• multi-product (blanket/family): we use a brand name to associate a variety of products (Toro, Heinz)
• multi-brand (individual): brand made by same company (Tide, Cheer, Oxydol are made by P&G)

• Generates positive halo (pro)
• much less expensive to introduce (pro)
• could dilute brand image/strength (con)
• target marketing/segmentation is more difficult (con)

OPPOSITE FOR INDIVIDUAL BRANDING

Branding strategies: Generic (plain label) brand

black and white packages

-seldom used

-came before store brand 

Branding strategies: store brand

(also called dealer/private label)

Ford and eddie bauer

or ingredient branding: ben and jerry's with Reese's

A consumer mas multiple selves

-a person will act differently when surrounded by different people

*ideal self 

vs.

*actual self

Time, place, and ownership functions

Transportation and storage functions
Repair and maintenance function (risk taking)
Communication and transaction functions (efficiency creation)

Ex: apple store

-you go to them with problems

Ex: retail stores

-when there is a middleman between the manufacturer and the consumer

-no direct contact between the producer and consumer

manufacturer --> retailer --> consumer

OR

maufacturer --> wholesaler --> retailer --> consumer

The dominant firm that controls the channel

-they have some form of power relative to other members

control resources

(ex: apple asking best buy to balance a computer)

legal authority to call shots 

(can't call shots at your McDonald's because of legal power of the comapny)

power to reward channel intermediaries 

(HP and Walmart)

Two or more firms at the same channel level agree to work together

Ex: banks at grocery stores

Channel in which there is a formal cooperation among channel members at two or more different levels of the channel. 

3 types:

1. Administered: like conventional, but only one influences b/c of size. (walmart dictating conditions of product makers of brand laundry detergent)
2. Corporate: Mfg. owns all channel partners (apple has retail stores and makes all products in it)
3. Contractual: members contractually obligated (bestbuy franchise)

multi-level distribution channel in which members work independently with little concern for other channel members. 

Sometimes called Traditional marketing

(ex: radio, yellowpages/phone book)

1. Mfg./service provider wholesaling: mfg. owned intermediates (produces it's own goods to sell directly)
2. Merchant wholesaling: largest percentage (takes commodities that were produced by others and sells it for profit)
3. Agent and brokers wholesaling: smallest (sells commodities that were produced by others and sells it for someone else)

SOR model

S-->O-->R

determines what environmental factors influence behavior 

Stimulus: most any aspect of customer and employee environment

Organism: affect emotional reaction (arousal= physiological feel state) 

Response: approach behaviors (desire to stay and explore) 

strategic decision on what products to carry depending on the target market

-often referred to in terms of merchandise breadth and merchandise depth 

The variety of choices available for each specific product line

(specialty stores)

When a store carries multiple types of products that are not directly related 

(walgreens)

Advantages: retailers can update price/product into

order 24 hours a day

time saver for many customers

digital show case

Disadvantages: customers must wait days to receive products by mail

people need to touch and feel before buying

security concerns

may increase price competition

Radio frequency ID technology are imbedded in the item to keeps track of its location/ID. They can be read from many apps even from a distance.  

To prevent retailers diverting products, manufacturers are using them on promoted merchandise to track exactly what product has been sold through the supply chain at fully discounted prices. 

Free on Board pricing: shipping to the location of acceptance of the cusomer, then customer picks it up

-shipping is included in price

Value the customer gives (exchanges) to obtain desired products. 

payment in any form of value (money, services, goods, votes, etc.)

-based on demand or what consumers are willing to pay

-look at cost of making

-marketing objectives will like indicate

-price can change based on marketing strategies

The market reaction to changes in price

-e>1: elastic (d changes w/ price)

-e<1: inelastic (no change in d)

-e=1: unitary elastic

Elasticity example:

Taco bell changes price of burrito from $2 to $3, and sales went from $5mil to $4mil.

-percent change in demand:

(5-4)=1

1/5=.2 (divide by original)

-percent change in price:

(2-3)=1

1/2=.5 (divide by original)

.2/.5=.4 (.4<1 so demand is inelastic)

Also called BackWard pricing

price is set first by determining what consumers are willing to pay (or what competitors are charging) then determining whether you can profitably make the product at that price. 

VALUE PRICING (set price according to what customers perceive the value to be)

marketer figures all costs for the product and then add desired profit per unit. 

most common: straight markup pricing 

Mark up pricing

(cost plus pricing approach)

cost of product= $100

desired markup= 50%

BE Analysis

(Cost based pricing)

BE (Q)=

Profit=

(Total Fixed Cost) / (unit selling price - unit variable cost)

(P x Q) - [FC + (UVC x Q])

quantity discounts

cash discounts

seasonal discounts

prestige items will not use odd pricing

odd/even: 4.99 or 19.85

Offer products at $25, $50, $75 w/ no prices in between

-groups of prices within products to lessen consumer choices *consumers pick the middle price*

-we want people to pay $75, so remove $25 option and add $100 option 

Two serperate types of payment required to purchase product

(ex: golf membership requires lump sum fee up front and then monthly payments)

pricing tactic firm uses when it has 2 products that work only when used together 

sell one at very low price (razor) and make profit on second (blades)

Cash rebates

Low financing

could lead to price wars (potentially hurtful)

lure customer in by promoting an item, once the customer wants it they mention the item is out of stock, but offer another product

illegal b/c if you advertise it you must have it

A company must only offer a product at very low cost for a certain amount of time.

it's illegal to bring in customers forever from inexpensive pricing

horizontal- everyone agrees to change the price of something at the same time together

vertical- manufacturer sets price for what the product should be sold at 

Non-Price

• advertising promotion
• weather and seasonal factors
• development of new products
• economic conditions 

Elastic relationship:

-if you lower price, total revenue increases

-if you raise price, total revenue decreases

Inelastic relationship:

-if you lower price, total revenue decreases

-if you raise price, total revenue increases 

When a firm that is the leader in its sector determines the price of goods or services.

rivals have little/no choice but to follow it lead and match their prices if they want to hold onto their market share

A strategic focus on keeping customer for LT

(price consumer pay for product)

+

(cost of maintaining and usage of product)

- 

(resale/salvage value)

a strategic focus on keeping customer for LT

(ex: walmart)

• Advertising: nonpersonal communication from identified sponsor and mass media
• Personal Selling: direct interaction between company reps and customer
• Sales promotion: short term incentives to encourage sales during specific time period
• Publicity & PR: portrays organization and its product positivity by influencing perceptioins of public 

Informs- you on a new product

Reminds- someone of a product

Persuades- someone to buy the product

Coordination of marketing communication efforts to influence attitudes or behaviors 

This builds relationships which is a goal of promotion

Television Advertising

Pros/Cons

Pros:

creative/flexible, prestigious, high impact messages, Network TV is cost effectiive & cable tv is effective

Cons: quickly forgotten, requires frequent repetition, increasingly fragmented audience, shorts ads result in increased clutter 

Radio Advertising 

Pros/Cons

PROS:

Good for selective targeting, heard out of home, low cost, can be modified quickly, uses listener imagination

CONS:

listeners may not pay full attention, small audiences, ads become more frequent, not good for products that need demonstration

Newspaper Advertisements 

Pros/Cons

Pros:

wide exposure and extensive market coverage, flexible format permits use of color/different sizes/editions, useful comparison shopping, local retailers can tie in with national ads

Cons:

most don't spend much time reading newspaper, low readership among teens and young adults, short life span 

Magazine Advertisements

Pros/Cons

PROS: narrowly targeted audiences by specialized markets, credible and provide good ad entertainment, long lifespan and pass on rate 

CONS: expensive, long deadlines 

Outdoor Advertisements

PROS/CONS

PROS: very high reach, low cost, good for supplementing other media

CONS: hard to communicate complex messages, can't show how effective product is, easily ugly or disliked

1. Determine reach, frequency and impact (GRP= reach x frequency)

2. Choose among major media types

3. Select specific media vehicle

4. Decide upon media timing 

Top Down Approach: seeing the amount of $ you have, then figuring out where you can allocate the resources

Bottom Up: Identify goals and then make a budget (more effective, but expensive)

Competitive Parity: basing your budget on what the other company did 

a brief, detailed compilation of all of the pertinent data about a company's marketing efforts. 

a way for marketers to report their marketing performance

It is done through marketing performance measurement and management (MPM) on a computer software program. 

Source

Message- (encoding)

Medium (transmission/noise or interference)

Receiver (decoding)

Feedback 

Objectives of a message:

Attention

Interest

Desire

Action

Rational

Emotional

Aided recall- giving a hint to see if ad was recalled

Unaided recall- which ad do you remember?

Sum of all rating points over a specific time period.

The rating of a show represents the % of people tuned in to a TV program as compared to the number of TV sets in the particular TV universe. 

each rating point is equal to 1%

markers use GRP as a method of designing a media schedule 

a way of measuring the cost of displaying an advertisement on a web page. 

-counts the number of times an ad is viewed on a web page. There is a set price range for every time the ad is viewed 1000 times

at a garage sale the barterer will try and say their product is worth more than it is

example of Endowment effect