Marketing 310 Test #2 – Flashcards

Unlock all answers in this set

Unlock answers
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
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New