mktg ch8-11 Flashcards
core functionality, features, performance quality, conformance quality, durability, reliability, form, style customization
product differentiation
totality of features that affect the way a product looks, feels and functions to a consumer. Emotionally powerful, transmits brand meaning/positioning, makes brand experiences rewarding
design
observation, ideation, implementation
design thinking
width, length, depth, consistency
product portfolio
marketing tool, self service, consumer affluence, company & brand image, innovation opportunities
packaging
if a product fails to function as promised by company, company will provide compensation
guarantee
cover the repair or replacement of purchased products and usually do not allow customer to return product for a refund
warranties
act/performance one party can offer to another that is basically intangible and does not result in ownership
service
Intangibility
Inseparability
Variability
Perishability
characteristics of a service
Demand side: differential pricing, nonpeak demand, comp services, reservation services
Supply side: part time employees, peak time efficiency, increased consumer participation, shared services, facilities for future expansion
perishability
tangible good w/ accompanying services
pure tangible good
major service with accompanying minor goods/services
Hybrid
only intangible service
pure service
preparing, pricing, distributing and promoting the services to customers
external marketing
training and motivating employees to serve customers well
internal marketing
employees skill in serving customers
interactive marketing
customer centricity, service quality, cater to high value customers, manage customer complaints
best practices
person to person becoming automated
self service
(1+1=3), ordering, delivery, installation, customer training, customer consulting, maintenance, repair
product service bundles
name, term, sign, symbol, design or a combination of them, intended to identify the goods or services of seller/s to differentiate them from competitors
brand
process of endowing products & services with power of a brand
branding
monetary value of a brand
brand equity
monetary value of all intangible assets of a company
goodwill
Cost approach, Market approach, Financial approach
3 approaches to measure brand equity
focused series of procedures to assess the health of the brand, uncover its sources of brand equity and suggest ways to improve and leverage its equity
brand audit
brand audits used as input to collect quantitative data from consumers over time, providing consistent baseline info
brand tracking
negotiations, reference pricing, image pricing
key concepts for pricing
Defining price objective
Determining demand
Estimate costs
Analyze competitors
Select pricing method
Set final price
Setting the price (OD-CC-MP)
short term profit, market skimming, quality leadership
objective of price setting
price elasticity - how much price affects quantity sold
demand of price
add a standard markup to the product’s cost
markup pricing
= unit cost/(1-desired return on sales)
markup price formula
sets a price that will yield the desired rate of return
target rate of return pricing
= unit cost + desired return * invested capital /unit sales
target rate of return formula
takes into account inputs, such as the buyer’s image of the product
economic value to customer pricing
firm bases its price largely on competitors prices
competitive pricing (going rate)
growing more popular e.g. electronic marketplaces for excess inventories or used goods
Ascending (english)
Descending (dutch)
Sealed bid
auction pricing
when prices all of a sudden change, not following set formula
price discrimination
seller charges each customer a separate price, depending on the intensity of their demand
first degree price discrimination
seller charges less to buyers of larger volumes
second degree price discrimination
seller charges different amounts to different consumer segments
Customer segment pricing
Product form pricing
Channel pricing
Location pricing
Time pricing
third degree price discrimination
Determine size
Establish conditions for participation
Decide on duration
Choose a distribution vehicle
Establish timing
Set total sales promotion budget
approach for incentives
Price reductions, coupons, cash refunds, price packs, tie in promotions, prizes, financing, seasonal discounts
incentive examples
