Marketing test 3

What are the four P's in marketing?

Product
Placement
Price
Promotion

Core benefit definition

Why are you buying this product- Core reason

tangible product definition

YOu can touch it, Physical manifestation

Augmented product definition

The Extra stuff like warranties

product mix consist of these 6 things

Design mix
Function
Trademark
name
logo
packaging

Design Mix consist of these 5 concepts

color
size
shape
ingredients
weight

Function of packaging

protection of product to the consumer
protect the consumer
keeps product fresh
gets attention (Promotion)

function of name

To identify it
symbolic communication
legally protect

3 naming strategies

Family name extension
Separate family names
individual brand name

family name extension definition and disavantages

name every product the same, create synergy

disavantages names the same, lose identity. if the new product fails, may be a reflection on other products. Unanticipated problem

Separate family names definition

different names for each product and product line

heinz - heinz products, boston market, weight watchers

individual brand name and the 3 rules

name every product a unique way

rules
1. name is a logical derivative of the product
2. concrete word verses and abstract word
3. easy to pronounce

logo

symbol, represents something about a product

trademark

name and or a symbol

function definition

what does the product do?

synergistic effect on product mix

all elements build off of each other

4 types of consumer products and good

convenience goods
shopping goods
specialty
unsought goods

convenience goods

inexpensive items that you buy all the time

shopping goods

shop for these products and compare features. consumers dont buy all the time like a car

specialty

a product that you have to have. trendy, one of a kind

unsought goods

no buying behavior
you cannot look for them like insurance

characteristic of a service

intangible
labor intense
variability in quality
simultaneous production and consumption
no. inventory

intangible

not real until you purchase it.
restaurant food

labor intense

services are the people - people dependent
doctors

variability in quality

quality can change from time to time. restaurant having cooked meat and not cooked meat

simultaneous production and consumption

as you produce it you consume it
lawn care, restaurant is cooking your food so you can eat it

no inventory

accounting services, cannot service clients after april 15. no more time frames

4 degress of newness in products

new to this world
new product lines
product extensions
improvement

new to this world

new items like ostrich meat

new product lines

new to the company, bic pens producing razors

product extensions

have a product and modify it, heinze red ketchup to green

improvements

new and improved - tide detergent, new formula

percentage of new products failing

80

10 reasons why new products fail

market too small
does not match the company
little support from retailers
poor forecasting
competition
changes in consumer taste
changes in macro environment
organizational problems
needed commitment
non newness in the produc

ESSAY
8 steps of new product development rocss

idea generation
idea screening
concept development
marketing strategy
business analysis
product development
test market
commercialization

idea generation and the sources

process where the company generates ideas
sources - consumers focus groups, research, competition, employess.

idea screening and the 3 types

where company screens ideas to determine if they are good (cut down)

types of screening
Judgement screening
Preliminary market screening
Preliminary consumer testing

preliminary market screening

determines if they could market the idea or not

preliminary consumer testing

focus groups

concept development

stage where a company will conduct multidimensional sclling which compares products and lets a company know where their new product would fit

Market strategy

come up with the 4p's

Business analysis

number crunching
profit
Estimate sales

Cannibalization, a new product could take over sales

product development and the two types of testing

functional test - is it safe
consumer test - consumer tries out

test market pros and cons

optional - mini launch

pros lots of info

cons too expensive, too much time, lets competition know your idea

commercialization and the 2 types

taking product to market

national launch - everyone has acess

roll-out start in one area

4 elements of promotion mix

Advertising
sales promotion
publicity or public relations
personal selling

advertising

a paid for of non personal presentation

sales promotion

activities that simulate purchase

publicity

promotion that is not paid for by the sponsor but not free

personal selling

oral presentation, direct

advertising and its 7 forms

newspaper
tv
magazine
direct mail
radio
outdoor
internet

9 types of sales promotion

coupons
cents off $savings
rebates send it receipt for money back
samples
displays
trading stamps- fuel perks
contests - skill
sweepstakes - lottery
premiums - extras

4 types of publicity

press related
educational materials
sponsored events
product placement

press related

press conference

educational materials

current events on tv sponsored by companies (channel 1)

sponsored events

WPIALS mcdonalds

Product placement

Place product into a movie or show

6 types of personal selling

Prospecting
Pre approach
sales presentation
handiling objectives
close
followup

prospecting

going after customers - cold calls, call everyone

pre approach

find out as much as uou can about a customer

sales presentation and two methods

1. canned presentation - the same for every customer
need satisfaction approach - unique for every customer

handling objectives

people will always say no, give them reasons to buy

close 3 closes

actual sale
Trial close- would you like it delievered by monday
assumption - assume they are going to buy it, would you like it in blue or green
urgency close - this is the last one we have

follow up

ensure there is no cognitive dissonance