MKT 300 Exam 3

Question 1

Branding, brand elements

Answer 1

A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services one seller or group of sellers and to differentiate them from competitors.

Question 2

Role/attributes of brands

Answer 2

Role: Higher perceived quality, price premium, greater market share, financial strength, and brand extensions. Your brand is what consumers think it is, not you.

Attributes: Consistent brand message, focus on long-term growth, manage customer experience, meaningful.

Question 3

Brand Equity definition/components

Answer 3

The marketing and financial value associated with a brand’s strength. Components: Brand loyalty, brand associations, perceived brand quality, brand name awareness (brand knowledge to both perceived brand quality and brand associations). Reflective of long term trust built by brand in consumers mind. Indicative of strength of brand and brand fit with consumers. Can be so strong that a brand name becomes the category name.

Question 4

Master Brands

Answer 4

When a brand name becomes the category name.

Question 5

Brand Equity Benefits
to companies and consumers

Answer 5

Companies: Source of competitive advantage, predictability and security of demand, barriers to entry, financial returns.

Consumers: Search cost reducer, signal of quality, risk reducer, symbolic device.

Question 6

Intangible Value

Answer 6

Value that you can’t hold in your hand. Above and beyond tangible assets.

Question 7

Brand Equity Models: Aaker, BAV components, and Interbrand (interbrand: brand earnings and brand strength)

Answer 7

Aaker = Devotion
The pinnacle customer relationship to a brand

BAV components
DifferentiationRelevanceEsteem*Knowledge=Brand Equity

Interbrand; two components of brand earnings and brand strengths
Brand Earnings: Brand sales, cost of sales, marketing costs, overhead expenses, remuneration of capital charge, taxation.
Brand Strength: Leadership (25%), stability (15%), Market (10%), Geographic spread (25%), Trend (10%), Support (10%), Protection (5%).

Question 8

Brand Personality

Answer 8

Specific “personality-type” traits or characteristics ascribed by consumers to different brands.

Question 9

Brand Archetypes

Answer 9

Universal, archaic patterns and images that derive from the collective unconscious and are the psychic counterpart of instinct.

Question 10

Branding strategies

Answer 10

Manufacturers brand: Owned by manufacturer, could be in any number of retailers

Private Brand: Owned by the retailer

Individual Brand: Brands that stand alone. Corporation/parent company not referenced.

Family Brand: Brands that use the company’s name to market their products.

Combination: Where the company is paired with the individual brand name.

Question 11

Labeling
Persuasive vs Information; subjective vs objective

Answer 11

Persuasive: Focuses on promotional theme, consumer information is secondary

Informational: Helps make proper selections, lowers cognitive dissonance, includes use/care.

Subjective: Persuasive is subjective. Colors, fonts, pictures/labeling.

Objective: Informational is objective. Amount, quanitity/quality.

Question 12

Impact of package size and shape on consumer behavior

Answer 12

People pour 15-40% more from large containers as opposed to small.
People perceive tall, slender glasses to hold more than short, wide glasses.

Question 13

Levels of a Product

Answer 13

Core: Need that the product fulfills

Actual/tangibile: Tangible features that are necessary for the product to function

Augmented: All of the extra features of the product that might not be necessary for the product to work, but that can enhance the experience.

Question 14

Types of Consumer Products: Differentiate between convenience, shopping, and specialty products

Answer 14

Convenience: Things you can find almost anywhere. Equals everywhere

Shopping: Multiple options to find, but not everywhere

Specialty: Items with unique characteristics that buyers are willing to expend considerable effort to obtain. Equals one

Question 15

Diffusion of Innovations
Adoption categories and their place along the timeline

Answer 15

Five stages in order: Awareness, interest, evaluation, trial, and adoption.

Question 16

Characteristics that Influence Diffusion: Be able to differentiate between relative advantage, complexity, compatibility, trialability, and observability

Answer 16

Relative Advantage: Whether the product is considered superior to existing substitutes.

Complexity: The degree of difficulty.

Compatibility: Matching customer needs.

Trialability: Degree to which product is capable of being used with a very low risk if any.

Observability: Being able to see the products benefits and attributes.

Question 17

Product Life Cycle
Know how we identify the transition points between each stage
Know which stage of the PLC the sales and growth curves peak
Do all products go through all stages of the PLC?

Answer 17

Intro to growth: When we get above breakeven point.

Growth to maturity: When our sales growth rate begins to slow down.

Maturity to decline: When sales starts to decline at an increasing rate.

Sales Peaks in maturity, growth peaks in growth.

Not all products go through all stages of the PLC.

Question 18

Product Mix Width

Answer 18

The entire collection of product lines a company sells.

Question 19

Product Line Depth
Explain when a new product is widening a company’s product mix
Explain when a new product is deepening a company’s product line

Answer 19

Product Line Depth: Set of items that a company produces that functions in a similar way, and solves a similar problem.

Product is widening the company’s product mix when a new product category is added.

Product is deepening the product line when a new product is added to a product line where we already compete.

Question 20

Line and Brand Extensions
Explain when a new product is a line extension
Explain when a new product is a brand extension

Answer 20

Line Extension: New and improved, new colors (deepens the line)
Brand Extension: Current brand to a new product class.

Question 21

Innovation Continuum
Know when a new product is classified as discontinuous/dynamically continuous/continuous

Answer 21

Discontinuous: Product inventions. Didn’t come from anything
Dynamically continuous: Creates a new product category within the overall industry.
Continuous: An upgrade to a product.

Question 22

New Product Development Process
Have a working understanding of each of the stages

Answer 22

Idea Generation: Where ideas are generated

Idea Screening: Where we review ideas and discard bad ones

Concept Development: Becoming more focused as features and benefits of the product are outlined.

Business Analysis: Cost of producing, what we can sell it for, how many units we can sell

Market Testing: Limited introduction of a product to consumers.

Commercialization: Launching the new product into the entire market.

Question 23

Reasons for New Product Failure/Success
Why do products fail in the long run?

Answer 23

No discernable benefits, poor match between features and customer desires, overestimation of market size, incorrect positioning, price is too high or too low, inadequate distribution, poor promotion, inferior product.

Question 24

Importance of Services
Product/Services Continuum; tangible vs. intangible

Answer 24

Goods are tangible dominant: Search attributes.
Services are intangible dominant: Experience attributes, credence attributes.

Question 25

Distinguishing Characteristics of Services Be able to describe and apply each of the four (perishability, intangibility, variability, inseparability)

Answer 25

Intangibility: Can’t be sensed, touched, etc. Variability: Difference in consistency from one service transaction to the next Inseparability: The simultaneous production and consumption of the service Perishability: That a service cannot be saved, its unused capacity cannot be reserved, and it cannot be inventoried

Question 26

Service Quality Know each of the 5 dimensions (more connections! e.g. reliability = right the first time)

Answer 26

Reliability: Perform promised service dependably and accurately Responsiveness: Willingness to help customers and provide prompt service Assurance: Employees must be knowledgeable, courteous, convey trust and confidence. Empathy: Caring, individualized attention Tangibles: Appearances of physical facilities, equipment, personnel, communication material.

Question 27

Services Gap Model Focus only on the Knowledge and Service Gaps Understand the Disconfirmation Paradigm

Answer 27

Service Gap: When customers' expectations do not equal their experience. Knowledge Gap: Service providers perceptions vs the customer expected service. Service Gap: Takes place after the service has been finalized. Disconfirmation Paradigm: When expectations don’t meet performance, that disconfirms you in a positive or negative way, which leads to satisfaction or dissatisfaction

Question 28

7 P's of Services

Answer 28

Product: Price: Place: Promotion: People: Interface between organization and customers Process: Procedure to consume the service Physical Evidence: Tangible element in service.

Question 29

Levels of a Service Product How does Core, Actual/Tangible, and Augmented Levels from tangible products compare with levels for services?

Answer 29

Core and Augmented aspects remain, but the actual product changes.

Question 30

Service Strategy Processing Know the difference between people/possession/mental stimulus/information processing

Answer 30

People processing: Physical change done to your person Possession processing: Involving something that you own, but can be separated from you Mental stimulus processing: Experiential Information processing: Paying for some expertise

Question 31

Promotion Strategy – working understanding of: Stressing tangible clues Using personal information sources Create a strong organizational image Engage in post purchase communication

Answer 31

Stress tangible cues: Things that you can see associated with the service Using personal information sources: Personalizing the brand, could be celebrities Create a strong organizational image: Doing things that affect a customer's perception of your brand. Engage in post purchase communication: Talking to the customer after the service for customers to express any concerns.

Question 32

Services Marketing Triangle in Services Industry Internal/External/Interactive Marketing Be able to identify which of the dimensions corresponds with making/keeping/facilitating promises

Answer 32

External Marketing: Company to customers, making promises. Interactive Marketing: Employees to customers, keeping promises. Internal Marketing: Company to employees, facilitating promises.

Question 33

Understanding the Service Experience Benefit concept Role of consumers in the service process

Answer 33

All products, whether goods or services, deliver a bundle of benefits to the consumer. Benefit concept: The encapsulation of these benefits in the consumer’s mind. Consumers are important in the process.