marketing

Product

Need satisfying offering of a firm: including customer service, packaging, warranty and brand

Manufacturing quality

Focus is meeting standards during production

Customer driven quality

Focus is exceeding customer satisfaction

Individual product

A specific product within a product line ex: tide pod

Product lines

Set of individual products that are closely related (tide products)

Product assortment

Set of all product lines and individual products that a company sells (P&G)

Branding

The use of a name, symbol, or design to identify a product

6 levels of brand familiarity

1. Rejection

2. Non recognition

3. Recognition

4. Preference

5. Insistence

6. Evangelism

Rejection

potential customers wont buy a brand unless its image is changed - or if the customers have no other choice. very expensive to overcome

Nonrecognition

final customers do not recognize the brand at all

Recognition

customers remember the brand

Preference

target customers usually choose the brand over other brands

Insistence:

customers insist on a firms branded prodcut and are willing to search for it

Evangelism

so enthusiastic about a brand that they actively spread positive word of mouth

family brand

the same name brand for several products. the goodwill of one helps all the others

Licensed brand

a special kind of family brand that sellers pay a fee to use ex) kendra scott pays disney

individual brand

separate brand names for each product. when it is important for each product to have a seperate identity.

Generic Brand

no branding- plain packaging at lower prices. Common in less developed nations. Best example: prescription meds

manufacturer branding

brands created by producers. availiable in all stores. not just a specific one. colgate, marriott, mastercard, mcdonalds

Dealer Brands

also known as private brands. created by intermediaries: up and up (target), Equate (walmart), kirkland (costco) - Dealer, DSG brand Dicks Sporting Goods

TM

use for goods while you are in line to get R

SM

use for services while you are in line to get R

R

can sue others at this point

what can a trademark be

TM, SM, or R

packaging

promotes, protects and enhances the product

warranty

what a seller promises about its product. is a signal of quality

4 stages of the product life cycle

1. market introduction

2. market growth

3. market maturity

4. sales decline

market introduction

• profitability is negative

• sales are low

• very informative promition

  • investing in future profits

market growth

• profitability becomes positive - break even point

• causes competitors

  • often times fast followers will do better than the original

Market maturity

• profitability starts to go down because of the amount of competitors

• promotion is persuasive, very costly

• brands are more similar

  • lasts the longest

sales decline

both revenue and profitability are declining

companies begin to phase out products

prices are driving competition

conservative buyers are late adopters

what changes during the product life cycle

attitudes and needs of target customers

do sales and profits always move together

no

what does the product life cycle represent

a whole market, NOT a specific brand

most new products fail! what is the way to prevent this?

new product development process

how long are products new for

6 months

new product development process

idea generation

screening

idea evaluation

development

comercialization

continuous innovations

new products that dont require customers to learn new behaviors.

variations on existing product ideas can make a customer new

dynamically continuous innovations

reuire minor changes in customer behavior

channel of distribution:

series of firms or individuals participating in the flow of products from the producer to the consumer. attempting to make the right quantities availible in the right locations when consumers want them

direct channel

full control of the marketin mix

gather data and knowledge

very common in B2B because they want more customization

Indirect channel

intermediaries have specialized knowledge and can provide capital

discrepancy of quantity

producers want to make large quantities, consuemers want smaller amoutns of a lot of things

sorting

separating based on grades and qualities

assorting

putting together a variety of products to give a target market a mix

bulk breaking

decreasing quantity

accumulating

increasing quantity

why is there conflict within channels

channel members do not always have the same goal

channel captain:

manager who helps direct the activities of a whole channel

administered channel systems:

channel members informally agree to cooperate with each other by syncing activites

contractual channel system:

channel members agree by contract to cooperate with one another

are place decisions able to change easily?

no

selling direct to customer is more common for what type of business

business to business

Traditional:

make little or no effort to cooperate with each other. Buying and selling from each other is the exten of the relationship

vertical (indirect)

• whole channel all works together to reach the same target market at the end of the channel - high levels of coordination

  • producer —> wholesaler.—> retailer —> consumer

  • little interaction with final consumer for the producer

  • growing in popularity

Omnichannel

multichannel selling approach in which a retailer provides a seamless consumer shopping experience

Reverse

used to retrieve products that customers no longer want

ideal market exposure

makes a product available widely enough to satisfy target customers’ needs, but not exceed them

intensive

anyone who will take it

selective

who will give the product special attention

exclusive

only available with one retailer in a particular geographic region

multichannel distribution:

when a producer uses several competing channels to reach the same target market

physical distribution is what

invisible to most customers

containerization

goods are pput in a container before being transported so that nobody touches the goods

piggybacking

moving the container from one mode of transportation to another

storage

marketing function of holding goods so that they are available when needed. balances supply and demand and allows prices to stay steady

balances supply and demand and allows prices to stay steady

can use economies of scale

distribution centers

perform regrouping here — not for storage

physical distribution concept:

focuses on delivering the desired service at the lowest cost through a coordinated approach as one system

total cost approach

evaluating each possible distribution system and identifying all the costs of each alternative

Retail

all of the activities involved in the sale of products and services to final consumers

department stores

• declining, squeezed by specialty stores and mass merchandisers

• wide and shallow product service

• make money on margin

specialty shops

distinct personality and shopping environment

mass merchandisers

• target and walmart

a store with low priced products aimed at driving fast turnover and greater sales

category killer

• single line mass merchandiser

• best buy in electronics or pet smart in pets

• provide a large assortment within a category

convenience outlets

offering products to customers at a convenient location

wholesaler

but from producers and sell to retailers

merchant wholesaler:

wholesaler owns the products (think M - mine)

agent wholesaler:

does not own the products,

brokers

have a short term temporary relationship with the buyer and seller while a particular deal is negotiated

integrated marketing communications:

intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message about the organization and its products

source does

encoding, deciding what it wants to say

recieved does

decoding, translating the messge

personal selling:

one on one communication between a company and its customers

mass selling:

talking to everyone at once through advertising

sales promotion

drives intrest in the product in the short term (might sell more now and less later but about the same over time, getting the message to the consumer now)

advertising

paid, non-personal presentation of ideas

publicity

free, but lose control of the message

promotion objectives:

informing, persuading, reminding

Pushing

producer —> wholesaler/retailer: trying to get retailers to use more marketing tactics to make more product sales

pulling:

producer —> end customer: getting customers to ask intermediaries for the products. is targeted at end customers (coupons)

promotion budget

• percentage of sales: establish the percent based on last year or competitors

• task method: focuses on the amount being spent by competitors

AIDA model:

• downward funnel

• top and widest is awareness

• I: intrest

• D: desire

• A: action

personal selling

trying to help a customer find a need satisfying good

often a company’s largest single operating expense

mostly B2B

cant really show things often so you have to be great at communicating

types of personal sellers

order getters, order takers, supporting

order getters:

establish relationships with new customers and developing new business

order takers:

sell to regular/established customers

supporting:

help the order-oriented salespeople, but dont try to get orders themselves. try to help in the long run

best ways to motivate salespeople

1. give them the right role

2. give them a sense of achievement

3. total compensation

what compensation plan is prefered by smaller companies?

straignt commission

intrinsic value product: simple thing like bottle of coke

less need for salespeople

combine in org under marketing