when two brands are marketed together

(pilsbury and cinnabon)

brand introduces a new product in the same category

(snickers almond)

using an established brand in an unrelated market

(hooters energy drink)

recognition: knows it exists and will consider it as an alternative if preference is not available

preference: buyer prefers product over competitive offerings

insistence: buyer will accept no substitute

• an individuals degree of interest in a product and the importance of that product for that person

• high involvement products tend to be those that are visible to others and are expensive

• low involvement products tend to be less expensive and have less associated social risk

• involvement level affects a person's selection of one of three types of consumer problem solving

temporary and dynamic

arises from a particular set of circumstances

routinized response behavior

limited problem solving

extended problem solving

1. problem recognition

2. information search

3. evaluation of alternatives

4. purchase

5. post-purchase evaluation

sociocultural

economic

political

competitive

ethical and social

technological

a duty levied by a nation on goods bought outside its borders and brought into the country

a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time

a governments suspension of trade in a particular product or with a given country

government restrictions on the amount of a particular currency that can be bought or sold

the difference in value between a nations exports and its imports.

Positive balance= exports more than imports (favorable balance).

Exports morthan imports= imports more than exports (unfavorable balance)

the concept that morality varies from one culture to another and that business practices are therefore differencially defined as right or wrong by particular cultures

standardization/globalization

development of market strategies that treat the entire world as a single entity

when good/easy?

-brand name, product characteristics, packaging, and labeling are easiest markeing mix variables to standardize.

-Degree of similarity between environmental and market conditions determines how easy it is to globalize

-“think globally, act locally”

Messages need to be tested in each market and in every language to gauge the following:

• How understandable the message is

• How believable the message is

• Whether the message translates properly to the other language

• Whether the message is still unique and compelling (purchase motivating) in the new market.

• Then, changes should be made accordingly, while remaining as consistent as possible with the global brand essence and positioning

• innovators: first to adopt product

• early adopters: chose new products carefully, help spread word-of-mouth

• early majority: adopt just prior to average person

• late majority: skeptics who adopt product as soon as they find it neccessary

• laggards: last to adopt product

product life cycle

• introduction:

  • product first introduced into market

  • sales start at zero, profits are negative

• growth:

  • sales rise rapidly, profits reach peak then start to decline

  • procucts success during this period affects life expectancy

  • must encourage brand loyalty

• maturity:

  • when sales curve peaks and profits continue to decline

  • characterized by intense competition because many brands are now in the market

  • competitors emphasize improvements and differences in their versions of the product

  • consumers are no longer inexperienced generalists, they are specialists

  • three general objectives

    • generate cash flow

    • maintain share of market

    • increase share of customer (percentage of each customer's needs that the firm is meeting)

• decline

  • when product sales decline rapidly

  • plan to phase out product

number of product lines a brand carries

(BIC had pens, lighters, razors)

horizontal

number of items in a product line

(different types of BIC lighters)

verticle

sales

selling area

sales year 2 - sales year 1

sales year 1

the physical elements in a store's design that appeal to consumers emotions and encourage buying

• adds to the core product to make it better 

  • faciliate use: needed for service delivery or help in use of core product (info, billing, payment, etc.)

  • enhance use: add extra value for customer (pool, hospitality, etc.)

decisions and activities that make products available to customers when and where they want to purchase them.

uses all available outlets for distributing a product

convenience products

using only some available outlets in an area to distribute a product

shopping products

uses only a single outlet to distribute a product

products rarely purchased

• idea generation

• screening

• concept testing

• business analysis

• product development

• test marketing

• commercialization

limited introduction of a product in geographical areas chosen to represent the intended market

• measures purchase and consumer responses

• info about consumers actual, rather than intended, purchase behavior

developing and maintaining a product image in the minds of consumers.

• high/low price, quality, luxury/economy

• demographic: age, gender, race, income, ethnicity, family size, occuparion, religion

• geographic: climate, terrain, population, location

• psychographic: personality, motives, lifestyle

• behavioristic: volume usage, end use, brand loyalty, benefit expectations, price sensitivity

value, attitude, lifestyle

It’s a proprietary research methodology used for psychographic creating products and market segmentation.

firm develops new products as a means of enhancing its product mix and adding depth to a product line.

awareness

interest

evaluation

trial

adoption

product

place

price

promotion

poeple: functional quality

process: operational flow

physical evidence: the tangible aspects