Everything I need to Know For marketing final so I get a 100

What are the 4 Ps?

Product, Price, Promotion, and Place

what is a product?

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers

what are tangible attributes

percieved by one of the 5 senses

do both intangible and tangible attributes offer value to the customer

yes

what are goods?

tangiable, physical items that offer the same benefits every time

what are services?

intagible activities or benefits that are provided by an organization to satisfy consumers needs in exchange for money or something of value, not able to be stored and only avaible at time of use. Consistency varies.

T/F product offerings can only be a good or a service, not both

false- product offerings can be a combination of physical goods and services

What is nondurable good?

goods consumbed in one or a few uses, inexpensive and purchased frequently.

what is a durable good?

last over many uses, cost more and last longer

what is more important for nondurable goods: ads, wide distribution, or personal selling

advertisement and wide distribution

what is more important for durable goods: ads, wide distribution, or personal selling

personal selling

what are consumer products

products (convenience, shopping, specialty, and unsought) purchased by the end consumer

what are business/industrial products

component and support products purchased by companies to make other products

what are convenience products

purchased frequently, conveniently, minimum shopping effort and inexpensive

what are shopping products

consumers compare several alternatives of pricce, quality, and style with more selective distribution

what are specialty products

consumers make a special effort to search and buy, limited distribution (luxury products)

what are unsought products

infrequet purchase, comparison shopping, and awareness is essential

what is product item

specific product that has unique brand, size, price, or stock keeping unit (SKU)

what is product line

a groupd of product/service items that are closely related because they satisfy a class of needs, are used together, are sold to same customer group, are distributed through same outlet, or may fall within a price range

what is a product mix

consists of all product lines offered by an organization

when is a product considered new when compared to existing products

if the product is funcationally different from existing products

what is the consumer perspective of a new product

classified by the degree of learning required by the consumer

what are the three degrees of innovation- which one requires totally new learning from customers

continuous, dynamically continuous, and discontinuous- discontnuous

what are the three possible new products an organization can create

product line extension, significant jump into innovation/technology, or brand extension

what is brand extension

using brand name to introduce a new product in an unfamiliar market

what is product line extension

the least risk, adding a product to existing line

what is a significant jump into innovation/tech

elevating existing product with better technology (ie flip phones to cell phones)

what is a new products protocol to determine if it will succeed or fail

well-defined target market, specific consumer need, wants, preference, and how the product will satisfy consumers

why do new products fail (many reasons-aim for 4)

insignificant point of difference, no economical access, incomplete market and product protocol before development starts, not satisfying customer needs, bad timing, poor product quality, too little market attractiveness, poor execution of marketing mix

what are the seven steps to new product development?

new product strategy development, idea generation, screening and evaluation, business analysis, development, market testing, and commericalization

what is strategy development

define the role for a new product in terms of the firm’s overall objectives, SWOT analysis and determine what market to go after 

What is idea generation

open ideas, can come from consumers, employees, suggestion boxes, competitors, or consultants

what is the goal of the screening and evaluation stage

to reduce the number of ideas

what are the two ways to reduce the number of ideas in the screening and eval stage

internal idea testing (is the idea obtainable) and external testing (preliminary tests with consumers to gauge if idea would be valuable)

what is the business analysis stage

specify the product features, marketing strategy, and financial projections

What is the economic analysis

sales, cost, profit projections

what is marketing strategy review

cannibalization, distribution, etc…

What is legal examinations

patent, copyright concerns and the last checkpoint before significant investment

in the development and market testing stage what are three things you can do

gear up for production (engineers and marketers create prototype), test markets (offer product on sale), and simulate test markets (mall interviews or in a lab)

what is a prototype

a full scale model of the product

what is included in the commercialization stage

launch the product in full scale production, establish production and set up distribution, advertise, promote, (sometimes introduction comes as regional roll-outs)

what is the product life cycle?

the stages a new product goes through in the market place: introduction, growth, maturity, and decline

what is main goal of introduction stage

product awareness and stimulate trial

what combination of cost, low sales volume, growth, and profit is appropriate for the introduction stage

high cost, low sales volume, slow growth, and low profit

what is primary demand

desire for entire product class rather than specific brand (soda)

what is selective demand

preference for specific brand (pepsi)

what is skimming pricing strategy

high price, helps recover cost of development

what is penetration pricing strategy

low price, builds sales volume

what is the goal of the growth stage

differentiate ot build brand loyalty and generate repeat purchases

what is the strategy of growth stage

adjust marketing mix to reach sales momentum, expand product offerings/distribution, create selective demand, keep price steady or fall slightly

what is the goal of maturity stage

holding market share through further product differentiation and finding new buyers while maintaing brand loyalty

what is the strategy for maturity stage

product modification or differentiation, market modification (expansion)

what is the goal of the decline stage

stay profitable

what is the strategy of the decline stage

deletion or harvesting

what is deletion

dropping the product, when you have negative profits

what is harvesting

retain the product, but reduce market costs, as long as you have positive profits

what are the four aspects of PLC

length, shape, levels of products (class vs form), and consumer adoption

what has a longer product life cycle? consumer or business products

business products

what are two things that shorten PLCs

mass communication and technology

what is the shape of the PLC

shape of the sales vs time curve through the four stages

what are the four shapes

high learning, low learning, fashion, and fads

what is special about fad shape

it does not go through all four stages of PLCwha

what is special about fashion shape

it declines, but then profits again (up and down)

what is product class

refers to entire product category or industry (music listening device)

what is product form

pertains to cariations within the proudct class (CD vs cassette)

what are the two product levels

product class and product form

what are the 5 types of consumer adoption groups

innovators, early adopters, early majority, late majority, and laggards

what are characteristic of innovators

2.5% of pop.- venturesome, higher educated, and use multiple info sources

what are characteristics of early adopters

13.5% of pop- leaders in social setting, slightly above average education

what are characteristics of early majority

34% of pop.- deliberate and many informal social contacts

what are characteristics of late majority

34% of pop. skeptical and below average social status

what are characteristics of laggards

16% of pop. fear of debt, neighbors and friends are information source

what are some reasons consumers do not purchase product at the same time

diffusion of innovation, barriers to product adoption (usage, value, risk, or psychological barrier)

what are ways companies attempt to overcome barriers to product adoption

free samples, extensive usage instructions, money back gaurantee

what are the 3 ways to manage the PLC

modify the product, modify the market, or repositioning the product

what is the role of a product manager

manage existing products; develop new products; approve ad copy, media seelection, package design; and data analysis (monitor sales, market share, and profit trends)

what is CDI

category development index: (percent of product category’s total sales/percent of total population) *100

what is BDI

brand development index: (percent of brands total sales/percent of total population) *100

what does it mean if BDI is lower than CDI

particular brand is not doing as well as the product is doing (promote the brand!)

what does it mean if CDI is lower than BDI

the brand is doing very well, but the product is not in demand (promote the product!)

what are the three kinds of product modification

improve quality, functional modification, aesthetic modification

what are the three market modifications

find new users, increase use (demand), create new usage occasions

what are ways to reposition the product

react to competitor’s position (head to head), reach a new market, catching a rising trend, change the value offered (either trade up or down)

how can a company trade down

downsizing- usually criticized for this process

what is a brand name

any name, phrase, design, or symbol used to identify an organization’s goods and to distinguis them from those of competitors

what is a trade name

commercial, legal name under which a company does business (coca-cola or johnson & johnson)

what is the difference between a product and a brand

products are made in a factory and can be copied, brands are bought by customers and are unique

what are ways a brand provides value

expectations of quality, simplify choice, reduces risk, provide prestige

what is brand equity

added value a given brand gives to a product beyond the functional benefits provided

what is multiproduct branding

company uses one name for all its products in a product class

what is spillover

poor performance on one particular product that can hurt the reputation of the entire brand

what is multi branding strategy

giving each product a distinct name

what is private branding

when a company manufactures products but sells them ubder the brand name of a wholesaler/retailer

what is mixed branding

firm markets products under its own name and that of a reseller because the segment attracted to the seller is different from its own market (toyota and lexus)

what are challenges to packaging

connecting with customers, enviornmental concerns, health concerns, and cost reductions

what are ways to create competitive edge with packaging

communication benefits, functional benefits, perceptual benefits

what is price

money or other considerations exchanged for the ownership or use of a good/service

what is the most important factor influencing buyer’s choice-

price

what is barter

exchange goods/services for other goods/services

what is the price equation

final price= list price- incentives/allowances+extra fees