Week 4 Flashcards
What is cannibalization?
when a company offers a new product and it only gets bought by your current buyers so you end up taking away sales from yourself
What are some examples of one product, multiple market segments?
harry potter books, finding dory, frosted flakes cereal
What does one product, multiple market segments mean?
one product is hitting various different demographics
What is multiple products, multiple market segments?
one company makes multiple products under multiple market names in order to reach multiple market segments
What are some examples of multiple products, multiple market segments?
gap’s banana republic, gap, and old navy brands
What is segments of one, mass customization?
taking a product and allowing the customer to make it exactly what they need
What are some examples of segments of one, mass customization?
nike custom shoes on the app, mini cooper cars, invisalign
What are segmentation variables?
characteristics of individuals, groups, or organizations used to divide a market into segments
What are the four segmentation variables?
demographic, geographic, psychographic, behavioristics
What are some demographic variables?
genders, income levels, age
What are some geographic variables?
urban v rural, east coast v west coast
What are some psychographic variables?
values, lifestyle, individual differences
What are some behavioral variables?
usage pattern, benefits sought
What is the target market process?
segmentation, targeting, positioning
What is positioning?
the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds
What are points of parity?
attributes that inform the consumer that you are capable of providing something that might work
What is head to head strategy?
competing directly with competitors on similar product attributes in the same target market
What is differentiation strategy?
what makes your brand unique in a way that matters to the consumer
What is the product positioning statement?
describes the product and the market in which they compete
What is customer value proposition?
a statement that a company uses to convince a customer to purchase its products or services over others
What is the intangible characteristic of a service?
cant touch it, hold it so they try to promote aspects of it that feel tangible
What is the inseperability characteristic of a service?
cant separate services from those who “create/manufacture” the service
What is the inconsistency characteristic of a service?
difficult to standardize
What is the no inventory characteristic of a service?
unused service capacity from on time time period cannot be stored for future use
What are search attributes?
customers can readily evaluate prior to purchase (ex: size, price, quality)
What are experience attributes?
can only be evaluated after the purchase, or once customer has experiences (ex: haircut, flight, meal)
What are credence attributes?
can never really be confidently evaluated, even after purchase (ex: psycho-therapy, religious services, acupuncture)
What is a product?
a good, service, or idea that satisfies needs
What are durable products?
products that maintain their use even after you use them (ex: a remote control)
What are non durable products?
products that waste as you use them (ex: food, toothpaste, fuel)
What is customer value propostion?
cluster of benefits that an organization promises customers to satisfy their needs
What are convenience products?
products that you can find in many locations and you will buy them quickly and often (ex: food, toothpast)
What are shopping products?
these are products that are available in fewer locations and are more thought about when buying because they are less frequent (ex: laptop, mattress)
What are specialty products?
these are products that you have to hunt for when you are trying to buy them (ex: rolex, bentley)
What are unsought products?
products that you need but dont realize you need (ex: life insurance, a fire extinguiser)
What is a product item?
a specific product with a unique brand, size, or price
What is a product line?
a group of products or services that satisfy a class of needs
What is a product mix?
consists of all product lines offered by an organization(ex: apple has mac, iphone, ipad etc)
What is innovation?
a product that customers perceive to be new and different from existing products
What is the lowest level of innovation?
continuous innovation; requires no new learning by consumers
What is an example of continuous innovation?
new and improved shaver, detergent, etc.
What is a medium level of innovation?
dynamically continuous innovation; disrupts consumer’s normal routine but does not require totally new learning
What is an example of dynamically continuous innovation?
electric toothbrush, LED HDTVs
What is the highest level of innovation?
discontinuous innovation; requires new learning and consumption patterns by consumers
What is an example of discontinuous innovation?
wireless router, electric car
What is the product life cycle?
introduction, growth, maturity, decline
What are the types of product adopters?
innovators, early adopters, early majority, late majority, and laggards
What is an innovator adopter?
higher educated, uses multiple information sources
What is an early adopter?
leaders in social setting; slightly above average education
What are early majority adopters?
deliberate; many informal social contacts
What are late majority adopters?
skeptical; below average social status
What are laggard adopters?
fear of debt; neighbors and friends are information sources
What is relative advantage?
degree to which consumers perceive the new product as offering superior benefits
What is compatibility in rate of adoption?
consistent with existing cultural values, customs and practices
What is complexity in rate of adoption?
is this product difficult to understand and use?
What is trailability in rate of adoption?
ease if sampling a new product and its benefits
What is observability in rate of adoption?
degree to which others can witness the new product and benefits
What is a brand?
the emotional connection people have with your business or product, and their perception is reality
What are the four elements of brand equity?
brand name awareness, perceived brand quality, brand associations, and brand loyalty
What is brand equity?
a brand’s financial value to its organization; the added value a brand name gives to a product beyond the functional benefits provided
What is individual branding?
separate brands for each product or product line
What are some examples of individual branding?
chevrolet, buick, and cadillac are all brands of GM
What is umbrella/family branding?
Costco - Kirkland Signature
What are some advantages of individual branding?
allows company to serve multiple segments without diluting the image of the brands
What are some advantages of umbrella branding?
leverages equity of existing brand, instant recognition
What is product repositioning?
change essential aspect of product, often to increase relevance
What are brand extensions?
strategy of using establish brand in different context
What is an example of a brand extension?
dyson vacuum -> dyson hairdryers/stylers
