Principles of Marketing, Notes, Week4
Principles of Marketing, Notes, Week4 MKT 3310-003
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This 5 page Class Notes was uploaded by Johanna Glaser on Friday September 16, 2016. The Class Notes belongs to MKT 3310-003 at University of Nebraska at Omaha taught by Amy Rodie in Fall 2016. Since its upload, it has received 81 views.
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Date Created: 09/16/16
Week 4 Chapter 10: Products Products (goods, services, ideas, & experiences) Most important element in the Marketing Mix Marketing is a process of creating, distributing, promoting, & pricing products to facilitate satisfying exchange relationships with customers and stakeholders in a dynamic environment …. if the Target Market doesn’t want it, nothing else you do matters o Core: basics; must haves o Extras: supplements Many become basics o Extra, Extras! (Augmentations) ‘value added’ may provide competitive advantage IF highly-valued by Target Market To Target Market: Anything received in a commercial “exchange” “bundle of benefits” functional (how it will help you) Psychological (how it makes you feel) Social [other people (attention, networking)] To the Firm: Attributes & Features(benefits) Attributes: about the product itself Features: about what the customer receives Classifying Consumer Products Convenience Products: buyer will choose a substitute to preferred brand that is not conveniently available Found in grocery stores, drugstores, etc. Shopping Products: buyer compares prices, features, qualities, and services before making a purchase Items that will last a while: bicycle, camera, shoes Specialty Products: Possess one or more unique characteristics, buyers will NOT accept a substitute Decision not based on price Ex. Jewelry Unsought Products: Customers are unaware of need until they see them in a store or online Medical emergency, auto repair, etc. Terms: Product Item: is a specific version of a product that can be designated as a distinct offering among a firm’s products Ex. Reese’s Peanut butter cups Product Line: a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations Ex. Reese’s Peanut butter cups: all the product that fit in a category Product Mix: the total group of products that an organization makes available to customers Ex. All lines of Reese’s, including: cups, nuts, brownies, Christmas, Easter, Hulk Depth of Product Line: How many products are stacked in a line The average number of different product items offered in each product line Width of Product Mix: The number of product lines a company offers “Commercialization” = “Introduction Stage” of the Product Life Cycle (PLC) Purpose of the Product Life Cycle A management tool Provides a “chunk” of information to save you from conducting extensive research Gives guidance regarding what is happening with your brand, your competitor’s, your industry, the competitive environment Provides some “heuristics” (rule of thumb) for appropriate decisions Brands & Branding Brand: the name, term, design, symbol, or any other feature that identifies ones good/service Brand Name: the part of a brand that can be spoken Brand Mark: the part of a brand not made up of words Trade Mark: a legal designation of exclusive use of a brand Trade Name: full legal name of an organization Choosing a Brand Name: Not offensive to Target Market Easy to say, spell, recall Service Brand= company name o United Airline, Kinkos, Harvard Distinctive (kisses, kitkat) Suggest uses, characteristics o Downey, Tide, Band-Aid, Mr. Clean Protecting a Brand……from becoming a generic name…. When the brand name becomes the products category’s name Ex. Band-Aid, Kleenex, Xerox, Kool-Aid 1. Spell name with capital letter 2. Use the name to modify the product category 3. Include the word “Brand” 4. Use ® Brand Equity: the marketing & financial value associated with a bran’s strength in a market Well managed brand= asset Can become a huge liability Ex. Enron Named- wareness Brand Bran Perceived Associati d Brand on Equi Quality ty Brand Loyalty Brand Brand Brand Awarene Preferen Insistenc ss ce e • "accept no substitute " • AKA: Specialty Product Benefits of Branding ……for customers: easily identify product that meets your needs, more efficient in time & effort, price used as indicator of quality, once Target Market has associations then product can be used for self- expression ……for sellers: branding identifies their product so Target Market can find it, brand equity helps a firm launch a new product item, promote one product item, promotes all product items, brand loyalty allows firm to use resources elsewhere ……and a ‘cultural dimension’ Ex. Apple, through widespread association Chapter 11: Developing Product Lines Idea Screening Concept Business Generation Testing Analysis Test Commercializ Marketing Product ing Development • To buyers new producta *Like a funnel New Ideas Screeni ng Testing Comes out a new product (Commercializing) Managing Existing Products Production Line Extension: add a new item to product line o Relates to current product item(s) o But meets different customer needs Ex. Reese’s o ADDS to the product line Product Modification: change one or more attributes in a current product item o Modify item replaces previous version o Original item is removed from product line o REPLACES items in a product line Ways to Modify a Product Function or Quality o Improve dependability, durability, convenience, safety, effectiveness Aesthetic o Improve sensory appeal to 5 senses (appearance, sound, taste, texture, smell)
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