question

Product

answer

The sum of physical, psychological and sociological satisfactions that the buyer derives from purchase, ownership and consumption.

question

Tangible Product

answer

The physical entity or service offered to the buyer

question

Extended Product

answer

The tangible product along with the whole cluster of services that accompany it

question

Generic Product

answer

The essential benefits the buyer expects to receive from the product. For example, many personal care items bring the user a sense of self-enhancement and security in addition to the tangible benefits they offer.

question

Agricultural Products and raw materials

answer

These goods are grown or extracted from land of sea, such as iron ore, wheat, and sand. In general, these products are generally homogeneous, sold in large volumes, and low value per unit

question

Organizational Good

answer

Such products are purchased by business firms for the purpose of producing other goods or for running the business. This category includes the following: a) raw materials and semi finished goods b) Major and minor equipment, such as basic machinery, tools, and other processing facilities. c) Parts or components, which become an integral element of some other finished goods. d) Supplies or items used to operate the business but that do not become part of the final product.

question

Consumer Goods

answer

Can be divided into three classes a) Convenience Goods, such s fast foods, which are purchased frequently without much effort (impulse goods too) b) Shopping Goods, including appliances, purchased with some time and energy c) Specialty Goods, unique and require a special purchase effort

question

Multi-Branding

answer

A company uses competing brand names to sell products of different uses and benefits. (EX: Proctor & Gamble)

question

Family Branding

answer

Multiple products marketed under the same company name. (EX: Apple)

question

Line Extensinon

answer

Brand name used to facilitate entry into a new market segment (EX: Tide Pods, Diet Dr. Pepper)

question

Brand Extension

answer

current brand is used to enter completely different product class (EX: Special K Cereal Drinks, Coach Perfume)

question

CoBranding

answer

two or more brands are used or integrated into a product (EX: Betty Crocker Hershey Turtle Brownies)

question

Brand Equity

answer

the differential effect that knowing the brand name has on customer response to the product or its marketing

question

Process of Developing And nurturing a brand

answer

1) Product quality when the product does fairly well 2)Consistent advertising and other marketing communications in which the brand tells their story and tells it well 3) Distribution intensity whereby customers see the brand wherever they shop 4) Brand personality whereby the brand stands for somthing

question

Elements of Brand Equity

answer

Brand Loyalty Name Awareness Perceived Loyalty Brand Associations Other Proprietary Brand Assets

question

increasing value to customers Provides value to firms by enhancing

answer

-Efficiency and effectiveness of marketing programs -Brand Loyalty -Prices/margins -Brand Extensions -Trade Leverage -Competitive Advantage

question

Product Life Cycle Strategy Dimensions

answer

Basic Objectives Product Pricing Channels Promotion

question

Decision Factors after Product Decline

answer

New Product Features New Uses New Markets Reaching Status Quo

question

Facts about new products

answer

• New product sales increase faster than current products • How long can an existing product be a competitive advantage? • 3M derives 30% of its revenues from products less than four years old. • 33-90% of new products are failures

question

Five Categories of New Products

answer

-New to the World -New Category Entries -Additions to Product Lines -Product Improvements -Repositioning

question

New to the world

answer

Products that are inventions (EX: Polaroid Camera, First Car, In-Line Skates)

question

New Category Enteries

answer

Products that take a firm into a category new to it, but that are not new to the world. (EX: PG Liquid Shampoo, Hallmark Gift Items)

question

Additions to Product Lines

answer

Products that are line extensions, flankers, and so on, to the firm's current markets. (EX: Tide Liquid Detergent, Bud Light, Apple's Power Mac)

question

Product Improvements

answer

Current products made better; virtually every product on the market has been improved, often many times.

question

Repositioning

answer

Products that are re-targeted for a new use or application A classic case is arm and hammer baking soda, which has been re-positioned several times (baking, toothpaste, cat litter, refrigerator freshener)

question

Time to Market

answer

The elapsed time between product definition and product availability

question

Importance of Time to Market

answer

-First product to market = competitive advantage in profits and market share -Successful time based innovations can be attributed to the use of short -Give managers to product class and brand family levels - Favoring national launches over regional tests - Take into consideration the quality level, production features, product design, product features, product design, and product safety levels

question

Why do products fail

answer

Lack of differentiation, poor positioning, poor quality, over promising, lack of support, no value, misread market, misread costs, poor distribution, timing, changes in the market...

question

New Product Sales/Development Process

answer

Idea Generation Idea Screening Project Planning Product Development Test Marketing Commercialization

question

New Product Adoption/Sales

answer

• Market Size • Awareness • Trial • Availability • Repeat purchase

question

Strategic Goals of Marketing Communication

answer

Create Awareness Build Positive Awareness Identify Prospects Build Channel Relationships Retain Customers

question

IMC addresses consumer processes of....

answer

• Awareness of the product • Comprehension of what it can do • Conviction that is has value • Purchasing/Ordering

question

Promotion/Communication Mix

answer

Advertising Sales Promotion PR Personal Selling Direct/Interactive Marketing

question

Advertising

answer

Strength: Awareness & Conviction Weakness: Ordering

question

Sales Promotion

answer

Strength: Comprehension Weakness: Conviction & Ordering

question

PR

answer

Strength: Awareness Weakness: Comprehension, Conviction, ordering

question

Personal Selling

answer

Strength: Ordering Weakness: Awareness

question

Factors influencing advertising decisions

answer

The Expenditure Question The Allocation Question

question

The Allocation Question

answer

Deciding the most effective way of spending advertising dollars

question

Message Strategy

answer

Saying the Right Things in the ads themselves

question

Media Mix

answer

use the appropriate media in the right amounts at the right time to reach the target market

question

Expenditure Question

answer

How much to spend on advertising

question

Percent of Sales

answer

Most Popular* Takes a percentage figure and applies it to past or future sales

question

Per-Unit Expenditure

answer

Fixed monetary amount is spent on advertising for each unit

question

All you can afford

answer

The availability of current revenues sets the upper limit of the ad budget

question

Competitive Parity

answer

Advertising is defensive, the budgets are based on those of competitors or other members of the industry

question

Research Approach

answer

Advertising media are researched in terms of their productivity by the use of media reports and research studies.

question

Task Approach

answer

Formulates tasks and finds what it takes to accomplish Management then determines how much it takes to accomplish the tasks

question

Push Marketing

answer

Aiming promotional efforts at distributors, retailers, sales personnel to gain their cooperation

question

Pull Marketing

answer

Involve aiming promotional efforts to directly at customers to encourage them to ask the retailer for the product.

question

What Promotion CAN do

answer

-Inducing the customer to try the product -Rewarding the consumer loyalty for brand loyalty - Encouraging the consumer to trade up or purchase larger sizes -Stimulating the consumer to make repeat purchases for products -reacting to competitor efforts -reinforcing and serving as a complement to advertising and personal selling efforts

question

What Promotion CANT do

answer

-Generate Long-term buyer commitment to a brand in many cases -to change, except on a temporary basis, declining sales of product -to convince buyers to purchase an otherwise unacceptable prodcut -to make up for lack of advertising or sales support for a product

question

Objectives of sales force

answer

Information provision Persuasion After Sale Service

question

Sales Relationship-Building Process

answer

-Prospecting -Planning the sales call -Presenting -Responding -Obtaining Commitment -Building a long-term relationship

question

Ways to Organize Sales force

answer

-Geographic -Product -Customer

question

Geographic Sales force Structure

answer

provides practical benefits of limiting the distance each salesperson must travel to see customers and prospects (Worldwide)

question

Product Sales force Structure

answer

Useful when sales force must have specific technical knowledge of the product (Worldwide)

question

Customer Sales force Structure

answer

When different sets of buyers have large or significantly different needs (national)

question

Types of Sales Force Compensation

answer

-Salary -Commission

question

Why Intermediaries are important in channels

answer

• Perform functions more cheaply and efficiently • Access to consumers • Economies of scale and scope • Bring supply and demand together

question

Major Types of Marketing Intermediaries

answer

Middleman Merchant Middleman Agent Wholesaler Retailer Broker Manufacturer agent Distributor Jobber Facilitating Agent

question

Middleman

answer

an independent business concern that operates as a link between producers and ultimate consumers or organizational buyers

question

Merchant Middleman

answer

a middleman who buys the goods outright and takes title to them

question

Agent

answer

A business unit that negotiates purchases, sales, or both but does not take title to the goods in which it deals

question

Wholesaler

answer

a merchant establishment operated by a concern that is primarily engaging in buying, taking title to, usually storing and physically handling goods in large quantities

question

Retailer

answer

A merchant middleman who is engaged primarily in selling to ultimate consumers

question

Brokers

answer

Serves as go between, assumes risks, but no physical custody of products, and is not looked upon as a permanent representitive

question

Manufacturer's agent

answer

Agent that generally operates on an extended contractual basis, handles noncompeting but related goods

question

Distributor

answer

a wholesale middleman, especially in lines where selective or exclusive distribution is common at the wholesaler level

question

Jobber

answer

buys from manufacturers and sells to retailers

question

Facilitating agent

answer

a business firm that assists in the performance of distribution tasks other than buying, selling, or transferring title (transportation company, warehouses)

question

Functions of Channel Distribution

answer

Buying Selling Risk-taking assorting storing sorting transporting financing grading marketing information and research

question

Relationship Marketing

answer

marketing with the conscious aim to develop and manage long-term and/or trusting relationships throughout the channel often lead to higher-quality products with lower costs. These benefits may account for the increased use of vertical marketing systems.

question

Pricing Objectives and Related Strategies

answer

-Penetration Pricing -Price Skimming

question

Price Skimming

answer

- Initial high price indicates a strong pricequality relationship - Used by firms with first-mover advantage with high level of panache and exclusivity • Electronics • Pharmaceuticals - Used effectively in niche markets with few competitors

question

Penetration Pricing

answer

- Used to gain maximum market share - Price sensitive customers - Firm's internal efficiencies lead to cost advantages which allows lower price - Sometimes used for new product introduction • Be careful with penetration pricing

question

Cost Consideration

answer

• Markup pricing • Cost-plus pricing • Rate-of-return pricing

question

offensive Goals for going global

answer

1) increase long term growth and profit prospects 2) maximize total sales revenue 3) take advantage of economies of scale 4) improve overall market position

question

Defensive Goals for Going Global

answer

1) compete with foreign companies on their own turf 2) gain access to technological improvements made in other countries 3) take advantage of significant operating cost differences 4) preempt competitors global moves 5) avoid being locked out of future markets by arriving to late

question

Multi-Domestic Strategy

answer

Pursues different strategies in each of its foreign markets

question

Global Strategy

answer

sees the world as one market and pits its resources against the competition in an integrated fashion

question

Problems with international expansion

answer

Cultural Misunderstanding Political Uncertainty Import Restrictions Exchange Controls and Ownership Restrictions Economic Conditions

question

Global Growth Strategies

answer

Exporting Licensing Franchising Joint Ventures Strategic Alliance Direct Ownership

Marketing Strategy Final – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards