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33 Cards in this Set
- Front
- Back
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What does the decision-making process consist in?
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1. Need recognition
2. Information search 3. Evaluation of alternatives 4. Purchase 5. Postpurchase behaviour |
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What are the levels of decision making?
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- Extensive
- Limited - Routine |
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What is extensive decision-making?
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- Extensive time
- Significant evaluation - Low frequency of purchase - High risk - Experience |
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What are the marketing strategies for high-involvement purchases?
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- Extensive promotion to reach target consumer
- Reassurance - before, during & after purchase - Knowledgeable salespeople & access to information - Build customer relationship - Control potential risks |
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What are marketing strategies for routine involvement purchases?
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- In-store promotion
- Eye-catching package design - Good displays - Brand recognition - Easy access & availability - Constant proven performance |
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What are the main influences on Consumer decision Process Model?
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- Cultural
- Social - Values - Psychological |
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What are reference groups?
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A group of people with common interest that influences its members' attitudes & behaviour
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What are direct reference groups?
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- Primary: family, friends
- Secondary: associations |
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What are indirect reference groups?
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- Aspirational: celebrities
- non aspirational: geek, cougar |
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What is a product line?
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A group of closely related products that satisfy a class of needs, are used together, are sold to the same customer group & are distributed through the same outlets, or fall in the same price range
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WHat is a product mix/portfolio?
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The number of product lines offered by a company
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What are the different types of consumer products?
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- Convenience goods
- Shopping goods - Specialty goods - Unsought goods |
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What are convenience goods?
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A relatively inexpensive item
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What is a specialty good?
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An item that customers search extensively for & are reluctant to find substitutes for
- Usually very expensive - Very limited distribution - Uniqueness - Brand loyalty |
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What is an unsought good?
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A product unknown to the buyer e.g. insurance
- Price varies - Awareness is essential - Place is limited - Will accept substitutes |
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What is a shopping good?
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A product that requires comparison because usually relatively expensive
- Sold in a large number of selective outlets - Differentiation from competitors - Infrequent purchases |
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What is a brand?
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A name, term, symbol, design, value of combination thereof that identifies a seller's product and differentiates them from competitor's product
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What is brand equity?
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The value premium that a company realises from a product with recognizable name as compared to its generic equivalent
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What are brand elements?
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- Brand name
- URLs - Logos & symbols - Characters - Jingles & slogans |
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What are the different brand-management strategies?
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- Product line/line extension
- Family branding/corporate branding - Multi brand - Co brand - Private labels - Licensing |
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What is line exetnsion? What are the adv/disadv?
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The extension of an existing brand name to new colours, tastes, sizes ingredients etc.
Adv: low cost, low-risk, meet customer desires for variety Risks: brand may lose meaning, cannibalization-new products may affect other items |
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What is family branding? Adv/disadv?
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The company's trade name & brand name= same
Adv: capitalizing on brand equity, consumer will transfer positive feelings from one product to another, increase adoption of product Drawbacks: negative feelings regarding manufacturer= transfer |
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What is multibranding? Adv/disadv?
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Different brands produced in the same product category with same producer
Adv: no negative effect from other unsuccessful products Risks: less recognition of brand, deletes effectiveness of brand name, ties products all together |
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Whats is co-branding?
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Using the established brand names of 2 different companies on one product
Adv: create a deeper impression on public, signal various forms of information (e.g. Jimmy Choo & H&M- H&M seems of higher quality) Risks: confusion |
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What are private labels?
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Brands available in only specific retailers and belong to the retailers
Adv: cheaper - reduced expenses like marketing/branding, more control over produyct factors e.g. pricing, size, package design etc. Disadv: not immediately known by manufacturer |
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What are the advantages for the retailer for private labels vs manufacturer?
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Private labels:
- Higher profit - Less pressure to mark down prices - Allows for differentiation - Ties customer to retailer= increases loyalty Manufacturer: - Attracts customers - Rapid delivery - Enhance prestige |
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What is licensing?
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- Selling the rights to apply a brand name, logo/image to another manufacturer
- Often used in apparel, accessories or children's products - Can include well-known celebrities or characters from movies/books |
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What is the difference between a brand and a product?
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Brand: made by consumer, unique, identity of the company, timeless
Product: made by company, can be copied |
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When do you have to reposition a brand?
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- Products sold= out of fashion e.g. old watches --> vintage
- Not working out with public - Too high competition e.g. brand leadership - Varying demographics - Varying tastes |
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What is the new-product development process?
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- New-product strategy= identify focus, structure, approach & guidelines for innovation
- Idea generation= develop concepts for possible products - Idea screening= separate good product ideas from bad one inexpensively - Business analysis= SWOT - Development= create prototype - Test marketing - Commercialization |
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What are the stages of the product life cycle?
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- Development
- Introduction: high cost per customer, innovators - Growth: early adopters - Maturity= high sales, high profit, low cost per customer, middle majority - Decline: laggards, declining number of competitors |
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What are laggards?
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- 16% of adopters
- Fear of debt, give friends & information - Uses products even when they are out of fashion |
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What is the link between PLC and BCG?
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Cash cows: maturity
Stars: growth Problem child: introduction Dog: decline |
