Term
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Definition
Product
Price
Promotion
Place |
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Term
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Definition
-"An extended notion of product"
-Brand
-Warranties
-Brand extensions
-Packaging |
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Term
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Definition
-Where will you sell your product?
-How will you get your product to market?
- Will you use distributors? For what functions? |
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Term
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Definition
Type of Media
-Advertising
-Personal Selling
-Promotion (coupons, sponsorships, etc.)
-Public Relations |
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Term
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Definition
-Skimming
-Penetration
-Pricing in mature markets: competition/fear of price wars
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Term
| How do you segment a market? |
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Definition
-Demographics
-Psychographics |
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Term
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Definition
define a population in terms of its size, distribution and its structure
occupation, education, age, income |
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Term
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Definition
measure of lifestyles
attitudes, values, media patterns, activities and interests, usage rates of product categories |
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Term
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Definition
| the segment we choose to target our efforts toward |
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Term
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Definition
How is your product positioned among other products?
Customer Value Proposition
fill-in sentence |
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Term
| Most profitable strategies are built upon... |
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Definition
...differentiation!!
differentiation = often the most profitable strategy
there are opportunities to differentiate at every point of contact with the customer |
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Term
| How to Discover Multiple Points of Differentiation |
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Definition
1)Map a consumption chain for every point of contact your company has with the customer
2)Analyze your customers' experience at each point of the consumption chain
3)Find multiple points of differentiation for each point of the consumption chain (use multiple functional areas of your organization: marketing, engineering, design, etc.) |
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Term
| Each point of contact with your customer is an opportunity for differentiation-- NOT... |
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Definition
| not just the product/service itself |
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Term
| The emphasis in marketing has changed |
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Definition
-emphasis was based on transactions
-the emphasis on transactions has changed to an emphasis on RELATIONSHIPS |
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Term
| shift from transaction to relationship marketing spurred by... |
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Definition
| awareness customer retention is more favorable than customer attraction |
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Term
| technology has enabled relationship marketing to grow |
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Definition
-manufacturing
-communications
-distribution |
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Term
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Definition
...the prior thinking was on closing a deal/transaction
"make a sale, take the money, and RUN" |
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Term
| relationship marketing can be between... |
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Definition
-business to business
-service marketing (ie retail)
-long term engagements
-clients
-channel members |
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Term
| motivational profile of each consumer can be a segment of the target market! |
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Definition
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Term
| Theres a fragile association between brand/product and customer. Beware of consumers' reaction to the following... |
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Definition
-product/service changes
-service failure
-quality failure |
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Term
| companies need to act to maintain relationships by... |
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Definition
-balance between giving and getting
-advantage for loyalty (introductory offers for only new customers)
-freedom from choice (dont hassle with too many choices/don't be too fast to market with meaningless advances)
-dont sell your customer names to lists (such as catalogs) |
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Term
| T/F: consumers can have a relationship with a product |
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Definition
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Term
information on brand person relationships can be used for:
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Definition
-developing communications such as promotions
-product changes
-product distribution
-product availability |
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Term
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Definition
| "distinguishing name or symbol intended to identify goods or services of sellers, and to differentiate the goods or services from competitors" |
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Term
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Definition
the value added to the product because of the brand
branded product - unbranded product = brand equity |
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Term
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Definition
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Term
| What causes a brand to fall from consumer minds? |
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Definition
-a major failure (revitalization will not succeed)
-lost focus or became irrelevant (there may be an opportunity for a comeback)
-strong brand wears out in a popular product category (motorola lost out in radio and tv but did well in cell phone) |
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Term
| Important Brand Report attributes |
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Definition
-what is the firm's biggest vulnerability?
-What is their biggest strength? |
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Term
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Definition
involves multiple disciplines throughout the organization
most decisions made in an organization impact the entire organization |
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Term
guidelines to evaluating whether a product is a good company fit
KNOW THESE! |
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Definition
-technological skills of labor and management
-size of workforce
-financial resources
-production resources and capacity
-logistic facilities
-feasibility of using existing sales force and distribution channels
-seasonability of demand patterns for existing products (counterbalance or exaggerate fluctuations)
-needs / behavior of existing consumers
-impact on the market position of the firm's other products
-consistency with the organization's existing image |
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Term
| what do they call brand dilution? |
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Definition
| a breakthrough to save brand image |
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Term
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Definition
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Term
| if you produce a new product, you will need to... |
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Definition
| reeducate the sales force |
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Term
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Definition
| high enough price where you skim off the top |
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Term
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Definition
| lower price so you can go deeper into the market |
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Term
| ____ are more affective than demographics |
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Definition
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Term
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Definition
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Term
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Definition
Segmentation
Targeting
Positioning |
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Term
| what is the most profitable strategy? |
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Definition
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Term
| Consumers have relationships with... |
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Definition
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Term
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Definition
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Term
| be careful in changing... |
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Definition
| products, sizes, services |
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Term
|
Definition
-segments / target markets
-developing communication
-product changed
-designing distribution channels
-product availability |
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Term
| "Perspectives on Brand Equity" Reading |
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Definition
-brand equity
-positioning
-image and value
-awareness
-preference and loyalty
-extensions
-revitalization
-global brands
-brand portfolios
-measuring brand equity |
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Term
| Characteristics of Different Stages of the Product Life Cycle |
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Definition
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Term
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Definition
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Term
| managing customer profits |
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Definition
-Pinpoint your costs
(manufacturing/factory costs are easy to estimate
design engineering or systems integration-- harder to estimate costs
good cost accounting systems are very important in order to understand profitability)
-Develop managers and sales force that understand costs and profitability
(track costs and price date by order,
obtain a net price) |
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Term
| Managing Customer Profitability |
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Definition
Remember: not all customers are good customers
Some "cost" too much
You need to know your costs and determine which customers are profitable
or
you need to charge some customers more than others because they take more time and effort-- these won't get discouts
new customers get the flex price
have to be good at determining your costs first! |
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Term
| no ___ in mature markets! |
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Definition
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Term
| Focusing your strategy-- use your knowledge of... |
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Definition
| use your knowledge of costs, price and profit to define a strategy for managing your accounts |
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Term
| repeat analysis regularly because.. |
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Definition
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Term
|
Definition
stakeholders have opposing considerations (sales force, profits, customers, competitors)
long-term vs short-term considerations |
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Term
| predicting competitors to... |
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Definition
| avoid price wars and driving margins down |
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