Principles of Marketing Notes Week 8
Principles of Marketing Notes Week 8 MKTG 3310 - 001
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This 4 page Class Notes was uploaded by Kelsey Bixler on Friday March 4, 2016. The Class Notes belongs to MKTG 3310 - 001 at Auburn University taught by Jeremy Scott Wolter in Fall 2015. Since its upload, it has received 56 views. For similar materials see Principles of Marketing in Marketing at Auburn University.
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Date Created: 03/04/16
Principles of Marketing Week 8 March 1, 2016 Components of the marketing offer-with any kind of product you a=have tangible features, intangible features and price. 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. But how do judge the quality of a service? Ex- getting you to your destination on time (efficient loading and unloading are going to be intangible aspects), comfortable seating (tangible quality) Value based process Product Features and qualities Services mix and quality Customer value-hierarchy- what ever form of your product serves a basic needs and moves up in hierarchy. Ex- hotel- core benefit- gives you a place to stay the night. Basic product- bed. Expected product- clean, towels, TV. Augmented product- things that you put in to differentiate yourself- ex for hotel- Wi-Fi used to be one. Potential- disrupting the market in some way- ex- IPhones., Residence inn- gives you a kitchen, groceries 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. 2 types of goods Nondurable 5 hour energy, fuel, paper towels lower margins, usually chosen on convenience. Durable goods things that last for a while phones margins are higher, you aren’t buying them as much. Service ex hotel Consumergoods classification Conveniencego buy whatever you typically used ExQtip Shopping things that you go out and shop for weigh the benefits ex Toms Specialty serve a unique need people go out of their way to buy it not being sold everywhere ex Oculus virtual reality headset 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 Feature fatigue the idea that consumers get warn out by a product that has too many features. People think that they might need all these features and will have anticipated regret But when you buy it you usually only use a few of the benefits this is where the fatigue sets in you think you paid too much for features that you don’t use. Ex point and shoot camera Xbox 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 Product systems and mix Product system Product mix/assortment Item Angry birds Product line (any group of products that serve a similar needline of angry birdy games Mix all products all product lines that you possibly have ex All Angry Bird Products These are all company specific Product line- 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 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 Product line length Line stretching stretching my line to cover area of my market that I’m not covering 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 Luxury Items example luxury water commercial Besides brand names, other brand element logo etc. Coach bags offer bags with logos all over it, ones without logo are super expensive. 4 Ps of LuxuryPatricians 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. March 3, 2016 The idea of branding is difficult to do well. What is a 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 Example Coke 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 the power of a brand AKA “customerbased brand equity” – the power of my brand can be measured by how customers react to my brand compared to other products and non branded products The differential effect of brand knowledge in consumer responses to marketing. Familiarity breeds liking Interbrands comes up with the top 100 brands every year. Brand Equity models: (ignore brand evaluation model in the book) 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 Salience 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. Brand meaning the set of associations linked to the brand performance functional attributes of a produc Price, Reliability, Durability, Effectiveness, Healthiness. Imagery Social meaning, Environmental, Style, Personality Do you want a lot associations with brands? It depends If you have a few it is easier to control the associations and make them stronger. BUT if you have a lot of associations it is more likely to become salient in your mind Example brown you think of UPS What is brand response? 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. Brand resonance 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. Brand Resonance Pyramid See 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. Building Brand Equity building elements memorable, meaningful, likable Defense element Transferable, adaptable, and protectable. Example Chick Fila “where gracious meets good” Designing a 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 associations partner with another company or celebrity and hoping what they stand for will be associated with the brand. Brand meaning can be complex or simple complex don’t naturally go together example is Chipotle. People who have a more simplistic view of themselves usually like simple brands more. Smart Cold the more you’re seem as competent, intelligent you are colder. Nice warm nice but not usually seen as intelligent. A Brand Hierarchy? Low price at the bottom. High Price at the top. Everyone else is squished in the middle. Have to differentiate yourself or else the top and low brands will take your 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. 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.