Chapters 7, 8, 9, 10 Marketing 200 / Simpson College / MG CLASS

What does ROI stand for?

Return on Investment

What does P&G stand for?

Proctor & Gamble

What does SKU stand for?

Stock Keeping Unit

What does TQM stand for?

Total Quality Management

What does ISO 9000 set rules on?

Quality Management and Requirements

What does ISO 14000 set rules on?

Environmental Management

What does ISO stand for?

International Standard of Organization

What does DMAIC stand for?

Define, Measure, Analyze, Improve, Control

What does PLC stand for?

Product Life Cycle

What does UPC stand for?

Universal Product Code

Information on Aaron Keller: Capsule/Patagonia.

Capsule is a consultant agency that gives advice. When coming to Patagonia who focuses on sustainability, they did a complete package redesign.

What happen with Fiat and the 500s?

They come to the US and thought people would just buy them because their foreign like pasta or gelato.

Steps in Managing Products

Learn the Objectives for Single and Multiple Products

Different aspects of Product Quality

Test Question! Lay Potato Chips are in what stage of PLC and their new flavors represent what kind of Innovation?

Mature stage, Continuous Innovation

Example of Portfolio at work.

P&G bought a consumer health product company, expanding portfolio, and line extension branching out what they offer.

Define Product Line Extension.

Strategy to expand an existing product line by adding more brands or models.

Define Cannibalization.

Loss of sales of existing brand when a new item is a product line or product family is introduced.

-Ex. different colors of ketchup, Coors water

Full-line vs Limited-line strategy.

Full-Line target many customer segments for boosted sale potential, Limited-line do fewer product variations to be exclusive to one thing and specialize in a certain market.

-Limited Line example: Rolls Royce

What can we learn about Stretching from Kia

They tried to make a more expensive car in an upward stretch and failed.

What aspect of product quality is McDonalds?

Reliable

What aspect of product quality is the Bronco Goat Mode?

Versatility

Which aspect of product quality was the issue with Mattel’s lead paint crisis with toy recalls?

Product Safety

Trust is one facet of Quality. True or False.

True

How the 10 most-trusted brands do it:

1. Get personal: Amazon

2. Sell happiness: Coca-Cola

3. Live up to your promise: FedEx

4. Keep it cool: Apple

5. Design and experience: Target

6. Stay consistent: Ford

7. Can-do attitude: Nike

8. Forge connections: Starbucks

9. Serve up the quirky: Southwest Airlines

10. Focus on the customer: Nordstrom

How is a machine tested?

Based on the satisfaction it gives you.

Absence of Quality is the essence of squareness. T or F.

True

Learn this information of PLC

Learn this

What is the goal of PLC: Introduction

Inform customers, induce trial, get first time buyers to try the product.

• 95% of new products fail

  • H-P Touchpad

  • Flip camcorder

  • Dodge Dart

What is the goal of PLC: Goal

Encourage brand loyalty by investing in advertising.

• Segmentation and positioning

What is the goal of PLC: Maturity

Attract new users by emphasizing distribution.

• Longest stage

  • Ex. Lays

What is the goal of PLC: Decline

Maintain profitability; determine is termination is needed

Define Brand

Name, Term, Symbol, or element of a product that identifies a firm

A brand name should be easy to say, spell, read and remember. True or False.

True

A brand is a promise to what?

A brand is a promise to deliver a set of benefits or satisfactions

• Mercedes stands for delivering a quality promises no matter where its produced

What aspects does a good brand name fit according to Rene Magritte?

• The target market

• The Product benefits

Learn these branding strategies.

The three types of product management.

• Brand managers

  • P&G

• Category managers

• Market managers

Define Skunk Works.

Small and often isolated department or facility that functions with minimal supervisions.

Notes on Mini Cooper.

• Didn’t have a big advertising budget

  • Print, billboards, and online ads, NO tv ads

• Parent company is BMW

Notes on Oreo.

• A mature product

• Focusing new varieties

  • limited edition flavors

    • Ran a contest to guess the Oreo flavor for $50k

Notes on Kia.

• Tried to stretch its low-priced items upwards.

  • Failed

Notes on P&G.

• Basically invented the Product Management System

• Expanded its line of liquid dish detergents

  • Gain moved from laundry soap to now also dishwashing liquids

  • Gain also prioritizes a good smell

• P&Gs Charming toliet paper made SitOrSquat to help find nearest bathroom.

Notes on Tesla.

• Tesla 3 usurped everything at the top of the introduction quadrant

  • Demand was crazy

  • Production was slowing with the rate of orders; this could have caused failure to the growth stage.

Notes on Airbnb.

• Used brand storytelling to connect with consumers

• Underwent a rebrand to “Belo” to create a story and have more meaning.

Notes on Coca-Cola.

• Announced a “One Brand” global strategy to address complexity among sub-brands

  • Unclear if it worked

• Now follows “Coke’s Way Forward”

  • evolving its business strategy to be a total beverage company by providing more drinks people want, including low and no sugar.

Notes on Aldi.

• 90% of its products under private label brands

• Focuses on highest quality products at a cheap price.

• Healthy food like free of synthetic colors, trans fats, and MSG

Why brands matter.

• Brand Equity

• Brand Meaning (Meaning Management)

• Brand Storytelling (The goal is engagement)

• Brand extensions (Attatching brand to new product category)

  • Sub-Branding

Define Brand Equity.

Brands value over and above the value of generic version of the product. (Value of brand to an organization)

Define Brand Meaning.

The beliefs and associations that a consumer has about the brand.

Define Brand Storytelling

Compelling stories told by markets about a brand to engage consumers.

Brand Extensions.

New products it sells with the same brand name

Brand Extension brings the risk of what?

Brand Dilution: The contrast between the brand extension’s less positive characteristics and the more positive characteristics of the brand can lead to a shift in how consumers perceive the brand.

Define sub-branding.

Creating a secondary brand within a main brand that can help differentiate a product line to a desired target group.

What company follows Family Branding/Umbrell Brand Strategy?

Campbell puts their name on all different types of soup. “Cambells chick with Rice or Campbells Chick Noodle”

On the opposite there is P&G with individual branding, Its not “P&G Gain” its just Gain

Info on Helen of Troy (Hydro Flask)

• First for county fair and farmers markets to hikers and campers

• Focused on aesthetic with its cooling

• Variety of colors

• People love the company and the brand not just the bottle

• VSCO Girls take to the hydro flasks

• Not just for teens, millennials are owning them also

  • “Just one more” Market strategy

What does ISO 22000 work towards?

Food Safety Management

What does ISO 27001 work towards?

Information Security

Define Product Relaunch.

Repositioning an existing product for reintroduction into PLC.

What 4 things should brands pass.

Easy to Say, Spell. Read, Remember

What is the Fit Test?

A brand should

• Fit the target market

• Fir the Products benefits

• Fir the customers cultures

• Fit the legal requirements

Define Trademark.

Legal term for a brand name.

What are the 4 relationships a person may have with a product.

• Self-concept attachment

• Nostalgic attachment

• Interdependence

• Love

Define the relationship: Self-concept attachment.

Product helps to establish a user’s identity

• Ex. Clothing brands.

Define the relationship: Nostalgic Attachment

Product serves as link to past self.

Define the relationship: Interdependence.

Product is a part of user’s daily routine.

• Ex. Starbucks

Define the relationship: Love

Product elicits emotion bonds of warmth, passion, or other strong emotions

• Ex. Hersheys Kiss

Define Product Line.

The Firms total product offering designed to satisfy a single need or desire of target customers

• Ex. Campbells soup

Define Product Line Length.

Determined by the number of Stock Keeping Units.

• P&Gs line of laundry detergent; Tide, Era, Gain

What does a SKU(Stock Keeping Unit) mean?

Unique identifier for each distinctive product.

Define Upward Product Line Stretch.

Add new items for higher price.

• Ex. Kia (Failed)

Define Downward Line Stretch.

Higher price companies adding items for a lower price.

• Ex. New Teslas

Define Two-Way Product Line Stretch.

Adds products in a lower and higher price markets.

• Difficult to execute

Define Filling Out Product Strategy.

Adding sizes or styles not previously available.

• Ex. Reese’s → Reese’s minis

Define Product Mix.

Total set of products a firm offers for sale

• Product Mix Width: Number of different product lines the firm produces

Define Product Quality.

Overall ability of the product to satisfy customer expectations.

Define Internal Customers.

Co-Workers who believe everything they do affect outside customers.

Internal Customer Mindset.

An organization culture where all organization members treat each other as valued customers.

1. Employees who receive my work are customers

2. Meeting the needs of employees who receive my work is critical to doing a good job

3. It is important to receive feedback from employees who receive my work

4. Also focus on requirement of the person who receives my work

The Bottom Line of TQM involves all employees (stockholders, consumers, employees, etc.) to improve quality. T or F

True

Marketing Planning is a major portion of the process and involved: ?

• The process of analyzing the market environment

• The process of developing the marketing plan

• The process of deciding on a market segment

  • The process of choosing the marketing mix - Product, Price, Promotion, Place

Cleary stated product objectives provide focus and direction. True or False.

True

Quality Movement is strongly associated with Japan. T or F

True

Who is the Father of Scientific Management?

Fred Taylor

Who is the Father of Modern Management?

Peter Drucker

Who is the Father of the Quality Movement?

Edwards Deming

Define the Six Sigma Methodology.

Process allows no more than 3.4 defect per million unites.

Quality management at Motorola

The PLC is a useful way to explain how market response and marketing activities change over the life of a product. T or F

True

What stage of PLC are Tablets and Smartphones in?

Growth, although growth in smartphones has slowed

Sometimes it is hard to know when a product passes from one stage to the next in PLC. T or F

True

Two things that Brand Equity Provides.

• Provides competitive advantage

  • Results in brand loyal consumers and attachment

Individual vs Family Brands.

Family brands share a common brand name, like Campbells chick noodle, while Gain is not called P&G Gain.

National brands are those produced and marketed by a manufacturer. T or F

True

Store (Or private labels) brands are those which are offered by a retail store or chain under an excluesive trade name. T or F.

True

• Ex. Costco: Kirkland, Wal-Mart: Sam’s Choice

Define Licensing.

When one firm sells another firm the right to use a brand name for a specific purpose for a specific period of time.

Define Cobranding.

Two brands agree to work together to market a new product

Define ingredient branding.

Branding materials become “component parts” of other branded products

What things do effective packaging consider?

• Choice of material and image it projects

• Environmental impact of packaging

• Shape and color influence on image

  • Graphic information to be portrayed.

labeling regulations.

Fair Packaging and Lebeling Act (1966)

• Make label helpful to consumers by providing useful information

Nutritional Labeling and Education Act (1990)

• Law requires food labels to state how much fat, saturated fat, cholesterol, calories, Etc.