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Intro To Marketing Part 2 > Product and Price (19) > Flashcards

Product and Price (19) Flashcards

1
Q

Typical Product Life Cycle Chart-

A

Intro, Growth, Maturity, Decline

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2
Q

Branding Decisions factors

A
  1. name
  2. package
  3. extensions
  4. other decisions
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3
Q

Branding decision: Name

A

PNA Experiment:

  • people thought that stock with simpler names would perform better than stocks with complex names
  • archival analysis showed that IPO’s with pronounceable ticker codes performed better than those with unpronounceable ticker codes
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4
Q

Branding decision: Packaging

A

Basic component:

  1. Packing itself
  2. logo (starbucks)
  3. label
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5
Q

Four Brand Strategies (Chart)

A

brand name: Existing/product category (brand) (ie Ben & Jerrys)

  1. Line extension (new ice cream flavor)
  2. Brand extension (ben & jerrys milk)

brand name: New/ Product category (Co.)

  1. Multibrand (Vegan Joes by B&J)
  2. New Brand
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6
Q

What is a brand?

A

(Psychological value to consumer
a name, term sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers to differentiate them form those of the competition

and a promise that a firm makes to its customer

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7
Q

How to measure brand equity

A

perceptual Approaches:

  • blind tests
  • young and rubicam brand assest valuator (BAV)

asset evaluation Approach:
- interbrands S-Curve method-

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8
Q

Young & Rubicam’s BAV (chart)

A
  • Useful for across country analysis- how well a brand is doing across the country in diff places
  • link with operating variables

Brand Asset Valuator (BAV)
x axis: Brand Strength
- concrete brand positioning
- differentiation + relevance

y axis: Brand Stature

  • abstract brand positioning
  • knowledge + Esteem
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9
Q

Growth In differentiation & relevance=>margin?

A

? 19 page 6

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10
Q

Interbrand’s S-Curve Method

A

Assest Evaluation Approach

Brand Basic Requirements:

  • separately identifiable
  • legally protected
  • transferable

Brand Value:

  • a multiple (discounted rate) reflecting the brands strenghth
  • “the brand is valued at”
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11
Q

Dimensions of Brand Personality- US

A

Brand Personalities: ECSSR

  1. Excitement -mtv
  2. competence- ibm
  3. sincerity- campbells
  4. sophistication- guess
  5. ruggedness- nike
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12
Q

Customer Value?

A

customer value is a measure of how much a customer is willing to pay for a product or a service (reservation price)

  • percieved value (PV)
  • Price
  • Cost

3 Cases:
PV-> price-> cost (mazda miati)
PRice-> PV-> cost (mistake adjustments)
Price-> cost-> pv (failure- product sinks)

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13
Q

Measuring Customer Value: Price Elasticity

A

PE (E)= % change in quantity demanded/ % change in price

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14
Q

Elastic Demand

A

Elastic Demand:

  • Price Elasticity> 1
  • a small change in price produces a large change in demand
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15
Q

Inelastic Demand

A
  • Price Elasticity< 1

- a small change in price produces a smaller change in demand

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16
Q

Unitary Elastic Demand

A
  • Price Elasticity= 1

- change in price produces an equivalent change in demand

17
Q

Some factor affection price elasticity

A
  • Availability of substitutes
  • Uniqueness
  • difficult of comparisons
  • importance
  • ability to stockpile
18
Q

Measuring Customer Value Methods

A
  1. Price elasticity
  2. economic value to consumer
  3. survey methods
19
Q

Measuring Customer Value: Survey Method

A
  1. willingness-to-pay for Branded Vs Generic
  2. dollarmetric method
  3. gabor-grainger method
    - single product, random exposure to multiples price points
    - would you buy the product as $ X ?
    - plot no. of affirmatives on each price point to obtain demand curve.
  4. Brand Price Trade-Off (BPTO)
    - creates competitive context
    - useful for price oriented markets
  5. Van Westendorp Price Sensitivity Meter
    - four questions regarding a product- each question yields acurve
20
Q

Measuring Customer Value: Survey Based Methods

A

Survey Based Methods: (WDGB)

  1. Willingness to pay for branded vs. generic
  2. Dollarmetric Method
  3. Gabor-Grainger Method*
  4. Brand Price Trade-off (BPTO)*
  5. Van Westendorp Price Sensitivity Meter*
21
Q

Gabor-Grainger Method

A

Survey based method to measure customer value
Gabor-Grainger Method:
- single product, random exposure to multiple price points
- would you buy product at $(x)?
- Plot number of affirmatives on each price point to obtain demand curve

22
Q

Brand Price Trade-Off (BPTO) Method

A 
Survey based method to measure customer value
BPTO:
- creates competitive context
- useful for price oriented markets
- a matrix of brands and prices
- prices re-ajusted after each choice
- chosen brand increased, non-chosen brands decreased
- switching points recorded
23
Q

Van Westendorp Price Sensitivity Meter

A 
4 questions regarding a product/ concept
Q 1-4:  at what price on the scale would you consider this product to be..
Q1: ...a Bargain? (IDP)
Q2: ... too cheaply priced? (IPP)
Q3: ... priced expensively? (IDP)
Q4: ... priced too expensively? (IPP)
  • Each question yields a curve
  • Intersections yield input for pricing decisions
24
Q

Optimun Pricing Point (OPP)

A

Intersection on VanWestendorp Price Sensitivity Meter.

  • OPP is the “recommended price”from manufacturer
  • point where number of respondents who see the product as too cheap = ppl who see as too expensive
25
Q

Indifference Price Point (IDP)

A

(Intersection on Van Westendorp Price Sensitivity

  • IDP is the median price actually paid by consumers
  • point where # of people who see price as a bargain= ppl who see price as expensive

Intro To Marketing Part 2 (5 decks)

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