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84 Cards in this Set
- Front
- Back
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In relation to product distribution and merchandising, what two things create a power communication about the brand?
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Where a product is sold and how it is displayed
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what are the two distribution strategies?
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Ubiquity, exclusivity
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What is ubiquity
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make the product available wherever a human could possibly be
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What is exclusivity
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make a product available for sale only in certain selling environments, or even certain stores in some cases
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What does where you choose to sell your product reflect?
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The brand's image
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What is your channel strategy?
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the channels you are going to distribute your product to customers from
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Why shouldn't you advertise broadly to consumers until you have a large portion of your channels filled?
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even if people see your product, they wouldn't be able to find it`
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What company illustrates the dangers of a bad distribution channel strategy?
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Levi
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What's the consumer strike zone?
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from the tops of the shoulders to the bottom of the knees
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What is the percentage chance that your product will have a higher chance to sell when it is in the strike zone?
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85%
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What is a powerful determining factor for whether or not a product gets sold as it relates to the products on the shelves?
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how much shelf space your product takes
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What can you do to arm yourself with bargaining power to deal with shelf space?
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profitability model
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What benefit does "blocking" other products give YOU?
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greater visibility
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What is a good example of blocking?
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Folgers
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Why should we worry about blocking?
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Most top companies have a blocking strategy; don't let them determine where your product gets placed!
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What is a great example of a permanent display?
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Campbell Soup display
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What are benefits of a permanent display?
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control everything about the way your product is presented to the customer
mark your territory |
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What is a good example of companies who use lighting and ambiance to influence sales?
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trendy music stores with less lighting, "cool" atmosphere, etc...
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What makes it easier for consumers to make a choice about buying your product?
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Less options, only the best one(s) available
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What is the Eureka Equation?
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stimulus of the brain's OS / overcoming the fear factor
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What are the four hurdles of product innovation?
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1 who will sell it for you?
2 Will consumes buy it 3 underestimating introductory marketing costs 4 flawed new product creative process |
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What is the law of laziness?
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once a consume has made a conscious decision to purchase a product, its almost impossible to get them to change to a competitor's product unless the market becomes unstable (like prices, etc.)
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What is important to know about product innovations?
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Likely, someone already came up with the idea first, do your homework!
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What is important about distribution costs?
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if costs to distribute are too much higher than competitors, it could make it difficult to compete
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What is an example of a brand extension?
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Marie Calendar's take home pies
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What is brand extension?
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take a well-established brand and make new products that use the brand
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What should be really careful in doing?
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trying to penetrate markets where you don't have expertise
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What are me too's? (don't try them)
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products that don't offer anything different, better, or special
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What is a line extension?
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taking a product and making spin-offs
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What is a great example of a line extension?
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Cheerios
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What do you do to begin the new product development process?
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You brainstorm lots of ideas
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What are the two basics of brainstorming?
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1) break out of traditional paradigms
2) use lots of stimuli response |
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What are the three keys to brainstorming success?
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1) provide a fun environment (fun and music essential)
2) bring lots of stimuli to provoke ideas 3) invite creative people who don't work for you to participate |
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Formal clothes for the CEO are acceptable for a brainstorming session, true or false
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absolutely false, EVERYONE must be equal, and casual clothes are a must
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You can "wing" a brainstorming session and get good results, true or false
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false, the day must be carefully planned out
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Small groups or large groups in a brainstorming session?
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small
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what is the role of a moderator at a brainstorming session
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motivate group and keep energy high
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What is a mind dump?
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everyone comes to the brainstorm session already prepared with a list of ideas
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what is a stimuli one step
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provide a box of random stimuli
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What is 666?
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1) six unrelated columns of general ideas
2) roll three dice, and each person comes up with an idea that ties the three related columns |
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What is catalog city?
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bring a bunch of catalogs
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What is tabloid tales?
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Bring tabloid magazines and make a story out of the problem at hand
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What are pin pricks?
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spotting the holes in your competition to use them to your advantage
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Once you find a product you wish to develop, what should you do next? What is this called?
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1) determine key benefits of product
2) create a great name 3) write a one paragraph ad for the product *the whole thing is called a product concept* |
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What are the two key sources of vital information from consumers for new products?
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purchase intent, how new and different a product is
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What is rapid cycle testing?
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test, improve, test improve (asserts that a product isn't at its best in the first run)
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What is product prototyping and testing about?
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"make a little, sell a little, learn a lot"
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What is important to remember about the risks of new product development?
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its a risk that will keep the company thriving in the long-run
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What is cost-plus pricing?
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make a price a % above cost
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what is creaming or skimming cost
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initially charging more for a product to recover development costs (iPad)
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What is limit pricing?
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setting a price super low by a monopoly
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What is loss leader pricing?
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selling at a lower price to get a product in a store
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What is market-oriented pricing
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pricing based on market reserach
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What is penetration pricing?
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setting price low initially to get a market share
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What is price discrimination?
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different prices for different market segments (the price of coke at a store vs gas station)
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What is premium pricing?
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greater price because you're the market leader
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What is predatory pricing?
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a really low price to drive competitors out of the market
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What is contribution margin pricing?
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setting the best price based on the contribution margin: contribution margin per unit x * the number of units you'll sell at that price
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What is psychological pricing?
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3.95 instead of 4.00
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what is dynamic pricing?
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Pricing that changes due to data you have
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What is the principle of price leadership?
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When one company changes their price, the other company's usually follow suit
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What is target pricing?
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setting a price to achieve a specific rate of return
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What type of products usually use target pricing?
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expensive products
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What is high-low pricing?
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setting a high price, lowering it by promotions and discounts
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What is premium decoy pricing?
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setting a product's price really high to drive sales of other products
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What is marginal cost pricing?
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set price to cover extra cost of producing another unit
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What is value based pricing?
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customer pay based on perceived value
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What is freemium pricing?
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free product, but charge for extras
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What is product line pricing?
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basic car wash for $2, medium car wash for $4, supreme car wash for $6
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what optional product pricing
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charge extras for more features (like first-class)
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What is captive product pricing
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charge a really high price for products that people are forced to buy
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what is promotional pricing?
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promotions, etc ...
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What is geographical pricing?
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the tendency for different products to cost different amounts of money in different places
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what is value pricing?
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using external factors to force competitors to offer value products to retain sales (value menu)
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What is an everyday low price strategy?
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always having the lowest price (walmart)
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What do customers need to believe they're getting for their money?
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equal value
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What is price elasticity?
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the cheaper a product is, the more of it you will sell
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what tool do you use to determine what price to sell a product at?
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price elasticity analysis
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What must you know about a customer before you know how flexible you can be about price changes?
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how sensitive the customers are to price changes for that product
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What does the price of your product communicate to the customer?
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the value of the proudct
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in marketing, everything communicates about your product. What will make a product fail quicker than anything?
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not delivering on the benefits you're communicating to customers
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people don't shop for price. What do they shop for instead?
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value
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what are life currencies?
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things other than money that people perceive value from?
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What are some life currencies?
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time, space, human energy, expertise, fun, fear, frustration, convenience, love, quality, money
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