Entrepreneurial Marketing Exam 2

What is a Product
A good, service, idea, or combination exchanged to meet customer needs
Tangible object
Intangible offering
Product Layers
1: Core Product
2: Actual Product
3: Augmented Product
Core Product
Basic benefits
Need served
Actual Product
Features, package, brand, quality, apperance
Augmented Product
Warranty, repair, service, installation, delivery, credit, instructions
Types of New Products
1: Continuous innovation
2: Dynamically continuous innovation
3: Discontinuous innovations
Continuous innovations
Little disruptive influence
Existing pattern & new solution to ritual
Minor modifications
Product line extensions
Dynamically continuous innovations
Some disruption but doesn’t alter existing buying patterns
Discontinuous innovations
Fundamental changes in buying behavior
Characteristics of services
-can’t see, touch, or smell
-Can’t be stored; used, or lost
–Capacity management
—Adjust offerings to demands
-Performed differently time to time
-Tied to provider
Service Quality
Service encounter
-Interaction between customer and service provider
Service Quality
-Depends on service encounter
-Internal Marketing:
–Used for education and training
Measuring Service Quality
Gap Analysis
-Difference between expectation and what actually occurred
New Services
1: If Labor-intensive: providers are part of the experience and part of the innovation
2: May require customers presence
3: No tangible product to carry brand name
Service Innovations
1: New Concepts: FedEx overnight
2: Process innovations
3: Service lines extensions
4: New elements or improving existing ones
5: Continuous innovation
Characteristics of a successful new
1: Superior advantage
2: Compatibility
3: Simplicity
4: Observability
5: Trialability
6: Low perceived risk
7: Intellectual property protection
Purple Cow
Product that stands out (I think)
90% fail in the long run
Product adoption pyramid
1: Awareness
2: Interest
3: Evaluation
4: Trial
5: Adoption
6: Confirmation
Manner/speed which consumers adopt new products/services
Categories of adopters
1: Innovators
2: Early adopters (the ones to go after)
3: Early majority
4: Late majority
5: laggards
3 strategies (to stay relevant)
1: Modify
2: Find new customers
3: Find new users
Value Migrations
Making good, better & best versions
Target to specific markets
4 stages of product life cycle
1: Introduction
2: Growth
3: Maturity
4: Decline
Types of consumer products
Convenience products
-Frequently bought with little effort
Shopping products
-Considerable time/effort in selection
Specialty products
-Unique characteristics
Unsought products
-Consumers have little or no interest
Product Mix
Product line strategies:
1: Full line
2: Limited line
3: Extending the line
4: Contracting the line
Types of new products
1: New positioning
2: New packaging
3: Product line extension
4: Complimentary products
5: Innovations
Types of product innovations
1: Continuous innovation
2: Knock off
3: Dynamically continuous innovations
4: Discontinuous innovations
Name, term, symbol, or unique element that identifies & sets them apart
Legal name for a brand name, brand mark, or trade character
Importance of branding
Differentiate your product from the market
Brand Equity
Added value beyond features/benefits
Highlight products differences and charges premium
Types of brands
-Store brand
-Trade name
Characteristics of a good brand
1: Effectively communicates value to customer
2: Relevant to customer
3: “Resonates” with customer
4: Sustained overtime
5: Reinforces intended positioning
6: Easily understood by customers and employees
Entrepreneurial Branding Process
1: Conduct brand analysis
-Right fit of core strengths, customer needs what competition isn’t good at
2: Determine brand positioning
-Unique benefits
-Emotional connection “best”
3: Select brand name and identity
-Key benefits
-Distinctive, positive
-Easy to pronounce/remember
-Legal to use
4: Branding strategy
-Individual product
5: Brand communication strategy
Branding Strategies
1: Corporate branding – Branded house
2: Individual branding – House of brands
3: Hybrid branding
Only 2 ways to grow revenue:
1: Increase prices
2: Increase items of goods sold
-Easiest variable to change
-Most complex in marketing plan
-Marketers create value by satisfying needs and capture value through appropriate pricing
What a buyer will accept: 4 key issues
1: Cost
2: Demand
3: Customer value
4: Competitors price
Price isn’t always monetary
1: Opportunity cost
-Benefits you could have
2: Cost-Value relationship
-Value = Benefits/Cost
Importance of price
1: Create profits
2: Provide funds
-R&D, marketing, capital expansion
3: Influence customers
4: Affect market share
-Profits vs. market share
Psychological pricing considerations
1: Assimilation effects (parity pricing)
– “Close” pricing suggests that product are similar
2: Contrast effects
– Disparate pricing may encourage purchase of hight priced item
3: Price-quality inferences
– Further up the scale we go, price goes up