Mkc1 Exam Contemporary Marketing: Chapter 11, 13, 15, 19

Convenience products are purchased frequently with little thought going into the process. Shopping products are purchased after comparison of price, quality, style and color. Specialty products are purchased when buyers prefer a certain brand of product, usually with high prices.

The effort to create and market high-quality goods and services, with constant monitoring and improvement of the product.

To ensure consistent quality among products manufactured and sold.

The Introductory Stage is where a product is new and unknown to consumers. The Growth Stage is where sales of the product rise and consumers purchase and repurchase products. The company starts to make a profit on the products. The Maturity Stage is where sales of the product continue to grow but will eventually hit a plateau. Competitors are in the market at this point. This is usually when companies try to differentiate or redesign their products. The Decline Stage is when a product’s sales start to decline because of changes in consumers’ choices of products or the product becomes obsolete.

Introductory – FIOS (fiber optic satellite systems); Growth – IPOD Touch/IPhone; Maturity – Laptop Computers; Decline – Analog televisions

Increasing Frequency of Use is where total sales will rise even though no new buyers enter the market. This happens when seasonal products are marketed throughout the year. Increasing the Number of Users is when the market size is increased by attracting new customers, sometimes internationally. Finding New Uses is when marketers will conduct surveys to allow consumers to suggest new ideas for products. Changing Package Sizes, Labels, or Product Quality is when companies will make physical changes to the look of their product to attract new buyers.

Increasing Frequency of Use – UGGS Boots; Increasing the Number of Users – bicycles; Finding New Uses – Aspirin; Changing Package Sizes, Labels, or Product Quality – Coke Zero.

Direct selling is where there is direct sales contact with the final user. Channels using Marketing Intermediaries is when several different channels are used to deliver the product. Many times they are more efficient, less expensive, and less time-consuming than direct channels. Dual Distribution is the movement of products through more than one channel to deliver the product. Reverse Channels are designed to provide a way to return the product to the producer.

Intensive Distribution distributes the product through all available channels. Selective Distribution is where a company chooses a limited number of retailers in a market to hand the sales of its product. Exclusive Distribution is when a company gives exclusive rights to a wholesaler or retailer to sell its products.

Intensive Distribution – M&Ms; Selective Distribution – Computers; Exclusive Distribution – Jaguar.

Horizontal channel conflict is between channel members at the same level. Vertical channel conflict is between channel members at different levels.

Everyone who is involved in the manufacture, sale, and delivery of goods and services.

Customer service – how the distribution activities should be supported; Transportation – how the products should be shipped; Inventory control – the amount of inventory that should be maintained at each location; Protective packaging and materials handling – how the products should be packaged and handled in order to transport and store; Order processing – how orders should be handled; Warehousing – where the product stock should be kept before shipping

Provide Information to Consumers and Others – provide product information to potential customers by advertisements in print, broadcasting, software, etc.; Increase Demand – pursue ways to increase both primary demand and selective demand; Differentiate Product – show how a product is different from others on the market; Accentuate Product’s Value – use promotional techniques to show the product’s value and justify its price; Stabilize Sales – stabilize the fluctuation of sales that occur as current events or seasons change and interest wanes.

Personal Selling: Advertising: Sales Promotion: . Direct Marketing: Public Relations: Guerrilla Marketing