MGT 103 - Product Marketing and Management

Market Penetration Strategy

seek to increase sales of existing products to existing markets

Product development strategy

create growth by selling new products in existing markets

Market development strategy

Introduce existing products to new markets

Diversification strategy

Emphasize both new products and new markets to achieve growth

4ps

Product, Price, Promotion, Place

Socio cultural environment

changes in cultural values, ideas, attitudes ex: gender roles, racial and ethnic diversity

Socio cultural forces

Paying attention to Social Media/culture ex: more protein in culture, labubus

Ecocentricism

Assumption someone thinks the same as you

ex: socal narrative, not work in Iowa

Do all goods and services sufferin in a recession?

Stocks, luxury services

Which products might sell better during a recession?

generic product, repair ships, higher ed

Competitive forces

Monopolistic competition - large number of sellers competing offering similar product

Oligopoly

competition with only few suppliers

Monopoly

competition with only one supplier and no substitutes

Purpose of Bus laws

competitive fairness, fair treatment of consumer

Ex: advanced clean cars 2: all new cars sold in Cali will be zero emission by 2035

Apple the greatest ad

promotes value, inclusivity and had recency effect: ends ad with logo

Apple Acessibility ad

showcasing feature for blind, recency effect

Apple lost voice ad

person voice feature for people who cant talk

JFK four rights

safety, informed, choice, heard

Ethical chart

Ethical but illegal

ex: collecting rain water, dumpster diving

Unethical but legal

ex: vapes

Social Responsibility ad

drink responsibility and dont drive and drive

Ethical dimension of social responsibility

companies must be ethically obligated

Stakeholders importancy list

consumer first, employee, supplier, shareholder, community

Corporate social responsibility

individuals and orgs are accountable to larger society

Long term bus plans

impacts today business, sustainability strategy

Local cafe

small target market ( low responsibility)

Global brand

large responsibility (large market)

Green Marketing

marketing effort promote environmental conscious production of product

ex; Patagonia buy back program

greenwashing

making misleading claim about environmental benefits of product/service

Dove commercial

move from functionality to positive effect on world

Dove onslaught ad

self esteem promotes body positivity

Consumer behavior chart

marketing 4ps,

Black box of consumer

what is happening, response

Consumer behavior reflects consumer decision with

respect to acquisition, consumption and disposition of goods and services

Consumer behavior

not reflect action of single individual

Ex: wear bands we dont know

b2b: business to business

Consumers dont know

what they want, dont know what is possible, preferences change over time

Consumer buying decision process

Problem recognition, information search, evaluation of alternatives, purchase, postpurchase evaluation

consumer behavior

process we use to purchase and use and dispose of goods and service

Type of decision making

extended: half way to limited

decision making Limited

could be high risk

decision making Habitual

Easy gather little info

Problem recognition

when consumer sees significant difference between current state and ideal

ex: want milk, no milk in fridge ex: want to upgrade phone even though old is fine

Consumer info search

use your own head with internal and external search ex: choosing school look at ranking, use prior knowledge

Evaluation of alternatives chart

Universe of potential brands and product, evoked set, unawareness set, consideration set, inept set

Product choice Heuristics

price = quality ( not always )

Heuristic

brand loyalty: personal connection

ex: experience

Status quo bias

easy, low risk, consistent

ex: starbucks

Country of origin

ex: chocolate from Belgium considered good

Affect

emotion and feeling

ex: goes what feels good

Normative tactic

analyze how you should behave based on friend and family

Contextual cues

sunk costs: costs you incurred that you cant get back

ex: movie ticket and you watch midway, dont like

Endowment effect

Endowment effect: value that consumer feels about product they feel like its yours

ex: test driving car and it feels like urs

Compromise effect

averse to extreme so you go with middle

ex: tall grande and vente but most pick middle (grande)

Decoy effect

middle option as cue for consumer to buy more expensive option

Cognitive dissonance

sometimes change attitude or behavior

ex: post purchase regret

Internal influences

perception, motivation, learning, attitude, personality, lifestyle

Perception slide

exposure: placed in front, attention

when you notice necafe instant coffee: women who purchased seen as lazy

Classical conditioning

ex: offered meat to dog with bell. Dog used to meat and therefore salivated every time bell rang

Operant conditioning

altering probability of behavior occurring by changing consequence of behavior

ex: buy starbucks drink you get gold star or credit card points

Attitudes

measure towards everything like ad, social ex: ad is stupid, so maybe not for you

Psychographic

group consumer according to psychological and attitudinal similarity

Physical environment

appeal to customer with situational factor such as music in restaurant

ex: cologne sprayed in store

Culture

value, belief, custom and taste produced or practiced by group of people

Parody display

status symbol that move in opposite direction

ex: dirty shoes

Compensatory consumption

spend money to feel better

Aspiration Group

didnt belong but want to

ex: someday I will drive that car

Associative group

belong to

ex: classmate and coworker

Dissociative group

do not belong but not want to

ex: prisoner

Opinion leader

first to adopt product, not social media influencers

Basic research

research to understand consumer behavior or marketing in general

ex: pricing changes on sales

Applied research

research directed at specific problem at specific organization

ex: corporate research segmenting consumer

Primary data

data collected for question you have

ex: survey

Secondary data

collected for another reason already existed ex; previous survey

General rule of thumb

collect secondary data first than primary

Qualitative method for data

require limited number of participants or observation

Qualitative data

measurable and thus easier to interpret and summarize

Research method

depth interview one on one, focus group talk to each other, observation, experimental

Depth interview

used for research, needs to be representative of target market

Focus group

researcher not involved in convo

Observational research

observe in natural setting

ex: home

Experimental research

hold everything constant except independent variable

Correlation

relationship between two variable

Causation

one variable producing an effect in another variable

Determining Segmentation

needs to be similarity of needs of potential buyers in segment, difference of needs of buyers between segments

Segmentation strat

one product multiple segment

ex: finding nemo movie

Segmentation variables chart

demographic variable, geographic variable, psychographic variable, behavioristic variable

Demographic segmentation

age, income gender, occupation

Psychographic segmentation

psychological. sociological, anthropological ex: lifestyle group, activity interests, personality

Behavioral segmentation

how consumer act toward and feel about or use a product

ex: usage status, timing of purchase

Target marketing process

segmentation, targeting, positioning

Positioning

act of designing companies offer and image so it occupies a valued place in target customers mind

Head to head strategy

compete with competitors on similar product attributes

ex: golf balls

Differentiation Strategy

are points of difference compelling

ex: trader joes

Basic Position statement

identifies target market and needs satisfied

Repositioning

thought of it one way and now changing

ex: baking soda

Characteristic of services vs goods

intangibility, inseparability, inconsistency, no inventory

Intangible

buying is experience like cleanliness and service (cant touch or hold)

Inseparable

hotel experience ( delivered and consumed same time)

Inconsistency

more likely in service

ex: haircuts

No inventory

if hotel room is empty that night revenue gone forever