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51 Cards in this Set
- Front
- Back
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3 ways to view a product |
1) tangible product- is a physical entity or service 2) extended product- a cluster that accompanies the tangible i.e 24 hour tech support 3) generic- essential benefits buyer expect to receive (i.e insurance or security). |
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2 criteria for classifying consumer goods |
1) end use and market 2) the degree of processing or physical transformation |
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3 types of consumer goods |
1) convenience goods- purchased frequently with low effort i.e food (includes impulse goods) 2) shopping goods- purchased after some time and energy are spent comparing offers i.e appliances. 3) Specialty goods- special purchase to obtain them. Unique in some way to the consumer. |
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Factors that Strengthen a Brand |
Excelling a what they do (Microsoft, Mercedes-Benz) Tell their story well (Gillete, GE) Seeing brand everywhere (Coca-cola, McDonald) The brand stands for something (Disney, Luis Vuitton). |
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What is brand equity? |
The set of assets or liabilities linked to the brand that add or subtract to its value. The value of these assets is dependent upon the consequences or results of the marketplaces relationship with the brand. |
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Elements of brand equity |
Brand loyalty Name awareness Perceived quality Brand associations Other proprietary brand assets |
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Brand Equity-value to customers |
Enhances customer's: Interpretation/processing of information Confidence in the purchase decision Use satisfaction |
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Brand equity-value to the firm |
Enhances: Efficiency and effectiveness of marketing programs Brand Loyalty Prices/margins brand extensions trade leverage competitive advantage |
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PLC (Product life cycle) |
Products are introduces, grow, mature, and decline |
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Adopter Categories |
Innovators-first to buy (2.5) Early adopters (13.5) Early majority (34) late majority (34) laggards (16) |
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Product Audit |
marketing management technique whereby the company's current product offerings are reviewed to ascertain if the product should be improved, modified, or deleted. |
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Deletion |
Product audit results in deletion: Purpose is to detect sick products and bury them. Deletion plan should provide for clearing out of stock in question. |
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New Products |
Many new are failures. (33-90%) Sales grow more rapidly that current products A major obstacle to effectively predicting new productdemand is limited vision |
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Why new products fail |
- inadequacyof upfront intelligence efforts,
- failure onthe part of the company to stick close to what the company does best - inability toprovide better value than competing products and technologies. |
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Non-personal communication forms |
advertising, sales promotion, public relations, direct marketing |
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personal communication form |
personal selling |
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Promotion mix |
advertising, sales promotion, public relations, direct marketing, and personal selling |
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Integrated marketing communications (IMC) |
The goal of IMC is to developmarketing communications programs that coordinate and integrate all elements ofpromotion-advertising, sales promotion, personal selling, and publicity. IMC seeks to manage all sources ofbrand or company contacts with existing and potential customers.
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Advertising |
- paid form about organization,products or activity (mass media- TV, Radio, newspaper, internet, magazine,outdoor displays, car cards or directories)
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Sales promotion |
- offering customers, sales personnelor resellers a direct inducement for purchasing a product(add value, incentive/coupon, sweepstakes, refund or display)
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public relation |
seeking influence toattitudes, feelings, and opinions of customers, noncustomers, stockholders,suppliers, employees, and political bodies about organization(publicity-nonpaid form of non-personal comm’/ mass medium – news story) |
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direct marketing |
- direct form of comm’ with customers.(direct mail, online and mobile marketing, catalogs, telemarketing and directresponse advertising for generating ordering, visiting, personal form is directmarketing) |
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Buyers go through the process of... |
Buyers usually go through a processof awareness of the product orservice, comprehension of what it cando and its important features, convictionthat it has value for them, and ordering. |
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The two decisions of advertising |
1) determining the size of the advertising budget 2) Howthe advertising budget should be allocated. |
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The end goal of advertising |
to move the buyer to a decision to purchase the advertised brand. The ad will succeed in moving consumer to the trail and repeat purchase stage of the consumer behavior process. |
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Procedures for evaluating specific ads |
1) recognition tests- : estimate the percentage ofpeople claiming to have read a magazine whorecognize the ad 2) Recall tests- estimate the percentage ofpeople claiming to have read a magazine whocan recall the ad and its contents 3) Opinion tests- 1) Potentialaudience members are asked to rankalternative advertisements as most interesting, most believable, bestliked. 4) theater tests- Theater audience is asked for brand preference before and after an ad isshown in context of a TV show |
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Sales promotion- Reasons for growth |
1) increased pressure on management for short-term results 2) Emergence of new purchase tracking technology |
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Forms of consumer sales promotions |
Sampling, price deals, bonus packs, rebates/refunds, sweepstakes/contests, premiums, coupons |
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Inabilities of Sales promotion |
1) Togenerate long-term buyer commitment to a brand in many cases 2) Tochange, except on a temporary basis, declining sales of a product 3) Toconvince buyers to purchase an otherwise unacceptable product 4) Tomake up for a lack of advertising or sales support for a product. |
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Three tasks of personal selling |
1) identify the potential buyer's needs 2) match those needs to one or more of the firm's products or services 3) on the basis of this match convince buyer to purchase. |
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Duties of personal selling (2) |
1) salesperson dispenses knowledge to buyers -a lack of information leads poor buying decisions 2) sales people act as a source of marketing intelligence for management. Valuable information passes from providers to buyers. |
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Three key objectives of the sales force |
1) information provision: explain all attributes, answer question, probe additional questions. 2) persuasion: max sales, convert customers to purchase and repeat purchase, sell additional items, tend to needs of dissatisfied customers. 3) After-sale service- delivery or installation of the product, follow-up calls and visits, reassurance of product or service superiority, build relationship |
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Best source for prospects |
referrals from satisfied customers
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Number one problem for sales person |
is getting through the doorfor an appointment with a prospect |
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Commitment in sales |
occurs when a customer's problem is resolved |
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If customer is not committed |
1) Analyze the reasons &determine whether more sales calls necessary 2) Find whether there is a better match between customer needs and seller offerings |
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After market activities |
1) Focusorganization’s attention on continuing satisfaction and reinforcement to individualsor organizations that are past or current customers.
2) Goalof after marketing: build lasting relationships with customers |
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After market activities (continued)
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Establishing and maintaining acustomer information file Monitoring order processing Ensuring initial proper use of thepurchased product or service Providing ongoing guidance andsuggestions Analyzing customer feedback andresponding quickly to customer questions and complaints Continually conducting customersatisfaction research and responding |
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The “difference between goodsalespeople and mediocre.” |
result of training plusexperience |
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Why sales forces must be controlled |
1) largest marketing expense in final price of product 2) Unless directed, motivated and audited will not be efficient. 3) |
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Controlling sales force |
(1) forecastingsales, (2_establishing sales territories and quotas, (3) analyzing expenses,(4) motivating and compensating performance. |
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Quotas |
sale goals assigned to sales force |
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Benefits of sales quotas |
1. provide incentives for salespeople. 2. quantitative standard against individual or marketing unit 3. quotas used to evaluate salesperson’s performances and to evaluate and control their efforts |
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Factors impacting qotas |
1) all territories are not equal 2) All sales people do not have equal ability 3)Sales task may differ from time to time |
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Why are channels hard to change? |
Because of the time and money required to set up an efficient channel |
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What do utilities channels provide? |
Time, place, and possession |
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Why do producers use marketing intermediaries |
because the intermediary can perform functions more cheaply and more efficientlythan the producer can |
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What is the managerial question? |
who will perform what functions and to what degree? |
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distribution coverage "continuum" |
intensive distribution- exposure through as many wholesalers and retailers as possible (high frequency of purchase and convenience) selective distribution- limits use of the best intermediaries in a geographic area (appliances and designer clothing) Exclusive distribution- exclusive rights within a particular territory |
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Total distribution cost concept |
developed fromgeneral topic of system theory channel ofdistribution viewed as a total system composed of interdependent subsystems objective of thesystem manager should be to optimizetotal system performance. |
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Key issue of total distribution cost concept |
Goal: minimizecosts with “other things being equal” Trade-offs tomaximize efficiency and service levels (order fulfillment) while controllingcosts (transport & inventory carrying costs) |
