question

Involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

answer

Market segmentation

question

What two groups do marketers put people into when segmenting?

answer

1.Common needs 2. Respond similarly

question

Why do business firms segment their markets?

answer

So it can respond more effectively to the wants of groups of potential buyers and thus increase it's sales and profits

question

Market segments

answer

relatively homogeneous groups of prospective buyers that result from the market segmentation process.

question

What is true about all market segments?

answer

They have the same consumption behavior.

question

When a firm uses different marketing mix activities such as product features and advertising, to help consumers perceive the product as being different and better than competing products.

answer

Product differentiation

question

Complete the sentence: Marketing segmentation is only...

answer

a means to an end.

question

Effective market segmentation does what 2 things?

answer

1. Forms meaningful groupings 2. Develops specific marketing mix actions.

question

3 steps to segmentation

answer

1. Identify market needs 2. Link needs to actions 3. Execute marketing program actions.

question

3 specific segmentation strategies:

answer

1. One product and multiple market segments 2. Multiple products and multiple segments 3. Segments of one or mass communication

question

Why would marketers want to produce one product and multiple market segments?

answer

It avoids extra costs of developing and producing additional versions of the product.

question

An example of one product and multiple marketing segments.

answer

Ford producing cars, SUVs, and pickup trucks

question

Why would marketers choose mass customization?

answer

Internet makes it very easy and the marketers want to cater to customer needs.

question

An example of mass communication.

answer

Dell using BTO (Built to order systems)

question

What is the key to successful product differentiation and market segmentation?

answer

To find the ideal balance between satisfying a customer's individual wants or needs and achieving organizational synergy.

question

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.

answer

Organizational Synergy

question

When the increased customer value means adding more new products or a new chain of stores and these new products and stores steal sales and customers from the other products and stores.

answer

Cannibalization

question

5 step process used to segment a market and select the target segments on which it wants to focus.

answer

1. Group potential buyers into segments 2. Group products to be sold into categories 3. Develop a market product grid and estimate market size 4. Select target markets 5. Take marketing actions to reach target markets

question

Is segmentation always worth doing?

answer

No

question

Criteria to use in forming segments:

answer

1. Simplicity and cost effectiveness of assigning potential buyers to segments. 2. Potential for increased profit 3. Similarity of needs of potential buyers within a segment. 4. Difference of needs of buyers among segments 5. Potential of a marketing action to reach a segment.

question

True or false: If the potential needs of various segments aren't very different, make more segments.

answer

False, make less

question

4 general bases of segmentation:

answer

1. Geographic 2. Demographic-some objective physical, measurable, or other attribute. 3.Psychographic-Subjective mental or emotional attributes 4. Behavioral

question

Example of geographic segmentation:

answer

Region

question

Example of demographic segmentation:

answer

Household size

question

Example of psychographic segmentation:

answer

Lifestyle

question

Example of behavioral:

answer

Product features

question

The quantity consumed or patronage (store visits) during a specific period.

answer

Usage rate

question

Focuses on usage rate like AA frequent flier miles.

answer

Frequency marketing

question

Highest segmentation percentage:

answer

Geographic bases: 88%

question

Lowest segmentation variable:

answer

Psychographic 43%

question

Another name for usage rate

answer

80/20 rate

question

80/20 rule:

answer

suggests 80% of a firms sales are obtained from 20% of its customers which suggests a small fraction of customers provides large fraction of firms revenue.

question

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

answer

Market-product grid

question

What are the horizontal lines in a market product grid?

answer

markets

question

What are the vertical lines in a market product grid?

answer

product groupings

question

What happens if a firm picks too narrow of a set of segment?

answer

It may fail to reach the volume of sales and profits it needs.

question

Is the size of the market in the market product grid exact or estimated?

answer

estimated

question

5 Criteria to use in selecting the target segments:

answer

1. Market Size 2. Expected growth 3, Competitive position 4. Cost of reaching that segment 5. Compatibility with the organizations objectives and resources

question

What is the purpose of developing a market-product grid?

answer

To trigger marketing actions to increase sales and profits.

question

What example does chapter nine use to show marketing segmentation?

answer

Wendy's

question

The place a product occupies in consumer's minds on important attributes relative to competitive products.

answer

Product positioning

question

Changing the place a product occupies in a consumer's mind relative to competitive products.

answer

Product repositioning

question

2 approaches to product positioning

answer

1. Head to head positioning 2. Differentiation positioning

question

Involves competing directly with competitors on similar product attributes in the same target market.

answer

Head to head positioning

question

Involves seeking a less competitive, smaller market niche in which to locate a brand.

answer

Differentiation positioning

question

4 steps companies take in determining it's positioning.

answer

1. Identify the important attributes for a product or brand class. 2. Discover how target customers rate competing products or brands with respect to these attributes. 3. Discover where the company's product or brand is on these attributes in the minds of potential customers. 4. Reposition the company's product or brand in the minds of potential customers.

question

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands as well as its own product or brand.

answer

Perceptual Map

question

Explain what market segmentation is and when to use it.

answer

Market segmentation involves aggregating prospective buyers into groups that (a) have common needs and (b) will respond similarly to a marketing action. Organizations go to the expense of segmenting their markets when it increases their sales, profits, and ability to serve customers better.

question

Identify the five steps involved in segmenting and targeting markets.

answer

Step 1 is to group potential buyers into segments. Buyers within a segment should have similar characteristics to each other and respond similarly to marketing actions like a new product or a lower price. Step 2 involves putting related products to be sold into meaningful groups. In step 3, organizations develop a market-product grid with estimated sizes of markets in each of the market-product cells of the resulting table. Step 4 involves selecting the target market segments on which the organization should focus. Step 5 involves taking marketing mix actions —often in the form of a marketing program—to reach the target market segments.

question

Recognize the bases used to segment consumer and organizational markets.

answer

Bases used to segment consumer markets include geographic, demographic, psychographic, and behavioral ones. Organizational markets use the same bases except for psychographic ones.

question

Develop a market-product grid to identify a target market and recommend resulting actions

answer

Organizations use five key criteria to segment markets, whose groupings appear in the rows of the market-product grid. Groups of related products appear in the columns. After estimating the size of market in each cell in the grid, they select the target market segments on which to focus. They then identify marketing mix actions—often in a marketing program—to reach the target market most efficiently.

question

Explain how marketing managers position products in the marketplace.

answer

Marketing managers often locate competing products on two-dimensional perceptual maps to visualize the products in the minds of consumers. They then try to position new products or reposition existing products in this space to attain the maximum sales and profits.

question

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

answer

increase sales and profits

question

Which of the following is an example of a single product with multiple market segments?

answer

Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

question

Synergy is the increased customer value achieved through

answer

Performing organizational functions more efficiently.

question

There are five steps involved in segmenting and targeting a market. What should a marketer do once he or she has grouped products to be sold into categories?

answer

develop a market-product grid and estimate size of markets

question

Which of the following is a criterion used in forming market segments?

answer

there is the potential of marketing action to reach a particular segment

question

People who live active outdoor lives are part of the target market for REI, a retail outdoor outfitter. This suggests that REI would most likely segment the market based on which type of consumer segmentation basis?

answer

psychographic

question

On a traditional market-product grid, the horizontal axis represents __________ and the vertical axis represents __________.

answer

market segments; product groupings

question

Which of the following is a criterion used for selecting a target market segment?

answer

expected growth

question

Consumer markets break behavioral segmentation into variables based on product features or usage rate. Organizational markets break demographic segmentation into variables based in part on __________ and __________.

answer

NAICS code; number of employees

question

Magnavox sells its target markets many different types of TVs from flat screens to a 20" combination TV/DVDs. The larger sets can be outfitted with surround sound at a higher price than the smaller sets. The smaller sets are much less expensive and allow the viewer to watch a DVD without extra equipment. Magnavox is using which type of segmentation variable in this example?

answer

behavioral segmentation

question

A good, service or idea, consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in the exchange for money or something else of value.

answer

Product

question

What is a tangible asset?

answer

An asset that a consumer can perceive with his or her five senses.

question

What is an intangible asset?

answer

An asset that cannot be perceived with 5 senses and embody more abstract concepts.

question

What is a nondurable good?

answer

An item consumed in one or a few uses such as food, products and fuel like gum.

question

What is a durable good?

answer

Usually lasts over many uses like a car.

question

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

answer

Service

question

Services exceed how much of its GDP? (percentage)

answer

40%

question

A thought that leads to an action such as a concept for a new invention, or getting people out of vote.

answer

Idea

question

A product can be

answer

a person, place, service, or idea

question

What are the two broad categories of products?

answer

Consumer products and business products

question

Products purchased by the ultimate consumer

answer

Consumer products

question

Products that organizations buy that assist in providing other products for resale.

answer

Business products (B2B Products or industrial products)

question

An example of a consumer and a business product.

answer

Apple iMac computer because it can be for business as well as personal use.

question

4 Types of consumer products

answer

1. Convenience product 2. Shopping product 3. Specialty product 4. Unsought product

question

Items that the consumer purchases frequently, conveniently and with a minimum of shopping effort.

answer

Convenience product

question

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

answer

Shopping product

question

Items that the consumer makes a special effort to search out and buy.

answer

Specialty product

question

Items that the consumer does not know about or knows about but does not initially want.

answer

Unsought products

question

A major characteristic of business products is that their sales are often the result of ________.

answer

Derived demand or consumer products

question

Two classifications of business products

answer

1. components 2. support products

question

Items that become part of the final product

answer

Components

question

Items used to assist in producing other goods and services.

answer

Support products

question

Examples of support products

answer

Installations, accessory equipment, supplies, industrial services

question

Examples of components

answer

Raw materials, assemblies or parts

question

A specific product that has a unique brand, size or price.

answer

Product Item

question

Example of product item

answer

Ultra downy softner

question

SKU

answer

Stock keeping unit, which is a unique identification number that defines an item for ordering or inventory purposes

question

A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

answer

Product line

question

Example of a product line

answer

Shoes and clothing from Nike's product line

question

All the product lines offered by an organization.

answer

Product mix

question

Example of a product mix

answer

Cray Inc, has a small mix of three super computer lines that that are sold mostly to governments and large businesses.

question

What does the Marketing Dashboard show us?

answer

How marketers measure actual performance versus the goals set in new product planning.

question

True of False: New is hard to describe and difficult to define and there are several points of view for it.

answer

True

question

Newness compared with existing products means

answer

If a product is functionally different from existing products, it can be defined as new.

question

Newness in legal terms means

answer

The FTC advises that the term new be limited to use with a product up to six months after it enters regular distribution.

question

What is the difficulty in how the FTC defines new.

answer

The interpretation of regular distribution

question

Newness from the organizations perspective means

answer

Successful organizations view newness and innovation in their products at three levels.

question

The three levels of how organizations view new.

answer

1. Lowest level- Product line extension 2. Middle level- a significant jump in the innovation or technology. 3. Highest level- True innovation

question

Newness from the consumer's perspective means

answer

Classifies new products according to the degree of learning required by the consumer

question

Three levels of consumer perspective

answer

1. Continuous innovation 2. Dynamically continuous innovation 3. Discontinuous innovation

question

Lowest degree of consumer learning needed

answer

Continuous innovation

question

Highest degree of consumer learning needed

answer

Discontinuous innovation

question

Requires no new learning by consumers

answer

Continuous innovation

question

Disrupts consumer's normal routine but does not require totally new learning.

answer

Dynamically continuous innovation

question

Requires new learning and consumption patterns by consumers.

answer

Discontinuous innovation

question

Example of continuous innovation

answer

new improved shaver or detergent

question

Example of dynamically continuous innovation

answer

Electric toothbrush, CD player, and automatic flash

question

What is the marketing strategy for continuous innovation?

answer

Gain consumer awareness and wide distribution

question

What is the marketing strategy for dynamically continuous innovation?

answer

Advertise points of differences and benefits to consumers

question

What is the marketing strategy for discontinuous innovation?

answer

Educate consumers through product trial and personal selling

question

A statement that, before product development begins, identifies: 1. A well-defined target market 2. Specific customer needs, wants and preferences 3. What the product will be and do

answer

Protocol

question

Research suggests that it takes ________ raw unwritten ideas to produce a single commercially successful new product.

answer

3,000

question

8 marketing reasons for new product failures

answer

1. Insignificant point of difference 2. Incomplete market and product protocol before product development starts. 3. Not satisfying customer needs on critical factors. 4. Bad timing 5. Too little market attractiveness 6. Poor product quality 7. Poor execution of the marketing mix: brand name, price, package, promotion, and distribution 8. No economical access to buyers

question

5 organizational problems in new product failure

answer

1. Not really listening to the voice of consumer 2. Shipping stages in the new product process 3. Pushing a poorly conceived product into the market to generate quick revenue. 4. Encountering "groupthink" in a task force and committee meetings 5. Not learning critical takeaway lessons from past failures

question

The seven stages an organization goes through to identify business opportunities and convert them to a salable good or service.

answer

New-product process

question

What are the seven stages in the new product process.

answer

1. New-product strategy development 2. Idea generation 3. Screening and evaluation 4. Business analysis 5. Development 6. Market Testing 7. Commercialization

question

The stage of the new product process that defines the role for a new product in terms of the firm's overall objectives.

answer

New product strategy development

question

The stage of the new product process that develops a pool of concepts as candidates for new products, building upon the previous stage's results.

answer

Idea generation

question

An organization finds and executes creative new-product ideas by developing strategic relationships with outside individual organizations.

answer

Open innovation

question

Customer and supplier suggestions focus on what the new product_________than simply______.

answer

will do for the customer; what the customer wants

question

Employee and co-worker suggestions example

answer

Employees should be encouraged to suggest new product ideas through suggestion boxes

question

An implied art that improves the aesthetics and usefulness of mass-produced products for users.

answer

Industrial design

question

The stage of the new product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

answer

Screening and evaluation

question

The process of managing the entire customer experience within the firm.

answer

Customer experience management

question

External evaluations with consumers that consist of preliminary testing of a new product idea rather than the actual product.

answer

Concept tests

question

Specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

answer

Business analysis

question

What does the business analysis stage of product development do?

answer

It asses the total "business fit" of the proposed new product with the company's mission and objectives

question

Integrating the service component of the marketing mix with efforts to influence consumer demand.

answer

Capacity management

question

Charging different prices for different times of the day or week to reflect the variations in demand for their services.

answer

Off-peak pricing

question

The stage of the new product process that turns the idea on paper into a prototype.

answer

Development

question

The stage of the new product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

answer

Market testing

question

Involves offering a product for sale on a limited basis in a defined area.

answer

Test marketing

question

A technique that simulates a full-scale test market but in a limited fashion.

answer

Simulated test markets

question

Why is test marketing so difficult?

answer

A service is intangible and consumers can't see what they are buying and some are very expensive.

question

The stage of the new product process that positions and launches a new product in full scale production and sales.

answer

Commercialization

question

What is the most expensive stage of new product development

answer

Commercialization

question

Introducing the product sequentially into geographical areas of the US, to allow production levels and marketing activities to build up gradually to minimize the risk of new product failure.

answer

Regional rollouts

question

A payment a manufacturer makes to place a new item on a retailer's shelf.

answer

slotting fee

question

A penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make.

answer

Failure fee

question

Why do large grocery product manufacturers use regional rollouts?

answer

Slotting fees and failure fees are very costly.

question

Speed as a factor in new product success is an example of what?

answer

Time to market

question

Cross functional team members who conduct the simultaneous development of both the product and the production process.

answer

Parallel development

question

Uses a "do it, try it, fix it" approach, encouraging continuing improvement even after the initial design.

answer

Fast prototyping

question

What are many large companies doing to speed up time to market?

answer

Building "fences" around their new product teams to keep them from getting bogged down in red tape.

question

For Apple, Inc., the life this organization depends on how it conceives, produces, and markets __________.

answer

new products

question

Among consumer products, personal selling is especially important for

answer

durable goods

question

Two broad categories of products widely used in marketing based on the type of user: __________ are purchased by ultimate consumers, whereas __________ are ones that assist directly or indirectly in providing products for resale.

answer

consumer products; business product

question

Consumer products are classified based on the: (1) effort the consumer spends on the decision; (2) frequency of purchase; and (3)

answer

attributes used in making the purchase decision.

question

Which of the following is the best example of a specialty product?

answer

a DVD player

question

A product line is a group of products that are closely related because they __________, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.

answer

satisfy a class of needs

question

Which of the following products at the time of their introduction was the best example of a dynamically continuous innovation?

answer

A DVD player

question

Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.

answer

a distinctive point of difference

question

There are five organizational problems that can cause new-product disasters including: (1) not really listening to the voice of the consumer; (2) skipping steps in the new-product process; (3) not learning critical takeaway lessons from past failures; (4) encountering "groupthink" in task force and committee meetings; and (5)

answer

pushing a poorly conceived product into the market to generate quick revenue.

question

Capacity management is especially important for __________.

answer

services

question

Recognize the various terms that pertain to products and services

answer

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or something else of value. A good has tangible attributes that a consumer's five senses can perceive and intangible ones such as warranties; a laptop computer is an example. Goods can also be divided into nondurable goods, which are consumed in one or a few uses, and durable goods, which usually last over many uses. Services are intangible activities or benefits that an organization provides to satisfy consumer needs in exchange for money or something else of value, such as an airline trip. An idea is a thought that leads to a product or action, such as eating healthier foods.

question

Identify the ways in which consumer and business products and services can be classified.

answer

By type of user, the major distinctions are consumer products, which are products purchased by the ultimate consumer, and business products, which are products that assist in providing other products for resale. Consumer products can be broken down based on the effort involved in the purchase decision process, marketing mix attributes used in the purchase, and the frequency of purchase: (a) convenience products are items that consumers purchase frequently and with a minimum of shopping effort; (b) shopping products are items for which consumers compare several alternatives on selected criteria; (c) specialty products are items that consumers make special efforts to seek out and buy; and (d) unsought products are items that consumers do not either know about or initially want. Business products can be broken down into (a) components, which are items that become part of the final product, such as raw materials or parts, and (b) support products, which are items used to assist in producing other goods and services and include installations, accessory equipment, supplies, and industrial services. Services can be classified in terms of whether they are delivered by (a) people or equipment, (b) business firms or nonprofit organizations, or (c) government agencies. Firms can offer a range of products, which involve decisions regarding the product item, product line, and product mix.

question

Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved.

answer

From the important perspective of the consumer, "newness" is often seen as the degree of learning that a consumer must engage in to use the product. With a continuous innovation, no new behaviors must be learned. With a dynamically continuous innovation, only minor behavioral changes are needed. With a discontinuous innovation, consumers must learn entirely new consumption patterns.

question

Describe the factors contributing to a new product's or service's success or failure

answer

A new product or service often fails for these marketing reasons: (a) insignificant points of difference, (b) incomplete market and product protocol before product development starts, (c) not satisfying customer needs on critical factors, (d) bad timing, (e) too little market attractiveness, (f) poor product quality, (g) poor execution of the marketing mix, and (h) no economical access to buyers.

question

Explain the purposes of each step of the new-product process.

answer

The new-product process consists of seven stages a firm uses to develop a salable good or service: (a) New-product strategy development involves defining the role for the new product within the firm's overall objectives. (b) Idea generation involves developing a pool of concepts from consumers, employees, basic R&D, and competitors to serve as candidates for new products. (c) Screening and evaluation involves evaluating new product ideas to eliminate those that are not feasible from a technical or consumer perspective. (d) Business analysis involves defining the features of the new product, developing the marketing strategy and marketing program to introduce it, and making a financial forecast. (e) Development involves not only producing a prototype product but also testing it in the lab and on consumers to see that it meets the standards set for it. (f) Market testing involves exposing actual products to prospective consumers under realistic purchasing conditions to see if they will buy the product. (g) Commercialization involves positioning and launching a product in full-scale production and sales with a specific marketing program.

question

What is the example used in chapter 11 when talking about product life cycle?

answer

Gatorade

question

Describes the stages a new product goes through in the market place.

answer

Product life cycle

question

4 stages of a product life cycle.

answer

1. Introduction stage 2. growth 3. maturity 4. decline

question

The desire for the product class rather than for a specific brand, since there are few competitors with the same product.

answer

Primary demand

question

The preference for a specific brand.

answer

Selective demand

question

A high initial price to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.

answer

Price skimming

question

A low initial price to discourage competitive entry.

answer

Penetration pricing

question

What are examples of products in their introductory stage?

answer

Pocket video cameras, and electric powered automobiles

question

Which stage of the product life cycle is characterized by a rapid increase in sales and competitors appear.

answer

Growth stage

question

Why do product sales increase in the growth stage?

answer

Because of new people trying or using the product and a growing proportion of repeat purchasers.

question

What are some examples of products in the growth stage of life cycle?

answer

Smart phones and digital cameras

question

Which stage in the products life cycle is characterized by a slowing of total industry sales or product class revenue and marginal competitors begin to leave the market?

answer

Maturity stage

question

how would you describe sales in the maturity stage?

answer

Increasing at a decreasing rate

question

Examples of products that are in the maturity phase of product life cycle.

answer

Soft drinks and DVD players

question

Which stage are you in a products life cycle where sales drop, and consume disproportionate shares of management and financial resources relative to future worth.

answer

Decline stage

question

Dropping the product from the company's product line.

answer

Deletion

question

When a company retains the product but reduces marketing costs.

answer

Harvesting

question

What is the purpose of harvesting?

answer

To maintain the ability to meet customer requests.

question

Four aspects of the product lifestyle

answer

1. Length 2. Shape 3. How they vary with different levels of products 4. The rate at which consumers adopt products

question

Who has shorter life cycles? Business or consumer products?

answer

Consumer

question

4 shapes of curves in the product life cycle curve

answer

1. high learning product 2. low learning product 3. fashion product 4. fad product

question

Product learning curve in which significant customer education is is required and there is an extended introductory period.

answer

High learning product

question

Example of high learning product

answer

Convection ovens or computers in the 1980s

question

Product learning curve in which sales begin immediately because little learning is required by the consumer, and the benefits of purchase are readily understood.

answer

Low learning product

question

Example of a low learning product

answer

Gillette fusion razor

question

Product learning curve that can be described as a style of the times.

answer

Fashion product

question

Example of a fashion product

answer

Womens hosiery

question

Which product life cycle curve experiences rapid sales on introduction and then an equally rapid decline.

answer

Fad

question

An example of a fad would be

answer

Car tattoos and fleece bikinis

question

The entire product category or industry, such as prerecorded music.

answer

Product class

question

Pertains to the variations within the product class.

answer

Product form

question

When a product spreads through the population

answer

Diffusion of innovation

question

What are some common reasons for resisting a product in the introduction stage?

answer

Usage barriers (The product is not compatible with existing habits) Value barriers (The product provides no incentive to change) Risk barriers (Physical, economic, or social) Psychological barriers (cultural differences or image)

question

How do companies overcome introduction stage barriers?

answer

Offer warranties, money-back guarantees, extensive usage instructions, demonstrations downloaded from the internet.

question

71 percent of consumers consider _________ to be the best way to evaluate a new product.

answer

A sample

question

3 ways a manager can manage a product through its life cycle:

answer

1. Modifying the product 2. Modifying the market 3. Repositioning the product

question

Manages the marketing efforts for a close knit family of brands.

answer

Product manager (sometimes called a brand manager)

question

Two ways product managers manage products through extensive data analysis.

answer

1. A category development index 2. A brand development index

question

What do the CDI and BDI do?

answer

Help to identify strong and weak market segments

question

Involves altering a products characteristic, such as its quality, performance, or appearance.

answer

Product modification

question

The sale of two or more products in one package.

answer

Product bundling

question

When a company tries to find new customers, increase a products use among existing customers, or create new use situations.

answer

Market modification

question

3 ways of modifying the market

answer

1. Finding new customers 2. Increasing a products use 3. Creating a new use situation

question

Changes the place a product occupies in a consumer's mind relative to competitive products.

answer

Repositioning the product

question

4 ways to reposition a product

answer

1. React to a competitor's position 2. Reach out to a new market 3. Catch a rising trend 4. Change the value offered

question

Involves adding value to the product (or line) through additional features or higher-quality.

answer

Trading up

question

Involves reducing the number of features, quality, or price.

answer

Trading down

question

Reducing the package content without changing the package size and maintaining or increasing the package price.

answer

Downsizing

question

An organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.

answer

Branding

question

Any word, device, or combination of these to distinguish a sellers goods or services.

answer

Brand name

question

A commercial, legal name under which a company does business.

answer

Trade name

question

Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others to use it.

answer

Trademark

question

Involves low-cost copies of popular brands not manufactured by the original producer.

answer

Product counterfeiting

question

A set of human characteristics associated with a brand name.

answer

Brand personality

question

True or false: Research shows that consumers often assign personality traits to products.

answer

True

question

The added value a brand name gives to a product beyond the functional benefits provided.

answer

Brand equity

question

Two distinct advantages brand equity has.

answer

1. Competitive advantage 2. Consumers are usually willing to pay a higher price

question

True or false: Brand equity doesn't just happen.

answer

True

question

Where does brand equity reside?

answer

In the minds of consumers

question

4 steps in creating brand equity

answer

1. Develop positive brand awareness and as association of consumers 2. Establish a brand's meaning in the minds of consumers 3. To elicit the proper consumer responses to a brand's identity and meaning 4. Create a consumer-brand connection evident in an intense, active loyalty relationship between consumers and the brand.

question

A contractual agreement whereby one company allows its brand name or trademark to be used with products or services offered by another company for royalty or fee.

answer

Brand licensing

question

5 criteria are mentioned most often when selecting a good brand name:

answer

1. The name should suggest the product benefits 2. The name should be memorable, distinctive, and positive 3. The name should fit the company or product image 4. The name should have no legal or regulatory restrictions. 5. The name should be simple and should be emotional

question

4 different branding strategies

answer

1. Multiproduct branding 2. Multibranding 3. Private branding 4. Mixed branding

question

When a company uses one name for all its products in a product class.

answer

Multiproduct branding

question

The practice of using a current brand name to enter a new market segment in its product class.

answer

Product line extensions

question

Combines a corporate or family brand with a new brand, to distinguish a part of its product line from others.

answer

Subbranding

question

The practice of using a current brand name to enter a different product class.

answer

Brand extension

question

The pairing of two brand names of two manufacturers on a single product.

answer

co-branding

question

Involves giving each product a distinct name

answer

Multibranding

question

Multibrand company whose chief purpose is to confront competitor brands.

answer

Fighting brands

question

Most expensive branding strategy

answer

Multibranding

question

A company uses this when it manufactures products but sells them under the brand name of a wholesaler or retailer.

answer

Private branding

question

Where a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market.

answer

Mixed branding

question

Refers to any container in which it is offered for sale and on which label information is conveyed

answer

Package

question

An integral part of the package and typically identifies the product or brand, who made it, and where and when it was made, how it is to be used, and package contents and ingredients.

answer

Label

question

How do labels and packaging create customer value and competitive advantage?

answer

1. Label information is needed to satisfy safety and legal requirements. 2. Packaging offers a functional role such as storage, protection, convenience, protection. etc. 3. Perceptual benefits

question

Packaging and labeling challenges

answer

1. The continued need to connect with customers 2. Environmental concerns 3. Health, safety, and security issues 4. Cost reduction

question

A statement indicating the liability of the manufacturer for product deficiencies.

answer

Warranty

question

Written statements of liabilities.

answer

Express warranties

question

Specifically states the bounds of coverage and, more important, areas of noncoverage.

answer

Limited coverage warranty

question

No limits of noncoverage

answer

Full warranty

question

Assign responsibilities for product deficiencies to the manufacturer

answer

Implied warranties

question

Regarding liability claims, what is the trend now days?

answer

Strict liability where a manufacturer is responsible for any product defect, whether it followed reasonable research standards or not.

question

The stage of the product life cycle when a product is first commercialized to its intended target market is called the __________ stage.

answer

introduction

question

The popular "Got Milk" advertising campaign is sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulates __________ demand.

answer

primary

question

During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with

answer

convincing channel intermediaries to carry the product.

question

3M is a master of using a(n) __________ strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in."

answer

skimming pricing

question

The growth stage of the product life cycle is characterized by

answer

rapid increases in sales and the appearance of competitors.

question

An extended introduction stage of the product life cycle occurs for which type of product?

answer

high learning

question

Tums, which has long been used for reducing heartburn, is now being promoted as a source of calcium for the prevention of osteoporosis. Its manufacturer is primarily using which of the following market modification strategies?

answer

creating new use situations

question

Which of the following statements is most accurate about product repositioning?

answer

Product repositioning may change the value offered to consumers relative to competitive products by adding or deleting features.

question

Michelin has added a "run-flat" feature to its higher-priced tire lines so that they can travel up to 50 miles at 55 miles per hour after suffering total air loss. The marketing strategy Michelin used is called

answer

trading up.

question

A __________ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.

answer

trademark

question

Explain the product life-cycle concept.

answer

The product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. Product sales growth and profitability differ at each stage, and marketing managers have marketing objectives and marketing mix strategies unique to each stage based on consumer behavior and competitive factors. In the introductory stage, the need is to establish primary demand, whereas the growth stage requires selective demand strategies. In the maturity stage, the need is to maintain market share; the decline stage necessitates a deletion or harvesting strategy. Some important aspects of product life cycles are (a) their length, (b) the shape of the sales curve, (c) how they vary by product classes and forms, and (d) the rate at which consumers adopt products.

question

Identify ways that marketing executives manage a product's life cycle.

answer

Marketing executives manage a product's life cycle three ways. First, they can modify the product itself by altering its characteristics, such as product quality, performance, or appearance. Second, they can modify the market by finding new customers for the product, increasing a product's use among existing customers, or creating new use situations for the product. Finally, they can reposition the product using any one or a combination of marketing mix elements. Four factors trigger a repositioning action. They include reacting to a competitor's position, reaching a new market, catching a rising trend, and changing the value offered to consumers.

question

Recognize the importance of branding and alternative branding strategies.

answer

A basic decision in marketing products is branding, in which an organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distinguish them from those of its competitors. Product managers recognize that brands offer more than product identification and a means to distinguish their products from competitors. Successful and established brands take on a brand personality and acquire brand equity—the added value a given brand name gives to a product beyond the functional benefits provided—that is crafted and nurtured by marketing programs that forge strong, favorable, and unique consumer associations with a brand. A good brand name should suggest the product benefits, be memorable, fit the company or product image, be free of legal restrictions, and be simple and emotional. Companies can and do employ several different branding strategies. With multiproduct branding, a company uses one name for all its products in a product class. A multibranding strategy involves giving each product a distinct name. A company uses private branding when it manufactures products but sells them under the brand name of a wholesaler or retailer. Finally, a company can employ mixed branding, where it markets products under its own name(s) and that of a reseller.

question

Describe the role of packaging, labeling, and warranties in the marketing of a product.

answer

Packaging, labeling, and warranties play numerous roles in the marketing of a product. The packaging component of a product refers to any container in which it is offered for sale and on which label information is conveyed. Manufacturers, retailers, and consumers acknowledge that packaging and labeling provide communication, functional, and perceptual benefits. Contemporary packaging and labeling challenges include (a) the continuing need to connect with customers, (b) environmental concerns, (c) health, safety, and security issues, and (d) cost reduction. Warranties indicate the liability of the manufacturer for product deficiencies and are an important element of product and brand management.

Marketing Midterm 2 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards