Advanced Marketing Management - FA3
Advanced Marketing Management - FA3
SUMMARY
Product: Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. Service: An activity, benefit or
satisfaction offered for sale that is essentially intangible and does not result the
ownership od anything. Consumer product: a product bought by final consumers for
personal consumption.
Unsought product: a consumer product that the customer either does not know about or
knows about but does not normally consider buying. For customer buying behavior - in
convenience, frequent purchase; little planning, little comparison or shopping effort; low
customer involvement. In shopping , less frequent purchase; much planning and
shopping effort, comparison of brands on price, quality, and style. In specialty, strong
brand preference and loyalty; special purchase effort; little comparison of brands; low
price sensitivity. In unsought, little product awareness, or knowledge (or if aware, little or
even negative interest)For price – Convenience: Low price, Shopping: higher price,
Specialty: high price, Unsought: varies.For Distribution- Convenience: Widespread
distribution; convenient locations, Shopping: Selective distribution in fewer outlets,
Specialty: Exclusive distribution in only one or few outlets per market area, Varies:
Varies. For Promotion- Convenience: Mass promotion by the producer, Shopping;
Advertising and personal selling by both producer and resellers, Specialty: More
carefully targeted promotion by both producer and resellers, Varies: Aggressive
advertising and personal selling by the producer and resellers.
Social marketing: the use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their well being and that of
society. Individual product decisions: Product attributes -> Branding -> Packaging ->
Labeling -> Product support services
- Product quality: the characteristics of a product or service that bear on its ability
to satisfy stated or implied customer needs.
- Product features
- Product style and design
Service Intangibility: services cannot be seen, tasted, felt , hears, or smelled before
they are bought.
Service Inseparability: services are produced and consumed at the same time can
cannot be separated from providers.
Service profit chain: the chain that links service firm profits when employee and
costumer satisfaction.
Brand equity: the differential effect that knowing the brand name has on customer
response to the product or its marketing. Major brand strategy decisions;Branding
positioning: attributes, benefits, beliefs and values -> Brand name selection: selection,
protection -> Brand sponsorship: manufacturer’s brand, private brand, licensing, co-
branding -> Brand development: line extensions, brand extensions, multi brands, new
brands
Store brand ( or private brand): a brand created and owned by a seller or a product or
service.Co- branding: the practice of using the established brand names of two different
companies on the same product.
Line extension: extending an existing brand name to new forms, colors, sizes,
ingredients, or flavors of an existing product category. Brand extension: extending and
existing brand new name to product categories.
Questions for discussion: “Las Vegas”
1. Given all the changes in the branding strategy for Las Vegas over the years, has
the Vegas brand had a consistent meaning to consumers? Is this a benefit or a
detriment in as the city moves forward?
- Las Vegas once changed the USP to value and affordable vacation, with the
catchphrase as “Vegas Bound”, urging the hard-working American working class to take
vacation during economic recession. This deviated from the previous message of
“”What happens in Vegas, stay in Vegas” message. This is a detriment as (1) this point
to the need of customers. (2) The inconsistent message blurred the image of Las
Vegas. (3) In addition, the message of “Vegas Bound” cannot differentiate Las Vegas
from other tourist destinations in “recharging the energy”.
2. What is Las Vegas selling? What are visitors really buying? Discuss these
questions in terms of the core benefit, actual product, and augmented product
levels.
- Actual product: “Las Vegas” as the brand name, high quality, international
standard casinos, exciting variety shows, five-star hotels and resorts, fine dining
and renowned restaurants…
- Augmented product: casino and hotel delivery services, extra gifts or bonus,
after-sale service
- Core customer value: free to experience
3. Will the most recent efforts by the LVCVA continue to work? Why or why not?
It depends. I think it is right for LVCVA to go back to the original message of “Stay
Here”. However, the design and the characteristics of the new properties need to
support this USP – in providing new and darling experiences that the tourists cannot
experience at home.
4. What recommendations (such as advertising, PR, promotions and pricing
strategy) would you make to the managers at the LVCVA for Las Vegas’ future?
With regard to product strategy, new products, like ‘wildlife camping’ for
children, jazzing and motorcycling for elderly, etc. can be developed for different
target groups.
With regard to place, in addition to the current projects like hotels which improve
tourist experience, LVCVA can add convenience to customers by improving the
official website service (deliver information and travel administration work),
transportation (e.g. transit between airport to hotels) and city guides services.
3. Explain the importance of product quality and discuss how marketers use quality to
create customer value. (AACSB: Communication)
- Product qualityis one of the marketer’s major positioning tools. Quality has a
direct impact on product or service performance. Thus, it is closely linked to
customer value and satisfaction. In the narrowest sense, quality can be defined
as “freedom from defects.” But most customer-centered companies go beyond
this narrow definition. Instead, they define quality in terms of creating customer
value and satisfaction. Product quality has two dimensions—level and
consistency. In developing a product, the marketer must first choose a quality
level that will support the product’s positioning. Here, product quality means
performance quality—the ability of a product to perform its functions. Beyond
quality level, high quality also can mean high levels of quality consistency. Here,
product quality means conformance quality—freedom from defects and
consistency in delivering a targeted level of performance. All companies should
strive for high levels of conformance quality.
6. Describe the four characteristics of services that marketers must consider when
designing marketing programs. How do the services offered by a massage
therapist differ from those offered by a grocery store regarding these
characteristics? (AACSB: Communication, Reflective Thinking)