MKT 301 - Exam 3 Study Guide
MKT 301 - Exam 3 Study Guide MKT 301
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This 11 page Study Guide was uploaded by Rachel_Anderson on Wednesday March 23, 2016. The Study Guide belongs to MKT 301 at Clemson University taught by James Gaubert in Spring 2016. Since its upload, it has received 23 views. For similar materials see Intro to Marketing in Marketing at Clemson University.
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Date Created: 03/23/16
MKT 301 Exam 3 Study Guide Gaubert Chapter 11 Product, Branding, Packaging Decisions Types of Products ● Specialty ○ consumers show such a strong preference that they will expend considerable effort to search. ■ wedding gown, college apparel, antiques ● Shopping ○ consumers will spend ■ shoes, appliances, cell phones ● Convenience ○ can goods, shampoo, candy ○ umbrella for sale on campus while raining: will most likely buy ● Unsought ○ fire extinguishers, dictionary, medical supplies Product Mix & Product Line Decisions ● Breadth ○ number of product lines ■ diversify, create new products under brand ■ do market research in terms of competition & uncharted territories ● Depth ○ Number of categories within a product line ■ expertise What Makes a Brand? ● Brand name ● URLs ● Logos & symbols ● Characters ● Slogans ● Jingle/Sounds Value of Branding for the Customer ● Facilitate Purchasing ● Establish Loyalty ● Protect from Competition ● Reduce Marketing Costs ● Are Assets ● Impact Market Value Brand Equity: Perceived Value ● How do discount retailers like tjmaxx for example, create value for customers? ○ marketing costs are much lower ○ firm insulated from competition Brand Ownership ● Manufacturer brands of national brands ● Privatelabel brands or Store Brands ○ Premium ■ PANTONE Colors ○ Generic ■ Cereal ○ Copycat ■ Anyone can make aspirin as long as it doesn't have a ™ ■ anyone can make elevators as long as it doesn't have a TM ○ Exclusive cobranded Brand Dilution ● Evaluate the fit b/w the product class of the core brand and the extension. ● Evaluate consumer CoBranding ● Taco Bell & Pizza Hut conjoined restaurants Brand Licensing ● images, logos, colors are able to be branded Packaging ● Packaging is a way of complementing other factors like ○ shape of package Product Labeling ● Not only nutrition ● Good customer service ● ingredients, allergies Chapter 12 Developing New Products Innovation & Value ● Why do firms create new products? ○ Changing Customer Needs ○ Market Saturation ■ market constantly changes ■ everyone has been reached ○ Managing Risk Through Diversity ○ Fashion Cycles ■ things go out of style ■ people get bored ○ Improving Business Relationships ■ source of new ideas Diffusion of Innovation ● Discontinuous ○ **Note, route word: continuity ■ a major innovation ● They don’t come along that often ● Ex: telephone ○ able to communicate through technology instead of mail, telegraph, or facetoface ○ AT&T = American Telephone & Telegraph ○ Has also evolved overtime ■ From landline to mobile ● make sure to charge mobile but route purpose does not change, still completes the task ○ Dynamically Continuous ○ Continuous Time of adoption of the innovation graph/curve ● Innovators ○ small percentage but very important ■ people who are willing to try things ■ tend to skew in higher intelligence to understand complexity ■ cannot guarantee success ● Early Adopters (key) ○ keen for us to try to identify ○ more important than innovators ○ does the product matter/tries it out and decides if it's worth it ● Early Majority ○ watch early adopters & trust their opinions ● Late Majority ○ Trusts early majority ● Laggards ○ people who eventually accept the innovation/product ● Not in Graph: People who Never Accept the Innovation ○ give us insight to why they don’t, help us understand what we need to change for them to accept it Using the Diffusion of Innovation Theory ● Factors Affecting Product Diffusion ○ Relative Advantage ○ Compatibility ○ Observability ○ Complexibility & Trialability ■ has a disadvantage because complexity can slow you down Idea Generation ● Source of Ideas ○ Internal R&D ○ R&D consortia ○ Licensing Concept Testing ● Concept is a brief written description of the product Product Development ● Prototype ● Alpha testing ○ let employees, engineers test the product first ○ first test Alpha so it stays within the company and not competitors ● Beta testing ○ when consumers test the product Market Testing ● Premarket Tests ○ customers exposed ○ customers surveyed ○ firm makes decision Test Marketing ● Mini product launch ○ small test; geographically ● More expensive than premarket tests ● Market demand is estimated Product Launch ● Most new products fail within the first year New Product Marketing Mix ● Promotion ○ Helps the firm determine an appropriate integrated marketing communication strategy ● Price ○ Manufacturers often encourage retailers to sell at a specified price known as the manufacturer's suggested retail price (MSRP) ● Place ○ The manufacturer coordinates the delivery and storage of the new products with its retailers to ensure that it is available for sale when the customer wants it, at the stores the customer is expecting to find it, and in sufficient quantities to meet demand. Product Life Cycle **Profitability is the signal that triggers us to move into early majority Strategies Based on the Product Life Cycle: Some Caveats ● Bell shaped, but can take many shapes ● Challenging to know precisely the stage of the PLC REMEMBER** JIF Peanut butter = BRAND, NOT PRODUCT Peanut Butter = Maturity life cycle Chapter 13 Services: The Intangible Product Services Marketing Differs from Product Marketing ● Factors differentiating services from goods ○ Inseparable Production & Consumption ■ Production & consumption are simultaneous ■ little opp to test a service before use ■ lower risk by offering guarantees or warranties ○ Heterogeneous ■ Technology ● standardized interface so people can use ■ Training ● working with trained employees ■ Automation ● working with machines ○ Perishable ■ Want to optimize and prevent this from happening ● ex, offer lower price admission for matinee to bring more people to the theatre during the day ■ How are each of these perishable services? ● Plane ● Family ● Hotel ○ Intangible ● Requires using cues to aid customers ● atmosphere is important to convey value ● images are used to convey the excitement ● Customer might pay more knowing that the intangible service will make them satisfied ○ ex, free shipping Evaluating Service Quality ● RATER ● Reliability ○ the ability to perform the service dependably and accurately ● Assurance ○ how do we show they will get what they want when they want ● Tangibles ○ appearance of facilities, employees, & communication materials ● Empathy ○ be nice, understanding ● Responsiveness ○ understanding customer needs & responding in a timely fashion The Standards Gap ● Developing systems to create highquality service The Delivering Gap ● Delivering service quality The Communications Gap ● communicating the service promise Service Recovery ● Increase service Recovery ○ Listen to the customer ■ see what the problem is ■ figuring out a solution ○ Resolve problems quickly ■ Attempt to make amends & learn from the experience Chapter 14 Pricing Concepts for Establishing Value The 5 C’s of Pricing ● Value ○ Competition ○ Costs ○ Company objectives ○ Customers ○ Channel members 1st C: Company Objectives ● Profitoriented ○ focused on financial gain ○ Ex, commercial ● Salesoriented ○ ability to make profits on using powerful selling techniques ○ persuade people to buy its products ■ rather than on customer needs. ● Competitororiented ○ Competitive parity ○ Status quo pricing ○ Value is not part of this pricing strategy ● Customeroriented ■ Focus on customer expectations by matching prices to customer expectation 2nd C: Customers ● What price levels will affect our demand bc that will affect our profit ○ Not all are downward sloping ○ Prestigious products or services ● Price elasticity of Demand ○ Elasticity: People's demand will change a lot when they’re demand sensitive ○ Inelasticity: price insensitive → when price goes up for milk you’ll still purchase it ● Factors Influencing Price Elasticity of Demand ○ Income effect: the change in the quantity of a product demanded by customers due to a change in their income. 3rd C: Costs ● Variable Costs ○ Vary w/production volume ● Fixed COsts ○ Unaffected by production volume ○ Total Costs ○ Sum of variable & fixed costs ● Break Even Analysis & Decision Making ■ At what point are we selling enough fixed & variable costs to get to where we breakeven? 4th C: Competition ● Monopoly ○ One firm controls the market ● Oligopoly ○ A handful of firms control the market ● Monopolistic Comp. ○ Many firms selling differentiated products at different prices ○ Rolex watch vs WalMart watch ● Pure Competition ○ Many firms selling commodities for the same prices ○ Airlines or Oil Industries 5th C: Channel Members ● Manufactures, wholesalers & retailers can have different perspectives on pricing strategies ○ Are they in line with what we want our pricing strategy to be? ○ Manufacturers must protect against gray market transactions ■ Be careful about gray markets ● When you sell down the channel instead of at the top of the market (look it up)** ● Everyday Low Pricing (EDLP) vs. High/Low Pricing ○ Market penetration pricing ● Price skimming ○ Price high, won't sell as many but you'll build a lot of brand equity ○ EX: Even with status quo pricing it's one of the ones that's the most fragile ○ Don't use old pricing strategies from 1020 years ago because the variables will change ○ Won’t be able to sustain your company ■ TACO BELL FINAL SIDE NOTE ● When talking about pricing its webbed with promotions; ○ quantity discounts: ■ have to be aware as a buyer as the wholesaler or retailer: ● if you’re doing accumulative discount, if you’re getting something free after buying a higher quantit → they’re trying to get rid of inventory ● If they’re going togive you the discount once you hit that amountthen → the purpose is to get the customer/buyer to keep coming back ● Also look at the prices being charged → who’s paying for the shipping?
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