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48 Cards in this Set
- Front
- Back
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Stages for Developing a New Product
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1. Idea Generation
2. Concept Testing 3. Product Development 4. Market Testing 5. Product Launch 6. Evaluation of Results |
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Diffusion of Innovation Cycle
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1. Innovators 2.5%
2. Early Adopters 13.5% 3. Early Majority 34% 4. Late Majority 34% 5. Laggards 16% |
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The speed at which products are adopted based on the diffusion of innovation theory depends on what characteristics?
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Relative Advantage
Compatibility Observability Complexibility |
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Product Life Cycle (PLC)
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1. Introduction
2. Growth 3. Maturity 4. Decline |
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What is Product Assortment, Product Lines and Product Categories? Product Line breadth? Product Line Depth? SKUs?
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Product Assortment - Complete set of all products a firm offers
Product Lines - Groups of associated items (Oral Care, personal care, pet nutrition) Product Category - An assortment of items that the customer sees as reasonable substitutes for one another (Under Oral care; Toothpaste, whitening, toothbrush) Product Line Breadth - the number of product lines or varieties offered (Oral care, Personal Care) Product Line Depth - number of categories within a product line (Toothpaste, toothbrush, whitening) SKUS - Stock Keeping Units - Individual items within each product category |
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Product Attributes/components?
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Brand name
Quality level Packaging Features Support Labelling |
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3 Areas of Branding and what they mean?
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Brand Equity
awareness perceived value association loyalty Brand Ownership manufacturing brands (coke) store brands (PC) generic brands (random cola) Brand names family (Gap) product line (Kellogs) individual (Tide) |
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Steps to choosing a strong brand name?
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1. The brand name should be descriptive and suggestive of benefits and qualities associated with the product
2. The brand name should be easy to pronounce, recognize and remember 3. The company should be able to register the brand name as a trademark and legally protect it 4. For companies looking to expand globally, the name should be easy to translate |
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What is brand dilution?
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Brand Dilution occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
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Product Types
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Specialty Goods
Shopping goods Convenience goods Unsought goods |
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How do service marketing differ from product marketing?
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1. Intangible
2. Inseparable 3. Inconsistent 4. Perishable |
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What is the gaps model, what are the 4 service gaps and what do they mean?
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Gaps Model: When there is expectation differences between the consumer and what is being delivered by the company, a service gap results
1. Knowledge Gap 2. Standards Gap 3. Delivery Gap 4. Communication Gap |
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What is Service Recovery and the steps?
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When service providers fail we need to resolve the problem by:
1. Listening to the customer 2. Finding a fair solution 3. Resolve problem quickly |
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Why is price a signal?
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Price is a signal because consumers judge the benefits of a product through its price along with attaching expected value to a product based on its price
Price is also the only element in the marketing mix that generates revenue |
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What are the 5C's of Pricing
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1. Company Objectives
profit oriented|sales oriented| competitor oriented|customer oriented 2. Customers elastic inelastic substitution|income|cross-price elasticity 3. Costs VC|FC|BE|CM 4. Competition Monopoly|oligopoly|monopolistic|pure Comp 5. Channel members Mediums|Grey Market|Black Market |
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What are the 3 Pricing Strategies?
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1. Cost based
Focus on costs (simplistic) 2. Competitor Based Consumer interpretation relative to competitors 3. Customer/Value Based Improvement Value|Cost of ownership |
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Pricing Strategies for New Products?
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Market Skimming
High prices (Drops) Market Penetration Low prices (Fast sales, establish brand) |
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What are some psychological factors that affect pricing strategies?
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Reference Pricing
Internal|External Every Day Low Price High/Low Prices Odd Prices 3.99 Price-Quality High price means higher quality |
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What are some B2B pricing tactics and discounts?
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1. Seasonal Discounts
2. Cash discounts 3. Allowances 4. Quantity Discounts 5. Uniform delivered vs Geographic Pricing |
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What are the Pricing Tactics aimed at consumers?
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Price Lining
Price Bundling Leader Pricing |
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What are the legal or Ethical Pricing Tactics used by companies?
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Deceptive Pricing
Bait and switch Predator Pricing Below costs to drive out competition Price Discrimination Selling product to reseller @ difference prices Price Fixing Horizontal Price Fixing Vertical Price Fixing |
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What is a distribution channel? Supply chain management? Logistics Management?
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Distribution Channel - Set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption
Supply Chain Management - Set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and transportation mediums into a chain which merchandise is produced and distributed in the right quantities Logistics Management - Element of Supply Chain Mgmt that concentrates on the movement and control of the physical products |
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What distribution channel structures are there?
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Direct Distribution
Indirect Distribution Multichannel Distribution |
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What is vertical marketing system?
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Vertical marketing system is a system where all the parties involved in the supply chain and distribution are unified and work together to maximize profits through unified efficiency
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What type of Vertical Marketing systems are there?
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Administered
Dominant channel member controls the supply chain Contractual Parties involved are under contract to reduce conflict and improve coordination Corporate Parent company has complete control of supply chain |
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How do you create value in retailing?
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By using the 4P's
Product Promotion Place Price |
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What are the retail distribution intensities and what do they mean?
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1. Intensive distribution
2. Selective distribution 3. Exclusive distribution |
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What type of retail channels are are?
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Stores
Kiosks Catalogues Internet |
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What is the wheel of retailing?
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The wheel of retailing is a view of how new forms of retail outlets or companies weave into the market.
The process is: Low prices, low margin -> leads to more service, improvements, prices raise, higher margins, higher status, brand establish -> Expansion-> meaning most costs, cost raises -> new opportunities for entrants to slip in that fixes these problems |
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The general merchandise retailers are?
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Discount Stores
Specialty Stores Category Specialists Department Stores Drugstores Off-price retailers Extreme Value retailers |
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IMC stands for what? What does it mean?
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Integrated Marketing Communications
IMC is an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other The main goal of IMC is to deliver a consistent message by taking the best of each communicating medium and combining them to achieve the most effective marketing campaign possible |
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What are the 3 components of IMC?
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Consumer/Target Market
Channel used to communicate message Evaluation of results |
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What is the IMC communication Process?
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1. Sender
Company 2. Transmitter Advertisements 3. Communication Retail Stores/Media/Sales person 4. Receiver Consumer |
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What are some IMC tools?
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Electronic Media
Advertising Personal Selling Promotions Public Relations (Positive image, relationships) |
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What are the steps in developing a IMC campaign?
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1. Identify Target Audience
Target Market|Consumers 2. Set Objectives Push and pull strategy 3. Budget Objective + Task Competition parity Percentage of Sales Affordable Budgeting (Profit after costs) 4. Convey message USP (Unique Selling Proposition) 5. Evaluate and Select Media Media Type: Mediums (mass or Niche) Advertising Schedule: Continuous|Fighting|Pulsing 6. Create Communication Creation of advertisement through Select Medium 7. Assess Impact Pretesting|Tracking|Post Testing |
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How do you measure IMC Success?
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Through the use of:
Frequency Reach GRP (Gross Rating Points): Reach x Frequency There are also setbacks that you must take into account like **Lagged effect** |
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What is the AIDA Model? What does each step Mean?
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Aida is a model of series of mental stages a consumer goes through as a result of marketing communications
Attention Interest Desire Action |
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What is the objective of Advertising?
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The objective of advertising is to inform, persuade and remind consumers of a product or service consistently
Informative Advertising Used to create and build brand awareness Persuasive Advertising Used to motivate consumers to take action Reminder Advertising Communication used to remind consumers of a product or to prompt repurchase |
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What is the focus of advertisement?
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The focus of advertisements lies in the type of focus the firm follows:
Product focused Used to inform, persuade and remind consumers about a product Institutional Ads Used to inform, persuade and remind consumers about groups, politics, industry, corporations PSA Focuses on on public welfare Social Marketing Bring awareness to social issues |
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What is the personal selling Process
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1. Generate and Qualify leads
2. Pre-approach 3. Sales presentation + Overcoming Objections 4. Closing the Sale 5. Follow-up |
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How do you assess global markets?
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You assess global markets by using PEST factors:
Political Economical Social Technological & Infrastructure |
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What are some global entry strategies?
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Direct Investment
Joint Venture Strategic Alliance Franchising Exporting |
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What are some global marketing mix strategies?
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1. Sell same product in home country and in host country
2. Sell same product in home country and minor adaptations in host country 3. Sell completely different products in host country |
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Global Marketing Strategy
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The most efficient route to globalization in creating a marketing strategy is to maintain a global positioning strategy where one position means one message
One you identify positioning in the market, firm must then decide how to implement its marketing strategies |
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What are some ethical issues in Global Marketing?
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Environmental Concerns
Global Labour concerns Impact on host country's culture |
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What is the framework for ethical decision making?
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1. Identify Issue
2. Gather Information 3. Brainstorm 4. Choose a course of action |
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How do you integrate ethics into your marketing plan?
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By following these steps:
1. Planning Phase 2. Implementation Phase 3. Control Phase |
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What is the six tests of ethical action?
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1. The publicity Test
2. The moral mentor test 3. The admired observer test 4. The transparency test 5. The person in the mirror Test 6. The golden rule test |
