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51 Cards in this Set
- Front
- Back
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What is a Brand?
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• A name, term, symbol or design intended to identify the products or services of one seller and to differentiate them from those of competitors
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What are the uses of a brand?
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• memory aid
• surrogate for quality information • basis for differentiation • locus of emotion |
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What is a Product?
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• A bundle of benefits
• The point of contact between the firm and the customer • A crucial factor in building brand equity |
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Examples of two types of Product Life Cycles
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S-curve:
-Development, Introduction, Growth, Maturity, Decline (sales on y, time on x) Bulls-eye: -Core benefit, generic product, Expected Product, Augmented product, potential product (GEAP)[Get Excited, A Plus] |
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What are some problems with the S-curve life cycle
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-How long is a stage?
-Looks at product as a "feature set" versus a set of benefit |
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Bulleye benefit
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the outside ones go in
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What are the types of product involvement and purchase process with examples? What's on the axis? Draw it.
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Learn do feel-pacemaker
Do Learn(Feel)-salt Feel Do learn-wine to party x, ego involved risk of loss y, functional risk of loss |
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What are the product variables?
Match with product involvement specifications. |
Search
•Can be evaluated prior to consumption –inspection possible *Learn do feel Experience •Can be evaluated after consumption –inspection difficult or impossible –purchase or sampling necessary *do-learn-feel *Cleaning ability (laundry detergent) Credence •Cannot be evaluated even after consumption –no testable criteria *feel-do-learn *Vitamins |
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What is a Brand?
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• A name, term, symbol or design intended to identify the products or services of one seller and to differentiate them from those of competitors
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What are the uses of a brand?
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• memory aid
• surrogate for quality information • basis for differentiation • locus of emotion |
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What is a Product?
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• A bundle of benefits
• The point of contact between the firm and the customer • A crucial factor in building brand equity |
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What are some problems with the S-curve life cycle
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-How long is a stage?
-Looks at product as a "feature set" versus a set of benefit |
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Bulleye benefit
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the outside ones go in
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What are the types of product involvement and purchase process with examples? What's on the axis? Draw it.
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Learn do feel-pacemaker
Do Learn(Feel)-salt Feel Do learn-wine to party x, ego involved risk of loss y, functional risk of loss |
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What are the product variables?
Match with product involvement specifications. |
Search
•Can be evaluated prior to consumption –inspection possible *Learn do feel Experience •Can be evaluated after consumption –inspection difficult or impossible –purchase or sampling necessary *do-learn-feel *Cleaning ability (laundry detergent) Credence •Cannot be evaluated even after consumption –no testable criteria *feel-do-learn *Vitamins |
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graph STP and product variable
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dynamic variable on y-augmented product
main variable on x-expected product |
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product 2 by 2 matrix
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steal share/acquisition-search
steal share/retention-experience stimulate demand/acquisition-search, experience stimulate demand/retention-credence |
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The New Product Development Process:
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• Opportunity Identification
• Screening • Concept Testing • Design • Testing • Introduction |
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The Mortality Curve of New Product Ideas (axises and parts)
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# of ideas on y
cumaltive on x -Bus. analy -screening -development -testing -commercialization -success |
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What are creativity templates and what are the steps to using one?
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• Replicable patterns that can be applied to existing products to generate new ideas.
– Start with consideration of existing product configuration. – Apply one of the templates and consider the feasibility of the resulting product configuration. |
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What is Attribute Dependency? And give me an example.
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(EG Colored Bristled Brush)
• A dependency between two variables is created. – Usually between an internal variable (bristle color) and an external variable (amount of wear). • New configuration is examined for possible new benefit. • Create a matrix of – Variables under the manufactures control – Relevant variables outside the manufacturers control |
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What is Displacement? And give an example. Tell me the steps to do it.
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(EG Disposable Camera)
• Removing an essential component. • A function of the product is lost. • A new idea is generated based on the new configuration. • Create a list of components. • Choose and eliminate (or reduce) one. • Consider the functions that will be lost. • Consider how the remaining components might have a market benefit. Especially in niche markets. |
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What is Replacement? Example? Steps
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(EG Highchair)
• An essential component is removed. • The missing component is replaced by some existing component in the environment that can perform a similar function. • Create a list of components. • Choose and eliminate one. • Consider how some external component in the typical use situation may be able to replace the function of the lost component. • Consider how the product with the replaced component might have a new market benefit. Consider particular market niches that might benefit |
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What is Division? Example? Steps
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(EG Cellphone + Earbuds)
• An existing component is split into multiple components. • The new components may then perform different sub-functions. • Create a list of components. • Choose a component and consider how it might be divided into sub-components. • Consider the function that is lost. • Consider how the product with the divided components might have a new market benefit. |
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Service as a product characteristics?
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• Intangibility
• Inventory issues – Inspection/quality control – Perishability • Performance vs. production • Difficult to standardize (human element) |
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Implications of Service Intangibility
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• Symbols/logos
•Communications/taglines • Physical attributes • Focus on image and word-of-mouth |
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Implications of Inventory Issues with Service
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•Quality control
– operations excellence – pre-planning •Perishability – pricing to smooth demand – maximize capacity flexibility |
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Implications of Performance Element with Service
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• need to tightly integrate service operations with marketing
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Implications of Standardization Issues with Service
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• need to empower front-line employees
• increased importance of employee training to routinize service delivery • consider automation • Remember the Front Office/Backstage grid |
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Customer Satisfaction Problems with Service
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• Our customers don’t value what they get from us
• Our customers seem to focus on negative aspects and ignore positive aspects of our service delivery • We are committing more and more resources to customer service with little increase in satisfaction levels |
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Customer Satisfaction Questions
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• Does enhanced customer service lead to increased customer satisfaction?
• Does customer satisfaction lead to loyalty? Does customer satisfaction lead to increased profitability? |
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Loyalty is a function of:
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– Product quality
– Product characteristics – Industry characteristics – Customer characteristics – Satisfaction |
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Customer Satisfaction and Profitability
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Death Spiral
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What to Manage for Customer Satisfaction
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Expectations, production, and the memory
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Advertising Objectives (list them)
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•Basic Awareness
– existence of product (new product) – test with survey (recognition) •Top of Mind Awareness – existing product (reminder) – test with survey (first mention) •Information – must have awareness first, or pay to get it – information must tie to brand – test with survey •Image – must have awareness, information – most closely linked to target audience – how to test? •Behavioral – usually a marketing objective – clue: call to action – test with behavioral data |
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• Frequency:
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– Average frequency: average number of times a person who is “reached” is exposed
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GRP's and formula
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Gross Rating Points
GRP’s = reach * frequency |
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CPP
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Cost per point”
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CPM
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• Cost Per Thousand”
cost to reach 1,000 people 1 time |
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Frequency?
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GRPs/GRPS
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Sources of pricing surplus
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3 boxes-
(bottom-up) producer, consumer, unrealized in between lines (var.cost, price pd., perceived value, true value) |
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How do you capture surplus?
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Decrease VC
consumer surplus value pricing |
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Trial Pricing vs. Continuity Pricing
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• Target Audience: non-users
• Objective: leverage experiential point-of-difference to enhance perceived value of product Continuity Pricing • Target Audience: current users • Objective: prevent competitive purchasing, encourage hand loyalty |
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% markup to average cost ?
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Selling price - Average costs/
(Selling price) |
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Selling price ?
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Average costs/
(1 - % markup to average cost) |
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Benefits of Channel Intermediaries
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-Match producer assortments & consumer needs
-Routinize transactions -Facilitate the search process -Improve efficiency of the exchange process* |
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Objective of Distribution
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• The Right Product (Assortment/Selection Utility)
– Added value: sales expertise, variety, selection, merchandising, demonstration • The Right Place (Place Utility) – Added value: convenience (locational), convenience (ease of access, shopping, check out) • The Right Time (Time Utility) – Added value: speed of delivery, service speed, hours open, sufficient inventory |
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2 *2 matrix pricing objectives
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steal/acquistion-trail competitive
steal/retention-continuity competitive stimulate/acquisiton-trail value stimulate/retention-continuatity value |
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Functions of Channel Intermediaries
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• Carrying inventory
• Generating demand • Physical distribution • Sales and after sales service • Credit and financing • Customizing products |
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Push vs. Pull
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Push when …
• Low brand loyalty • Product benefits are well understood • Purchases are made on impulse • Brands are undifferentiated Pull when … • High brand loyalty • High consumer involvement • Purchases are planned • Brands are highly differentiated |
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Three ways of describing a channel
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• Long versus short
– a.k.a indirect versus direct • Broad versus narrow – a.k.a intensive versus selective • Deep versus shallow |
