Chapters
7
9
10
12
13
Topics
STP
Product Concepts
Developing and Managing
Products
Pricing
Marketing Channels and Supply
Chain
7-
Chapter 7- Segmentation, Targeting, Positioning
“Which characteristic are they using to segment the market?”
- Geographic segmentation
- Benefit segmentation
- Demographic segmentation
- Psychographic segmentation
- Usage Rate segmentation
“Characteristic to segment the market?”
Geographic Segmentation- refer to a location- city, .
Demographic Segmentation- refer to cohorts- millennials…couples, retirees..
Psychographic Segmentation
Benefit segmentation- it will describe some benefit
Usage Rate Segmentation- frequent visitor, first time visitors, monthly ….users, repeat customers
“What type of Targeting?”
- Undifferentiated targeting
- Concentrated targeting
- Multi-segment targeting
- One-to-one targeting
Undifferentiated -does not mention a specific consumer segment when
discussing their marketing
Concentrating Targeting – focuses on a very specific group of people –
Multi segment Targeting- it will refer to more than one segment
One to One Marketing- relationship building personal selling,
understanding customer needs
“Why do we use a Perceptual Map?”
Perceptual Map/mapping plotted brands, plot based on benefits….where products are ranked
Types of Positioning
- Attribute
- Product Class
- Competitor
- Price and Quality
- Product Users
-
When would you strategically decide to reposition a brand
Type of Positioning
Attribute- describes how it improves customers by using the product
Price and Quality- the question will refer to both price and quality
Product Users- describes a user of the product
Repositioning the brand- disconnected with the customers, went through a major change, customers
needed to reconnect
CHAPTER 10
“What type of Product?”
Convenience Product - Not thinking much about the purchase Something that you usually use Not
expensive You are replacing something that you usually use
Shopping Product
- You compare Alternatives, Reviewing options
Specialty Product
-Items are scarce
- Not widely available
- Only location to get the product
- Can’t find this elsewhere
- Limited
- Authentic OriginalUnsought Product
- Did not plan on the purchase
- Might not have considered this purchase
“When referring to all products under a brand X marketing classifies them as what?”
Product Mix
- One brand has many different products under that brand name
Product Class
-
A product class is a group of products that are homogeneous or generally considered as
substitutes for each other
Product line
Product Group
It is a group of related products which share some common attributes like features, use, production
processes etc. It could also sometimes be the market or customer segment in which these products are
sold or the prices at which they are offered. Many product groups combine to make a product line. For
example Life Insurance is a product group which consists of many insurance variants.
Example- A collection of such products is known as a "product group" or "product range". Good
examples of product groups include: Apple's range of laptops (MacBook), desktops (iMac), tablets
(iPad), smartphones (iPhone) and wearables (iWatch)
Brand Attributes
Strong Brand Loyalty/being attached
Strong Brand Attributes
Strong brand loyalty
Have bought this product over a long period of time
You buy many products under the brand name
Committed to a brand
“This was an example of what type of Branding ?”
- Cooperative Branding------Co Branding
- Complementary Branding
Cooperative branding –
- When two brands come together – promoted as onereeses pieces and dairy queen blizzard
Complimentary branding
When 2 brands go well with each other – wine and cheese….
They are trying to keep their brand from becoming a generic product name
Chapter 10
“part of which category of adopters? “
Early Adopters
- Hold position as influencer Younger in age Advanced education
Late Majority
High degree of skepticism
Early Majority
- Time of adoption longer than innovators early adopters
Above average social status
- Slower to adopt
- Social status below average
Innovators
- The first to have Technology savvy You want this new product regardless
- Higher socio economic class
- Take risks
Laggards
- Last to adopt a new product
- No opinion leadership
- Focused on traditions
“Which stage of the product life cycle?”
PLC- Product Life Cycle
Introductory stage
- ‘New’
- Only one supplier
- Not profitable yet
- No competition
- Launched
Growth
- More competitors
- more brands entering the market
- Sales increase Few options
Maturity
- Many options
- Putting a lot of money towards marketing
- aggressive
- A gradual increase in sales but not major
Decline
- When an old product is in a way an antique
- antiquated
- No marketing spend
Chapter 12
Pricing Objectives
Status Quo Pricing Objective
- Competitors have all decided to keep the same prices
- Prices align with competitors
relationship between the product and its price elasticity of demand?
“is most likely using which pricing objective?”
- Status Quo pricing objective
- Profit-oriented pricing objective
- Sales oriented pricing objective
“Relationship between the product and its price elasticity of demand?”
- this product is non-essential, giving it elastic demand
- This product is non-essential, giving it inelastic demand
- This product is essential, giving it elastic demand
- This product is essential, giving it inelastic demand
“What price strategy is x pursuing?”
Price Skimming
- Luxury
- Come in at a High Price
- Recognize a higher price $
Penetration Pricing
- When it is inferred a price is lowered
- Cheaper
- Obvious that the price is less expensive vs other brands
Status Quo
- Prices are similar- to competition – industry
- Consumers are familiar with pricing in the industry/category
“This is what type of discount?”
that supplies for large construction companies and retailers. They give a 35% discount to any customer
that is close enough to pick up their own lumber. This is what type of discount?
Functional discount
- An intermediary does something to get a discount
- Cash discount
Seasonal discount
- Refers to a specific time of the year /month
Flexible Discounts
- Indicates a change in prices for different types of customers
Pricing Tactics
“This is an example of which pricing tactic?
Two part pricing
- You become a member for a fee and then have to pay extra for other incremental things- join a
private golf course a membership fee but have to pay extra for food Additional price
Price Bundling
- Offer options together – bundled for one price
Price Lining
- One product /brand different prices
Flexible pricing
- Ethically- you charge different prices
Single-price tactic
- A one price policy is a strategy in which the seller offers the same price to every customer. In
other words, the price does not vary according to payment method or promotional offers.
Value based pricing
“Unethical pricing tactic?”
Price discrimination
You may find that your supplier charges you more
than another customer
- The company is charging different prices for different people
Predatory pricing
- When a competitor prices their products /services so low the
competition cannot compete
- Causing the competitor to go out of business
- Unreasonable pricing
Chapter 13
Marketing Channel
Direct
The customer buys direct from the producer- buying cookies from the bakery that makes the cookies,
buying apple products directly from apple
Retailer
a retailer name is referred to
infers that you can buy at a retailer
Wholesaler
It is evident that a producer/manufacturer sells to an wholesaler then the wholesaler sells to retailer
Agent /Broker
One person is hired/contracted to represent the product to other companies
Go between
Type of Distribution
Intensive Distribution
Products / ensure they will be available everywhere/at most stores
Selective distribution
you can find this brand in selective stores- only a few
Exclusive Distribution
only sell…..”at one location one retail store