Test 3 Flashcards
Creators (seven segments)
Create their own blogs, videos, etc
conversionalists
Update twitter feed or status
Critics
review or comments on feeds or blogs
Collectors
gather information and organize content generated by critics and creators
joiners
anyone who becomes a member and participates in social media site
Spectators
Read what others say and produce but don’t produce anything themselves
Inactives
people who do not participate in online digital media
What is a product?
A good, service, or an idea that is received in an exchange
consumer products
Products purchased to satisfy personal and family needs
business products
products bought to use in a firm’s operations, to resell, or to make other products
Convenicnce product
relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort (bread, soft drinks, gum, gas, etc.)
Unsought products
Products purchased to solve a sudden problem, products of which customers are unaware, and products that people don’t think of buying (emergency medical services and automobile repairs)
Product life cycle stages:
Introduction, growth, maturity, and decline
Introduction of product life cycle
Profits remain low or below zero. This is so companies can cover expenses for promotion and distribution
Growth stage of product life cycle
Sales raise rapidly and profits reach a peak. Profits begin to decline late in the growth stage because more competitors enter the market.
Promotion expenses are still large
Maturity stage of product life cycle
Sales peak and start to level off or decline, There are now many brands in the market. Weak competitors are squeezed out of the market
Decline stage or product life cycle
sales fall rapidly
marketing should eliminate items from product line that no longer earn profits
Brand recognition
The degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase in their preferred brand is unavailable
Brand preference
The degree of brand loyalty in which a customer prefers one brand over others
Brand insistence
The degree of brand loyalty in which a customer prefers a brand and with not buy anything other than that
The four elements to brand equity:
brand name awareness, brand loyalty, perceived brand quality, and brand associations
Brand equity
The value associated with a brands strength in the market
Manufacturer brands
A brand initiated by producers to ensure that products are identified with their products at the point of purchase (Dell, Levis Jeans.)
Three categories of brands:
Manufacturer, private brands, and generic brands
Private brands
are owned by resellers, wholesalers, or retailers. (Walmart creating their own “great value” brand)
Generic branding
A brand indicating only the product category. They are not branded at all. (Such as salt, sugar, or aluminum foil) These are usually cheap.
Family branding
Branding all of the firms products with the same name or part of the name (Kellogg’s)
Co-branding
Using two or more brands on one product. (Target and Benjamin Moore partnered to release a co-branded line of paint colors)
Intangibility
The service is not physical and cannot be perceived by senses (Education) (The major characteristic that distinguishes a service from a good)
Inseparability
The quality of being produced and consumed at the same time (When on a flight: the service is produced and consumed simultaneously)
Perishability
The inability of unused service capacity to be stored for future use (unsold basketball tickets)
Heterogenity
Also means variation in quality. (May have a good waiter or a bad waiter. You never know with a service)
Supply Chain
All the activites associated with the flow and transformation of products from raw materials through the end consumer
Marketing intermediaries
Middlemen that link producers to other consumers through contractual arrangments or through the purchase and resale of products
Possession utility
meaning customer has access to product to use or to store for future use
Time utility
Having products available whenever the customer wants them (Netflix)
Place utility
making products available in places where customers want to purchase them. (Online shopping allows for shopping as long as you have a mobile device and internet)
Exclusive distrubution
Using a single outlet in a fairly large area to distribute a product (the shoe box)
Selective distribution
uses some available outlets in an area to distribute a product (TVs or computers)
Intensive distribution
uses all outlets to distribute a product. (bread chewing gum, soft drink)
Vertical Channel integration
combing two or more stages of the marketing channel under one management
