Chapter 12 DQ PDF

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Sanchez 1 Norma Sanchez 11/15/20 SID # 0941397 Product and Promotion: Creating and Communicating Value 1. Review the marketing definition of the product. Why do you think marketers define products so broadly? How does the definition of product affect quality? The marketing definition of product is anything that an organization offers to satisfy consumer needs and wants, including both goods and services. I think marketers define products so broadly because they see many possibilities in satisfying consumers' needs and wants that not only include physical goods, but also services and ideas. The definition of product affects quality because marketers have to carefully consider each element of the product to ensure that they are maximizing value without sacrificing profitability 2. Draw a goods and services spectrum, and determine where to place the following products along the spectrum: a nightclub, a new car, a designer clothing store, an Internet search engine, a new tennis racquet, and a ceramics class. What are the reasons for your choices? A goods and services spectrum can provide a valuable tool for analyzing the relationship between the two. At one extreme, pure goods don’t include any services. At the other extreme, pure services don’t include any goods. I would place a nightclub in the middle between pure goods and pure services because a nightclub offers both goods and services. I would place a new motorcycle at the pure goods extreme because it is only good. I would place a designer shoe store in the middle between pure goods and pure services because a designer shoe store offers both goods and services. I would place an Internet search engine at the pure services extreme

Sanchez 2 because it is only a service with no good involved. I would place a new snowboard at the pure goods extreme because it is only a good no service involved. I would place a photography class at the pure services extreme because it is only a service with no good involved. 3. Divide the following goods and services into their product layers: a massage, an espresso, and a jacket. Example

Core Benefit

Actual Product

Augmented Product

Massage

Relaxation, pleasure Specific massage

Aromatherapy

Espresso

Taste, likeness

Starbucks, store

Free WiFi

Jacket

Warmth

Brands

Style

4. List five examples of products that are commonly purchased as either business products or consumer products. How would the classification impact the marketing strategy? Five examples of products that are commonly purchased as business products are installations, accessory equipment, raw materials, component parts and processed materials, and business services. Five examples of products that are commonly purchased as consumer products are convenience products, shopping products, specialty products, and unsought products. The classification impacts the marketing strategy because the marketing of products depends on whether they are classified as consumer products or as business products. Marketers further divide consumer and business products into several different subcategories and these subcategories help marketers develop better strategies for promoting their products. 5. Would it ever make sense for a firm to offer a new product line that they know would cannibalize an existing line? Explain your answer.

Sanchez 3 It would make sense for a firm to offer a new product line that they know would cannibalize an existing line. This is because it is a way for firms to reach completely new customers that they wouldn’t have been able to reach before. If you want to create a new line, you need to include a range of different products designed to meet the needs of their specific customers. It can be dangerous to introduce items that may be more attractive than products you have offered in the past, but if the company carefully monitors the cannibalization issue and works to differentiate its lines as fully as possible it can be good for the company and actually help them grow. 6. What are the three different levels of product innovation? Which is most common? Can a business survive long term with only continuous innovation? Why or why not? The three different levels of product innovation are discontinuous innovation, dynamically continuous innovation, and continuous innovation. The most common is continuous innovation. A business can’t survive long term with only continuous innovation. This is because you can’t continually make slight modifications of an existing product because eventually the customers will get tired of the same basic product. Businesses also need to use dynamically continuous and discontinuous innovation once in a while to keep customers interested and bring in new customers. 7. What are the four stages of the product life cycle? How does product life cycle stage impact marketing strategy? The four stages of the product life cycle are introduction, growth, maturity, and decline. The product life cycle impacts the marketing strategy by helping marketers plan effective strategies for existing products and identify profitable categories for new products. It can help

Sanchez 4 marketers extend the profitable run of an individual brand as long as possible by finding new uses for products, changing the product, and changing the marketing mix. 8. How has marketing promotion evolved over the past decade? How has technology contributed to the changes? The marketing promotion has evolved over the past decade because consumer expectations and empowerment have skyrocketed, consumer tolerance for impersonal corporate communication has fallen, and digital technology has surged forward at a breakneck speed. Technology contributed to the change because it has given many new tools. Technology has given us some leading edge tools including internet advertising, social media, product placement, advergaming, buzz marketing, and sponsorships. 9. Why are the key risks and the potential rewards of product placement in both movies and television? Do you think this promotional tool will continue to grow? Why or why not? The key risks of product placement in both movies and television are disappearing viewers, jaded viewers, high cost, and uneven quality. The potential rewards of product placement in both movies and television are mass audience, efficient, targeted programming and high impact. I think this promotional tool won’t continue to grow. This is because the mass media prices are increasing and audiences fragment. I think that other types of new media, like the internet, will catch up to movies and television and stop their growth because of the growing disadvantages and the increasing advantages for other types of media. 10. Given that each type of media offers strengths and drawbacks, what factors should you consider in developing a media plan for a specific product?

Sanchez 5 Since each type of media offers strengths and drawbacks, the factors that you should consider in developing a media plan for a specific product are how big of audience you are looking to reach, the type of impact it will make, the cost, if it will reach your target market, how efficient it is, the quality, the flexibility, the visibility, and its intrusive. Your goal as a marketer should be to determine which media options reach your target market efficiently and effectively within the limits of your budget. 11. What are the six stages in the selling process? What role does each stage play? Which stage do you believe is most important? Why? The 6 stages in the selling process are prospect and quality, prepare, present, handle objections, close sales, and follow-up. The role that prospect and quality plays is identifying potential customers and choosing those who are most likely to buy your product, which makes salespeople more efficient by focusing their limited time on people who are interested in the product. The role that preparation plays is having the answers to key questions by researching so that you can present your customers with the maximum effectiveness. The role that present plays is having a good first impression by matching the features of your product to the benefits that your customer seeks, so you can elimite reasons for buyers to turn away from your product. The role that handling objections plays is viewing objections as opportunities rather than criticisms, it allows you a chance to learn more about the needs of your prospects and to elaborate on the benefits of your product. The role that close sales plays is the heart of the selling process, which should flow naturally from the prior steps. The stage that I believe is most important is the last stage, follow-up. This is because it is key to keep those customers because it is much easier to keep them for future sales than to look for new customers and these relationships also lead to testimonials and referrals that build momentum for long-term sales success.

Sanchez 6

Sanchez 7 1. Pick your favorite product—for instance, a bakery that you visit, a car that you drive, or a local band that you love. Analyze the features of the product and the benefits associated with each feature. Now develop five more product features that would offer you, as a customer, meaningful benefits. Think big! Why aren’t these features currently part of the product? Would a product with these new features offer a business opportunity for you or someone else? Explain your answer. The business I chose is Peter’s Bakery. Five more product features that would offer me as a customer meaningful benefits would be special discounts for long time customers, special benefits for referrals, taste events to try new additions to the bakery, and an updated website where you could order online. The taste events ideas could possibly offer a business opportunity for me or someone else because a smaller not as well known bakery could take advantage of these events to make themselves be seen by a larger public. Another feature that could offer a business opportunity to myself or someone else would be the opportunity to make a franchise from this business. Many local businesses do not offer this feature, which could really benefit them especially with the competition growing all around. With franchises, they would be able to be known not only locally, but statewide or even nationally. 2. Choose a grocery store product with a bland or badly designed package. Keeping in mind that the typical shopper passes about 300 items per minute, redesign the package so that it grabs consumer attention, highlights key product features, and differentiates your product from its competitors. Draw or construct your new package, and if possible, take a photo of it with the competition. Share the results with your classmates.

Sanchez 8 A product that I found that could have a package redesign is the Nescafe coffee. It has been the same design for many years now and many competitive brands are the same type of design. I believe this design could have an upgrade for the younger people who enjoy drinking coffee, as it seems more lately with Starbucks, and Peet’s Coffee. They could possibly make the design more colorful or add a product that would make it easier to enjoy making your cup of coffee such as a spoon with the right measurements. I believe this would attract more people’s attention than the regular brown package that I personally do not find appealing. 3. Does the definition of quality change depending on the type of business? Does the definition of quality change across cultures? Define what quality means for each of the following categories: ·

A visit to the dentist

The quality here would be the customer service and the procedures of the dentist. ·

A computer

The quality of a computer would be how good it can be on different tasks, its features, etc. ·

A motorcycle

Here, it would depend on its mpg feature and the motor endurance. ·

A haircut

It would be the overall result and if it matched your expectations. ·

A pair of blue jeans

Their materials if resistant to different weathers and washing machines/dryers. ·

A cup of coffee

Where it comes from and how it is cultivated, harvested, and packaged. ·

A stereo system

Sanchez 9 How much of a high volume it can have and how its warranty/insurance. 4. Do you love new car smell, or find yourself eating too many cookies after you smell them baking in the oven? If so, you’re not alone. Scent is a powerful marketing tool that evokes consumer emotions, and can change buying behavior. According to Forbes, most major hotel chains diffuse their unique aromas throughout their properties. The hope is that “whiffs of these scents will make you link their property with positive memories and emotions, as well as establish and market their brand.” Have you noticed instances of scent marketing? Where and how do you think it could be used to boost sales? Work with some friends to experiment with the impact of different scents. I have noticed the scent marketing in different clothing stores that are well known in the market. For example, Victoria’s Secret, Abercrombie & Fitch and Hollister. All these brands have a nice beachy smell when you first walk into the star, which causes positive vibes and good thoughts. I believe they are also the reason why many people enjoy going to these stores, and the reason why they sell many of their products. I believe this marketing strategy could be used in restaurants at the edge of a street. Many people would walk by and could be convinced by a nice fresh smell either from food or cleaning products to enter the restaurant. Any restaurant or store in general that is in a place where many people can transit could benefit from adding scent marketing to attract new customers. 5. As you’ve surfed the Web, chances are strong that you’ve seen targeted Google text ads on a number of different websites. You’ve probably also noticed sponsored links on the Google website that relate quite closely to the topic you searched. Google offers two advertising programs—Google AdSense for Web publishers, and Google

Sanchez 10 AdWords for advertisers. Look up Google advertising on the Internet (www.google.com/ads) and take their virtual tour of each of these programs. Write a brief description of how each program works, and include your thoughts on why both programs have been so successful. If you were a Web publisher or an advertiser, would you use these programs? Why or why not? The different types of programs Google offers are callings, website sales, and visits to your physical location. Depending on your main advertising goal, is what Google will offer you. If you want more callings, a section with an overview of the store would be helpful as well as with the phone number and location of the business. For website sales, it is recommended to publish 3 or more ads with different formats in order to appeal more to different audiences depending on people’s searches. For physical locations, the program offers the same keywords that the person is searching for, making a better match for the person searching for a product or service. A text ad can make a potential client be a client. If I were a Web publisher or an advertiser, I would most likely use the website sales program because right now with COVID, the web has become extremely vital when shopping online for products/services. In my opinion, due to updates in technology and the increased usage of tech devices, I believe all businesses would benefit from online advertising, if not, online sales rather than in person....