MKTG 350 1st EditionExam # 3 Study Guide Lectures: 11-15Test 3 Study GuideChapter 11Sku, product line, and product mix (and all terms associated with them like breadth and depth)- Product mix- all the different product lines that a company carries, Skew- specific line (design of the product)- Levi white wash jeans. Breadth- number of product lines. Depth- number of categories with in a product line Brand ownership – all categories- e.g., manufacturers/national brands, private labels/store brands, etc. national brands (same name where ever it is sold) - Private-label brands or store brands (have to do all of the marketing)- Premium, generic, copycat, exclusive co-branded - Premium- owned by retailer, designed to compete with the highest level - Generic- lowest of the low – chips, beer, no brand just beer- pharmaceutical (ibuprofen- Advil) - Copy cats- trying to make the packaging and the name look like the national brand- placenext to the national brand - Exclusive co-branded- partnered with a national or international designer- borrowing their name (only in your store) lily in target – made exclusively for Branding – key features- value, loyalty, protection from competitors, reduce market cost, assets, impactsmarket value Brand equity- the brands reputation in the marketplace – how well customers know your brand and howthey favor it. Brand naming strategies- corporate or family, corporate and product like, individual likesBrand extensions- use brand equity to springboard into a new area- ketchup to salad dressing (Heinz) use the same name for a new productBrand dilutionEvaluate the fit between the product class of the core brans and the extensionEvaluate the consumer perceptions attributes of the core brand and seek out extensions with similar attributesRefrain from the extending brand the brand name to too many productsIs the brand extension distanced enough from the core brand Brand licensing- company gives the license of their name to another company to use their name (under armor gamecock wear) (bobble head) Co-branding- two companies that market their services under one roof or two products that are turned into one (Baskin-robins/ DD) (Brayers ice cream with Reece’s)Repositioning- dawn dishwashing liquid- added air freshener – to improve the product and change they way you think about it Packaging and labeling- used to convey the benefits of the products (helps with the branding – identifying and brand image) – legislative Chapter 12Benefits of new products- changing customer needs, market saturation, managing risk through diversity,fashion cycles, improving business relationships Pioneers- brand new thing that has never been done before (technological break though) (flat screen TV)- rollerblades, polaroid cameras/ digital cameras- Band-Aid, Q-tips, Xerox (chap stick- call all brands chap stick) 5 types of new products (not in textbook – lecture only!)- pioneer, new category entry, additions to product line, product improvement, repositioning Diffusion of innovation – and the groups within this category; know general - characteristics of each- spread of use of products though the market over time – innovators, early adaptors, early majority, late majority, laggardsOpinion leaders – importance of, what category they fall into- early adaptors5 factors influencing the rate of adoption- relative advantage, compatibility, observability, complexity, trialibility Sources for new product ideas- Internal R&D, R&D consortia, licensing, brainstorming, out sourcing, competitors products, consumer input (lays potato chip contest) staples- 22000 ideas Concept testing- - testing the new product idea among a set of potential customersProduct development – prototype, alpha and beta testing- development of prototypes for the products – 3D printing Prototype- first physical example if this product Alpha testing- done in the factory by the people who work for the company (to see if the product is going to preform according to its design) – animal testing Beta testing – first time real customers see the product – people participating in the market research (not released to markets yet) Market testing- testing the actual products in a few marketsPremarket tests- customer exposed, customers surveyed, firm makes decision Test marketing- mini product launch, more expensive than pre-market, market demand is estimated (will the product do what you think it will) can put start date back a year – not a sure fire bet don’t know if you will succeed – clear Pepsi, hit in test market but then failed in the real market PLC – know what’s happening in each stage- Introduction- Make people aware of product – customers and trade - Growtho Competitors first enter – economies of scale o Trying to increase the rate of adoption - Maturityo Most products are in the maturity stage (clothes, packaged goods)o Most products will last a very long time in the maturity stage – fridges, blue jeans, mattresses– (not technology- easily replaced)o Try to extend phase as long as they can by product improvements - Decline1. Maintain- decide to keep selling the predict and promoting it2. Harvest- keep selling the product but not marketing it Delete or divest- quit selling it entirely Ethical issues in product development – lecture only- animal testing Chapter 13Service-product continuum- Doctor hotel dry cleanersrestaurantapparel specialty storegrocery storeUS dependence on service, economic importance of service (4 areas)- Production of manufactured good is cheaper off shored but you cant do that with a service. House hold maintenance is now more specialized (food preparation, moving, hair care, car care). Place a higher value on our leisure and convenience. Aging population- they need more services (meals on wheels, assisted living, nursed, house keepers, drivers, elder care) Differences between services and goods- intangible, heterogeneous, perishable, inseparable Chapter 14Price- sacrifice a person makes for a good or service (time and money) – for a benefit- signals the value of a product (qualityPrice and value- Price is usually ranked as one of the most important factors in purchasing decisions5 C’s of pricing- competition, costs, company objectives, customers, channel membersProfit orientation- institute a companywide policy that all products must provide for at least 18% profit margin to reach a particular profit goalSales orientation- set