MKT 300 Exam 3

February 5, 2018 Off By admin
Question Answer
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
Brand
are a promise to deliver specific benefits associated with products or services to consumers. Brands
Brand Elements Slogans, Brand names, Websites, Characters, Color scheme, Logos
is the marketing and financial value associated with a brand’s strength. The major components include brand name awareness, brand loyalty, perceived brand quality, and brand associations. Brand equity
A Strong Brand occupies a distinct position in consumer’s minds based on relevant benefits and creates an emotional connection between businesses and consumers
Brand Equity is Indicative of “strength” of brand and brand “fit” with consumers;
Can be so strong that brand name becomes the category name
Brand Benefits To Consumers Search cost reducer
Signal of quality
Risk reducer
Symbolic device
Can be so strong that brand name becomes the category name is Master Brand
Brand Benefits To Companies Source of competitive advantage
Predictability and security of demand
Barriers to entry
Financial returns
How can we measure this intangible value? If Market value /tangible assets>1, then we’ve created intangible value
Top of the Aaker’s five levels of customer attitude toward a brand of brand equity Devoted to Brand
Brand Asset Valuator (BAV) Differentiation
Relevance
Esteem
Knowledge
D.R.E.K
Interbrand’s Brand Equity Formula Brand Earnings & Brand Strength (top two strengths are Geographic spread and Leadership)
Building Strong Brands start with positioning
Building Strong Brands Provide Identity
Project the Right Message
Saves Time
Building Strong Brand pyramid Attributes-Benefits-Values(from low to high) Higher Emotional Connection with Consumers, Increasing Difficult for competitors to copy Positioning
salient and feeling-related associations Brand image
traits or characteristics ascribed by consumers to different brands Brand personality
Carl Jung suggested that humans are not a “blank slate” but rather a combination of archetypes; “universal, archaic patterns and images that derive from the collective unconscious and are the psychic counterpart of instinct” Brand Archetypes
Can package size accelerate usage volume? People pour from 15%-40% from large vs. small containers
Package Shape People perceive tall, slender glasses to hold more than short,wide glasses
Functions of Packaging Contain and Protect
Promote
Facilitate Storage, Use, and Convenience
Facilitate Recycling
reason why you buy, This is the need that the product fulfills core product
Bonus, not necessary but makes it nicer, All of the extra features of the product that might not be necessary for the product to work, but that can enhance the experience augmented product
Improvement but still in the same category.ex. new colors. Deeping the line Line Extension ,
Current brand to new product class, new category, Widening the Mix Brand Extensions ,
Successful new products: Offer a strong relative advantage;
Reflect better understanding of customer needs
stronger top management
launched with larger budgets
higher performance-to-cost ratios and higher contribution margins
Importance to long-term success: Strong correlation between new product success and a company’s profitability and sales growth
Industry leaders obtain of ______% revenues from products developed in the last 5 years 49 %
Least successful companies:of _____% revenues from products developed in the last 5 years 11 %
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. Test Marketing
New Product Failure is Rampant: 95% of new U.S. consumer products
90% of new European consumer products
Why New Products Fail No discernible benefits
Poor match between features and customer desires
Overestimation of market size
Incorrect positioning
Price too high or too low
Inadequate distribution
Poor promotion
Inferior product
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time. Diffusion
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product. Adoption
The five stages of the traditional adoption process are awareness, interest, evaluation, trial, and adoption
Factors that Influence the Rate of Diffusion 1. Relative advantage.
2. complexity
3. compatibility
4. trialability.
5. observability
Tangible , and must be there for the product actual product
Invention first ever form, new to the world, changes behavior most Discontinues
a new category within something already existed. Like tablet–slightly different from laptop, and online education Dynamically continues
small incremental, change least behavior, very little change Continues
You can buy it everywhere convenience products
you cannot buy it everywhere but multiple locations. Like buy car in Toyota dealership. shopping products
only one option specialty products
Never pick unsought products! OK
new product is perceived as superior to existing substitutes Relative advantage
degree of difficulty to use/understand – the easier to use, the easier to adopt Complexity
matches consumer needs Compatibility
degree to which product is capable of being tried on a limited basis; leads to product loyalty Trialability
product’s benefits, attributes can be seen by others, imagined, or described Observability
D.R.E.K are Differentiation, Relevance, Esteem, Knowledge

Multiplicative is related to Brand Asset Valuation
In BAV, if one of D.R.E.K is zero, then result equals equals zero
start to make money is in Growth stage
Decreasing in increasing rate is in Decline stage
Fad product life cycles means: be popular for only 10 seconds
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything Services Marketing
In fact. . .all businesses are becoming service businesses
Why do firms focus on Services? Customer satisfaction and loyalty are driven by service excellence

Services provide higher profit margins than products

Services can be used as a differentiation strategy in competitive markets

Adding service aspects to a product often transforms the product from a commodity into a compelling experience
You can't evaluate services, you can't sense it Intangibility
It makes it impossible for a service operation to achieve 100 percent perfect quality on an ongoing basis Variability
you must be there to have the service, simultaneous Inseparability
capacity restraint, and capacity cannot be stored for the future Perishability
perform promised service dependably and accurately, he can fix the problem Reliability
willingness to help customers and provide prompt, timely service, say two days, do two days Responsiveness
employees must be knowledgeable, courteous, convey trust and confidence, you can believe this person Assurance
caring, individualized attention, treat customer like a person Empathy
appearance of physical facilities, equipment, personnel, communication material, like decoration in the five star hotel room Tangibles
If expectations do not equal experience, a gap exists, can be positive or negative
Only select Gap 1 or Gap 5 in exam! OK
The gap between Expected Service and Perceived Service, after the service taking place, I as a customer expect this, I get this Gap 5: service gap
The gap between Management Perception and Expected Service. Before the service taking place, I as a customer don't know what the service will be Gap 1: Knowledge gap
4 P’s product, price, place, promotion
7 P's 4 P’s + people, process+physical evidence
refers to the use of physical evidence to design service environments servicescape
The actual or “tangible” product is missing as services are intangible. what two aspects remain core and augmented
Physical changes down to you, like transportation services, health clubs People processing
performances services to the thing I own, like lawn or car repairs Possession processing
seat inside the door to see people perform, you are just experiencing it, like watching movie Metal stimulus processing
paying for knowledge, like accounting, training, financial services Information processing
Promotion Strategy Stressing tangible clues (make service more tangible)
Using personal information sources (celebrity endorsements)
Create a strong organizational image
Engage in post purchase communication (call to make sure your service was satisfactory)
the encapsulation of these benefits in the consumer’s mind The benefit concept
Creating Compelling Experiences is Economic value progresses from commodities to goods to services to experience
Internal Marketing (employees as customers) Facilitating Promises
External Marketing (company to customers) Making Promises
Interactive Marketing (employees to customers) Keeping Promises
A group of individuals and organizations directing the flow of products from producers to customers Marketing Channel
Activities involved in making products available to customers when and where they want to purchase them. Distribution
The element that you cannot control in the market, like size of market, Geographic location Market Factors
All elements of the products, like product life cycle, price

product factors
Number of product lines, Producer resources producer factors
Factors Affecting Channel Choice market factors, product factors, producer factors
Your products can buy everywhere intensive distribution
Your products can buy multiple options, not everywhere, for shopping products selective distribution
only one option, for expensive, high-quality products purchased infrequently exclusive distribution
Advertising and promotional strategies geared toward your distribution partners to encourage them to promote your product Push Strategy
Levels of Distribution Intensity intensive distribution, selective distribution, exclusive distribution
Advertising and promotional strategies geared toward consumer to increase desire for the product Pull Strategy
Push Strategy is for B2B
Pull Strategy is for B2C
All the activities involved in selling goods directly to the final consumer for their use Retailing
Connected customers can shop for/purchase the same items across different channels Omni-channel retailing
Direct Retailers sell products: Door-to-Door, Office-to-Office, Home Sales
Parties
Types of Direct Marketing: Direct Mail, Catalogs & Mail Order, Telemarketing

Retailing Strategy Customer service, Atmosphere

the Factors of Physical Surroundings Crowding (+/-), temperature, safety, spacing, image, parking
How music affect the customers Music liked by consumers increases perceived waiting duration
How color affect the customers Cool color (blue/green) store decor generally seen as more pleasant, Warm color decor (red/yellow) is rushed/hurried/busy
How sense affect the customers When scents are congruent with product class, consumers spend more time on processing product information
layout, design, textures, senses Atmosphere
pleasure/displeasure/heightened senses Emotional Response
Time spent in store, affiliation with people, buying actions Behavior
Attributes of Strong Brands Consistent brand message; meaningful, memorable, likable; focus on long-term growth; manage customer experience
The roles of brands brand extensions, price premium
How do marketers strategically attempt to create a stronger brand in the marketplace? Concepts such as brand image, brand personality, and co-branding will be investigated to illustrate this process. Building Brands
In building strong brands, value has highest emotional connection, and increases the most difficult to copy
In building strong brands, attribute has lowest emotional connection, and increases theelast difficult to copy