principles of Marketing Homework help

BBA 3201, Principles of Marketing 1

Course Learning Outcomes for Unit IV Upon completion of this unit, students should be able to:

1. Discuss the importance of determining value proposition of the consumer. 1.1 Relate the importance of the value proposition to competitive advantage

with respect to a company’s product offering.

4. Explain how the marketing mix is used to reach the target market. 4.1 Analyze whether a company maintains a competitive advantage in

reaching its target market with respect to its product/service offering.

6. Explain the importance of positioning as it relates to brand strategy leading to brand equity. 6.1 Describe the positioning strategy of a company.

Unit Lesson Marketing operates in two unique worlds: the business-to-consumer (B2C) world and the business-to-business (B2B) world. These descriptions identify exactly who the primary end customer will be. With respect to B2C, the end consumer is the actual consumer whereas with the B2B, the end consumer is actually another business. Marketing effectively within each of these environments requires unique marketing strategies. Generally speaking, the B2B environment involves multiple decision makers who are making high volume purchases on behalf of a company. Additionally, in the B2B world, the relationships between the seller and buyer tend to be close. The B2B buying scenario usually involves multiple buying situations lending itself to a shared trust between the buyer and seller. All companies, whether B2B or B2C, work toward achieving a competitive advantage in each of the areas of the marketing mix (four Ps). A competitive advantage suggests that a company is “better” than their competition in one or more areas of the marketing mix. An example might be the famous retailer, Walmart, who seemingly has a competitive advantage with respect to their pricing strategies. They have maintained a lower price model that equates to a competitive advantage with respect to pricing. On the other hand, Walmart does not have a competitive advantage in product because their product quality and service offerings are less than that of their competitors. Obviously, Walmart remains a significant competitive force within the consumer retail sector, in spite of the fact that they do not have a competitive advantage in all four of the elements of the marketing mix. Perreault, Cannon, and McCarthy (2015) describe product as the blend of a physical good and service. On one end of the spectrum, a company might be interested in offering 100% physical goods, which could include macaroni and cheese or laundry detergent. Conversely, a company might be interested in offering 100% service, which might be a dentist or hair styling. Additionally, a company could offer a blend, as in the example of a restaurant that provides a meal with the service of preparing the meal

Reading Assignment Chapter 8: Elements of Product Planning for Goods and Services Chapter 9: Product Management and New-Product Development

Suggested Reading See information below.

UNIT IV STUDY GUIDE

Product & New Product

Development

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and serving the food at the table. Product lines can be expanded and developed as companies look to reach their target market, providing products/services that will provide a value proposition to this target market. Companies begin with an individual product, broadening to include a product assortment or variety of products. Companies will also organize their product offerings into product lines, defined as groupings of individual products that are closely related. Another important element of a product is that of branding and brand management. Perreault et al. (2015) define branding as the use of a name, term, symbol, or design that identifies a product. Besides improving the company’s overall image, favorable branding also helps reduce selling time and costs for companies. It makes shopping easier for the consumer to be able to quickly identify certain levels of quality with certain brands. This ultimately reduces their shopping time. The level of brand familiarity looks at how well customers recognize and accept a company’s brand. This extends to brand rejection where the potential customer absolutely will not buy the brand unless the image is changed. On the other extreme, brand insistence suggests that the potential customer insists on the brand and is willing to search for it. Interbrand, a nationally recognized rating service, annually rates brands based upon criteria that align with positive brand equity. Take a look at the current year’s “Interbrand’s Top Global Brands” site. Certain brands like Coca Cola and Apple consistently maintain a top ten position in the rankings. It is always interesting to watch the rankings change each year. New product development is imperative for every organization in order to maintain a competitive advantage. Innovative and fresh products/services certainly enhance a company’s product offerings. Companies look to organize their new product development process in order to reduce risks. The riskiness is associated with the fact that some new products do not provide enough of a value proposition to the consumer. This is associated with a unique benefit that is differentiated from other similar products. Additionally, there are significant costs associated with bringing new products to market. The new product development process is a systematic approach to bringing a product to market. Generally speaking, a new product idea passes through each stage with the objective of eliminating the least worthy products before they reach the final and most costly stage of commercialization. Better to scrap the unworthy product in the earlier, less costly stages. The stages are identified below:

Stages Description

Idea Generation This is the stage of accumulating new product ideas from customers, competitors, employees, intermediaries, and marketing research.

Screening Analyzing strengths and weaknesses (possibly using the SWOT tool) occurs in this phase, Think about how this new product might fill a gap in the market and how the industry is trending.

Idea Evaluation This phase moves into a more comprehensive testing phase utilizing tools such as concept testing and formal consumer testing surveys. Additionally, the financial feasibility is analyzed here as well.

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Development If the new product has made it to this point, the product is now transformed into a tangible prototype for a physical product. In the case of a service organization, specifics of personnel (e.g., training, equipment necessary, and specific hiring qualifications) are assessed. Additionally, extensive research and development and financial estimates are completed.

Commercialization The final stage of the new product process is that of commercialization. Theoretically, if the product/service has made it to this point, there is a substantial value proposition for the consumer that can be differentiated and positioned favorably in the market.

Product as the first element of the marketing mix includes both the physical product as well as services. This is a controllable because the company has the ability to change the offerings based upon the needs of the target market.

References Perreault, W., Jr., Cannon, J., & McCarthy, J. (2015). Essentials of marketing: A

marketing strategy planning approach (14th ed.). New York, NY: McGraw-Hill.

Suggested Reading Click here to access a PowerPoint presentation of the Chapter 8 material. Click here to access a PDF version of this presentation. Click here to access a PowerPoint presentation of the Chapter 9 material. Click here to access a PDF version of this presentation.