- allows target multiple segments
- more advertising expense
ex. P & G has so many brands
phases in the PLC
introductory
growth
maturity
decline
IGMD
price objectives : sales and market share
develop bundle pricing in order to increase market share
brand extensions : line extensions
new product within a line. depth
ex. different Cheerios flavors
profit equation
((price - variable costs) x demand)) - fixed costs
private label
TYPE OF backward integration - relationship with manufacturer that I own
- gives
how are ads tested
memory tests (recall and reognition)
attitudinal tests
behavioral measures
cognitive ad categories
comparative/ non comparative
product demonstration
drama
one/two sided argument
umbrella branding
company attaches same brand name to all of its products
- nike : makes shoes, sports jerseys, g bags etc.
comparative vs non comparative cognitive ad
non comparative = only 1 brand feautures, attributes, image
comparative ad = 2 or mroe brand’s
forward / backward integration
forward = open own retail stores backward = controlling raw material inputs
types of ads
emotional, cognitive, image
what is a firm’s market offering comprised of
- core
- value addeds
distribution channel
firms that are interconnected in their quest to provide sellers a way to sell their products and buyers a means of buying them.
EXAMPLE: manufactrueres, wholesalers, retailers
