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91 Cards in this Set
- Front
- Back
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Brand
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A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
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Role of Brands
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Identify the maker
Simplify decision making and reduce risk Simplify product handling and tracing Organize inventory and accounting Offer legal protection Signify quality Create barriers to entry Secure a competitive advantage Secure price premium |
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Brand Extensions Advantages
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Improved odds of success
Positive consumer expectations Retailer support Leverage current brand awareness Reduced cost of the launch campaign Feedback benefits |
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Brand Extensions Disadvantages
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Brand dilution
Risk to brand integrity Risk of harm to parent brand Cannibalization Lost opportunity to create a new brand |
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Reasons for Multiple Brands in Portfolio
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To increase shelf presence and retailer dependence
To attract consumers seeking variety To increase internal competition To yield economies of scale |
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Brand Roles in a Brand Portfolio
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Flankers—“fighter” brands.
Cash cows—“milk” these brands because they are profitable. Low-end entry level—attract customers to the franchise. High-end prestige—high-priced brand used to add prestige and credibility. |
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Positioning
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The act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market
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Competitive advantage
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advantage—a company’s ability to perform in one or more ways that competitors can’t or won’t match.
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Product Differentiation
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Form
Features Customization Performance quality Conformance quality Durability Reliability Repairability Style Design |
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Service Differentiation
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Ordering ease
Delivery Installation Customer training Customer consulting Maintenance and repair Returns |
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Five Forces that Determine Marketing Attractiveness
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Industry competitors
Potential entrants Substitutes Buyers Suppliers |
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Consumer-goods
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Convenience goods
Shopping goods Specialty goods Unsought goods |
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Convenience goods
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usually purchased frequently, immediately, and with little effort
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Shopping goods
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consumer compares on the basis of suitability, quality, price, and style
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Specialty goods
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unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort.
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Unsought goods
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consumers don’t know about or don’t normally think of buying.
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New-Product Development Process
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Idea generation
Idea screening Concept development and testing Marketing strategy development Business analysis Product development Market testing Commercialization |
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The Consumer Adoption Process
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Awareness
Interest Evaluation Trial Adoption |
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Adopter Categories
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Innovators
Early adopters Early majority Late majority Laggards |
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Factors Influencing Adoption Rate
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Relative advantage
Compatibility Complexity Divisibility Communicability |
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Product Life Cycle
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Introduction
Growth Maturity Decline |
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Service
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Any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything
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Categories of service mix
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Pure tangible good
Tangible good with accompanying services Hybrid Major service with accompanying minor goods and services Pure service |
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Characteristics of Services
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Intangibility
Inseparability Variability Perishability |
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Intangibility
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cannot be seen, tasted, felt, heard, or smelled before they are bought
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Inseparability
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simultaneous production and consumption
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Variability
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quality depends on who provides the services, when and where, and to whom
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Service Quality Model
Gaps that cause unsuccessful service delivery |
Gap between consumer expectation and management perception.
Gap between management perception and service-quality specification. Gap between service-quality specifications and service delivery. Gap between service delivery and external communications. Gap between perceived service and expected service |
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Determinants of Service Quality
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Reliability
Responsiveness Assurance Empathy Tangibles |
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Pricing Headaches
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Focusing on costs and striving for the industry’s traditional margins.
Not revising price often enough to capitalize on market changes. Setting price independently rather than as an intrinsic element of market-positioning strategy. Not varying price enough for different products, segments, channels, and purchase occasions. |
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Steps in Setting Price Policy
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Select the pricing objective
Determine demand Estimate costs Analyze competitors’ costs, prices, and offers Select a pricing method Select the final price |
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Price-Adaptation Strategies
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Geographical pricing
Price discounts and allowances Promotional pricing Differential pricing Product-mix pricing |
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Traps of Price-Cutting
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Customers assume quality is low.
A low price buys market share but not loyalty. Higher-priced competitors match the lower prices but have longer staying power because of deeper cash reserves. Trigger a price war |
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Responding to Low-Cost Rivals
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Increase differentiation of your products
Intensify differentiation by offering more benefits Set up a low-cost business |
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Marketing channels
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sets of interdependent organizations involved in the process of making a product or service available for use or consumption.
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Value network
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a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings
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Push strategy
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uses the manufacturer’s sales force and trade promotion to induce intermediaries to carry, promote, and sell the products to end users
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Pull strategy
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manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it.
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Channel conflict
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generated when one channel member’s actions prevent another channel member from achieving its goal.
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Channel coordination
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channel members are brought together to advance the goals of the channel.
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Causes of Channel Conflict
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Goal incompatibility
Unclear roles and rights Differences in perception Dependence |
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Strategies for Managing Channel Conflict
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Adoption of superordinate goals
Exchange of employees Joint membership in trade associations Co-optation Diplomacy, mediation, or arbitration Legal recourse |
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Retailing
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Includes all of the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use
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organizations engaged in retailing
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Manufacturer
Wholesaler Retailer |
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Retail life cycle
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stages of growth and decline.
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Wheel-of-retailing hypothesis
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new store types emerge after conventional stores increase services and raise prices to cover the cost.
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Levels of Service
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Self-service
Self-selection Limited service Full service |
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The New Retail Environment
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Assortments have grown more alike
Differentiation has eroded Limited-time-only “pop-up” outlets Adding specialty products and customer-focused services Growth in global competition |
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Private label brand
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one developed by retailers and wholesalers.
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Generics
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unbranded, plainly packaged, less expensive versions of common products.
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Wholesaling
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Includes all the activities in selling goods or services to those who buy for resale or business sale
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How Wholesalers Differ From Retailers
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Pay less attention to promotion, atmosphere, and location
Transactions are usually larger and cover a larger trade area Different legal regulations and taxes |
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Marketing Communications
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The means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.
Represent the “voice” of the company and brand. |
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Marketing Communications Mix
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Advertising
Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling |
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Developing Effective Communications
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Identify the target audience
Determine the objectives Design the communications Select the channels Establish the budget Decide on the media mix Measure the results Manage integrated marketing communications |
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Identify the Target Audience
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Potential buyers of the company’s products
Current users Deciders Influencers |
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Image analysis
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Profile the target audience in terms of brand knowledge
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Determine the Communications Objectives
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Category need
Brand awareness Brand attitude Brand purchase intention |
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Design the Communications
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Message strategy
Creative strategy Message source |
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Message strategy
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what to say
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Creative strategy
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how to say it.
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Informational appeal
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appeal—elaborates on attributes or benefits.
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Transformational appeal
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elaborates on a nonproduct-related benefit or image.
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Message source
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who should say it
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Factors underlying Message source credibility
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Expertise
Trustworthiness Likeability |
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Multinational Concerns
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Is the product appropriate for a country?
Is the targeted market segment legal and customary? Is the style of ad acceptable? Should ads be created at headquarters or locally? |
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Select the Communications Channels
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Personal communications channels
Nonpersonal communications channels Media Sales promotions Events and experiences Public relations |
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Establish the Total Marketing Communications Budget
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Affordable method
Percentage-of-sales method Competitive-parity method Objective-and-task method |
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Deciding on the Marketing Communications Mix
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Advertising
Sales promotion Public relations and publicity Events and experiences Direct and interactive marketing Word-of-mouth marketing Personal selling |
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Advertising
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Advertising—any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
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Major decisions (Five M's)
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Mission—What are the objectives?
Money—How much can be spent? Message—What message should be sent? Media—What media should be used? Measurement—How should the results be evaluated? |
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Reach (R)
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the number of different persons or households that are exposed to a particular media schedule at least once during a specified period
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Frequency (F)
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The number of times within the specified period that an average person or household is exposed to the message
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Impact (I)
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the qualitative value of an exposure through a given medium
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Choosing Among Major Media Types
Consider four main variables |
Target audience’s media habits
Product Message Cost |
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Sales Promotion
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A collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade
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Sales Promotion Tools
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Consumer promotions
Trade promotions Business and sales-force promotions |
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Sales Promotion Objectives
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Attract new users
Reward loyal customers Increase repurchase rates Attract brand switchers |
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Direct Marketing
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The use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen
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Direct Marketing Channels include
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Direct mail
Catalogs Telemarketing Interactive TV Kiosks Web sites Mobile devices |
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Benefits of Direct Marketing
For consumers |
Convenience, ease, and speed of ordering
Can buy specialty items not available in local stores |
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Benefits of Direct Marketing
For marketers |
Can buy mailing lists for almost any segment
Customize and personalize messages Build relationships Reach the most interested prospects at the right moment Easily test alternatives and messages Easily measure campaign results |
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Catalog Marketing
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Includes full-line merchandise catalogs, specialty consumer catalogs, and business catalogs, usually in print form but also sometimes as CDs, videos, or online.
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Successful catalog marketing
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Manage customer lists
Control inventory Offer quality goods Project a distinctive image |
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Telemarketing
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The use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions
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Inbound telemarketing
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receiving calls from customers.
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Outbound telemarketing
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initiating calls to prospects and customers.
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Public and Ethical Issues in Direct Marketing
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Irritating consumers
Taking advantage of impulsive, less sophisticated, or vulnerable consumers Misleading communications Invasion of privacy |
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Elements of Effective Web Design (7 Cs Specific Design Elements
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Context
Content Community Customization Communication Connection Commerce |
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Word of Mouth
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Buzz marketing
Viral marketing Opinion leaders Blogs |
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Major Steps in Effective Selling
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Prospecting and qualifying
Preapproach Presentation and demonstration Overcoming objections Closing Follow up and maintenance |
