Part 2: creating customer value

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lacey
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244978
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Part 2: creating customer value
Updated:
2013-11-04 15:30:56
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marketing
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module 2 - marketing flash cards
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  1. products vs brands
    a product can be anything that has the capacity to satisfy customer needs by providing some form of benefit or value, brands on the other hand, fulfill the very important function of distinguishing the offerings of one company from those of others in a competitive environment
  2. product differentiation, aka levels of product
    • core product: core benefit
    • actual product: styling, features, quality, packaging
    • augmented product: installation, guarantees, delivery, additional services, brand values
  3. benefits of brands to organizations
    • company value
    • consumer preference and loyalty
    • barrier to competition
    • high profits
    • bese for brand extensions
  4. benefits of brands to customers
    • communicates features and benefits
    • reduces the risk in purchasing
    • simplifies the purchase decision
    • symbolic value
  5. naming brands
    • naming brands: family brand name (risk is if one of the brands receives unfavourable publicity or is unsuccessful, the reputation of the whole range of brands can be tarnished)
    • individual brand name: used when each brand is believed to require separate, unrelated identities
    • criterion a: a good brand name evokes positive associations
    • criterion b: memorable and easy to pronounce brand name
    • criterion c: seek legal advice to ensure that a brand name does not infringe on existing brand names
    • trademarks: legal protection for a brand name, brand mark, or trade character
  6. brand positioning
    • brand heritage
    • brand domain
    • brand values
    • brand assets
    • brand personality
    • brand reflection
  7. types of branding
    • brand extension
    • brand stretching
    • global branding
    • product-based co-branding
    • communications-based co-branding
    • parallel co-branding
    • ingredient co-branding
  8. product line
    • a group of products that are closely related in terms of their functions and the benefits they provide
    • depth refers to number of variants offered within the product line
    • product mix is the total set of brands or products marketed in a company
    • width refers the number of product lines an organization offeres
  9. portfolio planning
    • process of managing groups of brands and product lines
    • stars: market leaders in high-growth markets
    • problem children / ?: cash drains b/c low profitability and require investment to enable them to keep up with market growth
    • cash cows: high profitability and low investment associated with high market share in low-growth markets
    • dogs: weak products that compete in low-growth markets, they are also the dredges that failed to achieve dominance during growth phase and are floundering in maturity
  10. product life cycle
    • introduction
    • growth
    • maturity
    • decline
  11. types of new product development
    • product replacements
    • additions to existing lines
    • new product lines
    • new-to-the-world products
  12. stages of new product development
    • idea generation
    • screening
    • concept testing
    • business analysis
    • product development
    • market testing
    • commercialization
  13. service characteristics
    • intangibility
    • variability
    • perishability
    • inseperability
  14. intangibility
    • a deed, performance or effort
    • difficulty in evaluation
    • use tangible cues
    • benefits of non-ownership
  15. variability
    • standardization difficult
    • selection, training and rewarding of staff
    • evaluation systems
    • use of reliable equipment
  16. inseperability
    • simultaneous production and consumption
    • importance of service provider
    • selection, training and rewarding of staff
    • avoid inter-customer conflict
  17. perishability
    • consumption cannot be stored
    • match supply and demand
    • use of part-time staff
    • multi-skilling
    • participation by consumers
    • differential pricing
    • stimulation of off-peak demand
    • comfortable waiting area
    • reservation system
  18. characteristics of successful brand names
    • distinctiveness
    • relevance
    • memorability
    • flexibility
  19. how to get word of mouth going...
    • persuade satisfied customers to inform others
    • developing materials that customers can pass on to others
    • targeting opinion leaders in advertising campaigns
    • encouraging potential customers to talk to current customers
  20. barriers to matching of expected and perceived service levels
    • misconceptions
    • inadequate resources
    • inadequate delivery
    • exaggerated promises
  21. core dimensions of service quality
    • reliability
    • assurance
    • responsiveness
    • empathy
    • tangibles
  22. characteristics of nonprofit marketing
    • education vs meeting current needs
    • multiple publics
    • measurement of success and conflicting objectives
    • public scrutiny
  23. marketing procedures for nonprofit organizations
    • target marketing and differentiation
    • developing a marketing mix
  24. pricing methods
    • cost: give an indication of the minimum price that neeeds to be charged in order to break even
    • competition: where firms follow the prices charged by leading competitors, where producers take the going-rate price, where contracts are awarded through a competitive bidding process
    • marketing: estimating a product's value to the customer uses trade-off analysis, experimentation, and economic value to the customer (EVC) analysis
  25. key factors influencing price setting decisions
    • positioning strategy (psychological pricing)
    • new product launch strategy
    • product-line strategy
    • competitive marketing strategy (build objective, hold objective, harvest objective, reposition objective)
    • channel management strategy
    • international marketing strategy (price escalation, parallel importing)
  26. price changes
    • circumstances
    • tactics
    • estimating competitor reaction
  27. circumstances
    • increases: value greater than price, rising costs, excess demand, harvest objective
    • cuts: value less than price, excess supply, build objective, price war unlikely, pre-empt competitive entry
  28. tactics
    • increases: price jump, staged price increases, escalator clauses, price unbundling, lower discounts
    • cuts: price fall, staged price reductions, fighter brands, price bundling, higher discounts
  29. estimating competitor reaction
    • increases: strategic objectives, self-interest, competitive situation, past experience
    • cuts: nothing

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