BU121 Lecture Notes - Lecture 8: Junk Food, Product Classification, Brand Loyalty
Document Summary
Price must be enough to cover costs. A lot of costs might come from promotion and distribution: connect to canvas. Build brand loyalty to get repeat purchases. Integrated/consistent system of activities: clear message to the customer, all parts of organization must have clear idea of unique benefit. High-end product, sold in high-end stores, high-end promotion: sales don"t go well leading to a discounted price, customers are confused and don"t buy at the discounted price either. Your product may be in the introductory stages but that doesn"t mean the industry isn"t mature. Product classification: value proposition, product life cycle (textbook), product classification, total product concept branding and customer relationships, convenience good/service, staples; branding, max exposure, shelf position. Want to have on hand all the time. Don"t want to run out of them: ex. Don"t give it a lot of thought. Retailers want staples in the corners so hopefully customers will buy other things on the way.
