MKTG 3213 kuzmeski exam 2

what are the 2 functions of a brand

identify & differentiate

what are the two parts that make up a brand

brand name and brand mark

seeing a brand can:

cause consumers to automatically think of the attributes of the firm

a “brand” is

NOT confined to the physical name/logo associated with the firm

the primary value of a brand for consumers is the

reduction of perceived risk

a brand resides in the consumer’s

memory

what is spreading activation

when nodes are energized and brought into working memory

when does activation occur

with either external or internal cues

Addi see’s McDonalds sign w golden arches (NO WORDS) but begins to think of her hunger, what cue has activated this thought

external cue

brand awareness is associated with ability of brand to ____ who is offering a product/service, while brand association is associated w/ ability of brand to ____ from competitors

identify; differentiate

what IS a type of brand association

brand attributes, brand benefits, brand attitudes

automacity in branding context means:

the evaluation of a brand is brought to either conscious or subconscious thought

brand map

a way of visually presenting where your brand is in a consumer’s minds

brand associations within a brand map can also have what attached to them

mood & emotion

a brand map determines brand associations from the perspective of the

consumer

when creating a brand map, a word cloud is:

NOT always more useful than a table; false

brand equity

added value delivered by the brand over the functional benefits or book value

market value of brand=

book value of assets + brand equity

brand equity starts as a ___ concept, but ends up having a real _____ effect

psychological; monetary

the “magic session” teaches us how to turn what into dollars

what consumers know about the brand

ways to turn brand equity into dollar value

word of mouth, brand extension, licensing

NOT PRICE COMPETITION

if oreo cookies come out with a new flavor of s’mores oreo cookies, what are they using in order to turn brand equity into dollars

promotional advantage

the example of the purchase of PanAm brand demonstrates how

brands can have value beyond the book value of the firm

brand licensing

agreement whereby a company permits another org to use its brand on other products for a fee

brand name must provide what meaning for the product

secondary

what are the branding strategies

individual branding, institutional branding, sub-branding

NOT FRANCHISE BRANDING

unilever houses many brands, such as SlimFast nutrition drinks, dove soap, skippy peanut butter that all sell diff products. what branding strategy is used here

individual branding

benefits of individual branding

• development of additional brand assets

• protection against negative spillover effects

• strategic degrees of freedom

• NOT STRONG CONNECTIONS TO ESTABLISHED BRANDS FOR NEW BRANDS TO LEAN ON

benefits of institutional branding

• marketing power in the marketplace

• lower promotional costs

• enhancement of positive spillover

• NOT GREATER INVIDUALIZED IDENTIFY FOR NEW PRODUCTS

which company is more likely to use an institutional branding strategy for a new product/service

SONY

not- procter & gamble, service master, nestle

benefits of sub-branding

• marketing power and promotional advantages of the institutional brand

• new brand asset development, similar to individual brand

• market flexibility

  • NOT increased market share

main advantages of using sun-branding strategy

• ability to take on advantages of individual/institutional branding

• ability to avoid disadvantages of individual/institutional branding

  • general flexibility

mostly, business is made up of

smaller, more frequent transactions

face to face communication is…

NOT necessary for true “frontline” interactions

technology has had a

LARGE impact on organizational frontlines in most industries

when rachel hands cash to her walmart cashier what kind of interaction has occured

traditional interactions

mariah goes to an ATM to get money, what kind of interaction has taken place

human customer, machine service provider

Traditional Interaction

type of interaction where human interaction is absolutely necessary (Not necessary in machine summons, automated service delivery, machine service provider)

LAURA helps us analyze and adjust when:

a product or service has disappointed a customer

retailing definition

selling goods/services to consumers for their own use

difference btwn retailing & wholesaling

retailers sell to ppl for end use; wholesalers sell to companies for resale/company use

difference btwn merchant and agent wholesalers

merchants take ownership to a product; agents act as intermediaries

why do retailers exist

they add value by adjusting discrepancies btwn needs of consumers & sellers

why is breaking bulk important

sellers want to produce in bulk, consumers want to buy in small amounts

why do so many levels exist btwn producer & end user

each level adds some kind of value to end user

what plays the most important role in compensation in a channel of distribution

power

brands marketed as more luxury options are likely to use

selective (ex lexus)

what is not a form of sharing economy

P2B

(sharing economies include B2P, P2P, B+P)

airbnb has a model where business integrates ppl who own homes into demand market, what sharing economy is this

business +person

what’s a problem of implementing peer to peer sharing

finding platforms where it is legal and available

what sharing economy model is the most similar to traditional business models

business to person

whats the largest inhibitor to growth of sharing economies

trust

platform that receives renting fees gets fees from the ____ and shares fees with the ____

seeker; owner

which is NOT a party that shares/exchanges value in a sharing economy

recommender

potential benefits of increasing a sharing economy

• return economic benefits

• reduce environmental and waste impact

• reverse effects of eroding social trust

  • NOT realize potential market gains

which jobs are most likely to be automated

those with a great deal of routine

customer orientation

degree to which individual possesses an enduring belief in importance of customer satisfaction

some people innately have more customer orientation than others

true

often most important for what kind of employee to have strong customer orientation

front line

when supervisor doesn’t emphasize importance of customer satisfaction, employees w/ higher customer service orientation:

perform fewer customer service behaviors than they might have

what happens when employees w high customer service orientation are placed in an org that emphasizes customer satisfaction:

profits likely to increase

often, higher levels of customer orientation lead to:

• job satisfaction

• org commitment

• org citizenship

  • NOT job turnover

employees w high customer orientation thrive in what type of job

high customer interaction

what’re inside sales

type of sales in which interactions are initiated by the buyer

team selling

type of selling where org is represented by multiple ppl, possibly including salesperson, tech support, or others

key account

very large customer that provides a significant portion of revenues

transactional selling

form of personal selling focusing on making immediate sale w little to no concern for customer satisfaction/relationship development

relationship selling

form of personal selling involving securing, developing, maintaining long-term relationships w profitable customers

steps in personal selling process

• prospecting

• approach

• presentation

  • NOT selling

when does initial contact w potential consumer occur

approach

what happens in presentation stage of personal selling process

determine prospect needs and present benefits, handle objections

SPIN selling

about asking questions of potential customers

what’s the point of SPIN selling

position your product/service as solution to customer’s problems

most successful salespeople focus on:

beginning aspects of SPIN method (situational/problem)

price

what is exchanged for a product/service/idea

value is

NOT about what we put into product, but what customer’s get out of it

value created of a product/service is determined from perspective of the

strong connections to established brands for new brands to lean on

small changes in price can

have large impact on bottom line profits

what doesn’t happen in “smart industry”

companies fighting with only price

first step in strategic pricing

knowing how your industry behaves

key diff btwn cost-based & value-based pricing

where you start the process

value-based pricing will always be

more profitable than cost-based pricing

price skimming

setting high price for new product to skim max revenues

dynamic pricing

variable rate for each customer

flat-rate pricing

single rate per time period

peak load/congestion pricing

variable rate depending on time of week

you must understand what if using value-based pricing

margin and markup

what’s diff btwn equations for margin & mark up

margin= (price-cost)/price while mark-up= (price-cost)/cost

markup can be greater than

100%

a grocer has purchased truckload of frozen dinners for $3 each. grocer operates on 30% margin for frozen items, whats retail price to consumer

$4.29

The competitive retail price for a stereo system is $300. Retail stores normally have a
margin of 30% for such items. Wholesalers normally have a margin of 20% for such
items. The manufacturer’s price is unknown. What steps should be taken to determine the
manufacturer’s highest price?

solve for retail price then wholesale price then manufacture price

breakeven point

where profits just cover costs

Assume that Netflix has introduced a new bundle service for their streaming services.
Bundle 1 includes a base price of $9 to cover 25 hours of streaming for the month and
variable price of $0.10 for every 30 minutes over that 25 hours. Bundle 2 includes no
base price, but a variable price of $0.25 for every 30 minutes of streaming per month.
When a consumer attempts to decide which bundle to use, what is he or she determining?

breakeven point

price elasticity

responsiveness of demand to changes in price

when compared to similar change in an inelastic market, change in price in elastic market is likely to show a:

greater change in demand

in transactional model of communication, who fulfills role of sender

market

the message put in place by sender is always identical to message received by the receiver

false

the communications triangle encompasses

more than just promotional interactions

the “company” in communications triangle represents the

formal company mgmt

interactive communication

frontline interactions in the communications triangle