ch. 10, 18, and 11

consumer products

purchased by ultimate consumer;differ interms of effort consumer spends on decision, attributes used in making the purchase decision, and frequency of purchase;4 types

convenience products

items the consumer purchases frequently with a minimum shopping effort

shopping products

items for which the consumer compares several alts on criteria such as price, quality, or style

specialty products

items for which the consumer makes a special effor to search out and buy

unsought products

items the consumer does not know about or does not initially want

business products

assist directly or indirectly in providing products for resale;industrial products;sales are often result of derived demand (from sale of consumer products);classified as components or support products

components

items that become part of the final product; include raw materials and parts

support products

items used to assist in producing other goods and services; installations, accessory equip, supplies, industrial services

prod item

specific prod that has unique brand, size, or price; sku

stock keeping unit

unique id number that defines an item for ordering or inventory purposes

prod line

group of prod closely related b/c theyre similar in consumer needs,uses,mkt segment,sales outlet,or price;each has own mkt strategy;broad enable both consumers and retailers to simplify their buying decisions

prod mix

consists of all of the product lines offered by org

professionals

ad agencies, doctors, lawyers

skilled labor

appliance repair, plumbers, caterers

unskilled labor

security guards, lawn care, janitorial services

op by skilled op

airline self check, elec utilities, computer networkds

op by unskilled op

motion pic theaters, dry cleaners, taxis

automated

online broker, atms, car washes

delivery by firms or non profits

seek to satisfy clients and be efficient; types of service affect mkt act

delivery by gov agencies

services from fed, state, and local levels

four i's of service

4 unique elements that distinguish services from goods

intangibility

services cant be touched before purchase; performance not object; difficult to evaluate; show benefits

inconsistency

services depend on people who provide them; quality varies with each persons capabilities and day to day job performance

inseparability

consumer cannot distinguish the service provider from the service itself; college

inventory

goods have handling costs related to storage, perishability, and movement; services costs are subjective and related to idle production capacity; cost involves paying the service provider along with any needed equip

idle production capacity

service provider (supply) is available but there is no demand

goods services continuum

range of products from tangible to intangible

new prod process

sequence of act a firm uses to identify business opps and convert them into salable goods or services

new product strategy development

defines role for new prod in terms of firms overall objectives;firm uses swot and environmental scanning to assess;outcome defines vital protocol for each new prod idea and identifies the strategic role it might serve in the firms portfolio

idea generation

develops pool of concepts as canidates for new products, building upon the previous stages results;several sources

screening and eval

interally and externall assess new prod ides to eliminate those that warrant not further effort

internal approach

employees eval tech feasibility of new idea to determine whether it meets objectives defined

cust experience mgt

process of managing the entire cust experience within firm;meet cust expectations and sustain loyalty;new services consistently delivered and experienced, clearly differntiated from other service offerings, and relevant and valuable to target mkt

external approach

use concept tests;evals with consumers that consist of preliminary testing of new idea rather than actual product;more usefuld with modifications;rely on written descriptions of product but may be augmented with sketches, mockups, etc

business analysis

specify features of prod&mkt strategy needed to bring to mkt;make detailed fin projection;assess total business fit of new prod w/ comp mission and objective(econ developed,man,mkt strategy);assess synergies related to op;cap mgt for service

prototype

full scale op model of product

capacity earnings mgt

integrating service component of mkt mix with efforts to influence consumer demand;limited if perishable due to inseparability of service from provider;manage availability of offering so demand matches capacity over duration of demand cycle

development

turns idea into prototype;result is demonstrable,producible product that involves man product and performing lab and consumer tests to ensure it meets standards est in protocol;reasonable cost and good quality;safety tests;service encounters-delivery

mkt testing

involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy

test mkt

offering prod for sale on limited bases in defined area;done to determine whether consumers will actually buy;try diff ways to mkt;1/3 go to next stage;in cities that are viewed as being rep of us consumers;check other mkt mix elements;time and money

simulated test mkts

technique that is like a full scale test mkt but in a limited fashion;shopping malls;people questioned and the qualified are in ads and tv;given money

commercialization

positions and launches new prod in full scale production and sales;most expensive stage for most new prod;competition and cannibalization

regional rollouts

used by large comp;introduce prod sequentially into geographical areas of us to allow production levels and mkt act to build up and min risk of new prod failure

slotting fee

payment man makes to place new item on retailers shelf

failure fee

penalty pmt a man makes to compensate retailer for sales its shelf space failed to make if prod does not achieve sales target

parallel development

overlap sequence of stages;cross functional team members who conduct simultaneous development of both product and production process stay with product from conception to production

fast prototyping

do it,try it,fix it;encouraging continuing improvement even after initial design

marketplace

buyers and sellers engage in face to face exchange relationships in a material environment characterized by physical facilitites and mostly tangible objects

marketspace

internet enable digital environment characterized by face to screen exchange relationships and electronic images and offerings

interactive mkt

2way buyer seller elec communication in computer mediated environment in which buyer controls info from seller;characterized by sophisticated choiceboard and personalization system that transform info from cust to customized response to meet needs

choiceboards

interactive;internet enabled system;allows individual cust to design;own products and services by answering questions and choosing from a menu of product or service attributes,prices,delivery options;collect precise info on preferences and behavior

collaborative filtering

process that automatically groups people with similar buying intentions, preferences, and behaviors; predicts future purchases;gives marketers ability to make sales recommendation in real time

personalization

consumer initiated practice of generating content on website that is custom to specific needs and wants;aspect is buyers willingness to have tailored communication brough to his or her attention

permission mkt

asking for consumers consent (opt in) to receive email and ad based on personal data from consumer; build and maintain cust relationships if properly used

cust experience

sum total of interactions that cust has with website;produce through seven design elements

context

websites aesthetic appeal and functional look and feel reflected in site layout and visual design;attempts to convey the core consumer benefit provided by comp offering

content

applies to all digital info on a website including presentation form-text,video,audio,and graphics;quality and presentation along with dimensions combine to engage a web visitor and provide a platform for the five remaining design elements

customization

ability of a site to modify itself to or be modified by each user; personalized content

connection

network of formal linkages between comp site and other sites;appear as highlighted words, pics, etc and allow user to effortlessly visit other sites with a mouse click;informational websites

communication

dialogue that unfolds btw website and users;interactive and individualized in real time

community

ways a site enables user to user communication; enhance cust experience and build favorable buyer seller relationships

commerce

websites ability to conduct sales transactions for products and services

stickiness

amount of time per month visitors spend on website;used to gauge cust experiece

bots

elec shopping agents or robots the comb websites to compare prices and product or service features

customerization

customizing prod/service and personalizing mkt and overall shopping/buying interaction;more than offer right prod at right time and price;combines choiceboard and personalization system to expand exchange environment beyond transaction;personal exp

web communities

websites that allow people to meet online and exchange views on topics of common interest

blog

web page that serves as publicly accessible personal journal for person or org

spam

elec junk mail or unsolicited email

viral mkt

internet enabled promo strategy;encourages user to forward mkt initiated message to others via email;3 approaches:embed message,compelling content,and incentives for referrals

dynamic pricing

practice of changing prices for goods and services in real time in response to supply and demand conditions;form of flexible pricing;typically used for pricing time sensitive or scarce items like airline seats

cookies

computer files marketer can download onto computer of online shopper;allow site to record visit,track visits to other sites,and store and retrieve info for future;contain visitor info like prod pref,personal data,passwords,cc number,etc

transactional site

elec storefronts;focus on converting online browser into online,catalog,or instore buyer using design elements;most common with store and catalog retailers and direct selling comp; used less by man of consumer products

channel conflict

threat to man;potential harm to trade relationships with their retailing intermediaries

promo site

advertise goods and services;provide info on how items are used and where to purchase;often engage visitor in interactive experience involving games, contests, etc with elec coupons as prizes;effective in generating int in and trial of comp products

intro stage

slow sales;min profit b/c of invest costs in prod development;mkt objective-create consumer awareness and stimulate trial;spend lots on ad and promo;gaining distr can be hard b/c channel intermediaries hesitant to carry new prod;restrict variation

trial

initial purch of prod by consumer

primary demand

desire for proct class rather than for specific brand b/c there are few competitos with the same prod

selective demand

preference for specific brand

skimming strategy

high initial price to help comp rec costs of development and cap on price insensitivity of early buyers;atrract comptetitors eager to enter market b/c they see the opp for profit

penetration pricing

low initial price to discourage competitive entry; helps build unit volume; closely monitor costs

growth stage

rapid sales inc b/c of repeat purch;competition;aggressive pricing;profit peaks;stimulate selective demand where prod benefits are compared with comp to gain mkt share;gain distribution-fight for display and shelf space

repeat purchasers

people who have tried the product, were satisfied, and bought again

product proliferation

improved version or new features are added to the original design; helps differentiate brand

maturity stage

sales of industry/prod class slow;marginal compet leave;cust are repeat or try and abandon;profit dec b/c of p competition;mkt directed to mkt share through prod diff and finding new buyers (cost inc)-control by improve promo and dist efficiency

decline stage

sales drop;enter b.c of environment changes;prod consume disproportionate share of mgt and fin resources relative to their future worth

deletion

dropping prod from comp prod line; most drastic

harvesting

comp retains prod but reduces mkt costs; prod offered to meet cust requests

high learning

significant cust education is needed; extended intro period

low learning

sales begin right away because little knowledge is needed by cust and benefits are readily understood; easily imitated; mkt strategy is to broaden distribution quickly; manufact capacity to meet demand

fashion

style of the times; appear in men and womens apparel; introduced, decling, and return

fad

rapid sales on into and equally rapid decline; novelties; short life cycle

diffusion of innovation

prod spreads through pop; sales after prod on mkt for a while

reasons for resisting prod in intro stage

usage barriers-not compatible w/ existing habits;value barriers-prod provides no incentive to change;risk barriers-physical,econ,social;psychological barriers-cultural diff or image

brand manager/product manager

manages mkt efforts for family of brands through life cycle;some develop new prod;develop and execute mkt program for line;approve copy,media selection,and pkg design;data analysis related to prod-monitor sales,mkt share,profit trends

indexes

measures to supplement data;help identify strong and weak mkt segments (dem or geo) for specific consumer prod and brands and provide direction for mkt efforts; cdi and bdi

prod modification

altering prod characteristic like quality, performance, or appearance, to inc value to cust and inc sales

mkt modification

comp tries to find new cust, inc prod use among current cust, or create new use situations

prod repositioning

changes place a prod occupies in cust mind relative to competitive products;change one or more of mkt mix elements;4 factors that trigger need:reacting to competitors position,reaching a new mkt,catching a rising trend,changing the value offered

trading up

adding value to prod or line through additional features or higher quality materials

trading down

reducing number of features, quality, or price;exists when companies engage in downsizing

downsizing

reducting pkg content w/o changing size and maintaining or inc p;criticized for this

branding

org use of name,phrase,design,symbol,etc to id and distinguish prod from competition;consumers benefit from it-more efficient shoppers b/c they can recognize and avoid prod and become loyal to others more satisfying;no need for external search

brand name

word,device(design,shape,sound,color),or comb used to distinguish sellers goods and services;some can be spoken

brand personality

set of human characteristics associated with brand name;traditional,romantic,sophisticated,rebellious;choose brands consistent with own or desired self image

brand equity

add val brand name gives to prod beyond functional benefits provided;comp adv;consumers willing to pay higher p for prod with it

meaning

arises from what a brand stands for and has two dimensions:functional,performance related and abstract,imagery related

thinking

consumer judgment;focuses on brands perceived quality, credibility, and superiority relative to other brands

feeling

relates to consumers emotional reaction to a brand

brand licensing

k agreement where by one comp allows its brand name or trademark to be used with prod or services of another comp for royalty or fee;requires mkt analysis to assure a proper match btw one comps brand and others prod

multiprod branding

uses one name for all prod;family branding or corp branding when com trade name used as brand name;transfer favorable attitude to other iems in prod class w/ same name

line extensions

using current brand name to enter new mkt segment in prod class;low ad and promo costs;raise level of brand awareness;sales may come at exp of other items;best when providing incremental rev by taking away competitive sales or attracting new buyers

subbranding

combines corp or family brand with new brand to distinguish part of its prod line from others; gatorade rain and gatorade frost

brand extension

using current brand name to enter new prod class; huggies allowed kimberly clark to extend its name to full line of baby and toddler toiletries;too many uses for one brand name may dilute meaning

multibranding strategy

gives each prod distinct name;useful when each unique brand is inteded for diff mkt segment;some arrary brands on basis of price quality segments-marriott;high ad and promo costs;no previous impression;prod failure wont affect other prod in line

fighting brands

confront competitors brands;new prod as defense

private branding/private labeling

man products buts sells under brand name of wholesaler or retailer; sears has brands of many man;high profits;one of every five items purch in US

mixed branding strategy

firm mkts products under own name and resellers b/c the segment attracted to reseller is diff from own mkt

ch. 10, 18, and 11

Marketing 291 with Koons at Miami University of Ohio

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