Show:
Chapter 10
Chapter 11
Chapter 11
Chapter 10/11
Chapter 11/14
100
Identify the Categories of adopters.
Innovators, Early Adopters, Early Majority, Late Majority, and Laggards
100
16% of market users, fear of debt and their neighbors and friends are info sources describes who?
Laggards
100
Describe the Multiproduct Branding Strategy aka Family or Corporate Branding.
Targeted to the same target market
100
What is Private Branding? And give and example.
Earn higher profits on own brand, Less pressure to mark down price, Manufacturer can become a direct competitor or drop a brand/reseller, Ties customer to retailer, Wholesalers and retailers have no control over the intensity of distribution of manufacturers’ brands
100
What are the 2 important factors of the Product Life Cycle?
Product lifecycle level can be either class (won’t change) or form (can change, which provides opportunities to make money) Our lifecycles today are becoming shorter and shorter. Therefore, it’s harder for companies to make money since they only have a small window to make a profit.
200
What are the characteristics of innovator?
2.5% of the market users, they are venturesome, higher educated and use multiple info sources **Small group
200
What is a Brand by definition?
The use of name, phase, design, and/or symbols to identify product
200
Describe Multiproduct Strategy.
Targeted to a different segment **N2K brand extensions Procter & Gamble: Tide, Cheers, Ivory Snow, Bold
200
Who are the targeted groups for warranties? What are the types of warranties?
Those who are risk. Express, Limited Coverage Full Coverage Implied Coverage
200
What are the Product Life Cycle Stages?
Introduction (Gain Awareness) Growth (Stress Differentiation) Maturity (Maintain Brand Loyalty) Decline (Harvesting Deletion)
300
13.5% of the market users, they are the leaders in social setting, slightly above average education, these are the folks in the introductory stage. Describes who?
Early Adopters
300
Brand Extension (definition)
The use of the corporate brand for new product categories. But the new product category must be related to the target audience. ex. Huggies using their brand name (which is known for diapers) to extend it out to shampoos and diaper rash creams.
300
Describe Private Branding Strategy.
It achieves economies of scale. Sears: Kenmore appliances, Craftsman Tools, DieHard Batteries HEB: Hill Country Fare brand
300
What is a Service (Definition and examples)?
A pure service is NOT a tangible good. Where value is transferred and s benefit is provided. ex. education A valuable action, deed, or effort performed to satisfy a need or to fulfill a demand
300
What is a Yield Management System and what is it used for?
Algorithms that match the price associated with demand on instantaneous basis. i.e. the airlines will charge a low price to fill the plane up, as the plane gets full with passengers, they will raise the price due to limited seating but then right before the flight, they will drop the price to fill up the plan to capacity.
400
What are the characteristics of Early Majority?
34% of market users, deliberate and have many informal social contracts. Entering the Growth Stage
400
What is Brand Equity?
Value beyond the inherent product itself. It provides a competitive advantage and consumers are always willing to pay more for it.
400
What companies are involved in Mixed Branding Strategy?
Michelin: Michelin Tires, Sears Tires
400
What is Price Discrimination?
Different consumer groups will pay different amounts (i.e. women, african americans, hispanics compared to white males) However, high priced items can be excluded.
400
What is markup pricing and how is markup calculated?
Calculate: Retailer Selling Price: $100 Retailer Cost: $71.43 Mark-up: $28.57 Percentage: 40% (Markup / Retailer Cost) (28.57 / 71.43 = .3985)
500
What are the characteristics of Late Majority?
34% of market users, they are skeptical and below average in social status. In the Maturity Stage **2/3 is majority users (early and late)
500
Name the various Branding Strategies?
Multiproduct Branding Strategy Multiproduct Strategy Private Branding Strategy Mixed Branding Strategy
500
What are the advantages of Manufacturing Branding? And give an example.
Heavy consumer ads by manufacturers, Attract new customers, Enhance dealer’s prestige, Rapid delivery, carry less inventory, If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer
500
Categories of consumer products
Convenience - you buy frequently with minimal thought. ex. milk, eggs, Shopping - you buy minimally but you spend a good deal of time shopping for it Speciality - Very High End, Niche Market Unsought - Things that you do not seek out but you must occasionally purchase due to events that happen throughout your lifetime. ex. funeral services
500
What is Predatory pricing?
Definition: Practice of charging a very low price for a product with the intent of driving competitors out of business The idea of lowering the pricing below your variable costs Two tests for this: it must be below your average variable costs it must have the intent to put your competition out of business