Principles of Marketing Study Guide Exam 4
Principles of Marketing Study Guide Exam 4 MKTG 3310 - 001
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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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