BUS 346 – Bouvette

Adopters
Brand Dilution
Brand Dilution occurs when a brand extention adversly affects perception about attributes the core brand is believed to hold.
Brand Extension
*Brand extention is the use of the same brand name for new products introduced into the same or new markets.
* Advantage of brand extention is the name is well known.
* Firms can spend less money on marketing efforts
* Customer acceptance carries over to the other product.
* Used for complementary products
Line Extension
Co-branding
* Cobranding is the practice of marketing two or more brands together in the dame package or promotion.
* Cobranding can enhance consumers perception of product quality through links between the firms brand and another well known brand of well known quality.
* Cobranding is the practice of marketing two or more brands together on the same package or promotion
Demographics
Segmenting markets by age, gender, income, ethnic background, and family life cycle.
Diffusion of Innovation Theory
Electronic Data Interchange
Focus Group
Generational Cohorts
A group of people in the same generation. They have similar
purchase behaviors because they have shared experiences and
are at the same stage of life.
Traditionalist (1922-45)
Baby Boomer (1946-1964)
Generation X (1965-1980)
Generation Y (1981-2000) Mileniums
Geo-demographic segmentation
Segmenting markets by region of a country or the world, market size, market density, or climate.
Just-in-time Inventory
AKA Quick Response. Inventory Management systems that deliver less merchandise on a more frequent basis than traditional inventory systems
Benefits:
1. Reduced Lead Time
2. Increased Product Availability
3. Lower Inventory Investment
Market Penetration Pricing Strategy
A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.
1. Experience Curve Effect
2. Price Skimming

Issues:
1. Firms must be able to satisfy rapid demand
2. Low prices does not signal high quality
3. Avoid if some people are willing to pay more for the product

Marketing Channel Information Flow
1. Customer to Store (Universal Product Code (UPC) tag with description of item)
2. Store to Buyer (Purchase Information)
3. Buyer to Manufacturer (Order for New Merchandise)
4. Store to Manufacturer (Sales Transaction Data)
5. Store to Distribution Center (Deliveries and Inventory Status)
6. Manufacturer to Distribution Center and Buyer- (Advanced Shipping Notice (ASN) what to expect in the shipment)
Marketing Environment Analysis Framework
• Analyzing the marketing environment helps marketers assess continued strengths and value of their products/services and any weaknesses resulting from changes in the marketing environment
• Consumers are influenced by firm’s microenvironment: immediate actions of the focal company, competition, and the corporate partners that work with the firm to supply products/services
• The firm, and thus consumers indirectly, is influenced by the macroenvironment: influences such as culture and demographics, as well as social, technological, economic, and political/legal factors
• One of the goals of value-based marketing is to provide greater value to consumers than competitors offer-> you must look at entire business process from a consumer’s point of view.
• monitor macroenvironment to determine how factors influence consumers and how they should respond to them. Sometimes, firms can even anticipate trends.
Marketing Mix
Price, Product, Place, Promotion
Marketing Planning Process
1. Describe the Background, Purpose, and Focus What social issue is this plan intended to impact? On what population? What is the solution we will focus on? Why? Who is the sponsor?
2. Conduct a Situation Analysis SWOT: organizational strengths, weaknesses, environmental opportunities and threats. Key learnings from a review of similar prior efforts and additional exploratory market research.
3. Select Target Audience Descriptions of priority target audience including demographics, geographics, readiness to change, relevant behaviors, value and lifestyle, social networks, and community assets relative to the plan’s purpose and focus. Market research findings providing a rationale for targeted audiences, including factors such as size, problem incidence, problem severity, defensiveness, reachability, potential responsiveness to marketing mix elements, incremental costs, and organizational match, relative to the plan’s purpose and area for focus.
4. Set Behavior Objectives and Goals Behaviors and target audience will be influenced to adopt the behavior. Ones that are single and simple with lowest current penetration, highest willingness, and most potential impact. SMART goals quantifying desired behavior outcomes as well as changes in knowledge, beliefs, and behavior intent.
5. Identifying Target Audience Barriers, Benefits, the Competition, and Influential Others Perceived barriers and cost associated with adopting the desired behavior. Potential unique and meaningful benefits that will help influence and sustain targeted behaviors. Competing behaviors/ forces/ choices. Influence of importance to others.
6. Develop a Positioning Statement How we want the priority audience to see the targeted behavior, highlighting unique benefits and the value proposition.
7. Develop a Strategic Marketing Mix (The 4 P’s) Product, Price, Place, Promotion
8. Develop a Plan for Monitoring and Evaluation Purpose and audience for monitoring progress and evaluating final results. What will be measured: inputs, outputs, outcomes, and potential impacts and return on investments. How and when measures will be taken.
9. Establish Budgets and Find Funding Sources Cost of implementing the marketing plan, including additional research and monitoring/evaluation plan. Any anticipated incremental revenues, cost savings, or partner contributions.
10. Complete an Implementation Plan Who will do what, when—including partner and their roles.
New Product Pricing
Packaging and Labeling strategy
Perceptual Mapping
Displays, in two or more dimensions, the position of products or brands in the consumer’s mind
Positioning
Steps to establish position

1. Perceptual map
2. Ideal points

Predatory Pricing
set so low that price drives out all competitiors
Price Skimming
sell new product at high price that innovators and early adopters are WTP. after high price market is saturated, firm lowers price to capture next most price sensitive ocnsumers
Primary Data Collection
Brief personal Interview, Telephone survey, Mail questioner to sample of residents, and Online questionnaire, Hire someone to observe customer, videotape customer reactions, and program the store’s electronic cash registers.
Product line depth
refers to the number of products within a product line.
Product mix depth
Number of categories within a product line.
Questionnaire design
a function of the level of structure and disguise desired during data collection.
Research methods
Secondary
primary
Qualtrix
5+
Top Marketing Databases
Secondary data
data collected for some purpose other than the problem at hand
secondary packaging
The wrapper or exterior carton that contains the primary packaging.
segment attractiveness
sustainable has enough buying power

reachable media, ads

responsive actually buy

profitable make money

identifiable who is their target segment

segmentation methods
geographic, demographic, psychographic, benefits and behavioral
stages in new product development
idea generation>idea screening>concept development and testing>marketing strategy development>business analysis>product development>test marketing>commercializaton
STP process
the processes of segmentation, targeting and positioning that firms use to identify and evaluate opportunities for increasing sales and profits. Consists of 5 steps: establish overall strategy or objectives, segmentation methods, evaluate segment attractiveness, select target market, identify and develop positioning strategy
Supply Chain
Network of manufacturers and service providers that work together to convert goods from raw material to end user. Linked through physical flows, information flows, and monetary flows.
Value Proposition
a statement of the functional, emotional, and self-expressive benefits delivered by the brand, which provide value to customers in the target segment
Vertical Marketing Systems
consists of producers, wholesalers, and retailers acting as a unified system and consist of:
•Corporate marketing systems
•Contractual marketing systems
•Administered marketing systems