Redoing a products position to respond to marketplace

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redoing a product’s position to respond to marketplace changes - Ex: Self-service competition led to full-service financial service firm o Retro brands a once-popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia Brand personality a distinctive image that captures a good ‘s or service’s character and benefits - Ex: Elle is not just a magazine, it’s a woman Perceptual map a technique to visually describe where brands are “located” in consumers’ minds relative to competing brands ex: pg 204 Leggs 4: Channels of Distribution pg. 221-223; 319-320; 369-370; 448-467 Ch 8: Objective 2: How Markets Classify Products Durable goods consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances Nondurable goods consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers) - Marketers classify consumer goods as durable or nondurable depending on how long the products last Convenience product a consumer (typically a nondurable) good or service that is usually low-priced, widely available, and purchased frequently with a minimum of comparison and effort // many types: - Staple products basic or necessary items that are available almost everywhere - Impulse products a product people often buy on the spur of the moment - Emergency products
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- Shopping products goods or services for which consumers spend considerable time and effort fathering information and comparing alternative before making a purchase Intelligent agents computer programs that find sites selling a particular product Specialty products goods or services that has unique characteristics and is important to the buyer and for which she will devote significant effort to acquire Unsought products goods or services (other than convenience products) for which a consumer has little awareness or interest until the product or a need for the product is brought to her attention New products are vital to the growth and profits of a firm but they also present unique pricing challenges. These strategies are used when a product is new to the market and there is no industry norm price: - Skimming price a very high, premium price that a firm charges for its new, highly desirable product o Ex: iphone - Penetration pricing (opposite of skimming price) pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it - Trial pricing pricing a new product low for a limited period of time in order to lower the risk for a customer and generate a high level of customer interest Determine the total promotion budget techniques: Top-down budgeting allocation of the promotion budget based on management’s determination of the total amount to be devoted to marketing communication - Percentage-of-sales budgeting method a method for promotion budgeting that is based on a certain percentage of either last year’s sales or on estimates of the present year’s sales -
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