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Principles of Marketing Study Guide Exam 4

by: Kelsey Bixler

Principles of Marketing Study Guide Exam 4 MKTG 3310 - 001

Marketplace > Auburn University > Marketing > MKTG 3310 - 001 > Principles of Marketing Study Guide Exam 4
Kelsey Bixler
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This is the study guide for Principles of Marketing Exam 4 with Wolter. This covers information from in class and the book for chapter 7,8 and 9.
Principles of Marketing
Jeremy Scott Wolter
Study Guide
Principles, Marketing, Wolter, auburn, Exam 4, Study Guide
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This 11 page Study Guide was uploaded by Kelsey Bixler on Tuesday March 8, 2016. The Study Guide belongs to MKTG 3310 - 001 at Auburn University taught by Jeremy Scott Wolter in Fall 2015. Since its upload, it has received 193 views. For similar materials see Principles of Marketing in Marketing at Auburn University.


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Date Created: 03/08/16
Principles of Marketing Study Guide- Exam 4 Chapter 7 Products What are the three elements to a product offering?  Value based price  Product features and quality  Services mix and quality  Attractiveness of the Market offering  What does tangibility and intangibility have to do with a product  offering?  Tangibility and intangibility both play a role in product  offering  For example­ buying a car- the car itself, the design, Intangible- benefit of having a form of transportation. Flying of a Plane- getting you to where you need to go, sitting in a seat, the ticket. What is typically used to judge quality?  tangible What is the customer­value hierarchy?  5 product levels­ each level adds more customer values   Levels­ Core benefit, basic product, expected augmented  products, potential products What happens at each level?  Core benefit­ the service or benefit the customer is really  buying  Basic product­ marketer must turn the core benefit into a basic  product­ for example­ a hotel must offer a bed, towels, desk, etc.  Expected product­ a set of attributes and conditions buyers  normally expect when they purchase this product­ example  clean bed  Augmented­ exceeds customer expectation  Potential­ encompasses all the possible augmentations and  transformations the product or offering might undergo in the  future Know these product classifications and how each affects the marketing  mix:  Differentiation arises and completion increasingly occurs on the basis of product augmentation. Each augmentation adds cost,  however, and augmented benefits soon become expected  benefits and necessary points­of­parity.  Durable, non­durable and service products  Non­durable­ tangible goods normally consumed in one or a few uses. 5­hour energy, fuel, paper towels­ lower margins, usually chosen on convenience,  needs to be available in many locations, advertise heavily.  Durable goods­ tangible goods that normally survive many uses­ normally  require more personal selling and service, command higher margin, and  require more seller guarantees. Ex­ phones, clothing, refrigerator   Services­ intangible, inseparable, variable, and perishable products that  normally require more quality control, supplier credibility and adaptability.  Ex­ haircuts, legal advice Convenience, shopping specialty, and unsought products.  Convenience­ purchased with frequently, immediately, and with minimal  effort­ex­ Q Tips  Shopping­ consumer characteristically compares on such bases as suitability, quality, price and style­ Ex­ Toms  Specialty­ have unique characteristics or brand identification for which  enough buyers are willing to make special purchasing effort. Oculus Virtual  Reality head sets  Unsought­ the things you buy because you absolutely have to­ you don’t want to buy it­ ex­ coffin, life insurance­ Distribution is going to be limited Know the types of product and service differentiation Product (goods) differentiation­(all can be found in the book)  Form  Features  Performance quality  Conformance quality  Durability  Reliability  Reparability  Style  Customization Service Differentiation  Ordering ease  Delivery  Installation  Customer training  Customer consulting  Maintenance and repair  Returns What is a product, product line, and product mix?  Product­  Anything that can be offered to a market to satisfy a want or  need, including physical goods, services, experiences, events, persons, places,  properties, organizations, information, and ideas.  Product line­  any group of products that serve a similar need­Ex­line of  angry birdy games. Satisfy a class of needs, Are used together, Are sold to the same customer group, or fall within the same price range, Each product line  has its own marketing strategy  Product mix­ Width length, depth, consistency What is length, width, and depth in relation to a product mix? In what ways can a line be stretched?  Width­ number of product lines I have  Depth number of product within a single product on a line­ how much  variance it has­ ex­tide  length­ the distance down Line stretching  Down­market stretch ­lowering price market  Up­market stretch­ going up in price market­ ex­ Kia trying to move into luxury  car market  Two­way stretch  Line filling­ taking care of a middle market area­ Cannibalization can happen  here­ product within it need to differentiated enough for your products to not steal customers from each other.   Line modernization  Line featuring  Line pruning •  What are the general strategies for handling luxury products in relation to  distribution and price?  Page 159 in the book  Wrap personal experiences around the product  Besides brand names, other brand elements­logos, symbols, packaging,  signage­ can be important drivers of brand equity for luxury products  Control the image  Control distribution  Protect trademarks and combat counterfeits   What are the 4 Ps of Luxury?  Patricians­ have wealth but don’t need status­ don’t want to associate  themselves with others­ want products that only other patricians will  recognize.   Parvenus­ have wealth but need status­ more likely to buy things that try to  signal that they are part of the higher wealth groups   Posers­ don’t have wealth but need status­will try to buy products that have  logos that they associate with wealth­.   Proletarians­ don’t have wealth, don’t need status.  : Chpt 9 ­ Branding •  What is a brand?  A name, term, sign, symbol, or design or combination of them  intended to identify the goods or services of one seller or group  of sellers and to differentiate them form those of the  competitors.   Where does the idea of branding stem from and what is the point of  branding (i.e., what does it do for a company)?  The process of endowing products with the power of a brand. This comes  from branding cattle­ the brand on the cow you would know the quality of  the meat you were getting.  We are trying to get a set of symbols that carry meaning and the ideas a  company tries to convey are automatically associated with the brand What is customer­based brand equity (cbbe)?  The differential effects brand knowledge has on a consumer  response to the marketing of a brand Know the Brand Resonance Pyramid and BrandDynamics model of  CBBE models.  Brand Resonance Pyramid­ the idea is that we have 4 levels that we build our brand on going from the bottom to the top. Awareness, Meaning­  Response, connection  Brand Dynamics Model­ if we build the right brand associations we will get  the results we want. The Associations need to be meaningful, different, and  salient. See slides to see the model.  What is the brand resonance pyramid?   Views brand building as an ascending series o steps from  bottom to top: 1­ensuring customers identify the brand and  associate it with a specific product or class 2­ firmly  establishing the brand meaning in customers’ minds by  strategically linking a host of tangible and intangible brand  associations. 3­ eliciting the proper customer responses in terms of brand­related judgment and feelings 4­ converting customers brand responses to intense active loyalty.  What is part and how do we define each part?  Brand salience­ how often and easily customers think of the  brand under various purchase or consumption situations­ the  depth and breadth of brand awareness.  Brand performance­of well the product/service meets the  customers functional needs  Imagery­ describes the extrinsic properties of the  product/service including, including the ways in which the  brand attempts to meet customers’ psychological or social  needs  Judgments­ focus on customers’ own opinions and evaluations  Feelings­ cusomers’ emotional responses and reactions with  respect to the brand  Resonance­ describes the relationship customers have with the  brand and the extent to which they feel they are in ”sync” with  it.    What does awareness do for a brand?  Awareness­ how often and how easily consumers think of a brand under  different consumption situations. We are trying to make it so that if I gave  you a product market­ my brand would come to mind. The stronger a brand  has awareness, the more it crowds out the competitors.    What is a brand map?  Shows all the qualities people associate with the Brand What part of brand response are companies focusing on?  How are the customers responding to your brand­ JUDGMENTS, Quality,  Value, Ubiquity, Healthiness. FEELINGS, Happiness, Safety, Relaxation,  Exhilaration. A lot of companies have a general sense that you have to  operate on an emotional level. But you need Judgments too. Example­ Coke  friendship commercial­ emotional connection as it shows people forming  friendship through opening coke bottles. Samsung fear commercial­ no  information­ just shows people conquering their fears. How hard is it for brands to develop the brand resonance level of the  pyramid?  It takes time and a lot of effort for brands to build  The  relationship customers have with a brand and extent they feel “in­sync” with  the brand. AKA: A deep psychological bond that connects a brand to a consumer’s  identities. What does this mean as far as competition at this level?  Competition is based on who has a higher brand resonance­ it is found that brands with high brand resonance and engagement  its programs engender often lead to greater recall of the ads it  runs What is the BrandDynamics model?  Brand Dynamics Model­ if we build the right brand associations we will get  the results we want. The Associations need to be meaningful, different, and  salient. See slides to see the model. What is the brand value hierarchy?   A Brand Hierarchy­ Low prices at the bottom. High Priced products  at the  top. Everyone else is squished in the middle   What happens when a brand falls in the middle?   The high and low hierarchy products take their customers  Example­ Sears­ tried to bring in more women’s clothing but had a weird  mix­ now they are struggling. Chevrolet­ misstep­ ways they have tried to  define themselves over the years has been all over the place. Identity crisis.  They lack consistency. What does a brand that is stuck in the middle have to do?  Brands in the middle have to differentiate themselves or else the top and low  brands will take their customers.  Follow Cokes example­ Coke­ has remained consistent and have built a very  strong brand because of this. Coke even put people in an MRI machine and  they saw the change in physiological response to the brand Know the tactics for developing brand equity (brand elements, holistic  marketing activities, and leveraging secondary activities)  Brand Elements: Building elements­ memorable, meaningful, likable Defense element­ Transferable, adaptable, and protectable. Example­ Chick  Fila­ “where gracious meets good”  Holistic marketing activities­  Brand contact Any information­bearing  experience (positive or negative) a customer or prospect has with the brand,  its product category, or its market. Touch points­ Customer service, billing­  very few companies put meaning into these things  Leveraging secondary activities­  partner with another company or  celebrity and hoping what they stand for will be associated with the brand. – These “secondary” brand associates can link sources such as the company  itself, to countries/other geographic region groups, and to channels of  distribution, and more What does Chevrolet and Coca­Cola tell us about creating a powerful  brand?  Chevrolet­ misstep­ ways they have tried to define themselves over the years  has been all over the place. Identity crisis. They lack consistency.   Coke­ has remained consistent and have built a very strong brand because of this. Coke even put people in an MRI machine and they saw the change in  physiological response to the brand. What does the Pespi Taste Challenge tell us about the power of branding?  Coke or Pepsi? If you build up a brand like coke you change the reaction to it and activate different parts of the brain. Pepsi doesn’t compare to Coke in this yet.  Brand love is just as important as taste What does the Oldsmobile tell us about the power of branding?  Oldsmobile- they are not still around. People didn’t adopt them. It was doing very well but hit a downturn. “This is not your father’s Oldsmobile”- this caused a surge. This came out in the 70s- now a day it is your father’s Oldsmobile. They captured the moment so well that it locked them into a certain place. Sometimes you become so powerful that you can’t move past it. If you build your brand on something that can’t evolve you can’t move forward and the brand dies. Know the difference between corporate branding, separate branding, and  sub­branding strategies  Separate branding­ branding different products with different  names­ advantage­ is a product fails the company has not tied  it to its reputation  Corporate (umbrella branding)­ companies use their company  brand as an umbrella brand across their entire range of  products  Sub­branding­ combing two or more corporate brands, family  brands, or individual product brands.   What are the positive and negative outcomes of brand extensions?  Line extension may cause the brand name to be less strongly  identified with any one product  Brand dilution­ occurs when consumers no longer associate a  brand with any specific or highly similar set of products and  start thinking less of the brand What determines if a brand extension works?  Based on: Fit­ has to make sense, Strength of brand­ have to already have a  strong name, Amount of successful extensions­ if the extensions have worked  in the past then it is more likely that the new brand extensions will have  success How can fit backfire?  Brand dilution, Negative feedback effects  The more fit­ brings more of a risk­ if the extension doesn’t do well and it has a close fit with the original then it is more likely to negatively effect the  original brand If I show you a brand and an extension idea, could you assess the  likelihood of the extension working based on the aspects that make brand  extensions work? March 8 Chpt 8   Positioning What is positioning?  The act of designing a company’s offering and image to occupy  a distinct place in the minds of a target market What are the key ideas of positioning?   Key Ideas of positioning­ 1­ you can only own one position 2­ A position can  only be owned by one brand What are the three steps to positioning?  (Book)1­ choosing a frame of reference by identifying the target market and relevant competition, 2­ identify the optimal points­ of­parity and points­of­difference brand associations given that  frame of reference 3­creating a brand mantra summarizing the  positing and essence of the brand  (In class version) Three steps to positioning­ 1. Choose competitive frame of  reference 2. Identity and choose POP & POD 3. Create a brand mantra to  summarize the essence of position What are POP and POD?  PODs­ Points of Difference­ attributes or benefits that  consumers strongly associate with a brand, positively evaluate,  and believe they could not find to the same extent with a  competitive brand  POPs­ Points­of Parity­ attributes or benefit associations that  are not necessarily unique to the brand but may in fact be  shared with other brands. 3 basic forms­ category, correlation,  and competitive.  This is what makes you the same as everyone else­  Category­what is expected, correlational, competitive­ the things people have to do that distinguish a category from other categories  What is a perceptual map?   Visual representations of consumer perceptions and  preferences.  What is the perceptual map used for?  (Book) The provide qualitative pictures of market situations  and the way consumers view different products, services, and  brands along various dimensions.  (Book) By overlaying consumers view with brand perceptions  marketers can reveal “holes” or “openings” that suggest unmet  consumer needs and marketing opportunities   (In Class)  You “map” your brand along with competitor brands to get a  sense of the market  1. Identify important attributes  2. Discover how company’s products/brands are perceived  3. Discover how target customers rate competing products/brands  4. Reposition… a) company’s products/brand b) competitor’s product/brand­ example­ Apple made Microsoft not cool c) or both What is a brand mantra?  Brand mantras are designed with internal purposes in mind- 3 key criteria  Communicate- should clarify what is unique about the brand. Also needs to define a category of business for the brand and set brand boundaries  Simplify- it should have short crisp and vivid meaning  Inspire- should be personally meaningful and relevant to as many employees as possible.  Ex­Auburn­ can you take another university and plug it in does it work the  same? With the This is Auburn­ it works for other Universities. It’s hard for  Universities to differentiate themselves.  


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