MKTG Exam 3

A _____ is a promise from the company to its customers to deliver value consistently over time

brand

A brand’s promise answers the customer’s question…

what’s in it for me (WIFM)?

value is a ______ impression of benefits received relative to the price paid

subjective

Brand architecture is also called brand ________

framework

Brand architecture/framework frames creative brief to drive…. (3)

1. advertising/marketing plan

2. package graphics

3. communications

Dunkin’ positioning and branding four brand characters

1. fun

2. fresh

3. frank

4. familiar

additional forms, flavors, or varieties of the brand introduced in the current category

line extension

moves an existing, current brand name into a completely different product class or category

brand extension

brand or line extension?

brand

brand or line extension?

brand

brand or line extension?

line

brand or line extension?

line

line extensions represent about ____% of all new products

90

benefits of line extensions (4)

1. stimulate renewed interest in brand

2. keep consumers from switching

3. protect retail shelf space

4. reinforce brand’s image

issues with line extensions (3)

1. too many choices

2. increase costs

3. irritate trade customers

name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers

brand

legal term for brand

trademark

sets of assets or liabilities linked to brand that add or subtract value

brand equity

brand equity is also the set of ___, _____, or _____ thoughts, beliefs, and emotions you associate with each of the brands

+, -, neutral

brand equity is _____ to measure; there is no universally accepted way to measure it

difficult

4 attributes of a brand that can be used to assess its strength or equity

1. market share

2. brand awareness

3. leadership/popularity

4. customer satisfaction/loyalty

the % of respondents who are aware of your product, brand, or advertising when asked

aided awareness

the % of respondents who are aware of your product, brand, or advertising top-of-mind without being assisted

unaided awareness

factors that serve to increase the strength of a brand include… (4)

1. product quality

2. consistent advertising

3. distribution intensity

4. brand personality

brand personality refers to the ____ ________ associated with a brand; they are expressed as adjectives that convey how you want people to percieve you (cheerful, friendly, etc.)

human characteristics

4 brand benefits (FPSS)

1. functional: performance-based

2. psychological: emotion-based

3. symbolic: principle/value-based

4. sensory-based

brand introduces a lower or higher priced version of the current product or service (ex: amex)

vertical brand stretching

type of brand stretching that uses its established brand name or image to introduce a new product or category to its customer base (ex: tide pen)

new categories

two or more branded products are integrated (ex: breyer’s oreo ice cream)

dual branding

private brands have traditionally been ____ ________

less sophisticated

46% of grocery buyers now say private label brands are “____ _______” when it comes to deciding with food retailer they’ll shop

very influential

_____ ______ assigns different brand names to each product line (ex: marriott)

multibranding strategy

advantages of multibranding strategy (4)

1. firms can distance products from other offerings

2. image of one product is not associated with the other

3. products can and should be specifically targeted

4. if they fail, the probability of it impacting the others is small

disadvantages of multibranding strategy (2)

1. significant amount of $ spent familiarizing customers

2. cannibalization (cannot differentiate from other brands)

products that consumers strongly associate with a category and “help” consumer find their way around a store (ex: soup, detergent, energy drinks, etc.)

signpost brands

a tool used to diagnose the power and value of a brand and measures consumers’ perspectives along four dimensions… (DERK)

Y&R Brand Asset Valuator

1. differentiation

2. esteem

3. relevance

4. knowledge

a _____ is a bundle of attributes that a person receives in an exchange; anything offered by a firm to provide customer satisfaction, tangible or intangible.

product

products are the marketer’s primary means of _____ ______

creating value

customer’s perception of value depends on… (2)

1. degree to which product meets qualifications

2. price that they will have to pay

services are processes or actions that are performed and can only be experienced; services differ on four “I” dimensions…

1. intangible

2. inseparable

3. inconsistent

4. inventoriability

product mix

_____: number of individual product lines offered by the organization (ex: unilever)

_____: average number of products in each line (ex: breyers)

• width

• depth

the new product development process includes these basic elements… (6)

1. idea generation

2. concept testing

3. product testing

4. consumer testing

5. market testing

6. shelf testing

new product analysis that offers pre-market sales forecasting: ______ _______

NielsenIQ BASES

role of NielsenIQ BASES in product development (4)

• pre-BASES: screening concepts and positioning

• BASES-I: product concept evaluation

• BASES II: concept and product evaluation

• BASES IV: tracking new products after launch

Nielsen has the world’s largest product testing database and has established benchmarks for ___ _______ and ____ ____ ______

• predicting concepts

• new products success

success thresholds vary by _____; some have a higher threshold of risky, meaning they more frequently encounter challenges

factor

BASES factors for success (DANACA)

• distinct proposition

• attention catching

• need/desire

• advantage

• credibility

• acceptable costs

top 2 box: indicates significant potential (2)

**also known as go or no go**

• definitely would buy

• probably would buy

TURF Analysis: Total _____ _______ and _______

• unduplicated reach: % of people for whom at least known ONE of the flavors is good

• frequency: average number of appealing flavors per respondent

it takes _____ repeat purchases for a consumer to become a loyal buyer

7

between the trial and first repeat purchase, a brand will lose ____ its buyers

half

new product purchase cycle:

____ purchase → __ _____ purchase → __ ______ purchase… and so on until the 8th purchase

• trial

• 1st repeat

• 2nd repeat

PRICE creates ____ for _______ and captures _____ for the ______

• value

• customers

• value

• company

price affects profits in 3 different ways….

1. directly through revenue

2. indirectly through quantity sold

3. indirectly through total costs

price-setting process in marketing (5)

define pricing objectives → evaluate demand → analyze competitive price environment → choose a price → monitor effectiveness

value increases when more benefits are offered at the _____ price (ex: toaster strudel more fruit)

current

van westendorp price chart:

marketers need to balance the customer’s perception of the _____ provided with the customer’s perception of the ____ price

• value

• right

to drive effective short and long-term pricing, a company must consider… (3)

• supply

• demand

• environmental factors

manufacturers present a _____ ____ _____ to retailer partners, but it is up to the buyer to do so

suggest retail price (SRP)

demand influence includes… (2)

• demographic factors

• psychological factors

types of pricing strategies (9)

**they all sound like what they are**

1. prestige

grey poupon mustard

2. odd

on the 9s (or 7s)

3. bundle

McFeast, small fries, and small coke

4. cost-plus/mark-up

labor + testing + developing…

5. everyday low pricing (EDLP) and high/low

Walmart ($1 everyday) and Publix (weekly deals)

6. survival

temporary means of staying in business

7. penetration

set initial price low to get people to purchase immediately (Sam’s Club eGift Card)

8. loss-leader

selling a product at a price that causes financial loss (affordable Epson printer + expensive ink)

9. dynamic

constantly updating to reflect changes (Prime Day)

consumers are less price sensitive when… (5)

• brand is more distinctive

• buyers are less aware of subs

• expenditure is small

• part of the cost is covered by another party

• brand is perceived to have more quality

the degree to which a change in price leads to a change in demand

price elasticity of demand (PED)

PED formula = (% change in Qd)/(% change in price)

if Q sold > 1, product has _____ demand

elastic

if Q sold < 1, product has ______ demand

inelastic

change in price will cause many buyers to NOT buy, demand is ____ and buyers are ______ to price change

elastic, sensitive

change in price will cause many buyers to still buy, demand is ____ and buyers are ___ ___ to price change

inelastic, less sensitve

price/percent gap formula = (your price - competitor price)/(competitor price)

how old is magnus?

8

the ______ is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year

P&L

price at which producer sells to retailers

selling price

total sales of the brand unadjusted for the costs related to generating those sales

gross sales volume

gross sales = selling price per unit * # units sold

paid to retailer to drive merchandising on brand

trade discounts/allowances

net sales = (sum of gross sales - trade discounts)/(allowances and sales returns)

total dollar amount of brand sales in a give period

= selling price unit * # units sold)

revenue

paid to retailer to drive merchandising on your brand

trade discounts/allowances

includes all costs above gross profit

above the line

includes all costs below gross profit

below the line

a facility for the receipt, storage, and redistribution of goods to company stores

distribution center

warehouse facilities used to ship merchandise directly to consumers

fulfillment center

movement of goods from a transportation hub or warehouse to its final delivery destination

last mile

placing the product in every available distribution channel

distribution strategy

only one distributor to merchandise offering within a definite region (ex: Tesla)

exclusive distribution strategy

middle-ground option between intensive and exclusive distribution (ex: Academy, Dicks)

selective distribution strategy

provide seamless customer experiences regardless of whether they are shopping online or in-store (ex: Dunkin’)

omnichannel strategy

those whose motive is something other than to make a profit for owners

nonprofit organizations

examples of nonprofits (5)

1. hospitals

2. charities

3. universities

4. zoos

5. worship centers (church, temple, etc.)

____-_____ shopping is the hallmark of today’s consumer

cross platform

business model which involve transactions taking place on the internet

eCommerce

marketing in eCommerce should ____ with all elements of the marketing plan

align

short window of 3-5 seconds after a shopper first encounters a product on a store shelf

first moment of truth

when a customer uses a digital device to begin learning about a potential purchase

zero moment of truth

the process of generating website traffic by purchasing advertising on search engines

search engine marketing

process of getting more traffic based on higher rankings of free search results on search engines

search engine optimization

social media marketing metrics (9)

1. audience

2. impressions

3. volume

4. sentiment

5. average engagement rate

6. applause rate

7. amplification rate

8. traffic

9. click-through rate