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Questions and Answers
What is NOT considered a layer of the product concept?
What is NOT considered a layer of the product concept?
Which of the following is an example of a convenience product?
Which of the following is an example of a convenience product?
What aspect does NOT contribute to the value provided by a product?
What aspect does NOT contribute to the value provided by a product?
What type of buying decision is most likely associated with convenience products?
What type of buying decision is most likely associated with convenience products?
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Which of the following is NOT true about convenience products?
Which of the following is NOT true about convenience products?
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What is a primary characteristic of impulse products?
What is a primary characteristic of impulse products?
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Which of these is an example of a product classified under 'Emergency products'?
Which of these is an example of a product classified under 'Emergency products'?
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How does the concept of geofencing marketing relate to product classification?
How does the concept of geofencing marketing relate to product classification?
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Which of the following best describes shopping products?
Which of the following best describes shopping products?
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What distinguishes specialty products from other product categories?
What distinguishes specialty products from other product categories?
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What is a key objective of product quality as suggested in the content?
What is a key objective of product quality as suggested in the content?
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Which product category requires significant advertising or personal selling to generate consumer interest?
Which product category requires significant advertising or personal selling to generate consumer interest?
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Which strategy involves adding new varieties to a product line to address changing consumer preferences?
Which strategy involves adding new varieties to a product line to address changing consumer preferences?
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What is the first stage in the Adoption Pyramid?
What is the first stage in the Adoption Pyramid?
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What does the product mix refer to in product management?
What does the product mix refer to in product management?
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Which group of adopters is typically characterized as being cautious and avoiding extremes?
Which group of adopters is typically characterized as being cautious and avoiding extremes?
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What is a major risk associated with introducing a new product in the same category as an existing product?
What is a major risk associated with introducing a new product in the same category as an existing product?
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What describes laggards in the context of product adoption?
What describes laggards in the context of product adoption?
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Which factor is NOT considered a product characteristic that affects the rate of adoption?
Which factor is NOT considered a product characteristic that affects the rate of adoption?
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Which approach is essential for new products to succeed during their introduction stage?
Which approach is essential for new products to succeed during their introduction stage?
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Which statement about early adopters is accurate?
Which statement about early adopters is accurate?
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In product line strategies, what does a two-way line stretch involve?
In product line strategies, what does a two-way line stretch involve?
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What is the philosophy of Total Quality Management (TQM) primarily about?
What is the philosophy of Total Quality Management (TQM) primarily about?
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What phase of the product life cycle (PLC) often sees many products fail due to a lack of awareness?
What phase of the product life cycle (PLC) often sees many products fail due to a lack of awareness?
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What is licensing in the context of branding?
What is licensing in the context of branding?
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What is cobranding?
What is cobranding?
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What dual purpose does a package serve?
What dual purpose does a package serve?
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Which of the following best describes ingredient branding?
Which of the following best describes ingredient branding?
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What is one major criticism of advertising?
What is one major criticism of advertising?
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Which step is NOT part of developing an advertising campaign?
Which step is NOT part of developing an advertising campaign?
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How can a marketer increase their chances of getting a job according to the learning objectives?
How can a marketer increase their chances of getting a job according to the learning objectives?
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What does the communication process in marketing mainly involve?
What does the communication process in marketing mainly involve?
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What is the primary goal of integrated marketing communication (IMC)?
What is the primary goal of integrated marketing communication (IMC)?
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Which type of communication model involves reaching a mass audience?
Which type of communication model involves reaching a mass audience?
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Which of the following is NOT a form of personal communications?
Which of the following is NOT a form of personal communications?
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What is one essential feature of the promotion mix?
What is one essential feature of the promotion mix?
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Which of the following elements is part of the traditional mass communication?
Which of the following elements is part of the traditional mass communication?
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What is a crucial requirement of an integrated marketing communication strategy?
What is a crucial requirement of an integrated marketing communication strategy?
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Which of the following best describes personal communications?
Which of the following best describes personal communications?
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Integrated marketing communication aims to achieve which of the following outcomes?
Integrated marketing communication aims to achieve which of the following outcomes?
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What is the many-to-many communication model primarily based on?
What is the many-to-many communication model primarily based on?
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Which social media platform is noted for having the highest number of daily active users?
Which social media platform is noted for having the highest number of daily active users?
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What is buzz marketing primarily aimed at creating?
What is buzz marketing primarily aimed at creating?
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What is a primary role of brand ambassadors in marketing?
What is a primary role of brand ambassadors in marketing?
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What type of communication does viral marketing aim to enhance?
What type of communication does viral marketing aim to enhance?
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Which of the following statements best describes the role of public relations in marketing?
Which of the following statements best describes the role of public relations in marketing?
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Why do marketers monitor social networks?
Why do marketers monitor social networks?
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Which of the following is NOT a component of the updated communication model for marketers?
Which of the following is NOT a component of the updated communication model for marketers?
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Study Notes
International Business Marketing MARKEC04
- Course: International Business Marketing MARKEC04
- Cluster: A-cluster
- Year: 1st Year
- Semester: 1st Semester
- Lecture: 4
- Academic Year: 2024-2025
- Topic: Product and Promotion
Marketing: Real People, Real Choices
- Book Title: Marketing: Real People, Real Choices
- Edition: Eleventh Edition, Global Edition
- Chapter: 8 - Product I: Innovation and New Product Development
Learning Objectives
- Explain how value is derived through different product layers
- Describe how marketers classify products.
- Understand the importance and types of product innovations
- Show how firms develop new products
- Explain the process of product adoption and the diffusion of new innovations
- Be prepared to develop your personal value proposition
Build a Better Mousetrap... and Add Value
- "Build a better mousetrap and the world will beat a path to your door." - old adage
- Products are successful when they provide value
- Products are a bundle of attributes (features, functions, benefits, uses, brand & packaging)
- Woodstream Corp's "Little Champ" failed due to a lack of value proposition
Layers of the Product Concept
- A product represents all that a customer receives in an exchange
- Marketers distinguish among 3 product layers:
- Core product
- Actual product
- Augmented product
Layers of the Product
- The Product: Basic benefits, features, package, brand, quality, appearance
- Core Product: Core benefits
- Actual Product: Features, packaging, brand, quality, appearance, design, functionality
- Augmented Product: Warranty, repair/maintenance, installation, customer support, delivery, credit, product instructions, additional services
How Do Consumers Buy Products?
- Marketers classify products based on where and how consumers buy them
- Similar to how consumer decisions vary in terms of effort (habitual, limited problem solving, extended problem solving)
Convenience Products
- Typically non-durable goods or services
- Purchased with minimal effort
- Examples include:
- Staples (milk, bread)
- Consumer packaged goods (CPGs), fast-moving consumer goods (FMCGs)
- Impulse products
- Emergency products
- Expected to be low-priced and widely available
Shopping Products
- Consumers spend time and effort on price, product attributes, and quality
- Examples include: computers, smartphones, appliances, and automobiles
- Consumers are more likely to compare alternatives
Specialty Products
- Unique characteristics are important to buyers at almost any price
- Consumers tend to be very loyal to known brands.
- Marketers need to make a significant effort to differentiate their products
Unsought Products
- Consumers have little awareness or interest until a need arises, often requiring extensive advertising
- Examples include: retirement plans, life insurance, and new tires for a car
Adoption Pyramid
- Reinforce choice with advertising, sales promotion, and communications
- Product availability, demonstrations, use information, samples
- Provide info, use teaser advertising, massive advertising
- Awareness, interest, evaluation, trial, adoption, confirmation (expected vs actual benefits/costs)
Categories of Adopters
- Innovators (2.5%): Extremely adventurous, risk takers, well-educated
- Early Adopters (13.5%): Concerned about social acceptance, heavy media users
- Early Majority (34%): Avoid being first or last, middle class, deliberate, cautious
- Late Majority (34%): Older, conservative, lower than average education and income
- Laggards (16%): Lower education and income, bound by tradition
Product Factors That Affect the Rate of Adoption
- Relative advantage
- Compatibility
- Complexity
- Trialability
- Observability
Characteristics of Innovations
- Relative advantage: Degree to which a consumer perceives a new product to offer superior benefits (greater relative advantage = faster adoption)
- Compatibility: Extent to which an innovation is consistent with existing cultural values, practices, customs, and norms
- Complexity: Degree to which consumers find a new product difficult to understand and use (higher complexity = slower adoption)
- Trialability: Ease of sampling a new product and its benefits (lower costs associated with trial usage can increase adoption rate)
- Observability: Degree to which others can see the new product and its benefits (higher visibility = more word-of-mouth communication
Marketing: Real People, Real Choices (Chapter 9)
- Product Strategy, Branding, and Product Management
Learning Objectives
- Discuss different product objectives and strategies
- Understand how firms manage products throughout the product life cycle
- Explain branding and packaging strategies that contribute to product identity
- Describe how marketers structure organizations for new and existing product management
- Understand how to manage your career to adapt and flourish
Mars Corporation
- A diverse conglomerate that produces food products (chocolate bars, pet food, etc.)
Product Planning: Develop Product Objectives and Product Strategy
- Effective product planning is a continuous process of product management (brand management)
- Product management is a systematic & team-based approach to coordinating all aspects of a product's strategy; development & execution
Figure 9.2 Objectives for Single and Multiple Products
- Introduces new products
- Regional product introduction nationally
- Product line extensions (stretching line by adding items, filling/adding sizes/styles)
- Contraction of a product line (dropping items)
- Increase width of product mix
Objectives and Strategies for Multiple Products
- Product line (firm's total offering to satisfy a target customer need)
- Product line length: the number of stock-keeping units (SKUs)
- Product line strategies:
- Full-line vs. limited-line strategies
- Upward, downward, or two-way lines stretches
- Filling out or contracting a product line
- Adding new varieties
- Cannibalization (new product eats up existing product sales)
Product Mix Strategies
- A product mix is the total set of products a firm offers for sale.
- Width of product mix (number of different lines) is important to consider, as lines often share common characteristics.
Quality as a Product Objective: TQM and Beyond
- Product quality is the ability of a product to meet customer expectations
- TQM (total quality management) is a company-wide dedication to developing, maintaining, and improving all company operations.
- Philosophy calling for everyone to be actively involved in ensuring company operations meet high standards
Product Quality
- Degree of pleasure, durability, reliability, versatility, product safety, ease of use, and precision are factors of product quality and customer satisfaction
Marketing throughout the Product Life Cycle
- Many products have long lives, while others are short-lived fads.
- The product life cycle (PLC) explains how market response and marketing activities change over a product's life
- Introductions, Growth, Maturity, and Decline
The Product Life Cycle
- Introduction stage: few sales and little profit, recovery of R&D costs is important
- Growth stage: profit increases and peaks
- Maturity stage: sales peak, profit margins narrow (typically the longest stage of the product life cycle)
- Decline stage: market shrinks, sales fall, profits fall.
Introduction Stage of PLC
- New products from well-known brands often have an advantage
- Many products fail due to a lack of awareness
- Effective advertising and promotion is vital
Growth, Maturity, and Decline Stages of the PLC
- Growth: Product accepted, sales rapidly increase
- Maturity: Sales peak, profit margins narrow
- Decline: Sales decrease due to changing customer needs
Figure 9.5 Marketing Mix Strategies Throughout the Product Life Cycle
- Summarizes how product strategies adapt throughout the product lifecycle (introduction, growth, maturity, decline). Includes characteristic, product goals, sales, profits, pricing, and communication considerations.
It's Debatable
- Discussion question on how V8 and The Skinny Cow brand names stack up against criteria that distinguish a "good" brand name
What's in a Name (Or a Symbol)?
- Brand is a name, term, symbol, or design that identifies one firm's products
- A good brand name maintains relationships with customers and fits the target market
National and Store Brands
- National Brands are produced and marketed by a manufacturer
- Store brands are produced by a retail chain with their own trade name (Kirkland's, Sam's Choice, etc)
Generic Brands
- Generic branding presents a strategy of no branding
- Typically packaged in plain containers, sold at low prices; a popular choice in pharmaceuticals.
Licensing
- One firm sells another rights to use a brand name, symbol, or specific elements
- Often used for film properties (Star Wars, Disney, etc.) to license to multiple firms
Cobranding
- Two brands collaborate to market a new product
- Ingredient branding — branded materials become component parts of bigger products.
Packages and Labels: Branding's Little Helpers
- Package functions (protection, communication)
- Essential package communication about a product and its use.
Marketing: Real People, Real Choices (Chapter 13)
- Promotion I: Planning and Advertising
Learning Objectives
- Understand the communication process and the traditional promotion mix
- Describe the steps in traditional and multichannel promotion planning
- Explain advertising types, major criticisms, the development process, and evaluation
- Understand the elements of direct marketing
- Understand how to increase chances of getting a great job
Communication Models in a Digital World That Is "Always On"
- Marketing messages can assume many forms with objectives to inform, remind, persuade, or build relationships
Integrated Marketing Communications (IMC)
- IMC involves planning, execution, and evaluation of coordinated brand communication to target audiences
- Consistency is delivered across platforms (traditional, social media, etc.)
- Multichannel strategy combining traditional and digital activities
Three Models of Marketing Communication
- One-to-many (advertising, sales promotion, public relations)
- One-to-one (database marketing, direct marketing, personal selling)
- Many-to-many (buzz building, social media)
Personal Communications: The One-to-One Model
- Marketers prefer communicating on a personal level (personal selling, direct mail, telemarketing, direct marketing)
Mass Communications: The One-to-Many Model
- Marketers send messages to a mass audience
- Includes advertising, consumer sales promotion, and public relations
Communication Process
- Sources (company, individuals) encode messages
- Messages communicate through various mediums
- Receivers (consumers) decode messages
- Feedback/noise
Misunderstanding...
- Can involve negative communication or misunderstandings
The Promotion Mix
- Communication elements that marketers control
- Personal (one-on-one) communication (personal selling, direct marketing)
- Traditional Mass (mass audiences) communication (media advertising, sales promotion, public relations)
- Today the Internet adds powerful forms of advertising and marketing communication
Control Continuum
- Shows how high or low the marketer's control is over the message itself
- Moves from high (advertising) to low (word-of-mouth)
Steps to Develop the Promotion Plan
- Identify target audience(s)
- Establish communication objectives
- Determine and allocate the marketing communication budget
- Design the promotion mix
- Evaluate the effectiveness of the communication program
Step 1: Identify the Target Audience(s)
- Communication with more than just the target market (other stakeholders)
- Consumers learn from news media, friends/family, and competitors
Step 2: Establish the Communication Objectives
- Creating new customers through series of messages
- Consumers move closer to purchase/loyalty through various stages
Step 3: Determine and Allocate the Marketing Communication Budget
- Determine total budget
- Choose between a push and pull strategy
- Allocate budget within the promotion mix, including traditional and digital media advertising, support media advertising, sales promotions, social media marketing, direct marketing, personal selling, and public relations
Budget Decisions
- Top-down techniques: percentage-of-sales, competitive-parity, and objective-task
- Push vs. Pull strategy
Step 4: Design the Promotion Mix
- Determine communication tools
- Specify the communication message
- Determine communication channels
Step 5: Evaluate the Effectiveness of the Communication Program
- Various methods for monitoring and evaluating efforts
- Sales promotion is generally easy to evaluate, while advertising normally requires pre- and post-testing
- Measuring brand awareness, product benefits, and brand image is possible
Advertising
- Non-personal communication from identified sponsor using mass media.
- Advertising can date back to ancient Greece/Rome, but changes to the media landscape have made traditional mass media less effective.
- Mass media communications remain the primary option for reaching a large audience.
Owned, Paid, and Earned Digital Media
- Crucial for successful digital communication
- Owned media (controlled by company), Paid media (for potential customers), Earned media (word-of-mouth, consumer generated)
Where to Say It: Digital Media
- Owned media (websites, blogs, social media, etc.) controlled by the company
- Paid media (display ads, sponsorships)
- Earned media (social media buzz, word-of-mouth)
Website and Email Advertising
- Online advertising is an ongoing trend
- Website ads (banners, buttons, pop-ups)
- Email advertising (permission-based)
Social Media Advertising
- Advertising via social media channels (Facebook, Instagram, Twitter)
- Mobile advertising
- QR code advertising (uses smartphone GPS to deliver ads)
- Video sharing
Key Forms of Direct Marketing
- Direct communication to a customer designed to generate a response
- Includes mail order (catalogs, direct mail), m-commerce, telemarketing, and direct-response advertising
Mail Order and Direct Mail
- Catalogs are a collection of products
- Direct mail is a specific offer (brochure)
Telemarketing and M-Commerce
- Telemarketing uses the telephone to sell to customers and businesses
- FTC established a "Do Not Call" registry
- M-commerce uses mobile devices for promotions and e-commerce
Marketing: Real People, Real Choices (Chapter 14)
- Promotion II: Social Media Platforms and Other Promotion Elements
Learning Objectives
- Updated communication models incorporating social media & buzz marketing
- Sales promotion types (consumer & B2B)
- Personal selling steps & roles
- Public relations roles & campaign steps
- Importance of networking in a career
Social Media Marketing
- Consumers are influential in spread of product news/messages
- Many-to-many communication model (consumers talking to one another)
- Changing marketing communication landscape is called the "groundswell."
Social Networks
- Connect people
- Facebook is the most popular worldwide
- Marketers research consumer thoughts/brand perception
- Social networks provide a brand community (influential opinion leaders)
Buzz Marketing, Brand Ambassadors, and Evangelists
- Word-of-mouth, authentic communication
- Activities to create conversation/excitement
- Important part of the promotion mix
- Zealous customers as best salespeople
Viral Marketing
- Activities aimed at increasing brand awareness or sales via many-to-many communication
- Example: Apple using "Sent from my iPhone" in texts
Sales Promotion
- Programs to build interest/encourage purchase
- Identifiable sponsors (comparison to advertising)
- Typically has a more immediate short-term objective
Types of Consumer Sales Promotions
- Price-based: Coupons, price deals, rebates & refunds, frequency programs, special/bonus packs
- Attention-getting: Contests/sweepstakes, premiums, sampling
Trade Sales Promotions
- Discounts/deals, allowances, merchandising, case allowances, problems with allowances, forward buying, diverting, co-op advertising
- Increase visibility (trade shows, promotional products, point-of-purchase, push money)
Personal Selling
- Company representative interacts directly with customer
- Intimate form of promotion vs mass-media communication
- Salespeople are important in marketing
Public Relations (PR)
- Building relationships with various audiences (customers, stockholders, legislators)
- PR is more conscious and ongoing in today's context
- Everything a brand does impacts its relationship with the public
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Description
Test your knowledge on the various layers of the product concept, including convenience and specialty products. This quiz also explores product classifications and consumer buying behavior. Perfect for students in marketing courses!
