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83 Cards in this Set
- Front
- Back
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question marks
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low profit but potential star or cash cow; invest for growth or discontinue; gives room for growth i.e. hybrid cars
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stars
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produces high profits; invest to turn into cash cow i.e. plasmas & ipods
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cash cows
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produces good cash flow;stable & strong; used to support question mark or star i.e. toothpaste
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dogs
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produces poor profits; make the most of profits or discontinue; weak or NO cash flow
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market penetration
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existing markets & existing products; build & hold strategies (cash cows)
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market development
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new markets & existing products; build (stars)
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product development
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existing markets & new products; build (stars)
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diversification
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new markets & new products; build, HIGH RISK; trying to develop a new product & sell it in a new market
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build strategy (biggest concern)
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improve market position (stars & ?), increase promotion & adjust price & distribution (place) to improve performance
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hold strategy (biggest concern)
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remain w/current position (cash cows); maintain marketing performance
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harvest strategy (financial concern)
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sell SBUs to gain short term increase in cash flow (cash cows & stars);occurs when strategic focus changes or when company's trying to switch its focus
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disinvest strategy (financial concern)
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utilize resources better (sell dogs); withdraw marketing support
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strategic marketing process
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planning, implementation, & control
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planning phase
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situation analysis, market product focus, & the marketing program
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SWOT analysis- strengths
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internal & favorable; brand name, low cost, strong sales force
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SWOT analysis- weaknesses
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internal & unfavorable; old facilities, fuzzy image
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SWOT analysis- opportunities
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external & favorable; consumer seeks new items
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SWOT analysis- threats
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external & unfavorable; competetitors
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social marketing
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the firm's ethics & socially responsible behavior i.e. scholarships
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green marketing
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supports environmental stewardship i.e. recyclable packaging; focus on "double bottom line" (profits & reflecting societal contributions)
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cause marketing
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goal is to serve society by joining forces w/non profit organizations to address or solve social issues i.e. child abuse,breast cancer
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reasons for cause marketing (in order of importance)
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BUILD RELATIONSHIPS, enhance image, new opportunities, provides purpose, differentiate, increase sales
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4 main forms of competition
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pure(similar products), monopolistic(many sellers compete coffee vs. tea),oligopoly(few companies control the market ie Verizon,Sprint), monopoly(only one seller ie electric company)
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3 types of consumer income
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gross income;disposable (money left for food, shelter, clothing,& transportation);discretionary (luxury items)
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durable goods
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high involvement,expensive & purchased less frequently, provide long term benefits i.e. cars, furniture
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nondurable goods
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low involvement,inexpensive & purchased frequently, wide distribution & heavy consumer, ads ESSENTIAL i.e. newspapers, food
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convenience products
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products purchased frequently, immediately & w/minimum effort i.e. pop, candy
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shopping products
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likely to engage in external search & compare alternatives i.e. plasmas, furniture
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specialty products
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unique products that cause a buyer to make special efforts to obtain them; have special meaning to consumer i.e. Xmas present
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1. New Product Strategy Development
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defines the role for a new product according to the firms overall corporate objectives; cross functional teams are formed
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2. Idea Generation
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many good ideas come from consumers, employees, & competitive products
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3. Screening & evaluation
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seperate ideas that have merit from those that dont; MOST NEW PRODUCTS DONT PASS THIS STEP
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4. Business Analysis
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involves specifying features of the product & the marketing strategy needed to commercialize it
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5. Development
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measurement of consumer attitudes & perceptions of the product; focus groups; prototype is developed
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6. Test Marketing
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process of selecting a specific geographical area considered to be generalizable to the target market;MONITORED CLOSELY & COMPANIES WHO SKIP RISK FAILURE
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7. Commercialization
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MOST EXPENSIVE STEP
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product life cycle
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describes the stages a new product goes thru in the marketplace: introductory, growth, maturity, & decline
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introductory stage
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low product knowledge, knowledge oriented, low competition, low sales, low profit, few products
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growth stage
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increasing product knowledge, knowledge oriented but becoming persuasive, increasing competition, increased demand,increasing profit,some products
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maturity stage
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very high product knowledge, persuasive, price oriented & focused on subtle benefits, high competition,decreasing supply > demand,high profit, many products
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decline stage
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high product knowledge,ads similar to maturity stage,decreased competition, low demand, negative profit, few products
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4 ways to extend the PLC in the early maturity stage
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increasing frequency of use, increasing number of users, find new uses for the product, & change packaging, labeling, quality
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innovators
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venturesome,higher educated, use multiple information sources
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early adopters
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leaders in social setting, slightly above average education
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early majority
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deliberate, many informal social contacts
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late majority
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skeptical, below average social status
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laggards
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fear of debt,neighbors & friends are information sources
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branding
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use of a name,phrase,design, symbol, or combination to identify & differentiate its products
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brand mark
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the symbol or logo of a brand
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brand equity
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the dollar value
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brand preference
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stage where consumers will prefer one brand over another but wont demand that product every time
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brand insistence
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stage where no alternatives will suffice; few good products reach this stage
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pioneer advertisements
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tell what a product is, what it can do, & where it can be found; EDUCATES target market in the introductory stage;interesting, convincing, & effective
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competitive advertisements
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promotes a specific brand's features & benefits;PERSUADES target market to purchase over competition;attracts more attention,increases perceived quality in the growth stage
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reminder advertisements
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used to reinforce previous knowledge of a product; assures consumers they made the right decision in the maturity stage
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advocacy advertisements
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states the position of a company on an issue i.e. "Buckle Up"
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institutional advertisements focus
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on the company;to promote organizational image, stimulate product category demand,& build industrial goodwill
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most critical element for a good ad campaign
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the ability to attract attention & be memorable
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good ad campaign's focus
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target audience
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reach
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the # of different people or households exposed to the commercial
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rating
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the % of households in a market that are tuned to a particular TV show or radio station
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frequency
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the average # of times a person in the target audience is exposed to a message or an advertisement
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gross rating points
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reach(expressed as a % of the total market) multiplied by frequency
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cost per thousand
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the cost of reaching one thousand individuals or households w/the advertising message in a given medium
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continuous schedule
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maintains a steady stream of advertising throughout the year;most effective on products that sell regularly
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pulsing schedule
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varies the amount of advertising throughout the year based on when the product is likely to be in demand; seasonal products
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portfolio tests
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various ads viewed at once
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jury tests
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only ad of interest is viewed
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theater tests
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feelings about ads are expressed before,during,or after viewing
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core product
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actual benefits received by the customer;the basic function of the product
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actual product
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the quality level,features, design,packaging,& brand name;where marketing begins
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augmented product
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makes purchasing decision more pleasant ie rebates, warranty,pre & post sale purchases
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continuous innovation
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requires no learning
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dynamically continuous innovation
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disrupts consumers normal routine but doesnt require totally new learning
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discontinuous innovation
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requires new learning & consumption patterns by consumers
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why profits peak then decline in the growth stage
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profits suffer from competitors entering the market
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multiproduct
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targeting different segments
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multibranding
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giving each product a distinct name ie P&G's Black & Decker products
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private branding
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when a company manufactures a product but sells it under the wholesalers name ie Sears' Kenmore products
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mixed branding
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where a firm markets a product under its own name & the reseller's because the segment is different from their market
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line extension
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the practice of using a current brand to enter a new market segment in its product class ie Campbell Soup's regular, homestyle, & chunky style soups
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brand extension
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new products in unrelated product categories that often carry the same brand name
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licensing of a brand
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one firm sells another the right to use a brand name for a specific purpose & for a specific time period
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