Positioning, Buying Behaviors, and Product Development Flashcards
Positioning
strategy that helps a product or brand stand out in the minds of consumers by establishing a unique identity and value proposition
-An approach that refers to how customers think about proposed or present brands in a market; the image your product/service has in the minds of your target customers
Differentiation
helps a business distinguish itself from it’s competitors by highlighting it’s unique features and capabilities
-Utilizing the marketing mix in a distinct way such that customers see it as different from the competition.
customer perception of value
percieved benefit - perceived cost = percieved value
Positioning statement outline
For (our target market), (our brand) of all (product type) delivers (key benefits or point of differentiation) because (our brand) is (reasons to believe).
what does the positioning statement do?
provides direction for marketing strategy
adoption process
Awareness -> Interest->Evaluation -> Trial -> Decision -> Confirmation
-dissonance may set in after the decision
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Consumer problem solving continuum low involvement
-frequently purchased
-inexpensive
-little risk
-little info needed
-routinized response behavior
Consumer problem solving continuum high involvement
-infrequently purchased
-expensive
-high risk
-much info needed
-extensive problem solving
routinized response behavior
tend to resort to habit to resolve a problem
learning
a change in a person’s thought processes caused by prior experience
components of purchase situation ( 3 things)
-purchase reason
-time available
-physical surroundings
social influences on buying behavior
-reference groups (people you look to for opinions)
-opinion leaders (michael jordan)
-culture
Measures of social class in us
-occupation
-education
-type of housing
-location of housing
Lifestyle dimensions
-activities
-interests
-opinions
-demographics
Personality
-how people see things
-activities
interests
opinions
selective exposure
consumers seek out and notice only the information that interests them.
selective retention
consumers remember only what they really want to remember
selective perceptions
people screen out or modify ideas, messages and information that conflict with previously learned attitudes and beliefs
hierarchy of needs and descriptions
01-personal needs - self-esteem, accomplishment, fun, freedom, relaxation
02-social needs - love friendship status esteem and acceptance
03-safety needs- protection and physical well being
04-physiological needs - food drink rest and sex
Psychological needs
-needs (innate)
-wants (learned)
-drives (unsattisfied needs)
purchasing specification
written or electronic descriptions for what a firm want to buy
buying center
-the potentially many and diverse individuals that may be involved in securing a purchase
-buyers- work with suppliers and arrange terms of sale
-users- people who actually use the product
-influencers- determine which products are needed
-gatekeepers- control flow of information (receptionist, secretary, researcher)
-deciders- have power to select or approve supplier
vendor analysis
-formal rating of suppliers on all relevant areas of
goal is to lower the total cost of the purchase
New-task buying
-new need requires a lot of info and product specs
straight rebuy
-use existing supplier to fulfill standard orders
modified rebuy
somewhere between new-task buying and straight rebuy
operational linkages
-business relationship w/ direct ties between buyer and seller
legal bonds
-specify obligations of each party in business relationship
relationship specific adaptations
changes in firms product or procedures that are unique to partner
new product development process
- idea generation
- screening
- idea evaluation
- development
5 commercialization
Branding
The use of a name, term, symbol, design (or the combination of these) to identifya product…..and, create an emotional response
levels of brand familiarity
-rejection
-non-recognition
-recognition
-preference
-insistence
types of brands (4)
-family brand - same brand name used for several products
-generic brand - no brand other than identification with the contents
-licensed brand - sellers pay a fee to use a well-known brand
-individual brand - used for unrelated products
what does packaging do for products?
-promotes-convey information
-protects
-enhances-easier and safer to use , deter shoplifting
Business product classes
-accessories
-raw materials
-component parts &materials
-mro (maintenance, repair, and operating) supplies
-professional services
-installation
Consumer product classes
-convenience products-staples,impulse,emergency
-shopping products - homogenous heterogenous
-specialty products
-unsought products - dont want yet or don’t know are available
-new unsought - they don’t lnow about yet
-regularay unsought - don’t motivate customers to seek them out
brand name
word, letter or a group of words or letters
trademark
words, symbols, or mark legally registered to be used by a given company
servicemark
trademark for a service
role of product management and new product development in marketing strategy
-product life cycle
-new product development
-managing brands
New product development process
- idea generation
- screening
- idea evaluation
- development
- commercialization
new product development - idea generation
get ideas from :
customers and users
marketing research
competitors
other markets
company people, intermediaries
new product development - Screening
strengths and weaknesses
fit with objectives
market trends
rough roi estimate
new product development - idea evaluation
concept testing
reactions from customers
rough estimates of costs, sales and profit
new product development - Development
-r&d
-develop model or service
-test marketing mix
-revise plans as needed
-roi estimate
new product development - Commercialization
-finalize product and marketing plan
-start production and marketing
-roll out in select markets
-final roi estimate
product life cycle ( and goals of each)
-market introduction - gain awareness
-market growth - stress differentiation
-market maturity-maintain brand loyalty
-sales decline - milk, phase out or sale
product manager
-someone in charge of each category or brand
dissonance
tension caused by uncertainty about the rightness of a decision
issues with product lifescycle
-product life cycles are getting shorter
-fashion and fads
-first mover advantage
differentiation strategies
- Owning a product attribute in the mind of the customer
- Being perceived as an innovator
- Effectively maximizing user experience
- Being the first to enter a market
- Having the lowest price
cues
stimuli in the environment that trigger a drive or response, and this is the domain of the marketer, the creation of these cues
response
an effort to satisfy a drive. Reinforcement occurs when the response is followed by satisfaction. Marketers often try to identify positive cues or images that have positive associations from some other situation and relate them to the marketing mix.
a drive
is a strong internal stimulus that encourages action to reduce a need. Consumers seek products and services that provide benefits that satisfy these needs and wants.
impulse buy
bought quickly as own plan purchases because of a strongly felt need.
Homogeneous shopping products
are ones that the customer sees as basically the same and wants at the lowest price.
Specialty products
are ones that the consumer really wants and have fewer or no acceptable substitutes. They are characterized by the consumer’s willingness to search.
Unsought products
require promotion to create awareness because they are products that customers don’t want yet or don’t know that they can buy.
New unsought products
represent offerings potential customers don’t know about yet. Regularly unsought products are ones that don’t motivate customers to seek them out even though they may want or need them if encouraged to better understand their benefits. Just like with the business product classes, understanding how these consumer product classes fit into the wants and needs considerations of consumers can help a marketer better align the marketing mix.
Regularly unsought products
are ones that don’t motivate customers to seek them out even though they may want or need them if encouraged to better understand their benefits. Just like with the business product classes, understanding how these consumer product classes fit into the wants and needs considerations of consumers can help a marketer better align the marketing mix.
Emergency products
are purchased immediately when the need is great. Consumers generally don’t shop around for these products or ask how much they cost.
Shopping products
are compared with competing products.
Convenience products
are purchased quickly with little effort. They may be inexpensive, but often require little service and bought by habit.
staples
are bought often, routinely and typically without much thought. Branding is used for many staples to make them easier to remember and find.
market development
a business growth strategy that involves expanding the customer base for an existing product or service
market diversification
is a strategic approach that businesses employ to increase their market reach and minimize risk. It involves expanding into multiple markets or industries to reduce reliance on a single source of revenue. This strategy can be implemented in various ways, such as introducing new products or services, targeting new customer segments, or expanding geographically.
selective targeting
-selected niches
-product specializatione
extensive targeting
-multiple segments
-product variety
extensive problem solving
a consumer attempts to satisfy a completely new or highly important need.
In this circumstance, significant information is needed. The consumer has no experience with the product, and the decision and risk of making a wrong decision are highly important. These purchases are often referred to as high involvement purchases. The idea of a decision process does not imply that consumers always apply rational processes in their buying decisions, rr that they necessarily lead to a purchase.
limited problem solving
the consumer is willing to put forth some effort, perhaps to update or add to previous experience or because the problem is moderately important.
quantitative research
that it is numbers-based. Quantitative data allows the researcher to quantify results through some form of objective measurement.
