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68 Cards in this Set
- Front
- Back
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new chain simply stealing customers and sales from the older existing ones |
cannibalization |
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activites, interests, and Opinions |
AIO's |
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makes most sense when resources are limited firms target only one segment requires a lot of fine tuning target narrowly |
concentrated/niche target marketing |
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makes most sense when variability among competitors' products is low (i.e., steel) makes most sense for "brand new to the world" products target one segment target very broadly |
undifferentiated/mass marketing |
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makes most sense for more mature products makes most sense when necessary resources exist target multiple segments greatly increases cost of marketing |
differentiated target marketing |
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concept that suggests 80 percent of a firms sales are obtained from 20 percent of its customers |
80/20 rule |
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the differences in the brand/product are important to consumers as they decide which choices to make |
determinant |
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the sum of potential and actual values that positioned products offer to prospects or customers.
equal to positioning wedding dress+car+home=high |
value composition |
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customer intimacy-relationship based product leadership-technology based cost leadership-resource advantage/business model based |
three ways to differentiate/position any brand, product, or company |
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1) market size 2)expected growth 3)competitive position 4)Cost of reaching the segment 5)Compatibility with the organization's objectives and resources |
five criteria used to select target segments |
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items that become part of the final product |
components |
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items used to assist in producing other goods and services
Ex. Installations, accessory equipment, supplies |
support products |
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toothpaste, cake mix, hand soap, ATM cash with drawal inexpensive many outlets will accept substitutes frequent purchases |
convenience products |
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cameras, tvs, briefcases, airline tickets expensive many outlets infrequent purchases |
shopping products |
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rolls-royce cars, heart surgery, rolex very expensive limited outlets brand loyal infrequent purchases |
specialty product |
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burial insurance, thesaurus very infrequent |
unsought product |
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specific product that has a unique brand, size, or price
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product item |
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a group of product or service items that are closely related becasue they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range |
product line |
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consists of all of the products lines offered by an organization |
product mix |
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consumers don't need to learn new behaviors
Ex. new detergent, shaver, toothpaste |
continuous innovation |
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minor changes in behavior are required
Ex. electric toothbrush, CD player |
dynamically continuous innovation |
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the consumer must learn entirely new consumption patterns to use the product |
discontinuous innovation |
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incremental improvement of an existing product line the company already sells |
product line extension
lowest level of newness and innovation |
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1) a significant jump in innovation or technology 2) a brand extension involving putting an established brand name on a new product in an unfamiliar market |
2nd level of newness and innovation |
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radical invention, a truly revolutionary new product
Ex. Apple computer |
3rd and highest level of newness |
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a statement that, before product development begins, identifies 1) a well-defined target market; 2)specific customers' needs, wants, and preferences; and 3) what the product will be and do to satisfy consumers |
precise protocol |
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New products fail about 40% of the time (not 90%) |
NP Failure |
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arise within all of us because we all already know or think we know how best certain things should be done |
associative barriers |
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"NPD is a bit of art but more science" |
Is NPD an art or science? |
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Concept Test- to determine whether the user is likely to either need or want the proposed product Product Use Test- to determine whether the product developed actually satisfies that need or want that is was intended to satisfy Market Test- to determine whether our firm has an effective marketing plan that will function to commercialize new products successfully |
Three tests integral to NPD |
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dimension of uniqueness- the form, formulation or function of something, are often patentable |
invention |
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refers to an overall process whereby an invention is transformed into a commercialized product that can be sold profitably. Must deliver practical or perceptual value that benefits someone. Must be useful |
Innovation |
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1) introduction 2) growth 3) maturity 4) decline |
product life cycle |
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sales grow slowly profit is minimal marketing objective: create consumer awareness and stimulate trial spend heavily on advertising to stimulate primary demand |
introduction stage
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desire for the product class rather than for a specific brand since there are few competitors with the same product |
primary demand |
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preference for a specific brand |
selective demand |
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high initial price to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers |
Price skimming |
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to discourage competitive entry, and company can price low helps build unit volume |
penetration pricing |
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competitors appear Profit peaks More aggressive pricing advertising shifts emphasis to stimulating selective demand Product sales grow at an increasing rate |
growth stage |
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slowing of total industry sales or product class revenue marginal competitors begin to leave the market sales increase at a decreasing rate profit declines due to fierce price competition among many sellers cost of gaining new buyers at this stage rises marketing attention is directed toward holding market share through product differentiation and finding new buyers |
maturity stage |
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occurs when sales drop frequently occurs because of environmental changes tend to consume a disproportionate share of management and financial resources relative to their future worth |
decline stage |
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when a company retains the product but reduces marketing costs |
harvesting |
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significant customer education is required and there is an extended introductory period |
high learning product |
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little learning is required by the consumer and the benefits of purchase are readily understood can be easily imitated by competitors |
low learning product |
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products that are introduced, decline, and then seem to return |
fashion product |
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rapid sales on introduction and then an equally rapid decline |
fad product |
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refers to the entire product category or industry
Ex. prerecorded music |
product class |
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pertains to variations within the product class
Ex. cassette tapes, cds, digital music players |
Product form |
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Innovators Early adopters Early majority Late majority Laggards |
Five categories and profiles of product adopters |
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a company uses one name for all of its products in a product class |
multiproduct branding |
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company gives each product a distinct name useful strategy when each brand is intended for a different market segment |
multibranding |
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company manufactures products but sells them under the brand name of a wholesaler or retailer high profits for manufactures and resellers |
private branding |
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a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market |
mixed branding |
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what the customer is really buying; true problem solving benefits
Ex. IPhone=calling |
Core Benefit |
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features, design, level of quality, brand, packaging |
Actual product |
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any additional services attached to or associated with the actual product by the marketing firm
Ex. GPS, camera, internet |
Augmented product |
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A name, sign, symbol, or design, or combination of these, that identifies and distinguishes the marketer of a product/service
Counted as an asset on balance sheet |
Branding |
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The extent to which customers are willing to pay more for this particular branded product as opposed to another branded product, from the same general product category - based on the power of the brand that has been built for and is associated with the product |
Brand equity |
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Intangibility, inconsistency, inseparability, and inventory |
Four I's of services |
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when the service provider is available but there is no demand for the service |
idle production capacity |
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what companies bring to the market ranges from the tangible to the intangible: this range of product-dominant to service-dominant offerings is referred to as the |
service continuum |
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tangible goods such as clothing, jewelry, and furniture have |
search properties |
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services such as restaurants and child care
can be discerned only after purchase or during consumption |
experience properties |
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services provided by specialized professionals such as medical diagnoses and legal services
Characteristics that the consumer may find impossible to evaluate even after purchase and consumption |
credence properties |
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Differences between the consumer's expectations an experience are identified through |
gap analysis |
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consists of charging different prices during different times of the day or during different days of the week to reflect variations in demand for the servies |
Off-peak pricing |
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In addition to the four P's (price, promotion, place, and product) people physical environment process |
7 P's of services marketing |
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based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers |
internal marketing |
