Marketing- LEH

  1. good service or idea consisting of a bundle of tangible and intangible attributes that serve customer needs
  2. product is both tangible and intangible
    ex. car moves but it can make you feel good
    ex. Garth Brooks and Gerorge Strait preforming - both are entertainers but they do it in a different way GB moves all over GS stays in the same place
    Total Product Concept
  3. We classify products like anything else so you know something about it. The most common way to do this is the ...
    1. convenience products. 2. shopping goods 3. specialty products 4. unsought goods
    Copeland System
  4. purchase with little effort, rapidly -- bread if you go to the store and your brand isn't there, its okay
    Convenience Products
  5. willing to go to the effort to find what you want - shop at several stores to find the right t.v.
    shopping goods
  6. product you buy because of certain characteristics
    ex. Ford F-150
    Specialty Products
  7. not seeking this product out- adolescents are not interested in life insurance or burial plots
    Unsought goods
  8. Convenience is not ______ there is no division line seperating it, people have different opinions of it convience, wife wanted a whirlpool and Manzer wanted to shop for options for the wife specialty product, for manzer shopping good
  9. heaven or hell, pregnant or not
    discrete division
  10. combination of all the products you make- do not get confused with marketing mix product item and line
    product mix
  11. a specific product that has a unique brand, size, or price.
    product item
  12. a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets , or fall within the same price range
    product line
  13. the word new can only be used 6 months after the product enters regular distributions
    new in the legal sense
  14. something original or something you have modified- white cheer -- new blue cheer
    product that is new to the organization
  15. imitate the product - ipod vs zune phillip morris cigarette
    new to company by modification
  16. New products are _____ of company and keep it going- innovate or die
  17. coming up with new products- it is risky to come up with new products because of financial obligation
  18. 1. takes a lot of ideas to have one successful product- need 40-60 ideas
    2. high percentage of new products fail - 90% of new businiesses fail
    3. if have a successful product its life is shorter than ever before -- because new technoloy
    3 reasons innocation is risky
  19. this is an example of coming up with a new product by _______
    Rubber- wasn't very flexible - Good year dropped some on a hot plate
    Proctor and Gamble - left mixer on all night made ivory soap that floats
    World's Fair - ran out of paper ice cream cups made ice cream cones
    The harder I work the luckier I get
    Getting Lucky
  20. if you don't want to rely on luck, have a formalized system to reduce the risk of prdocut failure- job at Sonic to do just this she used the same steps -first determine objective
    1. Idea Generation
    2. Screening
    3. Business Analysis
    4. Poduct Development
    5. Market testing
    6. Commercialization
    new product process or innovation process
  21. Step 1 of Innovation Process:
    Thomas edison and the light bulb. need sources and suggestions for this also name 5 sources
    • Idea Generation
    • 1. customer and supplier
    • 2. Employee and Co-worker
    • 3. Research and Development
    • 4. Competitive
    • 5. Brainstorming
  22. Dow- lab director wanted him on a Monday morning- trying to come up with new consumer products- 8 guys with ideas - needed creativity one idea was a water resistant hair spray
  23. Step 2 of Innovation Process______-Take around 60 ideas- used to eliminate ideas you can't work through - need a system to eliminate it in this system you can make two mistakes _____ & ______ - system to prevent these errors- scholarhips - go through and look for little things to eliminate people and narrow down the choices - have a rule of thumb - eliminate ideas that aren't consistent with resources and objectives
    • Screening
    • 1. get rid of good idea
    • 2. keep bad idea
  24. Dow Chemical company found liquid that mixed with water and didn't freeze - however they did not sell it because it was not
    consistent with Dow's resources and objectives
  25. Step 3 of innovation process: ____ - don't have a product yet, just ideas and concepts - financial aspects -break even look and see if the company can make money on it and if they are capable of making it - try to stay in core competencies
    Business Analysis
  26. Step 4 of innovation process: _____ concepts ecome tanigible product - prototype- Dow with micro steers- small ball it was moldable and very light - make a chair that weighs less
    Product Development
  27. demonstratable producable product - part of innovation process
  28. Step 5 of Innovation Process: _______ involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. choose 3 cities to put product in - liquid tire chains - seeking onfo as to why they want it or not want to know if people will buy it or if it actually works - liquid tire chains wouldn't come out of can if too cold - don't always do this stage - cost vs benefit Dow making lighter paper...didn't work
    Market Test
  29. 2 things you should look at to weigh cost vs. benefit in the market test
    • 1. Out of Pocket Cost
    • 2. Opportunity Cost
  30. Step 6 of Innovation Process______: positions and launches a new product in full-scale production and sales, the most expensive stage - proceed slowly - if you have 3 products most likely only 1 is successful - must recover the costs of all the products- drilling wells no garuntee it will work out - pharmecutical companies- have to go through so many test drugs to find one good one
  31. what do you want after your product is in the market - want customers to do this - you want customers to use it on a regular basis - there are a series of stages in this process
    adoption process
  32. 5 stages of the Adoption Process
    1. know product exists
    2. seek information about it
    3. does it make sense to try it
    4. try it
    5. if like it use it on a regular basis
    • 1. Awareness
    • 2. Interest
    • 3. Evaluation
    • 4. Trial
    • 5. Adoption
  33. very important - if you open a new business you want it to be successful if you are aware - the business wouldn't be successful if interested but you never do anything about it - if customer is stuck need to unstick and need to know where they are stuck - wife opened the dance studio that wasn't successful until people were aware that it was there - first color t.v. stuck at evaluation but taking it home made it easy for people understand-wanted to watch the rose bowl parade in color
    Adoption Process
  34. burger king fries stood up to mcdonald's frieds in a taste test - spent a lot of money on R&D to ensure they were better but they were too hard to get right and were not consistent this is an example of
    product failure
  35. most of this is within control of the firm - such as marketing shortcomings when things go wrong in life you blame yourself (intrinsic) or everyone else(extrinsic)
    reasons for product failure
  36. it is important to show the advantage your brand has over others
    Car - looks and runs like a Corvetter- no repairs- needs a little gas - sells for $3000 new - what are the chances of it being successful - it has greater relevant advantage - need to show that its compatible with way people think things should be- paint with big crayola? microwave?
    if you put money into a pop machine and don't get anything out you hit it- do the same thing with computer- also made it make noise so you knew the computer is running
    Insignificant point of difference
  37. Gatorade was originally only lemon-lime - did alot to change it over the years this demonstrates ______ ______ ______ & _____ _____ _______ in a dynamic market
    continuous product development and masterful brand management
  38. _________used in all areas of business - describes the stages a new product goes through in the marketplace
    there are 4
    • Product Life Cycle
    • 1. Introduction
    • 2. Growth
    • 3. Maturity
    • 4. Decline
  39. Part 1 of Product Life Cycle: new people trying the product - trying to introduce microwave
  40. Part 2 of Product Life Cycle: Competitiors
  41. Part 3 of Product Life Cycle: competition dropping out
  42. products have a _______ _______ it declines at some point - won't exist forever - important because everyone is going to die- its a fact though it is hard to accept especially if business is successful - Brett Farve - should retire- Manzer's score keeping job will end eventually - businesses last 6 months longer than they should like a boyfriend
    limited life - part of why they product life cycle matters
  43. ____ & _____ are not the same thing- it is possibele to have sales without cash flow- A/R - this is especially true during decline - costs matter
    profits & sales
  44. _____ ____ must change over time - using the marketing mix to satisfy the target market - comanies like coke won't do the same thing at introduction as they do at maturity
    marketing strategies
  45. How long the product life cycle takes depends on ... 3 things
    • 1. rate of technological change
    • 2. rate of market acceptance - faster = shorter
    • 3. ease of competitive entry
  46. example of slow and fast life cycles
    • Steel
    • Toys
  47. using someone else's judgement- like on the price is right its most difficult to guess the price of the object if you go first
    anchor affect
  48. people adopt new products at different times - want it to be regular - if have jar of smelling stuff released it goes through the room gradually - men's hair stylei moving from the flat top to long hair hippies- innovators rock stars - early adaptors - young people early majority then have late majority and laggards
    diffusion process
  49. if in business looking at the diffusion process who am I interested in? _____ ______ because they are the first large group - they are the opinion leaders and serve as a filter for the rest of us
    early adopters
  50. His mom wanted to try a new restaurant it was KFC but she hadn't ever eaten there what part of the diffusion process whould his mom fit
  51. _____ manages the marketing efforts for a close knit family of products or brands - take a product from infancy all the way through - in maturity you are making money but my need to physically modify the product if change you run the risk of people not being happy with change - diversify to ______ against risk -
    • product or brand manager
    • hedge
  52. what can you do to hedge against risk of managing a product
    if make car and want to add fins start small and get bigger
    coke - keep coca cola classic avalable
    • make gradual changes
    • marketing research
    • keep original and make changed product available
  53. bad products that aren't making money are in this stage- need to get rid of the product - but there is a hesitancy to get rid of dog products because of
    1. Sentimentality
    2. chance of comeback
    3. tie - in to the sale of another product
    4. By product of another
    5. part of company's image
    decline stage
  54. ex of ______ epoxy is a strong product and the harderner is a weak product - hardener needs the epoxy and the epoxy needs the hardener
    tie in of a product in a decline stage
  55. if making lumber you get saw dust - brine in salt water -
    by products
  56. example of.... Phill at polymer bought expoxy - sent letter saying will buy all epoxy from same supplier with the lowest price - bought a really specific kind DER 677 - when choose company they couldn't make it with as much quality and went back to dow - like med student who finds someone new after 8 yrs of marriage when she stood by him - they had deleted the product though and it wasn;t worth it to make it again - needed the other company to suggest that Dow made it and gives them all the business - didn't work out - found other supplier - story is always different depending on who tells it -
    dillution - how not to do it
  57. combination of all the products you make - affects profit because it sets the upper limit of profit
    product mix
  58. affects how close you come to the upper limit of your profit - if you make a toy that targets 3- 8 yr olds don't advertise for it during Letterman
    quality of marketing strategy
  59. it is difficult to determine if you have the ____ mix, but not if you don't have it
  60. How to tell if you have the optimal mix (4)
    • 1. if you have chronic excess production capacity
    • 2. if you have disproportionately high percentage of total profits from just a few products
    • 3. if product width does not expoit your sales force
    • 4. if steadily declining profits and/or sales
  61. constantly have too much that the company is capabe of producing - if you can make 1000 chairs a week but can only make 500 because its all you can sell
    chronic excess production comapcity
  62. width- all the different things you make - take advantage of those selling
    product width not exploting your sales force
  63. an organization using a name, phrase, design, symbol, or a combination of these to identifiy its products and distinguish them from those of competitors - distinguishes your product from the other guy - chevy vs audi - athletic shoes - nike swoosh - can tell its a coke bottle just from its shape
  64. royalty got sick of craftsmen and not liking the quality of their stuff- atisans began putting brands on stuff and all of a sudden quality began to increase because they were held responsible this is an example of
    Branding Importance
  65. a set of human characteristics associated with a brand name. image of person matches what they buy Coke = American Harley = biker dudes
    Brand Personality
  66. the added value a brand name gives to a product beyond the functional benefits provided. provides competitive advantage and consumers are often willing to pay a higher price for a product with this creates brand loyalty - OSU is a brand
    Brand Equity
  67. financially rewarding - joes bough joe and buffy for $85 worth much more today - lock your car to protect it do this with your brand - Tulsa Union had to pay to use the U - manzer's tree example - can't prevent neighbor from cutting down the tree but he has acted like it was his for so long - man who made asprin didn't protect it dont want brand name to become generic
    valuing brand equity
  68. want name to suggest product benefits, be memorable, fit the company image, no legal restrictions, should be simple - Smukers doesn't necessarily fit
    picking a good brand name
  69. uses 1 name for all in class - family branding - samsung, sony, etc - advantage of campbells- good reputation
    multi product branding a branding strategy
  70. each product has a distinct name- good for man different products- Disney, Miramax, and touchstone- Proctor and Gamble makes Cheer, and Gain etc. if product switch happens more of a chance that p&g will still make money tide to cheer
    Multi Branding Strategy
  71. tide against cheer - if done correctly this is very good for the comapany because there is only so much allocated shelf space - think intramurals
    intra-company competition
  72. manufactures products but sells them under the brand name of a wholesaler or retailer 1 of 5items has _____ _____ - sam's cola
    Del Monte Peaches 2.00 IGA Peaches 1.89 Generic peaches 1.79 3 labels yo ucan buy it under - they might be slightly different in quality you ned to check and see if it is the same thing with the same quality
    private brands
  73. we are becoming a ____ economy - most of the class will work in this field
  74. 2 kinds of servies
    service industries and interaction between the buyer and seller
  75. education, sports, accounting, no products - intangible activities or benefits that an organization provides to satisfy consumers' need in exchange for money or something else of value
    service industries
  76. underlying theme of understanding the use of customers's evaluation - 1. _____ quality is more difficult to evaluate than _____ quality - easier to say that something is bad - heels that look great but hurt your feet - four i's of service
    • service
    • product
  77. four i's of service
    • Intangibility
    • Inconsistency
    • Inseperability
    • Inventory
  78. one of the four i's of service: they can't be held etc. like performance - its not objective and non descirbable mom can't describe love for a child
  79. one of the four i's of service: if drinking diet coke 99% of the time it tastes the same- services arn'et like this - like a hair cut - Texas Rangers - Singers
  80. one of the four i's of service: can't seperate from person delivering it - created at time of delivery - person creates it - if pay to see carrie underwood and she gets sick and carrie overwood is her replacement you get mad even if it is better
  81. one of the four i's of service: not really there
  82. #2 unterlying theme of customer service evaluation: Customer satisfaction wiht your service is based on a comparison of the ________ ________ ________ and the____ _______ ______ by you.
    how you evaluate service based on expectations - depends on where you
    set your expectations - restaurants tell you 20 mins when its really 10
    and you are happy - any longer than 20 you are mad - ask about weekend every morning - movie expectations - you need to know what expectations are if you use this
    customer's service expectations and the actual service perfromed
  83. Differences between the consumer's expectations and experience are identified through _____ ______. Expectations are influemced by word of mouth, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization delievers its service.
    gap analysis
  84. movie example friend say something is really great and then you go and have high expectations and its just okay
    his wife wanted an electrolux vaccumm because her mother had one he saw price tag but he saw it wrong and bought it instantly because of expectations
    power of expectations
  85. want to be in equillibrium between quality of life and income - if income falls you want to keep quality of life but can't do it with income so you slowly go down the line in steps - if serving and increase level of serive our expectations go up - same with football team - if quality of service goes down because of economy it goes down -
    rachet effect
  86. #3 unterlying theme of customer service evaluation: The customer evaluates both the ______ _____ and the _____ _____.
    service outcome; service process
  87. if you want a job you must differntate through service- if high service never have trouble getting job- when getting ready to evaluate service you look at 1.____ - result of service - granny in hospital if she dies or not 2. ____ how you get to #1 many believe if you get the #1 you want you satisfy the customer but thats not true - buy an item for $20 dollars at wal mart you may or may not be satisfied - depends on how long you stand in line and if you have ti fight for a refund - going to city hall to pay utility bill women at coffee pot discussing weekend- took 47 seconds to get around to helping him - considered short or long depending on who you are talking to
    • 1. Outcome
    • 2. Process
  88. most believe this is good service but it isn't - politeness, respect, friendliness of contact personnel - easy to do with nice people - real professionals can do this with people who aren't key is not to take it personally ( student with him with nasty note on car) God father - nothing personal
  89. Organization approachability and ease of contact- every wants it now - most people view class videos at 2 am - got to hotel late for speech and needed to find magnolia room - she didn't acknowledge him so he didn't know if he had this- one of variables to determine quality of service
  90. Consistency of your perfomance and dependability #1 thing wanted- want consisten people emotionally, need to raise kids with consistency- it is hard work - eat at mc donalds in San Fransisco because it is consistent - wants the same crappy breakfast 2 days in a row - not easy
  91. usually # 2 or 3 of variables - your willingness or readiness to provide service easy to do - people want to believe that you want to do service for them - wat someone who is happy doesnt have to be the fastest - when you do good service you want credit - praise and raise - if not _____ you won;t get credit - don't give credit if you have to drag the service out of someone - Getting wife a coke after a long day example - teenagers do this the least
  92. The possision of the required skills and knowledge, by the employee, to provide the service - one of the variables to determine quality of service
  93. Keeping customers informed in language they understand, listening - one of the variables to determine quality of service
  94. Trustworthiness, believability, honesty, customer's best interest at heart - one of the variables to determine quality of service
  95. Freedom from danger, risk or doubt - not just physical - is your money safe - credit? - one of the variables to determine quality of service
  96. Effertos to know customer's needs - one of the variables to determine quality of service
    Understanding/ Knowing
  97. - Physical evidence of service
    - Buildings, Appearance of personnel
    - Tools used to provide service
    -Other customers in facility - one of the variables to determine quality of service
  98. how do you get products to consumers - how does nike get shoes all over the world -
    Channels of Distribution
  99. Callaway - 15,000 retailers - online store it is a _____ _____ ______ - they have a broad distribution - channel partners are valuable assets - give credit to retailer for online sale and retailer gives you product - very smart everyone is happy
    multi channel marketer
  100. consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrail users - 1/4 of all cost of market goods is this - place where they could save - Pipeline brings water to Stillwater - movies - Hollywood used to just be interested in production and now their profitability comes from this - major studios only distribute half of the movies they produce and they get the rest from independents
    Channel Distribution/ Marketing Channel
  101. kinds of channels
    farmer's market in stillwater - plant that makes shirts
    Producer --------->Customer
    Direct Channel
  102. Producer-->Retailer-->Customer Student Union book store, Toyota Dealers, only has 1 intermediary
    Producer-->Wholesaler-->Retailer-->Customer Mars makes snickers sells to wholeseller and puts in vending machine - most common
    Producer-->Wholesaler-->Wholesaler-->Retailer-->Customer Beer made in canada
    Indirect Channels
  103. sells to other intermediary - usually to retailer -
  104. wholesalers and retailers are ______ the producer may sell to thousands of retailers and wholesalers
  105. what do intermediaries do? had a student that missed an exam because his grandmother passed away but the same kid was able to make it to a finance exam an hour later
    reduce discrepencies -
  106. a kind of discrepency - difference (gap) between manufacturer makes and what a consumer wants- General Foods makes a lot of stuff - wants jello and diet coke- but General foods doesnt make coke
    Discrepency of assortment
  107. type of discrepency - difference between amount producer makes and the amount we want producer makes 50 Mill golf balls and it goes through whole saler (1Mill) Retailer(10,000) to customer who wants 15- this provides convenience
    Discrepancy of quantity
  108. want to exchange goods effectively - the most effective way is for A,B,&C to all meet in the middle go from 6.928 to 6 - if you are shopping for meat breat and milk you don't want to go to the butcher dairy and baker- want it all to be in one place for conveinence - what is this really doing?
    spatial convienience providing time and place utility
  109. who gets the money in wheat sales? if someone says they can get something for you wholesale what have they done? does this reduce cost? ex. getting eggs directly from the chicken, home repairs, going home a different way - it is possible to eliminate the middle man but not necessarily what they do
    • middle man
    • cut out the middle man
    • depends
  110. Wholesalers are called different things depending on industry - in the chemical they are _____ and for gas they are ____
    • distributers
    • jobers
  111. Subway, Pizza Hut, we tend to like these because they have an established name - 900,000 in the U.S. the investment in one can be huge when fees are included
  112. Need to make a decision about channel what are the 3 things that need to happen
    • 1) determine level
    • 2) determine number of level- how is sony going distribute products
    • 3)determine relationship you will have with channels
  113. this is a long term decision with in the four p's- it is easy to change price ex foul thing or to no longer advertise in the ocolly- promotion but its not easy to but a Joe's in Lawrence - its like dating vs. marriage
  114. factors that go in to making ________ decision
    Environmental, Consumer, Product, and Company
    Avon had the direct selling method and it worked well but when china changed its laws they had to change this
    channel choice and management - channel
  115. 1. which channel and intermediaries will provide the best coverage of the target market?
    2. Which channel and intermediaries will best satisfy the buying requirements of the target market
    3. which channel and intermediaries will be the most profitable
    What are these and which one is the most important???
    Channel Choice Considerations - #3
  116. for the Wholesaler and Retailer relationship it must have ______ - like a functional family always the potential for disagreement - vertical and horizontal conflict
  117. occurs between different levels in a marketing channel eliminating a channel would be this sort of conflict - dow chemical sold to McKesson a wholesaler but once they began selling 40 barrells to one company they took over that part of McKessons business because of contract - all of the channel members knew it was right even though McKesson complained just like Manzer's grading scale
    Vertical Channel Conflict
  118. occurs between intermediaries at the same level in a marketing channel Good Year Producer used to only sell through good year retailers - ex. conflict with brother you yell at them and then go tell mom - Good Year Retailer complained to producer - if mom does nothing you retaliate - good year retailer began selling different brands of tires
    Horizontal Channel Conflict
  119. a channel member who coordinates, directs and supports other channel members - requires cooperation - like a family - someone has to be the leader it is not a democracy - just like a family - may vary who this is P&G Walmart and IGA all controll their channel - managers and employees play a part - because its workers who make the real difference- how does a manager get rid of entitlement - get a peer to do it - if get new worker she will believe stories from other workers not training
    channel captain
  120. Cleveland concentrated in making paint - anti fungus stuff but it only lasts 6 months dow sold to many suppliers and didn't have enough so tom called every day then he stopped calling because it only lasts 6 mo - John Lucas kept buying though with because they sold it to a private label - sears this is an example of what can happen if
    you have an efficient channel
  121. Apple excells in ____ ____ ____ globally - the i phone 3G was intoduced in 21 countries simultaneously - stored in China
    Supply Chain Management
  122. The soviet union failed because they didn't
    manage their supply chain
  123. a sequence of firms that perform activities required to create and deliever a product or service to ultimate consumers or industrial users. It differs from a marketing channel in terms of membership. It includes suppliers that provide raw material inputs to manufacturers as well as the wholesalers and retailers that deliver products to you.
    Supply chain
  124. Sam Walton was a master at the efficient ______ ______ - they don't have warehouses - sort and put their merchandise in trucks - SW airlines makes money because they always have planes in the sky 4 minute mile- sam walton put stores in small towns it was the leader in doing this
    supply chain
  125. Elements of physical distribution
    • 1. determining nature of shipment
    • 2. Transportation
    • 3. warehousing
    • 4. Inventory
    • 5. Order processing
  126. in grocery store if you can buy 1 can for .50 or 2 cans for .98 industrial products work the sam - how many drums to get lowest price for truckload - mckesson it was 40 drums - calls for regular order- and the price has been raised for it - work up gradually
    determining nature of shipment
  127. many different kinds, trucks, pipelines, air, railroads, the railroad has to be creative - during transit - if U.S. if grow apples in washington want them to distribute when price is high but can't pick them late - gain time and money in transit
  128. material and handling- product in Freeport Tx put in truck drive back and forth or put in this
  129. McDonald's drive through - screen - they have a system to get your order - if have customer in seattle can have it billed elsewhere with many different things happening all at once.
    Order processing
Card Set
Marketing- LEH