Quizlet Sets for Marketing Test 2
Terms in this set (67)
Marketing Plan (Chapter 9)
A brand is an identifying name, term, design, symbol or any other feature that identifies one marketer's product as distinct from those of other marketers. Branding helps buyers identify and evaluate products. It also benefits sellers by facilitating product introduction, repeat purchasing, and promotional efforts.
Brands are the touch points to a consumer
Brands are a promise to deliver specific benefits associated with products or services to consumers. (Nike, apple, MD)
A name, term, sign, symbol, or design, or a combo of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Brand Elements (collection that differentiates you)
Slogans, brand names, websites, characters, color scheme, logos
1. Core benefit
What is the customer really buying?
2. Value proposition
What does the brand deliver that customers value? Must be competitively superior
Attributes of a strong brand
A strong brand occupies a distinct position in consumer's minds based on relevant benefits and creates an emotional connection between businesses and consumers
4 connecting attributes of a strong brand
1. Consistent brand message
2. Focus on long-term growth
3. manage customer experience
4. meaningful, memorable, likable
The role of Brands
Branding within the middle...
1. Higher perceived quality
2. Price premium
3. Greater market share
4. Financial strength
5. Brand expansion
Brand equity is...
* the marketing and financial value associated with a brand's strength. The major components of brand equity include brand name awareness, brand loyalty, perceived brand quality, and brand associations
- Value of a brand based on loyalty, awareness, perceived product quality, and brand associations
- Reflective of long-term trust built by brand in consumers' mind
- Indicative of "strength" of brand and brand "fit" with consumers
- Can be so strong that brand name becomes the category name (Master brand)
Master Brand Examples
Benefits to consumers (BE)
- search cost reducer
- signal of quality
- risk reducer
- symbolic device
BE benefits to companies
- source of comp advantage
- predictability and security of demand
- barriers to entry
- financial returns
Marketing and branding
- Marketing creates, communicates and delivers the product
- Marketing creates intangible value
- How can we measure this intangible value
If Market value/tangible assets > 1
Then we've created intangible value
Brands are intangible, but they have tangible impact on consumer product experience
Aaker's five levels of customer attitude toward a brand
TOP TO BOTTOM
1. Devoted to brand
2. Values the brand (brand as friend)
3. Satisfied and Switching Cost
4. Satisfied Customer(no reason to change)
5. No brand loyalty (customer will change)
Brand Asset Valuator (BAV)
Differentiation, Relevance, Esteem, Knowledge
Interbrand's Brand Equity formula
- brand sales
- cost of sales
- marketing costs
- overhead expenses
- remuneration of capital charge
- leadership (25%)
- stability 15
- market 10
- Geographic spread 25
- Trend 10
- Support 10
- Protection 5
- How do marketers strategically attempt to create a stronger brand in the marketplace?
- Concepts such as brand image, brand personality, and co-branding will be investigated to illustrate this process
Building strong brands
- Starts with POSITIONING
- Provides identity,
- Projects the right messages, saves time
Building strong brands chart:
-higher emotional connection with consumers
- increasingly difficult for competitors to copy Positioning
Brand Image and Personality
- Brand image- salient and feeling- related associations
- Brand personality- specific "personality-type" traits or characteristics ascribed by consumers to different brands
Down to earth, honest, wholesome, cheerful
Daring, spirited, imaginative, up to date
Reliable intelligent, successful
Upper class, charming
Manufacturer's brand - Private brand
- Individual brand, family brand, combo
The example pictured here is Tide. P&G isn't trying to make sure you know that Tide is a P&G product, they just need you to know TIDE. The Tide brand name stands alone and therefore, is an individual brand name. It's a mfrs brand because you can find Tide in any number of different retailers.
are those brands that use the company's name to promote their products.
ex: General Electric has different brands for each of their products such as washers, dryers,...
is one in which the company name is paired with an individual brand name
ex: Kellogg's Rice Krispies. We know Rice Krispies as a cereal and we know Kellogg's as a cereal manufacturer.
Individual brands (private brand)
are those that are owned by that particular retailer.
ex: Wal-Mart's brand of dog food, Ol' Roy. We can only get Ol' Roy at Wal-Mart and its their brand name.
Combination Brands (private brand)
are the family name plus the individual name.
ex: WSU campuses in WA
Family brand (private brand)
ex: Safeway Select represents an entire family of grocery items that can only be found at Safeway.
Packaging and labeling
the final goal is to understand how packaging and labeling is used in marketing strategies. Effective packaging offers protection, economy, safety, and convenience. Labeling is used for identification, promotional, and information and legal purposes.
Functions of packaging.
1. contain and protect
3. facilitate storage, use and convenience
4. facilitate recycling
*Focuses on promotional theme
*Consumer information is secondary
- helps make proper selections
- lowers cognitive dissonance
- includes use/care
Package shape and size
can package size accelerate usage volume?
- people our from 15-40% more from large vs. small containers
Shape = people perceive tall, slender glasses to hold more than short, wide glasses. pouring drinks.
Planning and Marketing in Organization (chapter 5)
Levels of planning
* Corporate strategy/ strategic marketing plan (strategic level)
-This helps formulate the product mix
-One strategic Market plan
* Market plan (tactical level 2)
- the product market plan: marketing mix and target market for each product
- multiple product market plans
* Top management - strategic planning: looks at the big picture and guides long-term strategy for the firm. What business want to be in?
* Functional level - tactical planning: is conducted by members of functional departments, such as marketing, and seeks to meet the goals that were set by top management during the strategic planning process. Planning at this level includes outlining objectives and how to meet those objectives.
How do we meet out objectives?
the managerial process of creating and maintaining a fit between the organization's objectives, resources and evolving market opportunities
* Provides basic direction
* Determines the general product and market scope to be pursued
* Typically is long range and broad in scope
* Focuses on overall objectives
* Most often constructed by top management
* Serves as the basis for tactical planning (Product Market Planning)
Strategic planning elements
1. Business mission statement
3. Situation or SWOT analysis
4. Marketing strategy (target market strategy - marketing mix: 4Ps)
5. Implementation evaluation control
* What is the purpose of the organization?
* Should be market-oriented and defined in terms of customer needs
A statement of what is to be accomplished through marketing activities. ( Actions, resources, objectives)
And examining external
Strategic business units (Characteristics)
1. A distinct mission and specific target market
2. control over their resouces
3. their own competitors
4. plans independent of other SUBs
* collection of business (SBUs) and products that make up a company
* should fit the company's overall strengths and weaknesses
See slide # 13 (and #14)
The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets
Marketing Strategy - four major directions for strategic efforts
(many internal strengths / many external opportunities. ex: Apple)
(Many internal strengths / many external threats: ex:Coca.Cola)
(many internal weaknesses/ many external opportunities. ex: Old Spice)
(many internal weaknesses / many external threats. ex: Barnes&Noble)
Implementation, Evaluation and Control
The marketing audit's role is to make sure that the marketing plan emphasizes the company's strengths that are compatible with the shifting market environment
The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
major forms of competitive advantage
2. Product / service differentiation
3. Niche strategies
Cost competitive advantage
1. Experience Curves: Costs decline as experience with a product increases, and encompasses marketing, manufacturing, and administration costs.
2. Efficient Labor: Labor costs in low-skill, labor-intensive industries can be reduced by going offshore or by outsourcing.
3. No-frills Products: Removing frills and options can reduce costs.
4. Government subsidies: Governments may provide grants and interest-free loans for target industries.
5. Product design: Cutting-edge design and reverse engineering can offset costs.
6. Reengineering: Reengineering can make firms more efficient by pruning product lines, closing obsolete factories, and renegotiating supplier contracts.
7. Product innovations: New technology and simplified production techniques can reduce production costs.
8.New methods of service delivery: Examples include: Outpatient surgery and walk-in clinics in the medical industry Internet ticket booking and "ticketless" travel in the airline industry
Product/ service Differentiation
Advantage achieved when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than the competition.
Examples of product/ service Differentiation
Strong dealer network
Niche Competitive Advantage
Advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Niche Competitive Advantage
* Used by small companies with limited resources
* May be used in a limited geographic market
* Product line may be focused on a specific product line
Additional Competitive Advantage Strategies
1. Operational excellence
* Focus on efficiency of operations and processes
* Lower cost operations leads to lower prices for customers
2. Product leadership
* Excellence in technology and product development
* Most advanced, highest quality product offering
3. Customer intimacy
* Understanding customers better than the competition
* Develop long-term customer relationships
Positional Strategies for a Competitive Advantage
1. Market leader
2. Market challenger
Attack the leader
3. Market follower
Adapter, Imitator, Cloner
4. Market nicher
Be a specialist on any product feature, service or any of the 4P's
Results of Competitive Advantage
* Market share
Strategic Opportunities Matrix
1. Market Penetration: existing markets and existing products
2. Product Development: Existing Markets and new products
3. Market development: New markets and existing products
4. Diversification: New markets and new products.
Coca-Cola severely reduces the advertising budget and distribution for Coca-Cola Vanilla
Home Depot discontinues its EXPO stores
Kodak sells off its gelatin business
1. Financial: Solid balance sheet and Strong core business
2. Internal business: Streamlined process and Varying quality across portfolio
3. Innovation and learning: Business structured for continuous improvement
4. Customer: Strong brand, Broad portfolio, and Convenient access to products
Customer-Focused Strategic Planning
* Puts customer needs and wants first
* Focuses on long-term, value-added relationships
* Focuses on understanding customers in ways that enhance sustainable competitive advantages
* Instills a corporate culture that places customers at the top of the organizational hierarchy
* Finds ways to cooperate with suppliers and competitors to serve customers more effectively and efficiently
Global Marketing (Chapter6)
Includes all marketing activities conducted at an international level by individuals or business
-Access to new Markets
-Gain scale economies
-Access lower costs
-Offset domestic cycles
-enhance brand image
-overcome trade barriers
-access foreign investment
A company that is heavily engaged in international trade, beyond exporting and importing.
- Multinational corporations are those heavily engaged in international trade, moving products and services across national boundaries.
- Many multinational corporations are enormous. Wal-mart's annual sales are larger than the GDP of all but 30 nations in the world.
- The role of multinational corporations in developing nations is a subject of controversy. Critics claim that the wrong kind of technology is transferred to developing nations. For example, capital-intensive technology does not substantially increase employment. Another criticism is that firms take more wealth out than they bring in.