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everything, both favorable and unfavorable, that a person receives in an exchange.
* starting pt. because you cannot determine price, design a prom strategy or create a distribution channel w/o a product
more expensive than a convenience product and is found in fewer stores
*homogeneous shopping products as basically similar
*heterogeneous shopping products as essentially different
brand equity: refers to the value of company and brand names. A brand an existing product line in order that has high awareness, perceived quality, and brand loyalty among customers has to compete more broadly in the high brand equity
Benefits of branding:
Manufacturing brand: The brand name of a manufacturer
Private brand: A brand name owned by a wholesaler or a retailer
Captive brands: A brand that carries no evidence of a retailer’s affiliation, is manufactured by a third party, and is sold exclusively at the retailer.
Individual branding: Using different brand names for different products
Family branding: Marketing several different products under the same brand name.
Cobranding: Placing two or more brand names on a product or its package.
One brand name everywhere: This strategy is useful when the company markets A type of package labeling designed mainly one product and the brand name does not have negative connotations in to help consumers make proper prod- any local market
Adaptions & modifications: One named brand strategy is not possible when it cannot be pronounced in local lang., owned by someone else or has (-) connotations in another lang.
Different brand names in different markets: Local brand names are often used when translation or pronunciation problems occur, when the marketer wants the brand to appear to be a local brand, or when regulations require localization.
New Product: product new to the world, market, producer, seller or some combination of these
New to the world products: create an entirely new market( Smallest category)
New product lines: These products, which the firm has not previously offered, allow it to enter new or established marketsAdditions to exsisting product lines: This category includes new products that supple-ment a firm’s established line
Make the long-term commitment needed to support innovation and new-product development.
Use a company-specific approach, driven by cor porate Idea generation 2 objectives and strategies, with a well-defined new-product strategy at its core.
Capitalize on experience to achieve and maintain competitive advantage.
Establish an environment—a management style, orga-5 nizational structure, and degree of top-management Development support—conducive to achieving company-specific 6 new-product and corporate objectives.
links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
*A new-product strategy must be compatible with these objectives, and in turn, all three objectives must be consistent with one another
Customers: The marketing concept suggests that cus-tomers’ wants and needs should be the springboard for developing new products
Employees: Marketing personnel—advertising and marketing research employees, as well as salespeople—often create new-product ideas becausehey analyze and are involved in the marketplace
Consultants: Outside consultants are always available to examine a business and recommend product ideas
Distributors: A well-trained sales force routinely asks distributors about needs that are not being met
Competitors: No firms rely solely on internally generated ideas for new products
Vendors: forges partnerships with vendors to create proprietary prod-ucts
Research and development: R&D is carried out in four distinct ways. Basic research is scientific research aimed at discovering new technologies
screening: eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
concept test evaluates a new-product idea, usually before any prototype has been created
stage, where preliminary figures for demand, cost, sales, and profitability are calculated
The stage in the product development process in which a prototype is developed and a marketing strategy is outlined
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
The decision to market a product.
The process by which the adoption of an innovation spreads
A product perceived as new by a potential adopter.
Complexity: the degree of difficulty involved in understanding and using a new product
Compatibility: the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs
Product characteristics & the rate of
Relative advantage: the degree to which a product is perceived as superior to exist-ing substitutes.
Observability: the degree to which the benefits or other results of using the product can be observed by others and communicated to target customers
Trialability”: the degree to which a product can be tried on a limited basis
A biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
Introductory stage of the product life cycle represents the full-scale launch of a new product into the marketplace
Growth stage the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start acquiring small pioneering firms, and profits are healthy.
maturity stage The third stage of the product life cycle during which sales increase at a decreasing rate
The fourth stage of the product life cycle, characterized by a long-run drop in sales
Retailers are firms that sell mainly to consumers
Merchant wholesalers are organizations that facili-Efficiency tate the movement of products and services from the manufacturer to producers, resellers, governments, insti-tutions, and retailers
Agents and brokers simply facilitate the sale of a product from producer to end user by representing retailers, whole-salers, or manufacturers
Market Factors Among the most important market factors affecting the choice of dis-tribution channel are target customer considerations
Product Factors Products that are more complex, customized, and expensive tend to benefit from shorter and more direct marketing channels
Producer Factors Several factors pertaining to the producer itself are important to the selection of a marketing channel.
intensive distribution is a form of distribution aimed at maximum market coverage
selective distribution A form of distribution achieved by screening dealers to eliminate all but a few in any single area.
exclusive distribution A form of distribution that establishes one or a few dealers within a given area
Four of the most important trends are the globalization of supply chain management, advanced computer technology, outsourcing of logistics functions, and electronic distribution
Channels and Distribution Decisions for global markets:
Distribute directly or through foreign partners
Different channel structures than in domestic
markets Illegitimate “gray” marketing channels
Legal and infrastructure differences
IndependentRetailers: Owned by a single personor partnership and not part of a larger retail institution. Ex: Giftstore in Seaport Village.
Chainstores: Owned and operated as agroup by a single organization. Macy’sand Nordstrom.
Franchises: the right to operate a business or to sell a product
Retailers can be broadly classified by form of ownership: independent, part of a chain, or franchise outlet
The level of service that retailers provide can be classified along a continuum, from full service to self-service
The third basis for positioning or classifying stores is by the breadth and depth of their product line
Price is a fourth way to position retail stores. Traditional department stores and specialty stores typically charge the full “suggested retail price.”
Place: distribution, location and hours
Presentation: layout and atmosphere
People: (personal) costumer service and personal selling
Product: width and depth of product assortment
PricePromotion: advertising publicity, and public relations
Define and select a target market
Retail promotion strategy includes advertising, public relations and publicity, and sales promotion. The goal is to help position the store in consumers’ minds
The presentation of a retail store helps determine the store’s image and positions the retail store in consumers’ minds
communication by marketers that informs, persuades, and Promotional Strategy reminds potential buyers of a product in order to influence their opinion or elicit a
is any form of impersonal (one-way) paid communication in which the sponsor or company is identified
Direct, face-to-face communication between two or more people
sender is the originator of the message in the com-munication process.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually in the form of words or signs
Channel is A medium of communication—such as a voice, radio, or newspaper— for transmitting a message
noise—anything that interferes with, distorts, or slows down the transmission of information
receiver The person who decodes a message.
Communication process cont.:
decoding Interpretation of the language and symbols sent by the source through a channel.
feedback The receiver’s response to a message.
Informative promotion seeks to convert an existing need into a want or to stimulate interest in a new product
Persuasive promotion is designed to stimulate a purchase or an action—for example, to eat more Doritos or use Verizon wireless mobile phone service
Reminder promotion is used to keep the product and brand name in the public’s mind
Push & Pull Strategies
Push- marketing strategy that uses aggressive personal selling to convince a wholesaler or retailer to carry & sell particular mer.
Pull – marketing strategy that stimulates consumer demand to obtain product distribution.
s the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
Importance of price:
Price means one thing to the consumer and something else to the seller. To the con-sumer, it is the cost of something. To the seller, price is revenue, the primary source of profits.
demand The quantity of a product that will be sold in the market at various prices for a specified period
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