Marketing Test 2

Front 1

undifferentiated marketing

Back 1

targeting entire market as a whole

Front 2

differentiated marketing

Back 2

each company targets a different segment

Front 3

concentrated marketing

Back 3

company chooses to go after a certain segment

Front 4

product position

Back 4

place a product occupies in a customer's mind relative to competing products

ex: volvo = safety

Front 5

perceptual map

Back 5

pain reliever example from slides

chart with gentleness on y axis and effectiveness on x axis

Front 6

positioning components

Back 6

convince -- customer target

competitive framework -- in context of other alternatives

value proposition -- benefits consumer receives

reason to believe -- b/c we have these capabilities

Front 7

positioning statement

Back 7

needs to be distinct, compelling, authentic, persausive, and sustainable

For [target] who [need statement], this [product] is a [product category] that [statement of key benefit]. Unlike [competitive alternatives]

Front 8

competitor analysis

Back 8

1. identify: who are competitors today and in the future?

2. describe: competitors capabilities and difficulties?

3. evaluate: competitor's strategic options?

4. project: what we expect our competitors to do in S/T, M/T, L/T?

5. manage: how to get competitors to do what we want them to do?

Front 9

identifying competitors

Back 9

BROADEST: competing for the same dollar

BROAD: products offering same benefits

NARROWER: product category or industry

NARROWEST: market segment competition

Front 10

direct competitors

Back 10

people competing in same industry with same products in similar segment

Front 11

indirect competitors

Back 11

different industries competing for the same dollar

Front 12

differential competitive advantage analysis

Back 12

questions about each competitor:

1. capability to deliver required benefits?
2. in which areas do competitors have greater capability than we do?
3. in areas of deficit, would it be possible for us to match competitors?
4. is competitor delivering superior value proposition to client?

Front 13

assessing individual competitors

Back 13

SWOT

sources of competitive advantage: cost, differentiation, marketing

market share

Front 14

value mapping

Back 14

x axis: perceived benefits
y-axis: perceived costs

value equivalence line: superior = above; inferior = below

- economy, parity, premium

Front 15

strategic objectives

Back 15

market share (L/T) vs. profits (S/T)

Front 16

strategic options

Back 16

core strategy for each product/service

1. customer targets:
- broad vs. narrow
- segments you are going after

2. competitor targets:
- are we a target?
- how should we position

Front 17

managing competitors

Back 17

- preemptive signals
- warning signals
- tit for tat
- misinformation

Front 18

how to create value

Back 18

FUNCTIONAL: performance

SELF-EXPRESSIVE: identifying with something

EMOTIONAL: ex: hallmark

Front 19

how VRD mfg. creates value

Back 19

core products
actual products
augmented products

Front 20

augmented products

Back 20

ex: Otis elevator makes money off elevator services products, not elevator sales

ex: Baxter Hospital provides ordering terminals on hospital floors

-- important: lock in customer relationships

Front 21

brand equity

Back 21

a set of assets, such as:
- awareness
- perceived quality
- loyalty
- associations

these add/subtract to value of product

these are linked to brand name and symbol

Front 22

brand personality structure

Back 22

sincerity
excitement
sophistication
ruggedness
competence

Front 23

managing brand portfolio

Back 23

SEE SLIDES

relative mkt. share (H to L) -- x-axis
mkt. growth rate (H to L) -- y-axis

- STARS: high growth and mkt. share; profit potential; may need heavy investment to grow
- QUESTION MARKS: high growth, low mkt. share; build into stars/phase out; requires cash to hold mkt. share
- CASH COWS: low growth, high mkt. share; est., successful SBUs; produces cash
- DOGS: low growth and share, low profit potential

evolution: Q/M -- stars -- C/C

movement of resources: C/C -- Q/M

Front 24

differences b/t products and services

Back 24

services = intangibility, inseparability, variability, perishability, divisibility -- SEE CH. 18

Front 25

changes in marketing

Back 25

used to be mainly about distribution

CHANGES: now...
- transportation, communication make location less important
- new channels = internet
- "walmartization" -- more concentrated dist.

Front 26

intermediary vs. no imtermediary

Back 26

SEE SLIDES AND BOOK

Front 27

dist. decisions

Back 27

- dist. intensity
- # of channels
- # of channel levels

Front 28

dist. intensity

Back 28

- having many outlets increases ease of consumers getting access to products
- can also reduce exclusivity
- these can hurt margins

EXCLUSIVE: one reseller per trading area; strong reseller support; no intra-brand competition

SELECTIVE: limited amt. of resellers per trading area, moderate re-seller support and intra-brand competition;

INTENSIVE: max. amt. of resellers per trading area; low reseller support; high intra-brand competition

Front 29

simple pricing approaches

Back 29

cost recovery -- cost plus pricing

matching competitors --competitive parity or going rate pricing

targeting spec. profit level -- B/E pricing

Front 30

value-based pricing

Back 30

best approach

setting price based on buyer's perception of value instead of customer's cost

depends on: user characteristics/goals; usage situation, perceived benefits

Front 31

pricing strategies

Back 31

skim pricing: use for inelastic demand; for patented products -- hard to duplicate; S/T profit objective; price is surrogate for quality

penetration pricing: use for elastic demand -- est. mkt.; low barriers to entry; economies of scale/learning curve effect; desire to gain pioneering advantage

Front 32

pricing strategies

Back 32

depend on mkt. structure

Front 33

market structures that ensure mkt. power

Back 33

diff. product mkt.:primary pricing concern has to do with CWP rather than competitors; ex: iPod

dominant with cost leadership: primary concern deals with economies of scale and preventing entry; ex: Southwest

Front 34

value based pricing is easy if

Back 34

all consumers place essentially same value on product

Front 35

if CWPs are different

Back 35

may not be able to recover FC with uniform pricing -- discriminate

Front 36

price discrimination

Back 36

different prices for different people; different versions

Front 37

price discrimination vs. bundling

Back 37

can achieve the same goal

price discrimination:
- personalized: sell to each user at a diff. price
- versioning: offer diff. product lines and let user choose best for him/her
- group pricing: diff. pricing for diff. groups; ex: student or senior discounts

bundling: equalizing customers valuation so you can charge everyone a single price

Front 38

bundling examples

Back 38

- across products: ex. - microsoft, comcast

- across consumers: ex. - licenses at GA tech

- across time: subscriptions

Front 39

is marketing game static?

Back 39

no -- multiple periods

Front 40

marketing game steps

Back 40

1. analyze company results
2. plan and budget
3. make marketing decision
4. submit it to t-square
5. marketing game simulation
6. retrieve reports from t-square

Front 41

6 key segments of the marketing game

Back 41

smallest to largest:
- concerned parents
- professional creators
- home users
- modern students
- high tech managers
- harried assistants

Front 42

marketing game distribution channels

Back 42

traditional dealers -- full service

discount dealers -- internet and mail order

Front 43

marketing game product

Back 43

VRD: voice recognition device

key features:
- # of special commands (5-20)
- error protection (1-10)
- ability to customize (1-10)

Front 44

marketing game market research reports

Back 44

mkt. share by seg. (all brands)
mkt. share by channel (all brands)
consumer preference study
marketing effectiveness report
sales segment by channel (own brand)
consumer shopping habits study

Front 45

purpose of advertising in TMG

Back 45

helps pioneer the mkt. by building awareness

may helps firms other than the one that is advertising

direct advertising is best for firm to gain mkt. share

pioneer advertising is not necessarily useful for promoting new features that differ from other brands

effects mkt. share, growth

low levels of spending create very little impact

effectiveness can depend on ad choices of competition

Front 46

error protection in TMG

Back 46

customers have different preferences on this feature

Front 47

largest unit sales volume in TMG

Back 47

does not always mean it is the most profitable target mkt.

Front 48

excess inventory in TMG

Back 48

sold overseas for amt. = to 85% of unit cost

Front 49

product life cycle of VRD in TMG

Back 49

in growth stage at the beginning of the game

Front 50

marketing plan decisions form in TMG

Back 50

level of product features

amt. of sales reps. to be allocated across channels

wholesale price

which reports to purchase

DOES NOT include which segments to target

Front 51

what marketing budget pays for in TMG

Back 51

R&D for modifications
sales force salaries
marketing research
advertising costs

COMMISSIONS ARE NOT!

Front 52

increasing dist. in TMG

Back 52

amt. of sales rep. should increase as intensity increases

Front 53

sales promotion in TMG

Back 53

more effective at creating ST responses than LT respsonses

sales reps. sell to dealers but not final customers

Front 54

decisions under control of manager in TMG

Back 54

wholesale price
level of product features
marketing research reports to buy
amt. to spend on customer serive

salaries of sales force NOT under control of mgt.

Front 55

features customers do not care if they get more of in TMG

Back 55

amt. of special commands
error protection
ease of learning