Intro to Marketing Sojka exam 2

marketing mix
product price place promotion
external macro environmental factors
politics demographics natural economic technology culture
consumer behavior decision process
extended, limited, habitual
ways to segment a market
geographic, demographic, psychographic, behavioral, geodemography
psychographic
AIOs activities interests and opinions, VALS- values attitudes and lifestyles
behavioral
occasion, user status (future user), usage rate (low/medium/high)
geodemography
combination of where you live and your demographics; geography and demographics- birds of a feather flock together; PRIZM
PRIZM
used to segment the market (geodemography)
requirements for effective segmentation
measurable, accessible, substantial, actionable
the majority fallacy
That the largest market segment is the most profitable is a mistaken belief leading to this type of strategic error. Due to intense rivalry among a large number of competitors it may be the least profitable one in reality
target strategies
undifferentiated, differentiated, concentrated, micro-marketing
undifferentiated
mass marketing- same product for everybody (hersheys kisses)
differentiated
target different markets at the same time; don’t do if you don’t have a lot of money (GAP)
concentrated
niche/ individual approach (gerber baby foods)
micromarketing
local or individual
product positioning
how customers perceive your product relative to the competition (like the pizza place diagram, where deweys and little caesars are on opposite sides)
repositioning
like JCP, bob evans, cadillac
product differentiation
product, services, channels, people, image, price
types of consumer products
convenience, shopping, specialty, unsought
product mix
assortment of products offered by the firm
product line length
types of certain products (Tide, Joy, Cheer, Gain for detergents, crest, complete, sequel for toothpaste, etc)
product line width
categories of products (detergents, toothpaste, soap, deodorants, juice for P&G)
product line filling
in between the upward and downward stretch (Banana Republic, Gap, and Old Navy)
downward stretch
have upscale product and want more customers (low-end customers)
upward stretch
low-end product, improve to appeal to upscale customers
service products
intangibility, perishability, variability, inseparability
intangibility
nothing to show for the service
perishability
you cannot store a service
variability
good and bad; same service but one is better or worse than another
inseparability
you tell service provider exactly what you want?
brand equity
brand loyalty; amount of money above product value the customer is willing to pay
national brands
sold nationwide
private (store) brands
like Kroger brands only sold at kroger
co-branding
two non-competing brands work together
Brand development (matrix)
line extension, brand extension, multi-brand, new brands
line extension
existing brand name and existing product category; lime coke (cannibalism) They want more than just existing customers
brand extension
existing brand name but new product category; espy restaurants (extend brand name)
multi-brand
new brand names but existing product categories; P&G
new product classification
how much will the consumer have to change? continuous innovation, dynamically continuous, discontinuous
sequential stages
awareness, interest, evaluation, trial, adoption
to persuade new product adoption, you must show
relative advantage, compatibility (superior benefits), simplicity, induce trial, observe others
major stages in new product development
idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization
product life cycle
introduction, growth, maturity, decline
feature fatigue
“too much of a good thing” product is overloaded with capabilities so that it becomes too complicated to use
price floor
lowest price determined by accountants/financial officers
price ceiling
highest price set by customer (highest customer is willing to pay)
new product pricing
skimming/ penetration
skimming
highest price when product is introduced
penetration
exception to skimming; price is low so that new competitors don’t enter the market
product mix pricing
product line pricing, optional product pricing, captive product pricing, by-product pricing, product bundle
product line pricing
good, better, best
optional product pricing
customize and get exactly what you want (pizza)
captive product pricing
product is cheap; refills are expensive (razors and razor blades, printers and printer ink/paper)
by-product pricing
product bundle
to sell things people wouldn’t buy on their own; vacation bundle vs. normal vacation, happy meal
segmented pricing
pricing for services; location based, time pricing, customer segment pricing
price adjustments
quantity discount, cash discount, functional discount, seasonal discount, allowances, psychological pricing, promotional pricing, dynamic pricing, international pricing
functional discount
mcdonalds- you go to the counter and get your own food and clean up your own place
allowances
buy new one and get rid of old one- like cars
psychological pricing
rounding down- consumer views 1.99 as 1 dollar
promotional pricing
loss leader
dynamic pricing
price changes
international pricing
position changes prices