IM W 4 & 5
24 flashcards · Other · by Daniel F.
Products and services
something physical / something intangible that satisfies a want or a need products result in ownership
Three levels of product
Consumer product
bought by final consumer for personal consumption: Convenience product is a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Shopping product is a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style. Specialty product is a consumer product with unique characteristics or brand identification for which a significant group of b…
Industrial product
product bought by individuals and organizations for further processing or for use in conducting a business: Material part include raw materials as well as manufactured materials and parts. Capital items are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. Supplies and services, where supplies include operating supplies and repair and maintenance items, and services include maintenance and repair services and business advisory…
Additional types of marketing
Organization marketing / Corporate image marketing person marketing place marketing idea marketing social idea marketing
Marketers make product and service decisions at three different levels
individual product decisions product line decisions product mix decisions
decisions about individual products and services
Product and service attributes Branding - a brand can be defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors Packaging has to do with the activities of designing and producing the container or wrapper for a product. Labeling and logos. Product support services.
production mix (or product portfolio) dimensions
Width: number of product lines Length: total number of items within product lines Depth: number of version offered of each product Consistency: how similar are the product lines
internal marketing
orienting and motivating customer contact employees and supporting service employees to work as a team to provide customer satisfaction
interactive marketing
training service employees in the fine art of interacting with customers to satisfy their needs
brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing differentiation (what makes the brand stand out) relevance (how consumers feel it meets their needs) knowledge (how much consumers know about the brand) esteem (how highly consumers regard and respect the brand)
brand value
total financial value of a brand
Brand strategy decisions
Brand positioning Attributes. Benefits. Beliefs and values. Brand name selection Selection. Protection. Brand sponsorship Manufacturer's brand. Private brand, which is a brand created and owned by a reseller of a product or service. Licensing. Co-branding, which is the practice of using the established brand names of two different companies on the same product. Brand development Line extensions, which is the process of extending an existing brand name to new forms, colors, sizes, ingredients, o…
PLC types
Price change reaction
decisions about product line
product line length - the number of items in the product line line filling - adding more items within the present range of the line product line stretching - a company lengthens its product line beyond its current range
Service characteristics
Service intangibility, which entails that services cannot be seen, tasted, felt, heard, or smelled, before they are bought. Service inseparability, which means that services are produced and consumer at the same time and cannot be separated from their providers. Service variability, which entails that the quality of services may vary greatly depending on who provides them and when, where, and how they are provided. Service perishability, which means services cannot be stored for later sale or u…
new product development process
Idea generation Internal idea sources. External idea sources. Crowdsourcing - involves inviting broad communities of people into the new product innovation process Idea screening Concept development and testing product concept is a detailed version of the new product idea stated in meaningful consumer terms Concept testing concepts with a group of target consumers to find out if the concepts have strong consumer appeal Marketing strategy development Business analysis - does it satisfy company's…
product life-cycle's five stages
Product development begins when the company finds and develops a new product idea. During this product development, sales are zero and the company's investment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has…
New product pricing strategies
Market-skimming pricing involves setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. Market-penetration strategy involves setting a low price for a new product in order to attract a large number of buyers and a large market share
Product mix (product line) pricing strategies
Product line pricing - setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features and competitor's prices. Optional-product pricing - the pricing of optional or accessory products along with a main product. Captive-product pricing - setting a price for product that must be used along with a main product, such as blades for a razor and games for a videogame console. By-product pricing - setting a p…
Price adjustment strategies
Discount pricing - Reduce price to reward customers for volume purchases, paying early, or promoting the product Allowance pricing - promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products Segmented pricing - selling a product or service at two or more prices, where the difference in prices is not based on differences in costs Psychological pricing - the price is used to say something about the product reference prices - prices that…
Price changes
reasons for price cutting: Excess capacity. Falling demand in the face of strong price competition or a weakened economy. Having a drive to dominate the market through lower costs. reasons for price increase: Inflation. Rising costs. Over-demand.
three major pricing strategies
customer value-based pricing - setting the price starting from the buyer’s perceptions of value regarding a product rather than on the seller’s cost. Good-value pricing involves offering the right combination of quality and good service at a fair price. Value-added pricing involves attaching value-added feature and services to differentiate a company's offers and charging higher prices. cost-based pricing - setting prices based on the costs of producing, distributing, and selling the product pl…