MKTG 3310 Exam 4 Study Guide
MKTG 3310 Exam 4 Study Guide MKTG 3310-001
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This 11 page Study Guide was uploaded by Melissa Cooey on Tuesday March 8, 2016. The Study Guide belongs to MKTG 3310-001 at Auburn University taught by Jeremy Wolter in Spring 2016. Since its upload, it has received 531 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 03/08/16
Thursday, May 19, y MKTG 3310 Exam 4 Study Guide Chapter 7 - Products Components of the marketing offering: value based process product features and quality services mix and quality Customervalue hierarchy Core benefit the fundamental level. The service or benefit the customer is really buying. Ex. a total guest is buying rest and sleep, the purchaser of a drill is buying holes. Basic product at the second level, the marketer must turn the core benefit into a basic product. Ex. a hotel room includes a bed, dresser, desk, bathroom, towels, closet, etc. Expected product a set of attributes and conditions buyers typically expect when they purchase a product. In developing and emerging markets, competition takes 1 Thursday, May 19, y place at this level Ex. hotel guests usually expect clean sheets, working lamps, fresh towels, and quiet. Augmented product exceeds a customer’s expectations. In developed countries, brand positioning and competition take place at this level. Potential product encompasses all the possible augmentations and transformations the product or offering might undergo in the future. Here, companies search for new ways to satisfy customers and distinguish their offering. Product classifications: Durability and tangibility: Nondurable goods tangible goods normally consumed in one or few uses, such as beer and shampoo. Because these goods are purchased frequently, the appropriate strategy is to make them available at many locations, charge only a small amount, and advertise heavily to induce trial and build preference. Durable goods tangible goods that normally survive many uses: refrigerators, machine tools, cell phones, clothes. They normally require more personal selling and service, command a higher price, and require more seller guarantees. Services intangible, inseparable, variable, and perishable products that normally require more quality control, supplier credibility, and adaptability. Ex. haircuts, legal advice, appliance repairs. Consumergoods : Convenience goods goods that consumers usually purchase frequently, immediately, and with minimal effort. Ex. soda, soaps, newspapers. Marketers will place them where consumers are likely to experience an urge or compelling need to purchase them. Shopping goods those the consumer characteristically compares on such bases as suitability, quality, price, and style. Ex. furniture, clothing, major appliances. Specialty goods have unique characteristics or brand identification for which enough buyers are willing to make a special purchasing effort. Ex. cars, men’s 2 Thursday, May 19, y suits. Don't require comparisons, and don't need convenient locations, because buyers will travel to find them. Unsought goods those the consumer does not know about or normally think of buying, such as smoke detectors. Ex. life insurance, gravestones, cemetery plots. Require advertising and personal selling support. Product differentiation: Form the size, shape, or physical structure of a product. Features Performance quality the level at which the product’s primary characteristics operate. Conformance quality the degree to which all produced units are identical and meet promised specifications. Durability a measure of the product’s expected operating life under natural and stressful conditions, is a valued attribute for vehicles, kitchen appliances, and other durable goods. Reliability a measure of the probability that a product will not malfunction or fail within a specific time period. Repairability measures the ease of fixing a product when it malfunctions or fails. Style describes the product’s look and feel to buyer and creates distinctiveness that is hard to copy. Customization allow firms to be highly relevant and differentiating by finding out exactly what a person wants, and doesn't want, and delivering on that. Services differentiation: Ordering ease describes how easy it is for the customer to place an order with the company. Delivery refers to how well the product or service is brought to the customer, including speed, accuracy, and care throughout the process. 3 Thursday, May 19, y Installation refers to the work done to make a product operational in its planned location. Customer training helps the customer’s employees use the vendor’s equipment properly and efficiently. Customer consulting includes data, information systems, and advice services the seller offers to buyers. Maintenance and repair help customers keep purchased products in good working order. Returns returning a product. Product anything that can be offered to a market for attention, acquisition, use, or consumption, that might satisfy a want or need. Product line products that 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 the set of all products and items a particular seller offers for sale. length refers to the total number of items in the mix. width refers to how many different product lines the company carries. depth refers to how many variants are offered of each product in the line. The ways a line can be stretched: downmarket stretch a company positioned in the middle market may want to introduce a lowerpriced line. upmarket stretch companies may wish to enter the high end of the market to achieve more growth, realize higher margins, or simply position themselves as fullline manufacturers. twoway stretch companies serving the middle market might stretch their line in both directions. 4 Thursday, May 19, y The 4 P’s of luxury: Patricians have wealth & do not need status. Parvenus have wealth & need status. Poseurs does not have wealth & need status. Proletarians does not have wealth & do not need status. Chapter 9 - Branding Brand a name, term, symbol, design, or combination of these items that are intended to identify and differentiate a seller or a seller’s product from competitors. the point of branding is to distinguish the goods of one producer from those of another, and allows customers to assign responsibility of its performance to that maker or distributor. Customerbased brand equity the differential effect brand knowledge has on customer response to the marketing of that brand. Brand Resonance Pyramid 5 Thursday, May 19, y Brand salience AKA “brand awareness” how often and how easily consumers think of a brand under different consumption situations. Brand meaning the set of associations linked to the brand. Performance price, reliability, durability, effectiveness Imagery social meaning, environmental, style, personality Connection Brand response judgements and feelings Response judgments quality, value, ubiquity, Meaning healthiness. feelings happiness, safety, Awareness relaxation, exhilaration. Brand resonance the relationship customers have with a brand and extent they feel “in sync” with the brand. AKA a deep psychological bond the connects a brand to a customer’s identities. Brand Dynamics Model: Brand value hierarchy you have the most expensive brands, the least expensive brands, and the brands that are stuck in the middle. Brands that are stuck in the middle have to differentiate themselves because there are so many. Building brand equity: 6 Thursday, May 19, y brand elements devices, which can be trademarked, that identify and differentiate the brand. Ex. “Just Do It” and “swoosh” logo for Nike. holistic marketing activities brands are not built by advertising alone. This is useful mostly with the use of brand contact any informationbearing experience, whether it be positive or negative, a customer or prospect has with the brand, its product category, or its market. The company must put as much effort into managing these experiences as into producing its ads. leveraging secondary associations create brand equity by linking the brand to other information in memory that conveys meaning to customers. These “secondary” brand associations can link the brand to sources such as: the company itself, countries or geographical regions, other brands, spokespeople, sporting or cultural events, characters, or some other thirdparty sources. Chevrolet and CocaCola: Chevy Chevy has been all over the place, and doesn’t stand for anything. Their “phrases” change and never really have a meaning. “ The heartbeat of America,” “Chevy runs deep,” “May the best car win.” Their phrases are changing but not staying consistent. Coke All if their phrases stand for happiness “Have a coke and smile,” “Open happiness,” “Make it happy.” Coke is consistent and even though they change the actual phrase, they have the same meaning. Pepsi taste test Pepsi had people taste Coke and Pepsi, but didn’t tell them which was which, and people actually preferred Pepsi when they didn’t know what it was. But when they found out what they were drinking, they were so surprised because 7 Thursday, May 19, y Coke has such a strong brand, and people gravitate to it, so they thought they would like Coke more. Oldsmobile “This is not your father’s Oldsmobile.” Revamped themselves to appeal to younger people. But the problem was that the Oldsmobile identity had become so strong and widely understood that it was impossible to overcome. Corporate branding AKA ‘Family branding” or “Umbrella branding.” Their name gets put on everything. Ex. Trump, Virgin, Campbell’s soups. Problem is that if one product fails, it will affect all other products under that name. Separate brands reduces risk, but costs a lot. Made by the same company, but has a different brand name so that if one product has a big failure, it shouldn’t affect the other products that they sell. Ex. General Mills largely uses individual brand names such as Bisquick, Nature Valley, and Progresso. Subbranding combine 2 or more of the corporate brand or separate brand names. Ex. Kellogg's Raisin Bran, Kellogg’s Rice Krispies. Brand extensions when a firm uses an established brand to introduce a new product. Ex. Zippo cologne, Dr. Pepper barbecue sauce, Starburst shampoo. positive outcomes: improves odds of new products success positive feedback negative outcomes: brand dilution meaning becomes less defined negative feedback effects based on: fit products must fit together and make sense strength of brand power of the brand 8 Thursday, May 19, y amount of successful extensions the extent that you have been successful with previous brand extensions will determine if future brand extensions will be successful. but beware of ‘fit’ because fit enables that negative feedback affect. The more fit that the products have between them, the more the brand could be hurt if something goes wrong. Chapter 8 - Positioning Positioning the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market. Key ideas of positioning: 1. You can only own one position 2. A position can only be owned by one brand. 3 steps to positioning: 1. Choose competitive frame of reference defines which other brands a brand competes with and which should thus be the focus of competitive analysis. 2. Identify and choose POP and POD. 3. Create a brand mantra to summarize the essence of position. What are POD and POP?: Pointsofdifference (POD) attributes/benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand. Desirable Deliverable Differentiating 9 Thursday, May 19, y Pointsofparity (POP) attribute/benefit associations that are not necessarily unique to the brand, but may in fact be shared with other brands. Category Correlation Competitive Perceptual Map visual representation of consumer perceptions and preferences grid with attributes on two different axes you “map” your brand along with competitor brands to get a sense of the markets Perceptual map is used to: 1. Identify important attributes 2. Discover how company’s products/brands are perceived. 3. Discover how target customers rate competing products/brands 4. Repositioning… a. company’s products/brand b. competitor’s product/brand c. of both Brand mantra its purpose is to ensure that all employees within the organization and all external marketing partners understand what the brand is to represent to consumers so they can adjust their actions accordingly. Communicate clarify what is unique about the brand. It may also need to define the category of business for the brand and set brand boundaries. Simplify should be memorable. It should be short, crisp, and vivid in meaning. 10 Thursday, May 19, y Inspire should stake out ground that is personally meaningful and relevant to as many employees as possible. 11
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