Binder1.pdf - Business Acumen (Western Governors University) - May 2024

lOMoARcPSD|44889608 03-10_C201 Business-Acumen Section-3 Chapter-11 Business Acumen (Western Governors University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or universit...

lOMoARcPSD|44889608 03-10_C201 Business-Acumen Section-3 Chapter-11 Business Acumen (Western Governors University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Consumer Behavior C201-Business Acumen Notes (May 2024) SECTION 3: BUSINESS MARKETING – Competitive Marketing (CHAPTER 11) ) (Ch-11 Instructor Video) Section 3 and Section 4 make up the Business Marketing assessment. ¥ Business Marketing content is 24% of course assessment. ¥ Section 3 includes chapters 11, 12, 13. [11.1 – 11.8 of chapter 11] [12.3 and 12.6 of chapter 12] [13.1 – 13.6 of chapter 13] ¥ Section 4 includes chapters 12 and 13. [12.1 – 12.7 of chapter 12] [13.7 of chapter 13] Lesson 1 – ¥ Evaluate the effectiveness of using a relationship marketing campaign to gain competitive advantage. ¥ Explain how various factors influence a strategic marketing plan. ¥ Describe marketing research and segmentation. Read: Chapter 11, Sec@ons 11.1–11.8 (pp.279–305) in Contemporary Business. ¥ 11.1 What Is Marke@ng? ¥ 11.2 Evolu@on of the Marke@ng Concept ¥ 11.3 Not-For-Profit and Nontradi@onal Marke@ng ¥ 11.4 Developing a Marke@ng Strategy ¥ 11.5 Marke@ng Research ¥ 11.6 Market Segmenta@on ¥ 11.7 Consumer Behavior ¥ 11.8 Rela@onship Marke@ng Watch ¥ Video Lecture: 11.1 What is Marke@ng? ¥ Video Lecture: 11.2 Evolu@on of the Marke@ng Concept ¥ Video Lecture: 11.3 Consumer Behavior ¥ Video Lecture: 11.4 Marke@ng Research ¥ Video Lecture: 11.5 Marke@ng Segmenta@on ¥ Video Lecture: 11.6 Steps in Building a Marke@ng Strategy ¥ Video Lecture: 11.7 Rela@onship Marke@ng Lesson 2 – within the Section 2-3 Chapter 12 document Lesson 3 – within the Section 3 Chapter 13 document 1 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Business Terms Term Definition Refers to the unique strengths and capabilities that allow an organization to Competitive advantage outperform its competitors and achieve superior business performance. Activity, set of institutions, and processes for creating, communicating, Marketing delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing Concept Companywide consumer orientation to promote long-run success. Activity in which two or more parties give something of value to each other to Exchange Process satisfy perceived needs. Utility Power of a good or service to satisfy a want or need. Use of efforts designed to attract the attention, interest, and preference of a Person Marketing target market toward a person. Place Marketing Attempt to attract people to a particular area, such as a city, state, or nation. Marketing or sponsoring short-term events such as athletic competitions and Event Marketing cultural and charitable performances. Marketing that promotes a cause or social issue, such as preventing child abuse, Cause Marketing anti-littering efforts, and stop-smoking campaigns. Marketing strategy that influences consumers to accept the goals of, receive the Organization Marketing services of, or contribute in some way to an organization. Analysis of external environmental factors by marketers to understand how they Environmental Scanning impact business and marketing decisions. Consumer (B2C) Product Good or service that is purchased by end users. Good or service purchased to be used, either directly or indirectly, in the Business (B2B) Product production of other goods for resale. Group of people toward whom an organization markets its goods, services, or Target Market ideas with a strategy designed to satisfy their specific needs and preferences. Blending the four elements of marketing strategy—product, distribution, Marketing Mix promotion, and pricing—to fit the needs and preferences of a specific target market. Marketing Research Collecting and evaluating information to support marketing decision making. 2 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making; Big Data complex structured or unstructured sets of information that traditional processing applications are unable to analyze. Activities and technologies for gathering, storing, and analyzing data to make Business Intelligence better competitive decisions. Data Mining Computer searches of customer data to detect patterns and relationships. Customer database that allows managers to combine data from several different Data Warehouse organizational functions. Market Segmentation Process of dividing a total market into several relatively homogeneous groups. Geographical Dividing an overall market into homogeneous groups on the basis of their Segmentation locations. Dividing markets on the basis of various demographic or socioeconomic Demographic characteristics such as gender, age, income, occupation, household size, stage in Segmentation family life cycle, education, or ethnic group. Psychographic Dividing consumer markets into groups with similar attitudes, values, and Segmentation lifestyles. Product-Related Dividing consumer markets into groups based on buyers' relationships to the Segmentation good or service. End-Use Marketing strategy that focuses on the precise way a B2B purchaser will use a Segmentation product. Actions of ultimate consumers directly involved in obtaining, consuming, and Consumer Behavior disposing of products and the decision processes that precede & follow actions. Developing and maintaining long-term, cost-effective exchange relationships Relationship Marketing with partners. Revenues and intangible benefits (referrals and customer feedback) from a Lifetime Value of a customer over the life of the relationship, minus the amount the company must Customer spend to acquire and serve that customer. Marketing initiative that rewards frequent purchases with cash, rebates, Frequency Marketing merchandise, or other premiums. Marketing effort sponsored by an organization that solicits involvement by Affinity Program individuals who share common interests and activities. 3 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 LESSON 1: USING TECHNOLOGY TO MEASURE AND CONTROL OPERATIONS Learning Objective: Summarize the benefits of using technology to measure and control operations. Competitive advantage refers to the unique strengths and capabilities that allow an organization to outperform its competitors and achieve superior business performance. Competitive advantage can manifest in various forms, including: ¥ Cost leadership ¥ Differentiation ¥ Innovation ¥ Customer Service ¥ Niche market focus Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is the link between the organization and the people who buy and use its goods and services. The best marketers not only give consumers what they want but also anticipate needs before those needs surface. Marketing is the way organizations: ¥ Determine buyer needs. ¥ Inform potential customers that they can meet those needs. ¥ Meet needs by providing a quality product (or service) at a reasonable price. Marketing is the path to developing loyal, long-term customers. Marketing attains competitive advantages by: ¥ Strategically aligning their offerings with customer preferences. ¥ Creating compelling value propositions. ¥ Effectively communicating their unique selling points to the target market. For centuries, organizations of the Production Era stressed efficiency in developing quality goods. In the Marketing Eras, organizations fully recognize the importance of their customers. Today's marketplace is primarily a buyer's market, meaning buyers can choose from an abundance of goods and services. 4 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Screen shot from Instructor Video Relationship marketing is an organization's attempt to: ¥ Develop long-term, cost-effective links with individual customers for mutual benefit. By fostering long-term customer relationships, organizations can: ¥ Enhance loyalty. ¥ Be competitive in the market. Relationship marketing focus on creating _________ to build a loyal customer base. ¥ Trust ¥ Satisfaction ¥ Personalized experiences. By identifying current purchasers and maintaining a positive relationship with them, an organization can: ¥ Efficiently target its best customers. ¥ Fulfill their needs. ¥ Create loyalty. Customer relationships building techniques: ¥ Information technologies ¥ Frequency programs ¥ Affinity programs ¥ One-on-one efforts Relationship marketing campaigns have emerged as a powerful strategy to gain a competitive advantage. Customers enter into relationships only if there is some benefit to them. 80/20 principle: frequent customers have a higher lifetime value, so businesses allocate resources accordingly. The top 20% of your clients generate 80% of your profit. 5 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Marketing initiative that rewards frequent purchases with cash, rebates, Frequency Marketing merchandise, or other premiums. Marketing effort sponsored by an organization that solicits involvement by Affinity Program individuals who share common interests and activities. Comarketing Cooperative arrangement in which two businesses jointly market each other's products. Cobranding Cooperative arrangement in which two or more businesses team up to closely link their names on a single product. Not-for-profit organizations use marketing to: ¥ Obtain Volunteers. ¥ Reach Audience. ¥ Secure Funding (donations). ¥ Make people aware of their existence. ¥ Accomplish overall missions. Not-for-profit organizations operate in both the public and private sector. Tables: ¥ NONTRADITIONAL Marketing Types (cyan) ¥ Market RESEARCH (green) ¥ Market STRATEGY (purple) 6 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 NONTRADITIONAL Marketing Types: (5 categories) Type Definition 1. Person Use of efforts designed to attract the attention, interest, and preference of a Marketing target market toward a person. 2. Place Attempt to attract people to a particular area, such as a city, state, or nation. Marketing 3. Event Marketing or sponsoring short-term events such as athletic competitions and Marketing cultural and charitable performances. 4. Cause Marketing that promotes a cause or social issue, such as preventing child abuse, Marketing anti-littering efforts, and stop-smoking campaigns. 5. Organization Marketing strategy that influences consumers to accept the goals of, receive the Marketing services of, or contribute in some way to an organization. 7 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Screen shot from Instructor Video Market RESEARCH Concept Summary Market Research Marketing research is the information-gathering function that links marketers to the marketplace. ¥ Provides information about potential target markets. ¥ Generate internal data or gather external data. ¥ Use secondary data or conduct research to obtain primary data. Marketing research provides insights for informed decision-making. Marketing research utilizes different ______ to help create effective marketing strategies. ¥ Methods of gathering data and ¥ Ways in which to leverage the data. Primary data are collected firsthand through observation or surveys. Secondary data are previously published facts that are inexpensive to retrieve and easy to obtain. Environmental Scanning – analysis of external environmental factors by marketers to understand how they impact business and marketing decisions. Business Intelligence Activities and technologies for gathering, storing, and analyzing data to make better competitive decisions. Big Data Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making; complex structured or unstructured sets of information that traditional processing applications are unable to analyze. Data Mining Data mining involves evaluating and analyzing customer data to detect patterns or relationships. Data mining is a helpful tool in forecasting various trends, such as: ¥ Sales revenues ¥ Consumer behavior Data Warehouse Customer database that allows managers to combine data from several different organizational functions. 8 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Data Analysis Types of Data Analysis: ¥ Causal analysis – the field of experimental design and statistics pertaining to establishing cause and effect. ¥ Predictive analysis - the process of using data to forecast future outcomes. (uses data analysis, machine learning, artificial intelligence, and statistical models to find patterns) ¥ Prescriptive analysis – analyze data and content to recommend the optimal course of action or strategy moving forward. ¥ Diagnostic analysis – examines data to understand the root causes of events, behaviors, and outcomes. 9 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Market STRATEGY Concept Summary Marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The marketing concept refers to a companywide customer orientation with the objective of achieving long-run success. Exchange Process – activity in which two or more parties give something of value to each other to satisfy perceived needs. The marketing concept focuses on __________, rather than simply producing and selling goods and services. ¥ The satisfaction of customers ¥ Building long-term relationships with them ¥ Through several channels including the Internet and social media Utility is the power of a good or service to satisfy a want or need. Marketing creates time, place, and ownership utility by making the product available when and where consumers want to buy and by arranging for orderly transfers of ownership. Marketing Strategy – is needed to meet organizational objectives. ¥ Marketing is more than just advertising. ¥ It is the complete process of how we bring our products to market and make them available to our customers. Marketing Strategies Development Process includes: Step 1. Study and analyzing the overall market and selecting a target market. Step 2. Developing a marketing mix to satisfy the chosen market Strategic marketing plans are influenced by: ¥ Macro- and micro-environmental factors ¥ Macro – big and broad ¥ Micro – small and specific Environmental Scanning helps a manager understand socioeconomic and political factors beyond the manager's control when developing a marketing strategy. 10 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Marketing Mix Strategies: (discussed in next chapters) 1. Product 2. Distribution (Place) 3. Pricing 4. Promotion The ‘four-P’ strategies fit the needs and preference of a specific target market. Screen shot from instructor video 11 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Target Market Target Market is the group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. Business-to-Consumer Consumer Product is a good or service that is purchased by end users. (B2C) Consumer Markets criteria: 1. Geographical – location 2. Demographic – age and family size. 3. Psychographic – behavioral and lifestyle profiles. 4. Product-related – benefits consumers seek from product (brand loyalty) Screen shot from instructor video 12 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Business-to-Business Business Product Is a good or service purchased to be used, either directly or (B2C) indirectly, in the production of other goods for resale. Business Markets segmentation: 1. Geographical – where are they located. 2. Customer-based specifications – what features do they need in product. (It is cheaper and 3. End user applications – how the product is utilized. easier to establish relationships with a new business) Screen shot from instructor video Segmentation Market Segmentation is the process of dividing a total market into several relatively homogeneous groups. Market Segmentation enables: ¥ Personalized offerings ¥ Resource allocation Consumer Market Segmentation categories: ¥ Geographical segmentation – dividing market basis of their locations. ¥ Demographic segmentation - dividing markets basis on socioeconomic characteristics such as gender, age, income, occupation, household size, stage in family life cycle, education, or ethnic group. 13 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 ¥ Psychographic segmentation – dividing markets basis on groups with similar attitudes, values, and lifestyles. ¥ Product-Related segmentation – dividing markets based on buyers' relationships to the good or service. ¥ Benefits sought. ¥ Product usage rate. ¥ Brand loyalty levels. ¥ End-Use segmentation – marketing strategy that focuses on the precise way a B2B purchaser will use a product. Demographic segmentation is the most commonly used consumer market segmentation method. Psychographic segmentation is NOT a typical method of segmenting B2B markets? Place Marketing – attempt to attract people to a particular area, such as a city, state, or nation. Consumer Behavior Consumer Behavior is the actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede & follow actions. Both personal and interpersonal factors influence the way buyers behave. Personal influences on consumer behavior include: ¥ An individual's needs and motives ¥ Perceptions ¥ Attitudes ¥ Learned experiences. ¥ Self-concept behavior Interpersonal determinants influences include: ¥ Cultural ¥ Social ¥ Family Organizational influences – a number of people within a company may participate in business purchase decisions, so business buyers must consider a variety of influences in addition to their own preferences. 14 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Lifetime Value of a The lifetime value of a customer incorporates: Customer ¥ The revenues and intangible benefits from the customer over the life of the relationship with a company ¥ Minus the amount the company must spend to acquire and serve the customer. 15 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 SECTION QUIZ / CHAPTER 11 1. What is utility? ¥ Utility is the ability of a good or service to satisfy the wants and needs of customers. 2. Identify three ways in which marketing creates utility. ¥ Marketing creates time utility by making a good or service available when customers want to purchase it. ¥ Place utility by making the product available in a convenient location. ¥ Ownership utility by transferring the product from the seller to the buyer. 3. What is the marketing concept? ¥ The marketing concept is a companywide customer orientation with the objective of achieving long-run success. According to the marketing concept, marketplace success begins with the customer. 4. How is the marketing concept tied to the relationship and social eras of marketing? ¥ Most marketing now centers on the satisfaction of customers and building long-term relationships with them through several channels including the Internet and social media, rather than simply producing and selling goods and services. 5. Why do not-for-profit organizations engage in marketing? ¥ Not-for-profit organizations use marketing to reach audiences, secure funding, and accomplish their overall missions. 6. What are the five types of nontraditional marketing used by not-for-profit organizations? ¥ Person marketing ¥ Place marketing ¥ Event marketing ¥ Cause marketing ¥ Organization marketing 7. Distinguish between consumer products and business products. ¥ Consumer products are goods and services purchased by end users. ¥ Business products are goods and services purchased to be used, either directly or indirectly, in the production of other goods for resale. 8. What are the steps in developing a marketing strategy? ¥ The two steps are: o Studying and analyzing potential target markets and choosing among them o Creating a marketing mix to satisfy the chosen market. 9. What is the difference between primary data and secondary data? ¥ Primary data are collected firsthand through observation or surveys. ¥ Secondary data are previously published facts that are inexpensive to retrieve and easy to obtain. 16 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 10. What is data mining? ¥ Data mining is the task of using computer technology to evaluate data in a database and identify useful trends. 11. What is the most common form of segmentation for consumer markets? ¥ Demographics is the most commonly used consumer market segmentation method. 12. What are the three approaches to product-related segmentation? ¥ The three approaches to product-related segmentation are: o Benefits sought o Product usage rate o Brand loyalty levels 13. What is end-use segmentation in the B2B market? ¥ End-use segmentation focuses on the precise way a B2B purchaser will use a product. 14. Define consumer behavior. ¥ Consumer behavior refers to the actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products, along with the decision processes that precede and follow these actions. 15. What are some determinants of consumer behavior? ¥ Interpersonal influences include cultural, social, and family influences. 16. What is the lifetime value of a customer? ¥ The lifetime value of a customer incorporates the revenues and intangible benefits from the customer over the life of the relationship with a company minus the amount the company must spend to acquire and serve the customer. 17. Discuss the increasing importance of one-on-one marketing efforts. ¥ One-on-one marketing is increasing in importance as consumers demand more customization in goods and services. ¥ It is also increasingly dependent on technology such as computer-aided design and manufacturing (CAD/CAM). ¥ The Internet also offers a way for businesses to connect with customers in a direct and personal manner. 18. Identify each of the following as a consumer product or a business product, or classify it as both: ¥ Frozen yogurt - ? ¥ iPad - ? ¥ Gasoline -? ¥ Boat trailer - ? ¥ Hand sanitizer - ? ¥ Post-its – ? 17 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 19. Identify and describe the four strategies that blend to create a marketing mix. ¥ Product ¥ Distribution ¥ Promotion ¥ Pricing 20. What is a target market? ¥ The group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. 21. Why is target market selection usually the first step in the development of a marketing strategy? ¥ Selection of the target market helps to narrow down the group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. 22. Identify the two strategies that a firm could use to develop a marketing mix for international markets. What are the advantages and disadvantages of each? o Pricing ¥ Product o Promotion ¥ Distribution 23. Describe the types of data that someone who is thinking of starting an accounting practice might choose to gather. ¥ Primary data are collected firsthand through observation or surveys. ¥ Secondary data are previously published facts that are inexpensive to retrieve and easy to obtain. 24. Explain each of the methods used to segment consumer and business markets. Which methods do you think would be most effective for each of the following? Why? (Note that a combination of methods might be applicable.) ¥ Supermarket featuring organic foods - ? ¥ Hair-care products - ? ¥ Tour bus company – ? ¥ Line of baby food - ? ¥ Pet insurance - ? ¥ Dry cleaner – ? 25. What are the three major determinants of consumer behavior? ¥ Cultural ¥ Social ¥ Family 18 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 26. Describe how frequency and affinity programs work toward building relationships. ¥ Frequency Marketing – Marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums. ¥ Affinity Program - Marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities. 27. Activities and technologies for gathering, storing, and analyzing data to make better competitive decisions. o Geographical segmentation ¥ Business intelligence o Person marketing o Market segmentation 28. Marketing strategy that focuses on the precise way a B2B purchaser will use a product. o Cause marketing o Person marketing ¥ End-use segmentation o Big data 29. Use of efforts designed to attract the attention, interest, and preference of a target market toward a person. o Market segmentation o Demographic segmentation o Frequency marketing ¥ Person marketing 30. Cooperative arrangement in which two businesses jointly market each other's products. o Market segmentation o Environmental scanning ¥ Comarketing o Marketing concept 31. Blending of the four elements of marketing strategy—product, distribution, promotion, and pricing—to fit the needs and preferences of a specific target market. ¥ Marketing mix o End-use segmentation o Geographical segmentation o Data warehouse 32. Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. o Exchange process o Organization marketing ¥ Marketing o Big data 19 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 33. Group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. ¥ Target market o Psychographic segmentation o Product-related segmentation o Cause marketing 34. Analysis of external environmental factors by marketers to understand how they impact business and marketing decisions. o Consumer behavior o Marketing research ¥ Environmental scanning o Comarketing 35. Marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization. o Geographical segmentation o Cause marketing ¥ Organization marketing o Target market 36. Dividing consumer markets into groups based on buyers' relationships to the good or service. o Affinity program ¥ Product-related segmentation o Big data o Relationship marketing 37. Power of a good or service to satisfy a want or need. o Product-related segmentation o Event marketing ¥ Utility o Comarketing 38. Dividing a market into homogeneous groups on the basis of their locations. o Business intelligence ¥ Geographical segmentation o Event marketing o Comarketing 39. Revenues and intangible benefits (referrals and customer feedback) from a customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer. o Market segmentation o Relationship marketing ¥ Lifetime value of a customer o Consumer behavior 20 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 40. The task of using computer-based technology to evaluate data in a database and identify useful trends. ¥ Data mining o Frequency marketing o Consumer (B2C) product o Target market 41. Attempt to attract people to a particular area, such as a city, state, or nation. o Cobranding o Consumer (B2C) product o Data mining ¥ Place marketing 42. Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making. o Demographic segmentation o Comarketing ¥ Big data o Data mining 43. Activity in which two or more parties give something of value to each other to satisfy perceived needs. o Consumer (B2C) product ¥ Exchange process o Target market o Event marketing 44. Marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities. o Geographical segmentation o End-use segmentation ¥ Affinity program o Data warehouse 45. Customer database that allows managers to combine data from several different organizational functions. o Consumer behavior o Marketing research ¥ Data warehouse o Product-related segmentation 46. Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions. o Marketing research ¥ Consumer behavior o Big data o Product-related segmentation 21 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 47. Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances. o Market segmentation ¥ Event marketing o Cause marketing o Target market 48. Process of dividing a total market into several relatively homogeneous groups. o Comarketing o Cause marketing ¥ Market segmentation o Environmental scanning 49. Good or service that is purchased by end users. ¥ Consumer (B2C) product o Target market o Business (B2B) product o Market segmentation 50. Marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums. o Cause marketing o Environmental scanning ¥ Frequency marketing o Market segmentation 51. Good or service purchased to be used, either directly or indirectly, in the production of other goods for resale. o Target market o Demographic segmentation o Place marketing ¥ Business (B2B) product 52. Cooperative arrangement in which two or more businesses team up to closely link their names on a single product. ¥ Cobranding o Geographical segmentation o Market segmentation o Demographic segmentation 53. Distinguishes markets on the basis of various demographic or socioeconomic characteristics. ¥ Demographic segmentation o Business intelligence o Person marketing o Data warehouse 22 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 54. Marketing that promotes a cause or social issue, such as preventing child abuse, anti-littering efforts, and stop-smoking campaigns. ¥ Cause marketing o Geographical segmentation o Relationship marketing o Demographic segmentation 55. Company-wide consumer orientation to promote long-run success. o Marketing research o Product-related segmentation o Person marketing ¥ Marketing concept 56. Dividing consumer markets into groups with similar psychological characteristics, values, and lifestyles. o Marketing concept o Market segmentation ¥ Psychographic segmentation o Cause marketing 57. Collecting and evaluating information to help marketers make effective decisions. o Psychographic segmentation o Demographic segmentation o Cause marketing ¥ Marketing research 58. Developing and maintaining long-term, cost-effective exchange relationships with partners. ¥ Relationship marketing o Event marketing o Place marketing o Data mining 59. Which of the following is an example of ownership utility? ¥ A furniture store offers free delivery and free assembly for its buyers. 60. _______ is the power of a good or service to satisfy a want or need. ¥ Utility 61. The exchange process is an activity in which two or more parties give something of value to each other to: ¥ Satisfy perceived needs. 62. For centuries, organizations of the _______ stressed efficiency in developing quality goods. ¥ Production era 63. In which of the following eras did organizations fully recognize the importance of their customers? ¥ Marketing era 23 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 64. A company ensured a full crowd of specters by signing a professional golfer to host its National golf tournament, which also honored U.S. military members. Which one of the nontraditional categories does this exemplify? ¥ Organization marketing 65. Not-for-profit organizations operate in both the public and private sector. ¥ True 66. Which plan below outlines a company’s market strategy and includes information about the specific activities to be undertaken, the audience to whom each activity is targeted, sales and revenue goals, the marketing budget, the timing of who will be responsible for specific tasks, metrics used to measure goals, and the timing to implement elements of the market mix? ¥ Marketing plan 67. Which strategy below includes decisions about package design, brand names, trademarks, warranties, product image, new-product development, and customer service? ¥ Product strategy 68. ________ is the process of collecting and evaluating information to help marketers make effective decisions. ¥ Market research 69. _______ is part of the broader field of business intelligence, which is the task of using computer-based technology to evaluate large sets of data, or big data, and identify useful trends. ¥ Data mining 70. Which of the following is NOT a typical method of segmenting B2B markets? ¥ Psychographic segmentation o End-use segmentation o Demographic segmentation o Geographic segmentation 71. The demographic method of segmenting the market is concerned with region, population, and density. ¥ False 72. ________ influences on consumer behavior includes individual needs and motives, perception, attitudes, learned experiences, and self-concept. ¥ Personal 73. The interpersonal determinants of consumer behavior include all BUT which of the following: o Family influences o Cultural influences o Social influences ¥ End-user influences 24 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 74. Marketing creates all of the following types of utility EXCEPT: o Ownership utility o Time utility o Place utility ¥ Form utility (created by production) 75. The best marketers not only give consumers what they want but also: ¥ Anticipate needs before those needs surface. 76. A local grocery store and a restaurant team up to organize a food festival to bring the community together. During the festival, they also run a donation drive to benefit local food banks. Which type of marketing is exemplified in this scenario? o Content marketing ¥ Relationship marketing o Outbound marketing o Social media marketing 77. What helps a manager understand socioeconomic and political factors beyond the manager's control when developing a marketing strategy? o Pricing strategy ¥ Environmental scanning o Business plan o Marketing mix 78. Which type of analysis helps marketers analyze and create consumer behavior profiles to forecast future behaviors of the consumers? o Causal analysis ¥ Predictive analysis o Prescriptive analysis o Diagnostic analysis 79. Which method of market segmentation do marketers use to create market segments based on socioeconomic characteristics? o Product-related segmentation ¥ Demographic segmentation o Psychographic segmentation o Geographical segmentation 80. What is primary data in marketing research? o Data acquired from advertising agencies ¥ Data collected directly from the source o Data obtained from a company's financial records o Data published by the federal government 25 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 81. What is a variable for the end-use market segmentation method in business-to-business (B2B) markets? o Revenue of the buyer company o Age group of shareholders in the buyer company ¥ Product design specifications for performance o Geographically concentrated industries 26 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 04-10_C201 Business-Acumen Section-2-3-4 Chapter-12 Business Acumen (Western Governors University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 C201-Business Acumen Notes (May 2024) SECTION 2: OPERATIONS AND QUALITY MANAGEMENT SECTION 3: BUSINESS MARKETING – Competitive Marketing SECTION 4: BUSINESS MARKETING – Product and Strategy (CHAPTER 12) (Ch-12 Instructor Video) Section 2 makes up the Operations and Quality Management assessment. ¥ Operations and Quality Management content is 9% of course assessment. ¥ Section 2 includes chapters 10 and 12 [10.1 – 10.7 of chapter 10] [12.4 and 12.6 of chapter 12]. Section 3 and Section 4 make up the Business Marketing assessment. ¥ Business Marketing content is 24% of course assessment. ¥ Section 3 includes chapters 11, 12, 13. [11.1 – 11.8 of chapter 11] [12.3 and 12.6 of chapter 12] [13.1 – 13.6 of chapter 13] ¥ Section 4 includes chapters 12 and 13. [12.1 – 12.7 of chapter 12] [13.7 of chapter 13] Lesson 1-6 – Learning Objec-ves: ¥ Can I describe the classifica'ons of products, goods, and services? (lesson 1: product strategy) ¥ Can I describe the four stages of the product life cycle? (lesson 2: product life cycle) ¥ Can I explain the factors that influence consumer product loyalty? (lesson 3: product iden-fica-on) ¥ Can I iden-fy distribu'on channels, including wholesaling and retailing? (lesson 4: distribu-on strategy) ¥ Describe the different types of compe''ve advantage. (lesson 5: retailing / market strategy) ¥ Can I evaluate how product distribu-on impacts opera'onal efficiency in a given situa-on? (lesson 6: distribu-on channel decisions and logis-cs) Read: Chapter 12, Section 12.1 (pp. 310–313); Chapter 12, Section 12.2 (pp. 313–318); Chapter 12, Section 12.3 (pp. 318–325); Chapter 12, Sections 12.4-12.7 (pp. 323–335) in Contemporary Business. ¥ 12.1 Product Strategy ¥ 12.2 Product Life Cycle ¥ 12.3 Product Iden-fica-on (this sec-on also covered in Sec-on 3-Lesson 2 content) ¥ 12.4 Distribu-on Strategy ¥ 12.5 Wholesaling ¥ 12.6 Retailing ¥ 12.7 Distribu-on Channel Decisions and Logis-cs Watch: Video Lectures 12.1–12.7 ¥ Video Lecture: 12.1 Products and Services ¥ Video Lecture: 12.2 Product Life Cycle ¥ Video Lecture: 12.3 Product Iden-fica-on ¥ Video Lecture: 12.4 Distribu-on Strategy ¥ Video Lecture: 12.5 Wholesaling ¥ Video Lecture: 12.6 Retailing ¥ Video Lecture: 12.7 Distribu-on Channel Decisions and Logis-cs 1 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Business Terms Term Definition Bundle of physical, service, and symbolic attributes designed to satisfy buyers' Product wants. Group of related products marked by physical similarities or intended for the same Product Line market. The assortment of product lines and individual goods and services that a firm offers Product Mix to consumers and business users. Four basic stages: introduction, growth, maturity, and decline—through which a Product Life Cycle product progresses. Introduction of a new product supported by a complete marketing campaign to a Test Marketing selected city or geographic area. Name, term, sign, symbol, design, or some combination that identifies the products Brand of one company and differentiates them from competitors' offerings. Part of a brand consisting of words or letters that form a name that identifies and Brand Name distinguishes an offering from those of competitors. Trademark Brand that has been given a legal protection. Brand Equity Added value that a respected and successful name gives to a product. Vendor that is designated by the business customer as the major supplier to Category Advisor assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer. Deals with the marketing activities and institutions involved in getting the right Distribution Strategy good or service to the company's customers. Path through which products—and legal ownership of them—flow from producer Distribution Channel to consumers or business users. Physical Distribution Actual movement of products from producer to consumers or business users. Distribution channel member that sells primarily to retailers, other wholesalers, or Wholesaler business users. Distribution channel members that sell goods and services to individuals for their Retailer own use rather than for resale. 2 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Complete sequence of suppliers that contribute to creating a good or service and Supply Chain delivering it to business users and final consumers. Process of coordinating flow of goods, services, and information among members Logistics of the supply chain. Process in which the producer and the retailer agree that the producer (or the Vendor-Managed wholesaler) will determine how much of a product a buyer needs and will Inventory automatically ship new supplies when needed. Path that products – and legal ownership of them – follow from producer to Distribution channels consumers or business user Deals with the marketing activities and institutions involve in getting the right good Distribution strategy or service to the company’s customers. Process of coordinating the flow of goods, services, and information among Logistics members of the supply chain. Physical distribution Actual movement of products from producer to consumers or business users. Bundle of physical, service, and symbolic characteristics designed to satisfy Product consumer wants. Four basic stages – introduction, growth, maturity, and decline – through which a Product life cycle successful product progress. Group of related products marked by physical similarities or intended for a similar Product line market. the assortment of product lines and individual goods and services that a firm offers Product mix to consumers and business users. Distribution channel member that sells goods and services to individuals for their Retailer own use rather than for resale. Distribution channel member that sells primarily to retailers, other wholesalers, or Wholesaler business users. Complete sequence of suppliers that contribute to creating a good or service and Supply chain delivering it to business users and final consumers. Introduction of a new product supported by a complete marketing campaign to a Test marketing selected city or geographic area. Process in which the producer and the retailer agree that the producer (or the Vendor-managed wholesaler) will determine how much a product a buyer needs and automatically inventory ship new supplies when needed. 3 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 LESSON 1: PRODUCT STRATEGY (12.1) Learning Objective: Describe the classifications of products, goods, and services. Leaders and managers need to understand a product’s: ¥ Features ¥ Benefits ¥ Target Audience Most consumers respond to the question “What is a product?” by listing its physical features. A marketer’s definition of product is: ¥ A Product is a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants. Product strategy involves considerably more than just producing a good or service. ¥ instead, it focuses on benefits. Product strategy begins by describing the classifications of: ¥ Goods and services ¥ Customer service ¥ Product lines ¥ Product mix ¥ Product life cycle A Product Line is a series of related products is a group of related products marked by physical similarities or intended for a similar market. A Product Mix is the assortment of product lines and individual goods and services that a firm offers to consumers and business users. Marketers must assess their product mix continually to evaluate and monitor: ¥ Company growth. ¥ Changing consumer needs and wants. ¥ Adjust to competitors' offerings. Product classifications providing insight into their distinct characteristics and implications for marketing strategies. Products classification categories: 1. Tangible goods – physical items that customers can touch and possess. 2. Intangible services – experiences or actions provided to customers. 3. Hybrid offerings – encompass a combination of tangible goods and intangible services. 4 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Goods and services can be classified as consumer (B2C) or business (B2B) products depending on whether the purchasers of the particular item are consumers or businesses. Consumer products are those purchased by ultimate consumers for their own use. The consumer (B2C) classification typically is based on consumer buying habits. Classifying CONSUMER Goods and Services (4 categories) Type Definition Examples Classification of CONSUMER goods and services: 1. Convenience product – items the consumer seeks to purchase frequently, immediately, and with little effort. 2. Shopping product – typically purchased only after the buyer has compared competing products in competing stores. 3. Specialty product – Products that a purchaser is willing to make a special effort to obtain. 4. Unsought products – Goods and services that consumers either do not know about or know about but don't think of buying until a need arises. 1. Convenience ¥ Items the consumer seeks to purchase Items often found in a gas station: Products frequently, immediately, and with little effort. ¥ Newspapers ¥ Snacks ¥ Candy ¥ Coffee ¥ Bread ¥ Milk ¥ Eggs 2. Shopping ¥ Typically purchased only after the buyer has A person intent on buying a new Products compared competing products in competing sofa or dining room table may visit stores. many stores. 3. Specialty ¥ Products that a purchaser is willing to make a The purchaser is already familiar Products special effort to obtain. with the item and considers it to have no reasonable substitute. 4. Unsought ¥ Goods and services that consumers either do ¥ Car towing Products not know about or know about but don't think ¥ Home security systems of buying until a need arises. ¥ Burial service 5 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Marketing Strategy Implications for Consumer Goods Classification Screen shot from instructor video 6 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Business products are those purchased for use either directly or indirectly in the production of other goods and services for resale. Business goods are classified based on usage—such as, ¥ Capital items – products that are long-lived and relatively expensive (machinery) ¥ Expense items – less costly products that are consumed within a year (office supplies) Business products classification is based on how the items are used and product characteristics. Classifying BUSINESS Goods and Services (5 categories) Type Definition Examples Market Strategy Implications Classifying BUSINESS goods and services: 1. Installations products – capital items that are expensive and often involve buyer and seller negotiations. Manufacturing equipment. Promotion is focused on personal selling. Strategies: product quality and customer service. 2. Accessory equipment products – capital items, products are usually less expensive and shorter lived than installations and involve fewer decision makers. Hand tools or office equipment. Promotion is focused on advertising. Strategy: competitive pricing. 3. Component parts and Material products – finished business goods that become part of a final product. Disc drives and batteries. Promotion is focused on personal selling. Strategies: product quality and customer service. 4. Raw Materials products – farm and natural products used in producing other final products. Milk, wood. Promotion is focused on personal selling. Strategies: product quality and customer service. 5. Supplies products – expense items used in a company's daily operation that do not become part of the final product. Promotion is focused on advertising. Strategy: competitive pricing. 1. Installations ¥ Capital items that are Major capital items, Frequently marketed Products expensive and often such as: directly from manufacturer involve buyer and seller ¥ New factories to business buyer: negotiations that may ¥ Heavy equipment ¥ Promotional emphasis last for more than a and machinery is on personal selling. year before a purchase ¥ Custom-made actually is made. equipment ¥ New-product development, especially when the business Purchase approval product is custom frequently involves a made. number of different people: Strategies: ¥ Production specialists ¥ Product quality ¥ Representatives from ¥ Customer service the purchasing 7 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 department ¥ Members of top management—who must agree on the final choice 2. Accessory equipment ¥ Also includes capital ¥ Hand tools ¥ Promotional emphasis Products items, products are ¥ Printers is on advertising, usually less expensive because their products and shorter lived than are often sold through installations and involve an intermediary, such fewer decision makers. as a wholesaler. Strategy: ¥ Competitive pricing 3. Component parts ¥ Finished business goods ¥ Disk drives that are ¥ Promotional emphasis and Materials that become part of a sold to computer is on personal selling. Products final product. manufacturers. ¥ Batteries purchased ¥ New-product by automakers. development, especially when the business product is custom made. Strategies: ¥ Product quality ¥ Customer service 4. Raw Materials ¥ Farm and natural ¥ Milk ¥ Promotional emphasis Products products used in ¥ Wood is on personal sales?? producing other final ¥ Leather products. ¥ Soybeans Strategies: ¥ Product quality ¥ Customer service 5. Supplies ¥ Expense items used in a ¥ Paper clips ¥ Promotional emphasis Products company's daily ¥ Light bulbs is on advertising, operation that do not ¥ Copy paper because their products become part of the final are often sold through product. an intermediary, such ¥ Often referred to as as a wholesaler. MRO (maintenance, repair, and operating Strategy: supplies). ¥ Competitive pricing 8 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Services can be classified as either consumer or business services. Like tangible goods, Services can also be: ¥ Convenience ¥ Shopping ¥ Specialty products Services are: ¥ Intangible ¥ Quality – difficult to evaluate prior to consumption or purchase. ¥ Perishable – companies cannot stockpile or store them in inventory. ¥ Difficult to standardize – they must meet individual customers' needs. From a buyer's perspective, the service provider is the service; the two are inseparable in the buyer's mind. 9 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 LESSON 2: PRODUCT LIFE CYCLE (12.2) Learning Objective: Briefly describe the four stages of the product life cycle. Product Life Cycle Stages (4 stages) Stages Key Takeaway Activities Market Strategy Implications Product Life Cycle Four basic stages through At each stage, marketers By comprehending these which a product progresses. must decide whether to: stages and their ¥ Introduction ¥ Continue to the next implications, businesses ¥ Growth stage. can adapt their: ¥ Maturity ¥ Modify the new product. ¥ Marketing efforts ¥ Decline ¥ Discontinue the ¥ Make informed development process. decisions ¥ Maximize the potential Promotional emphasis of their products shifts from dispensing With the rapid adaptation throughout their life product information in the and implementation of cycles early stages to increased technology, product life brand promotion in the cycles are being shortened. Marketing Strategies later ones. need to be flexible While not all products enough to accommodate In general, the marketer's follow this exact pattern: changing marketplace objective is to extend the ¥ The product life cycle characteristics. product life cycle as long as concept helps guide the item is profitable. marketing decisions, These competitive moves strategies, and the may involve: Extension Strategies: allocation of resources ¥ Developing new 1. Increase customers' ¥ Different products may products frequency of use. spend different periods ¥ Lowering prices 2. Add new users. of time in each stage ¥ Increasing distribution 3. Find new uses for coverage products. ¥ Creating new promotional campaigns 10 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 1. Introduction ¥ Company attempts to Activities include: ¥ Features = consumer Stage elicit demand for a new ¥ Promoting the new perspective product. product ¥ Benefits = Marketing ¥ Generating demand perspective This stage goes together ¥ Providing information with New-product about the product's In the Introduction Stage, development. features and benefits the company tries to: ¥ Promote demand for its new offering. ¥ Give free samples to entice consumers to make a trial purchase. ¥ Explain its features, uses, and benefits. 2. Growth ¥ Sales climb, and the Activities include: ¥ X Stage company earns its initial ¥ Sales increase profits. ¥ Customers promote the product by word of mouth ¥ Competitors enter the market 3. Maturity ¥ Industry sales at first Activities include: Companies strive to Stage increase, but then reach ¥ Sales reach a saturation maintain or increase a saturation level at point market share through which further expansion ¥ Competition intensifies aggressive promotion, is difficult. ¥ Concentrate on greater which means: market share ¥ Taking customers from competitors Late Maturity: ¥ Dropping prices to ¥ Sales volume fades further the appeal ¥ Weaker competitors leave the market 4. Decline ¥ Both sales and profits Activities include: Product Life Cycle Stage decline. ¥ Sales and profits decline Extension Strategies ¥ Further price cutting during decline stage: ¥ Market shrinks ¥ Increase the frequency The decline stage is usually ¥ Weaker competitors of use. caused by: continue to leave the ¥ Add new users. ¥ A shift in consumer market ¥ Find new uses for the preferences product. ¥ A product innovation ¥ Changing package size, A technology change can labeling, or product accelerate the decline stage quality. for a product. 11 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Screen shot form instructor video. 12 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Introduction Stage – New Product Development Process (6 stages) Stages Definition Additional Information Strategies New Product Development New-product Products fail for many Companies seek ultra- development is: reasons: low-cost product ¥ Costly. ¥ Not properly development, which ¥ Time consuming. developed and tested. involves: Six stages: ¥ Risky because of the ¥ Poorly packaged. ¥ Meeting customer 1. Idea Generation high rate of failure. ¥ Lack adequate needs with the 2. Idea Screen promotional support lowest-cost 3. Concept Development / or distribution. innovations Business Analysis Each stage requires a ¥ Do not satisfy a possible 4. Product Development “go/no-go” decision by consumer need or ¥ Designing from 5. Test Marketing management before want. scratch with a 6. Commercialization moving on to stripped-down subsequent stages. Most of today's newly budget ¥ The sooner decision developed items are ¥ The simplest makers can identify a aimed at satisfying engineering marginal product and specific consumer possible drop it from further demands. consideration, the less time and money will be wasted. 1. Idea generation ¥ The starting point in Ideas come from many ¥ X the new-product sources, including: development ¥ Customer suggestions process. ¥ Suppliers ¥ Employees The most successful ¥ Research scientists ideas are directly ¥ Marketing research related to satisfying ¥ Inventors outside the unmet customer. needs. firm ¥ Competitive products 2. Idea Screening Eliminates ideas that: ¥ Do not match overall company objectives ¥ Cannot be developed given the company's resources 3. Concept Development ¥ Further screen of The Business analysis ¥ Concept testing— and Business Analysis product ideas as involves assessing the designed to solicit concepts. new product's potential: initial consumer ¥ Sales reaction to new- ¥ Profits product ideas — ¥ Growth rate may be used at this ¥ Competitive strengths stage. 13 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Determining whether it Focus groups are fits within the company's sessions in which product: consumers meet with ¥ Distribution marketers to: ¥ Promotional ¥ Discuss what they resources like or dislike about current products ¥ Test or sample a new offering to provide immediate feedback 4. Product Development ¥ Functioning ¥ Joint responsibility of ¥ Marketers provide prototypes or the company's feedback on detailed descriptions development staff consumer of the product may and its marketers reactions to the be created. proposed product design, color, and other physical features. 5. Test Marketing ¥ Introduces a new Some new products skip ¥ Marketers look for product supported the test marketing stage a location with a by a complete due to: manageable size, marketing campaign ¥ The desire to quickly where residents to a selected city or introduce a new match their target geographic area. product with excellent market's potential. demographic ¥ A desire not to reveal profile, to test their new-product product. strategies to competitors. The company ¥ The high costs analyzes: involved in limited ¥ Consumer production runs. responses to the new offering ¥ The marketing effort used to support it. 6. Commercialization ¥ The product is made ¥ Sometimes this stage Considerable planning available in the is referred to as a goes into this stage’s marketplace. product launch. product strategies for: ¥ Distribution ¥ Promotion ¥ Pricing 14 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Process for Developing New Goods and Services 15 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 LESSON 3: PRODUCT IDENTIFICATION (12.3) Learning Objective: Explain the factors that influence consumer product loyalty. Product Identification Element Definition Additional Information Product Through brand name and distinctive packaging, and the ways in which companies identification foster loyalty to their brands to keep customers coming back for more. Product Marketing Enhance: Consumer loyalty increases a brand's value, so Strategies ¥ Product loyalty marketers focus on strengthening brand loyalty. ¥ Retain customers ¥ Gain a competitive advantage Consumer influencing factors: in the marketplace ¥ Product identification ¥ Effective brand naming ¥ Brand image ¥ Brand categories ¥ Brand loyalty ¥ Brand equity Product Image Elements include: Packaging and labeling play a crucial role in ¥ Brands – Name, term, sign, product identification. symbol, design, or some combination that identifies The universal product code (UPC) simplify: the products of one company ¥ Retail transactions and differentiates them from ¥ Inventory tracking competitors' offerings. ¥ Brand names – Part of a ¥ Manufacturer’s brand – name of a brand consisting of words or manufacturer on a product. letters that form a name that ¥ Private brand – manufactured for and sold identifies and distinguishes under the name of a specific retailer. an offering from those of ¥ Family brand – when a single brand name is competitors. used for marketing a group of related products ¥ Trademarks – Brand that has to a specific group of people. been given a legal protection. ¥ Individual brand – a parent brand gives a product a new identity, a unique brand name, and allows it to function independently. Product Loyalty Fosters: Product Loyalty key factors: ¥ Repeat purchases ¥ Product quality ¥ Positive referrals ¥ Brand reputation ¥ Long-term customer ¥ Customer satisfaction / Emotional connections relationships ¥ Price ¥ Convenience 16 Downloaded by Cody Watson ([email protected])  lOMoARcPSD|44889608 Brand Names Effective brand names are: Under certain circumstances, companies lose ¥ Pronounceable exclusive rights to their brand names if common ¥ Recognizable use makes them generic terms for product ¥ Rememberable categories (examples: Kleenex tissues and Xerox ¥ Project the right images to copier). buyers Some Brand Names belong to retailers or ¥ Cannot contain generic words distributors rather than to manufacturers. Some marketers use Family Brands to identify several related items in a product line. Others employ individual branding strategies by giving each product within a line a different brand name. Brand Loyalty ¥ A consumer's persistent Marketers measure Brand loyalty in three positive feelings towards a degrees / stages: familiar brand and their 1. Brand recognition dedication to purchasing the 2. Brand preference brand's products and/or 3. Brand insistence services repeatedly regardless of deficiencies, a Brand-building strategies were once limited to the competitor's actions, or consumer realm, but now they are becoming more changes in the market important for B2B brands as well. environment. 1. Brand Recognition ¥ Consumer is ¥ Not strong enough aware of the influence to cause a brand. preference over other brands. 2. Brand Preference ¥ Consumer chooses ¥ Consumer usually relies one company's on previous experience brand over a in selecting the product. competitor. 3. Brand Insistence ¥ Consumer will ¥ The ultimate degree of accept no brand loyalty. alternative and will search extensively for the required brand. Brand Equity ¥ The added value that a This value results from a combination of factors: respected and successful ¥ Brand Awareness name gives to a product. ¥ Loyalty ¥ Perceived quality ¥ Any feelings or images the customer associates High brand equity – product with the brand commands a relatively large 17 Downloaded by Cody Watson ([email protected])