question

_____ ______: Defined as the process of collecting and analyzing information in order to recommend actions

answer

marketing research

question

What is marketing research defined as?

answer

the process of collecting and analyzing information in order to recommend actions

question

Although imperfect, marketers conduct ______ ______ to reduce the risk of, and thereby improve marketing actions

answer

marketing research

question

What are the 5 steps to the marketing research process?

answer

1. Define a problem 2. Develop a research plan 3. Collect relevant information 4. Develop findings 5. Take marketing actions

question

Although imperfect, why do marketers conduct marketing research?

answer

to reduce the risk of, and thereby improve marketing actions

question

______ ______: The total sales of a product that a firm expects to sell during a specified time period under specified conditions.

answer

Sales Forecast

question

What is a sales forecast?

answer

The total sales of a product that a firm expects to sell during a specified time period under specified conditions.

question

______ _______: Involves estimating the value to be forecast without any intervening steps

answer

Direct Forecast

question

What is a direct forecast?

answer

Involves estimating the value to be forecast without any intervening steps

question

_____-_____ _______: Involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast

answer

lost-horse forecast

question

What is a lost-horse forecast?

answer

Involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast

question

_____ ____ ______ ______ _____: Asking prospective customers if they are likely to buy the product during some future time period.

answer

Survey of buyers' intentions forecast

question

What is a survey of buyers' intentions forecast?

answer

Asking prospective customers if they are likely to buy the product during some future time period.

question

______ _______ _______: Asking the firm's salespeople to estimate sales during a coming period. This is logical because these people are in contact with customers and are likely to know what customers like and dislike.

answer

Salesforce survey forecast

question

What is a salesforce survey forecast?

answer

Asking the firm's salespeople to estimate sales during a coming period. This is logical because these people are in contact with customers and are likely to know what customers like and dislike.

question

______ ______: Extending a pattern observed in past data into the future. When the pattern is described with a straight line, it is linear extrapolation.

answer

Trend extrapolation

question

What is trend extrapolation?

answer

Extending a pattern observed in past data into the future. When the pattern is described with a straight line, it is linear extrapolation.

question

What are research objectives?

answer

specific, measurable goals the decision maker seeks to achieve in conducting the marketing research

question

Different research outcomes - based on the _____ ___ ______ - lead to different marketing actions.

answer

measures of success

question

The first step of marketing research is: Defining the Problem What are the two parts of this step?

answer

1)Setting research objectives 2) Identifying marketing actions

question

The second step of marketing research is: Developing the research plan What are the 3 parts of this step?

answer

1) Specify constraints 2) Identify data needed needed for marketing actions 3) Determine how to collect data

question

The third step of marketing research is: Collecting relevant information What are the 2 parts of this step?

answer

1) Obtain secondary data 2) Obtain primary data

question

To find out about a new customer reaction to a potential new product, marketing researchers frequently develop a ____ _____ _____

answer

new product concept

question

Simple methods vital to marketing are: (1) ______ and (2) ______ _______

answer

sampling ; statistical inference

question

What is secondary data?

answer

the facts and figures that have already been recorded prior to the project at hand.

question

What are the 2 types of secondary data?

answer

internal and external

question

What are the 2 types of internal secondary data?

answer

marketing inputs and marketing outcomes

question

What is external secondary data?

answer

This is published data that comes from outside the organization

question

Many of the reports put out by the US census bureau are examples of ______ _______ ______

answer

external secondary data

question

Several market research companies pay households and businesses to record all their purchases. This is called _____ _____ _____

answer

syndicated panel data

question

What are the pros and cons of external secondary data?

answer

PROS i. The tremendous time savings ii. The low cost, such as free or inexpensive Census reports iii. The greater level of detail available. CONS i. May be out of date ii. The definitions or categories might not be quite right for a researcher's project iii. Because the data have been collected for another purpose, they might not be specific enough for the project.

question

What is primary data?

answer

This is defined as facts and figures that are newly collected for the project.

question

What are the main disadvantages of primary data?

answer

Main disadvantages are that primary data are usually far more costly and time-consuming to collect than secondary data.

question

Observational data is a type of ______ data. What are the 3 ways that it can be collected?

answer

Primary ; Mechanical, Personal, Neuromarketing

question

TV ratings collected by a "people meter" are an example of _____ _____ _____. Is this primary or secondary data?

answer

mechanical observational data ; primary

question

Mystery shoppers are an examples of _____ _____ ____. Is this primary or secondary data?

answer

personal observational data ; primary

question

______ _______: A specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their "natural use environment."

answer

Ethnographic research

question

Personal observational data can be _____ & _____ but also _____ & ______. Also, while it can reveal _____ people do, it cannot really determine _____ they do it. (this is the principle reason for using neuromarketing)

answer

useful and effective ; costly and unreliable ; what ; why

question

Martin Lindstrom believes that most traditional marketing research - like focus groups and surveys - is wasted because consumers' feelings towards products and brands reside deep within the subconscious parts of their brains. He wrote the book called "______."

answer

Buyology

question

There are 2 general ways of collecting primary data. What are they?

answer

Observational Data Asking people

question

Asking people is a way of collecting _____ _____

answer

primary data

question

The 2 subsets of "asking people" when collecting primary data are :

answer

1) Idea generation 2) Idea evaluation

question

When collecting primary data, you can either gather observational data or you can ask people. When asking people, you can use idea generation or idea evaluation. What are the 3 idea generation methods?

answer

1. individual interview 2. depth interview 3. focus groups

question

What are is the upside and the downside to individual interviews?

answer

i. Pro: ability to probe for additional ideas using follow-up questions ii. Con: very expensive

question

_____ ______: Researchers ask lengthy, free-flow questions to probe for underlying ideas and feelings

answer

Depth interviews

question

What are focus groups?

answer

These are informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader, or moderator, asks their opinions about the firm's and its competitors' products, how they use these products, and special needs they have that these products don't address. (they are often recorded and conducted in room with one-way mirror)

question

The informality and peer support in an effective _____ _____ help to uncover ideas that are often difficult to obtain with individual interviews.

answer

focus group

question

Using _____ _____ _____ the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions.

answer

idea evaluation methods

question

Idea evaluation methods often involve ______ ______ using personal, mail, phone, fax, and online surveys of a large sample of past, present, or prospective customers.

answer

conventional questionnaires

question

_____ ______ are usually biased because those most likely to respond have had especially positive or negative experiences.

answer

Mail surveys

question

____ ______ allow flexibility, but unhappy respondents may hang up on the interviewer.

answer

Telephone interviews

question

A lot of marketing researchers have begun to use online surveys because ...

answer

most consumers have an internet connection and an e-mail.

question

In choosing among them, the marketing researcher balances the _____ of the particular method against the expected _____ of the info and _____ with which it can be obtained.

answer

cost ; quality ; speed

question

Each survey method results in valuable _____ _____ - Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

answer

questionnaire data

question

Mail surveys, telephone interviews, and online surveys are all examples of _____ _____ methods, which are a way to collect _____ data.

answer

idea evaluation ; primary

question

Social media, panels and experiments, using information technology, and data mining are all forms of obtaining ______ data.

answer

primary

question

Carmex uses several _____ _____ metrics, including conversation velocity, share of voice, and sentiment.

answer

social media

question

______: A sample of consumers or stores from which researchers take a series of measures

answer

Panel

question

In marketing experiments, the independent variables of interest - sometimes called the marketing drivers are often one or more of the ...

answer

marketing mix elements, such as a product's features, price, or promotion (like ad messages or coupons).

question

The ideal dependent variable usually is a change in the ______ of individuals, households, or organizations.

answer

purchases

question

_____ ______ involves operating computer networks that can store and process data. Marketers use _____ _____ that consists of computers linked together through sophisticated communication networks. These data sources are stored, organized, and managed in databases. Collectively these databases form a _____ _____.

answer

information technology x2 data warehouse

question

iWhen querying a database, marketers can use sensitivity analysis to ask "____ ___" questions to determine how hypothetical changes in product or brand drivers can affect sales.

answer

what if

question

_____ _____ is the extraction of hidden information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

answer

Data mining

question

The fourth step of marketing research is to: Develop findings What are the 2 parts of this step?

answer

1) Analyze the data 2) Present the findings

question

The fifth step of marketing research is to: Take marketing actions What are the 3 parts of this step?

answer

1) MAKE action recommendations 2) IMPLEMENT action recomendations 3) EVALUATE results (the decision itself and the decision process used)

question

______ _______: Aggregates potential buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.

answer

Market segmentation

question

What is market segmentation?

answer

Aggregates potential buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.

question

Effective market segmentation results in development of specific _____ _____ actions, and the formation of _______ _______.

answer

marketing mix ; meaningful groupings

question

______ _______: The relatively homogeneous groups of prospective buyers that result from the market segmentation process (each market segment consists of people who are relatively similar to each other in terms of their consumption behavior.

answer

Market segments

question

What are market segments?

answer

The relatively homogeneous groups of prospective buyers that result from the market segmentation process (each market segment consists of people who are relatively similar to each other in terms of their consumption behavior.

question

________ ________: The strategy of using different marketing mix activities (such as product features and advertising) to help consumers perceive a product as being different and better that competing products.

answer

Product differentiation

question

What is product differentiation?

answer

The strategy of using different marketing mix activities (such as product features and advertising) to help consumers perceive a product as being different and better that competing products. (The perceived differences may involve physical features, such as size or color, or nonphysical ones, such as image or price.)

question

--Market segmentation first stresses the importance of grouping people or organizations in a market according to the similarity of their _____ and the _____ they are looking for in making a purchase. --Second, ...

answer

needs ; benefits ~such needs and benefits must be related to specific marketing actions that the organization can take, such as a new product or special promotion.

question

Segmentation and targeting are the link between ...

answer

buyers' needs and the organization's marketing program.

question

The Zappos.com target customer segment originally consisted of people who wanted to (3 things)

answer

(1) have a wide selection of shoes, (2) shop online in the convenience of their own homes, and (3) receive quick delivery and free returns.

question

_____ _____ ______: A framework to relate the market segments of potential buyers to products offered or potential marketing actions

answer

Market product grid

question

What is a market product grid?

answer

A framework to relate the market segments of potential buyers to products offered or potential marketing actions

question

When expenses are greater than the potentially increased sales from segmentation, a firm ...

answer

should not attempt to segment its market.

question

One size fits all marketing - like that for Tide laundry detergent 40 years ago - ___ ___ ____

answer

no longer exists

question

When an organization produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra costs of developing and producing additional versions of the product. This market segmentation strategy is called ...

answer

one product and multiple market segments

question

What does the "one product and multiple market segments" market segmentation strategy entail?

answer

When an organization produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra costs of developing and producing additional versions of the product.

question

What are the incremental costs involved with in the "one product and multiple market segments" market segmentation strategy?

answer

In this case, the incremental costs of taking the product into new market segments are typically those of: a separate promotional campaign or a new channel of distribution.

question

Ex. How the Sporting News Baseball Yearbook used 16 different covers featuring a baseball star from each of its regions in the U.S. instead of producing multiple versions of magazines for several different market segments. The Harry Potter series is another example. These are examples of ...

answer

the "one product and multiple market segments" market segmentation strategy

question

Ford's different lines of cars, SUVs, and pickup trucks are each targeted at a different type of customer - examples of ...

answer

multiple products aimed at multiple market segments.

question

The perceived differences between products may involve physical features, such as ____ or _____, or nonphysical ones, such as ____ or ____.)

answer

size or color ; image or price

question

Segmentation is linking ______ to ______

answer

needs ; actions

question

The market segmentation strategy of "multiple products and multiple market segments" is effective if..

answer

it meets customers' needs better, doesn't reduce quality or increase price, and adds to Ford's sales revenues and profits.

question

Each customer has unique needs and wants and desires special tender loving care. --This is characteristic of what type of market segmentation strategy?

answer

Segments of one: Mass Communication

question

Today's internet ordering and flexible manufacturing and marketing processes have made _____ ______ possible, which means tailoring goods or services to the tastes of individual customers on a high-volume scale.

answer

mass communication

question

Mass communication is the next step beyond ____-____-____: Manufacturing a product only when there is an order from a customer. (even this system falls a bit short of total mass communication because customers do not have an unlimited number of features from which to choose)

answer

build-to-order (BTO)

question

The Segmentation Trade-Off: ______ versus _____

answer

Synergies ; Cannibalization

question

The key to successful product differentiation and marketing segmentation strategies is finding the ideal balance between satisfying a customer's individual wants and achieving ______ _______, the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.

answer

organizational synergy

question

The "_____ _____ _____" can take many forms: more products, improved quality of existing products, lower prices, easier access to products through improved distribution, etc.

answer

increased customer value

question

Ultimate criterion for an organization's marketing success is that customers should be better off as a result of the _______ _______.

answer

increased synergies

question

When the increased customer value involves adding new products or a new chain of stores, we must take into account - Are the new products or the new chain simply stealing customers and sales form the older, existing ones? This is known as _____________.

answer

cannibalization

question

Marketers increasingly emphasize a two-tier, "______/______" strategy

answer

Tiffany/Walmart

question

What are the 5 steps in segmenting markets?

answer

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

question

What are the criteria to use in forming the segments? 1._____ and ____-_____ of assigning potential buyers to segments 2. Potential for _____ _____ 3. Similarity of _____ of potential buyers within a segment: (ex. Product features sought or advertising media used) 4. Difference of ______ of buyers among segments: If the ____ of the various segments aren't very different, combine them into fewer segments. If increased sales don't offset extra costs, combine segments and reduce the number of marketing actions. 5. Potential of a marketing action to _____ ___ _____

answer

Simplicity ; cost-effectiveness ; increased profit ; needs ; needs ; reach a segment

question

______ segmentation: Based on where prospective customers live or work.

answer

Geographic

question

Grouping segments by region is an example of _______ segmentation

answer

geographic

question

_______ segmentation: Based on some objective physical (gender, race), measureable (age, income), or other classification attribute (birth era, occupation) of prospective customers

answer

Demographic

question

Household size is an example of _____ segmentation

answer

demographic

question

________ segmentation: Based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers

answer

Psychographic

question

_______ segmentation: Based on some observable actions or attitudes by prospective customers - such as where the buy, what benefits they seek, how frequently they buy, and why they buy.

answer

Behavioral

question

Using product features and usage rate as criteria for segmentation is using _______ segmentation

answer

behavioral

question

Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly to create loyal customers → "Frequency marketing" This is using _____ segmentation

answer

behavioral

question

Usage rate is sometimes referred to in terms of the ______ rule, a concept that suggests ...

answer

80/20 ; 80 percent of a firm's sales are obtained from 20 percent of its customers.

question

~Ways to Segment Organizational (Business) Markets •_______ segmentation: Statistical area •_______ segmentation: NAICS code •_______ segmentation: Number of employees •_______ segmentation: Usage Rate

answer

Geographic ; Demographic ; Demographic ; Behavioral

question

In a complete market-product grid analysis, each cell in the grid can show the estimated ______ ______ of a given product sold to a specific market segment.

answer

market size

question

Product: A _____, ______, or ______ consisting of _____ and ______ features that satisfies consumers' needs and is received in exchange for ______ or something else of value

answer

good ; service ; idea ; tangible ; intangible ; money

question

A ______ (has tangible attributes that a consumer's 5 senses can perceive; can be divided into _____ goods, which is one that lasts over many uses such as a car or an iPad and generally emphasize personal selling, and ______ goods, which are consumed in one or few uses, such as food or fuel and rely heavily on consumer advertising)

answer

good ; durable ; nondurable

question

Food and fuel are ______ goods

answer

nondurable

question

Cars and iPads are ______ goods

answer

durable

question

services make up over ___% of the U.S.'s GDP

answer

40

question

What is a service?

answer

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

question

A "_______" may be the breakfast cereal that you eat, whereas a "______" may be a tax return an accountant fills out for you

answer

product ; service

question

______ ______: products purchased by the ultimate consumer.

answer

Consumer products

question

What are the 4 types of consumer products?

answer

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

question

______ product: items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

answer

Convenience

question

What is a convenience product?

answer

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

question

______ product: items for which the consumer compares several alternatives on criteria such as price, quality, or style.

answer

Shopping

question

What is a shopping product?

answer

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

question

_____ product: items that the consumer makes a special effort to search out and buy.

answer

Specialty

question

What is a specialty product?

answer

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

question

_______ product: items that the consumer does not know about or knows about but does not initially want

answer

Unsought

question

What is an unsought product?

answer

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

question

The 4 types of consumer products differ in terms of (3 things)

answer

1) The effort the consumer spends on the decision 2) The attributes used in making the purchase decision 3) The frequency of purchase

question

_______ products: products organizations buy that assist directly or indirectly in providing other products for resale

answer

Business

question

A major characteristic of business products is that their sales are often the result of ______ _____; that is, sales of business products frequently result from the sale of _______ _______.

answer

derived demand ; consumer products

question

Business products may be classified as either _______ or ______ _______

answer

components ; support products

question

______: items that become part of the final product (these include _____ _____ such as lumber and assemblies such as a ford car engine)

answer

Components ; raw materials

question

_____ ______: items used to assist in producing other products and services.

answer

Support products

question

Installations, such as buildings and fixed equipment ; Accessory equipment, such as tools and office equipment ;Supplies, such as stationery, paper clips, and brooms ; Industrial services, such as maintenance, repair, and legal services. These are all examples of ...

answer

support products

question

Some products can be both _______ and _______ _______, such as an Apple iMac.

answer

consumer ; business products

question

Services can be classified according to whether they are delivered by (3 things)

answer

(1) People or equipment (2) Business firms or nonprofit organizations (3) Government agencies

question

______ ______ professional services include those offered by advertising agencies or medical doctors.

answer

People based

question

_______-________ services do not have the marketing concern of inconsistent quality because employees don't have direct contact when providing the service to consumers. They receive the services without interacting with any service employees.

answer

Equipment-based

question

______ ______ firms must make profits to survive, while _______ organizations seek to satisfy clients and be efficient. The kinds of services each offers affect their marketing activities

answer

Privately owned ; nonprofit

question

4 unique elements distinguish services from goods:

answer

-Intangibility -Inconsistency -Inseparability -Inventory

question

Services tend to be a performance rather than an object, which makes them much more difficult for customers to evaluate. This is the concept of ...

answer

intangibility

question

Services depend on the people who provide them. More of a problem in services than it is with tangible goods. This is the concept of ...

answer

inconsistency

question

The consumer cannot distinguish the service provider from the service itself. This is the concept of ...

answer

inseparability

question

Many goods have inventory handling costs that relate to their storage, perishability, and movement. With services, these costs are more subjective and are related to _____ ______ ______ which is when ...

answer

idle production capacity ; the service provider is available but there is no demand for the service.

question

For a service, ______ ______ involves paying the service provider along with any needed equipment.

answer

inventory cost

question

Once a consumer tries a service, they primarily evaluate it by ...

answer

comparing expectations about a service offering to the actual experience a consumer has with the service.

question

Difference between the consumers' expectations and his or her actual experiences are identified through _____ ______, which asks consumers to assess their expectations and experiences on dimensions of service quality

answer

gap analysis

question

What are the 5 dimensions of service quality?

answer

1. Reliability 2. Tangibility 3. Responsiveness 4. Assurance 5. Empathy

question

_______: Ability to perform the promised service dependably and accurately

answer

Reliability

question

_______: Appearance of physical facilities, equipment, personnel, and communication materials

answer

Tangibility

question

________: Willingness to help customers and provide prompt service.

answer

Responsiveness

question

_________: Knowledge and courtesy of employees and their ability to convey trust and confidence

answer

Assurance

question

_______: Caring, individualized attention provided to customers

answer

Empathy

question

______ ______: a specific product that has a unique brand, size, or price. (ex: Ultra Downy comes in several different sizes, each of which is a separate _____ _____ _____)

answer

Product item ; stock keeping unit (SKU)

question

_______ _______: A group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices. Each product line has its own marketing strategy.

answer

Product line

question

What is a product line?

answer

A group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices. Each product line has its own marketing strategy.

question

______ _______: All the product lines offered by a company.

answer

Product mix

question

What is a product mix?

answer

All the product lines offered by a company.

question

What makes a product "new"?

answer

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

question

_______ _________: consumers don't need to learn new behaviors.

answer

Continuous innovation

question

_______ _______ ________: Only minor changes in behavior are required.

answer

Dynamically continuous innovation

question

_______ _______: involves making the consumer learn entirely new consumption patterns to use the product.

answer

Discontinuous innovation

question

Marketing efforts for ______ _______ usually involve not only gaining initial consumer awareness but also educating consumers on both the benefits and proper use of the innovative product

answer

discontinuous innovations

question

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

answer

six

question

Successful organizations view newness at what three levels?

answer

1. Product line extension (risk of cannibalization) 2. A significant jump in innovation or technology OR a brand extension involving putting an established brand name on a new product in an unfamiliar market. 3. A radical invention → Highest level of innovation

question

New products need a precise protocol that identifies (3 things)

answer

(1) a well-defined target market, (2) specific customers' needs, wants, and preferences, and (3) what the product will be and do to satisfy customers.

question

-Marketing Reasons for New-Product Failures: 1) Insignificant _____ ___ ______ - The single most important factor for a new product to defeat competitive ones 2) No economical ______ to buyers 3) Incomplete _____ and product ______ before product development starts 4) Not satisfying customer ____ on critical factors 5) Bad ______ 6) Poor product ______ 7) Too little _______ _______ 8) Poor execution of the ______ _______

answer

points of difference ; access ; market ; protocol ; needs ; timing ; quality ; market attractiveness ; market mix (brand name, package, price, promotion, distribution)

question

-Organizational Problems in New Product Failures 1. Not really listening to the "_____ ____ _____ ____" 2. Skipping ______ in the new-product process 3. Pushing a _____ ______ product into the market to generate quick revenue 4. Encountering "______" in task force and committee meetings 5. Not learning from critical takeaway lessons from _____ ______. 6. Avoiding the "_____ ______"

answer

voice of the consumer ; stages ; poorly conceived ; groupthink ; past failures ; NIH problem ("not invented here")

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

In the New Product Strategy Development stage, a firm uses both _____ _____ and _____ _____ to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats.

answer

SWOT analysis ; environmental scanning

question

Why is the New Product Strategy Development stage often difficult in services?

answer

~Often difficult in services (such as buying a stock or airline ticket) because services are intangible and performance-oriented

question

What does the idea generation stage of new product development involve?

answer

Involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results

question

______ ________ is where an organization finds and executes new-product ideas by developing strategic relationships with outside individuals and organizations. This helps organizations overcome the _____ _______

answer

Open innovation ; NIH barriers

question

What does the screening and evaluation stage of the new product process involve?

answer

Internally and externally evaluates new-product ideas to eliminate those that warrant no further effort

question

What are the 2 aspects of the screening and evaluation stage of the new product process?

answer

internal and external evaluation

question

_____ _______: A firm's employees evaluate the technical feasibility of a proposed new-product idea to determine whether it means the objectives defined in the new-product strategy development stage.

answer

Internal approach

question

______ _______ ______: The process of managing the entire customer experience within the organization.

answer

Customer experience management

question

______ ______: Firms use concept tests, external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product

answer

External approach

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 business analysis do?

answer

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

question

_____ _____ is the last checkpoint before significant resources are invested to create a ________

answer

Business analysis ; prototype

question

This process requires not only detailed financial projections, but also assessments of the marketing and product synergies related to the co's existing operations.

answer

Business analysis

question

For services, business analysis involves using ______ _______ to find ways to match the availability of the service offering to when it is needed.

answer

capacity management

question

_______ is the stage of the new-product process that turns the idea on paper into a prototype.

answer

Development

question

______ _______ is a 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

What are the 3 main types of market testing?

answer

1. Standard 2. Controlled 3. Simulated

question

_______ _____ ______ - a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities.

answer

Standard market testing

question

What is standard market testing?

answer

a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities.

question

______ _______ ______ - involves contracting the entire test program to an outside service.

answer

Controlled market testing

question

______ ________ ________ - a technique that saves time and money, and that somewhat replicates a full-scale test market.

answer

Simulated market testing

question

Company might use a ______ ______ _____ because market tests are expensive and time consuming, and may alert competitors to a firm's plans

answer

simulated test market

question

Not all products can use ______ ______. For these products, reactions of potential buyers to mockups or one-of-a-kind prototypes are all that is feasible.

answer

test markets

question

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

answer

Commercialization

question

This is the most expensive stage for most new products.

answer

Commercialization

question

Burger King's "improved French fries" are an example of what can go wrong at the _________ stage.

answer

commercialization

question

Commercializing grocery products can require a _____ _____ and failure fee

answer

slotting fee

question

______ _______: a new product idea rather than the actual product is presented to actual consumers, often in written form, to obtain their reactions.

answer

Concept testing

question

Test marketing involves offering a product for sale on a _____ _____ in a ______ ______.

answer

limited basis ; defined area

question

Introduction stage: When a product is introduced to its intended target market. During this period, sales grow _____, and profit is ______. Marketing objective of this stage is to create consumer _______ and stimulate ______. A lot of money is often spent in this stage on ______ & ______.

answer

slowly ; minimal ; awareness ; trial ; advertising and promotion

question

GROWTH STAGE Characterized by rapid _____ in sales. _____ usually peaks during this stage. Advertising shifts emphasis to _____ demand. Changes appear to help ______ a company's brand from competitors. Important to ______ ______ for the product in this stage. Smart phones and e-book readers are in this stage of the product life cycle.

answer

increases ; Profit ; selective ; differentiate ; broaden distribution

question

MATURITY STAGE .Characterized by a _____ of total industry sales or product class revenue. _____ competitors begin to leave the market. Profit declines due to fierce ____ ____ and the cost of gaining new buyers at this stage rises. Marketing attention is directed towards holding _____ _____ through further product differentiation and finding new buyers. Still a major consideration in a company's strategy in this stage is to control overall marketing cost by improving promotional and distribution ______.

answer

slowing ; Marginal ; price competition ; market share ; efficiency

question

Carbonated soft drinks and DVD players are at this stage of their product life cycle today.

answer

Maturity

question

As a rule, _______ products have shorter life cycles than ______ products

answer

consumer ; business

question

The availability of ______ ______ vehicles informs consumers quickly and shortens life cycles.

answer

mass communication

question

_____ ______ tends to shorten product life cycles as new-product innovation replaces existing products

answer

Technological change

question

_____-_____ ______: one for which significant customer education is required and there is an extended introductory period.

answer

High-learning product

question

_____-______ ______: Sales for these begin immediately because little learning is required by the consumer and the benefits are readily understood. Competitors can easily imitate this product, so the marketing strategy is to broaden distribution quickly. (Ex. Gillette's fusion razor)

answer

Low-learning product

question

_______ ________: A style of the times. Life cycles for these products frequently appear in women's and men's apparel.

answer

Fashion product

question

_____: Experienced rapid sales on introduction and then an equally rapid decline. These products are typically novelties and have a short life cycle.

answer

Fad

question

Common reasons for resisting a product in the intro stage are ______ barriers (the product is not compatible with existing habits), ______ barriers (the product provides no incentive to change), ____ barriers (physical, economic, or social), and ______ barriers (cultural differences or image).

answer

usage ; value ; risk ; psychological

question

-5 categories of product adopters. 1) _______: Venturesome; highly educated; use multiple information sources 2) _____ ______: Leaders in social setting; slightly above average education 3) _____ _____: Deliberate; many informal social contacts 4) _____ _____: Skeptical; below-average social status 5) ______: Fear of debt; neighbors and friends are information sources

answer

Innovators ; Early adopters ; Early majority ; Late majority ; Laggards

question

The ______ _______ style of marketing organization is used by consumer products or firms.

answer

product manager

question

All ______ ______ are responsible for managing existing products through the stages of the life cycle.

answer

product managers

question

Managers often supplement their data with what two measures?

answer

(1) a category development index (CDI) and (2) a brand development index (BDI). These indexes help to identify strong and weak market segments

question

______ _______ involves altering one or more of a product's characteristics such as its quality, performance, or appearance, to increase the product's value

answer

Product modification

question

With ______ _______ strategies, a company tries to find new customers, increase a product's use among existing customers, or create new use situations.

answer

market modification

question

What are 3 ways to modify the market?

answer

1. Finding New Customers 2. Increasing a Product's Use 3. Creating a New Use Situation

question

For example, produce companies have started marketing prunes as dried plums to attract younger buyers, and Harley-davidson has started marketing to women

answer

Finding New Customers (market modification)

question

For example, Campbell has started advertising during the warm months too so that people don't just think of soup as a cold-weather food.

answer

Increasing a Product's Use (market modification)

question

Finding new uses for an existing product has been the strategy behind Dockers, who not promoted different looks for different usage situations.

answer

Creating a New Use Situation (market modification)

question

______ _______ changes the place a product occupies in a consumer's mind relative to competitive products. This can be done by ....

answer

Product repositioning ; changing one or more of the 4 marketing mix elements.

question

What 4 factors trigger the need for a repositioning action?

answer

1) Reacting to a Competitor's Position 2) Reaching a new market 3) Catching a rising trend 4) Changing the value offered

question

If a competitor's entrenched position is adversely affecting sales and market share. (ex. New balance focuses on fit, durability and comfort rather than competing head-on with Nike and Adidas on fashion and pro sports, and networks with podiatrists, not sports celebrities)

answer

Reacting to a Competitor's Position (1 of the 4 factors that triggers the need for a repositioning action)

question

(ex. Iced tea did not do well when introduced into Britain, so they carbonated it and marketed it as a cold soft drink and sales improved)

answer

Reaching a new market (1 of the 4 factors that triggers the need for a repositioning action)

question

_____ ____ involves adding value to the product (or line) through additional features of higher-quality materials; ______ ______ involves reducing the number of features, quality, or price These are aspects of ...

answer

Trading up ; Trading down ; Changing the value offered (1 of the 4 factors that triggers the need for a repositioning action)

question

_______: An organization's use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products.

answer

Branding

question

______ _____: Any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's goods or services.

answer

Brand name

question

______ ______: A set of human characteristics associated with a brand name.

answer

Brand Personality

question

Brand name importance to a company has led to a concept called _____ ____.

answer

brand equity

question

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

answer

Brand equity

question

What are the 2 advantages to brand equity?

answer

2 advantages: Provides competitive advantage and consumers are willing to pay a higher price for a product with brand equity

question

Brand equity resides in the _______ of the consumers

answer

minds

question

What are the 4 steps for creating brand equity? 1) Develop positive ______ ______ 2) Establish a brand's ______ in the minds of consumers. 3) Elicit the proper ______ ______ to a brand's identity and meaning. 4) Create a _____-______ connection evident in an intense, active loyalty relationship between consumers and the brand.

answer

brand awareness ; meaning ; consumer responses ; consumer-brand

question

Lucrative ______ ______ opportunities arise from brand equity. _______ _______ is a contractual agreement where one company allows its brand name to be used with products or services offered by another company for a royalty or fee.

answer

brand licensing ; brand licensing

question

________ _________: A branding strategy in which a company uses one name for all its products in a product class. (ex. Microsoft, GE, Samsung, Sony, and Gerber - the company's trade name and brand name are identical)

answer

Multiproduct branding

question

Multiproduct branding -Advantages: *Capitalizing on _____ _____, consumers who have a good experience with the product will transfer this favorable attitude to other items in the product class with the same name. *Makes ______ _____ ______ possible, and can result in lower ad and promotion costs because the same name is used on all products. A risk of extension is the possibility of cannibalization. *Allows for ______: which combines a corporate or family brand with a new brand (ex. Gatorade introduced Gatorade G2) *A strong brand equity allows for _____ _____: the practice of using current brand name to enter a different product class.

answer

brand equity ; product line extensions ; subbranding ; brand extension

question

________: A branding strategy that involved giving each product a distinct name (ex. Black & Decker uses the DeWalt name for its professional tool line)

answer

Multibranding

question

Compared with the multi product strategy, advertising and promotion costs tend to be higher with ___________.

answer

multibranding

question

_____ ______ Strategy -This is when a company manufactures products but sells them under the brand name of a wholesaler or retailer.

answer

Private Branding

question

This is popular because it typically produces high profits for manufacturers and resellers.

answer

Private Branding

question

1 of every __ items purchased at US supermarkets, drug stores, and mass merchandisers bears a private brand label.

answer

5

question

_____ ______ Strategy -Where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.

answer

Mixed Branding

question

The ________ component of a product refers to any container in which it is offered for sale and on which label information is displayed.

answer

packaging

question

A _______ is an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is used, and package contents and ingredients

answer

label

question

Packaging and labeling account for about ___cents of ever dollar spend by consumers for products

answer

15

question

A major benefit of packaging is the _____ ____ on it conveyed to the consumer.

answer

label information

question

Packaging often plays a _______ role, such as storage, convenience, protection or product quality.

answer

functional

question

What are the 7 P's of services marketing?

answer

Product, price, place, promotion, people, physical environment, process

question

_____: The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

answer

Price

question

Some sellers use "_____ _____" and "_______" because buyers are more willing to pay extra fees than a higher list price.

answer

special fees ; surcharges

question

What is the price equation?

answer

Price = List Price - Incentives and allowances + extra fees

question

From a consumers' standpoint, price is often used to indicate value when it is compared with the ______ _______ such as quality, durability, etc.

answer

perceived benefits

question

______: The ratio of perceived benefits to price

answer

Value

question

What is the value equation?

answer

Value = Perceived benefits/Price

question

What is the profit equation?

answer

Profit = Total revenue - Total cost = (Unit price x Quantity sold) - (Fixed Cost + Variable Cost)

question

This type of pricing approach weighs factors underlying expected customer tastes and preferences more heavily than such factors as cost, profit, and competition when selecting a price level.

answer

Demand-oriented

question

A firm introducing a new or innovative product can use this type of pricing to set the highest initial price that customers really desiring the product are willing to pay. These customers are not very price sensitive.

answer

Skimming

question

This is an effective strategy when (1) enough prospective customers are willing to buy the product immediately at the high initial price to make these sales profitable, (2) the high initial price will not attract competitors, (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit costs, and (4) customers interpret the high price as a signal of high quality.

answer

Skimming

question

These 4 conditions are most likely to exist when the new product is protected by ______ or ______ or its uniqueness is understood and valued by customers.

answer

patents ; copyrights

question

Setting a low initial price on a product to appeal immediately to the mass market. This is the exact opposite of skimming pricing.

answer

Penetration pricing

question

The conditions favoring _______ are (1) many segments of the market are price sensitive, (2) a low initial price discourages competitors from entering the market, and (3) unit production and marketing costs fall dramatically as production volume increases

answer

penetration

question

A firm using _______ pricing may (1) maintain the initial price for a time to gain profit lost from its low introductory level or (2) lower the price further, counting on the new volume to generate the necessary profit.

answer

penetration

question

This involves setting a high pride so that quality- or status-conscious consumers will be attracted to the product and buy it

answer

Prestige Pricing

question

This involves setting prices a few dollars or cents under an even number

answer

Odd-Even Pricing

question

Manufacturers deliberately adjust the composition and features of a product to achieve the target price to consumers.

answer

Target Pricing

question

The marketing of two or more products in a single package price. Based on the idea that consumers value the package more than the individual items

answer

Bundle Pricing

question

The charging of different prices to maximize revenue for a set amount of capacity at any given time.

answer

Yield Management Pricing

question

With this type of demand-oriented pricing practice, a price setter stresses the cost side of the pricing problem, not the demand side. Price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.

answer

Cost-oriented

question

This entails adding a fixed percentage to the cost of all items in a specific product class.

answer

Standard Markup Pricing

question

High-volume products usually have _____ markups than do low-volume products

answer

smaller

question

This involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.

answer

Cost-Plus pricing

question

This is the most commonly used method to set prices for business products.

answer

Cost-Plus pricing

question

A price setter may choose to balance both revenues and costs to set price using profit-oriented approaches. These might either involve a target of a specific dollar volume of profit or express this target profit as a percentage of sales or investment.

answer

Profit-oriented

question

When a firm sets an annual target of a specific dollar volume of profit. This pricing method depends on an accurate estimate of demand.

answer

Target Profit Pricing

question

Generally, a _____ _____ pricing strategy is best for firms offering new or unique products, without a lot of competition.

answer

target profit

question

Used to set prices that will give them a profit that is a specified percentage of the sales volume.

answer

Target Return-on-Sales Pricing

question

This price method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target.

answer

Target Return-on-Sales Pricing

question

Used to set prices to achieve a ROI target such as a percentage that is mandated by its board of directors or regulators.

answer

Target Return-on-Investment Pricing

question

Rather than emphasize demand, cost, or profit factors, a price setter can stress what competitors or "the market" is doing.

answer

Competition-oriented

question

For some products where tradition, a standardized channel or distribution, or other competitive forces dictate the price, this is used.

answer

Customary Pricing

question

Using the "market price" benchmark for a product, marketing managers use this strategy.

answer

Above-, At-, or Below-Market Pricing

question

Companies use a "_____ ______" to assess whether their products and brands are above, at, or below the market.

answer

price premium

question

For a special promotion retail stores deliberately sell a product below its customary price to attract attention to it.

answer

Loss-Leader Pricing

question

The purpose of this is not to increase sales but to attract customers in hopes that they will buy other products as well, particularly the discretionary items with large markups.

answer

Loss-Leader Pricing

question

_____ _____ ____ ______: The percentage change in the quantity demanded relative to a percentage change in price.

answer

Price elasticity of demand

question

Price elasticity of demand =

answer

% change in Q demanded/% change in price

question

This measures how sensitive consumer demand and the firm's revenues are to changes in the product's price

answer

Price elasticity of demand

question

A product with ______ demand is one in which a slight decrease in price results in a relatively large increase in demand.

answer

elastic

question

A product with _______ demand means that slight increases or decreases in price will not significantly affect the demand. (products and services considered as necessities usually have this type demand)

answer

inelastic

question

_____ _____: This is the total money received from the sale of a product; the unit price of a product multiplied by the quantity sold.

answer

Total revenue

question

While _______ are the moneys received by the firm form selling its products or services to customers, ______ or ______ are the monies the firm pays out to its employees and suppliers.

answer

revenues ; costs ; expenses

question

_____ ______: The total expenses incurred by a firm in producing and marketing a product; the sum of the fixed costs and the variable costs.

answer

Total cost

question

____-______ _______: A technique that examines the relationship between total revenue and total cost to determine profitability at different levels of output.

answer

Break-even analysis

question

The _____-_____ ______ is the quantity at which total revenue and total cost are equal.

answer

break-even point

question

Break-Even Analysis ~Most frequently used to study the impact on _____ of changes in price, fixed cost, and variable cost.

answer

profit

question

While pricing ______ frequently reflect corporate goals, pricing ______ often relate to conditions existing in the market place

answer

objectives ; constraints

question

____ ____: Expectations that specify the role of price in an organization's marketing and strategic plans

answer

Pricing objectives

question

___ ____ ___ ___: A company gives up immediate profit by developing quality products to penetrate competitive markets over the long term. Products are priced relatively low compared to their cost to develop, but the firm expects to make greater profits later because of its high market share.

answer

Managing for long-run profits

question

_____ _____ _____: Target profit is set for a quarter or year for instance, and performance can be measured quickly.

answer

Maximizing current profit

question

______ ______: A firm sets a profit goal (such as 20% for ROI), usually determined by its board of directors.

answer

Target return

question

The ratio of the firm's sales revenues or unit sales to those of the industry. -This type of objective is often pursued when industry sales are relatively flat or declining.

answer

Market share Ex. Boeing cut prices dramatically in the 1990s to try to maintain 60% market share and encountered huge losses.

question

Many firms use _____ _____, the quantity produced or sold, as a pricing objective

answer

unit volume

question

Firms using this pricing objective often sell multiple products at very different prices and need to match unit volume demand by customers with price and production capacity.

answer

unit volume

question

This pricing objective helped keep Frontier alive

answer

Survival

question

A firm may forgo higher profit on sales and follow a pricing objective that recognizes its obligations to customers and to society in general. -Ex. Gerber supplying a special formula to lactose intolerant babies

answer

Social responsibility

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