Principles of Marketing test 2 review – Flashcards

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Market
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people or organizations with needs or wantsand the ability and willingness to buy
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Market Segment
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a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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Market Segmentation
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the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
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Segmentation Bases (Variables)
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characteristics of individuals, groups, or organizations
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Geographic Segmentation
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segmenting markets by region of a country or the world, market size, market density, or climate
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Demographic Segmentation
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segmenting markets by age, gender, income, ethnic background, and family life cycle
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Family Life Cycle (FLC)
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a series of stages determined by a combination of age, marital status, and the presence or absence of children
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Psychographic Segmentation
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market segmentation on the basis of personality, motives, lifestyles, and geodemographics
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Benefit Segmentation
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the process of grouping customers into market segments according to the benefits they seek from the product
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Usage-Rate Segmentation
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dividing a market by the amount of product bought or consumed
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80/20 Principle
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a principle holding that 20 percent of all customers generate 80 percent of the demand
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Target Market
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a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
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Undifferentiated Targeting Strategy
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a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
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Concentrated Targeting Strategy
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a strategy used to select one segment of a market for targeting marketing efforts
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Niche
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one segment of a market
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Multisegment Targeting Strategy
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a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
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Positioning
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an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer
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Position
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the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
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Repositioning
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changing consumers' perceptions of a brand in relation to competing brands
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database marketing
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the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns
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marketing research
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the process of planning, collecting, and analyzing data relevant to a marketing decision
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Marketing Research Process (Project) (steps of):
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1-Define problem 2-Plan design/primary data 3-Specify sampling procedure 4-collect data 5-Analyze data 6-prepare/present report 7-Follow up
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marketing research problem
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determining what information is needed and how that information can be obtained efficiently and effectively
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marketing research objective
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the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information
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management decision problem
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a broad-based problem that uses marketing research in order for managers to take proper actions
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secondary data
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data previously collected for any purpose other than the one at hand
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research design
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specifies which research questions must be answered, how and when the data will be gathered and how the data will be analyzed
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primary data
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information that is collected for the first time; used for solving the particular problem under investigation
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survey research
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the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions and attitudes
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Survey Research (types of):
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mall intercept, in-home, phone, & executive interviews, mail surveys, focus groups
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mall intercept interview
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a survey research method that involves interviewing people in the common areas of shopping malls
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computer assisted personal interviewing
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an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer
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computer assisted self-interviewing
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an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer
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central location telephone facility
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a specially designed phone room used to conduct telephone interviewing
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executive interviewing
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a type of survey that involves interviewing business people at their offices concerning industrial products or services
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focus group
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seven to ten people who participate in a group discussion led by a moderator
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observation research
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a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity
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mystery shoppers
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researchers posing as customers who gather observational data about a store
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experiment
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a method a researcher uses to gather primary data
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sample
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a subset from a larger population
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universe
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the population from which a sample will be drawn
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probability sample
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a sample in which every element in the population has a known statistical likelihood of being selected
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nonprobability sample
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any sample in which little or no attempt is made to get a representative cross section of the population
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Product
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- everything, both favorable and unfavorable, that a person receives in an exchange
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Business Product (Industrial Product)
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- a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers
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Consumer Product
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- a product to satisfy an individual's personal wants
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Convenience Product
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- a relatively inexpensive item that merits little shopping effort
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Shopping Product
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- a product that requires comparison shopping because in is usually more expensive than a convenience product and is found in fewer stores
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Specialty Product
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- a particular item that consumers search extensively for and are very reluctant to accept substitutes
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Unsought Product
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- a product unknown to the potential buyer or a known product that the buyer does not actively seek
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Product Item
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- a specific version of a product that can be designated as a distinct offering among an organization's products
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Product Line
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- a group of closely related product items
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Product Mix
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- all products that an organization sells
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Product Mix Width
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- the number of product lines an organization offers
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Product Line Depth
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- the number of product items in a product line
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Product Modification
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- changing one or more of a product's characteristics
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Brand
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- a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
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Brand Name
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- that part of a brand that can be spoken, including letters, words, and numbers
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Brand Mark
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- the elements of a brand that cannot be spoken
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Brand Equity
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- the value of company and brand names
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Brand Loyalty
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- a consistent preference for one brand over all others
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Generic Product
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A no-frills, no-brand-name, low-cost product that is simply identified by its product category
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Manufacturer's Brand
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- the brand name of a manufacturer
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Private Brand
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- a brand name owned by a wholesaler or a retailer
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Individual Branding
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- using different brand names for different products
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Family Branding
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- marketing several different products under the same brand name
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Co-Branding
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- placing two or more brand names on a product or its package
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Trademark
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- the exclusive right to use a bran or part of a brand
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Persuasive Labeling
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- a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary
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Informational Labeling
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- a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
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Warranty
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- a confirmation of the quality or performance of a good or service
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Express Warranty
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- a written guarantee
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Implied Warranty
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- an unwritten guarantee that the good or service is fit for the purpose for which it was sold
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New Product
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a product new to the world, the market, the producer, the seller, or some combination of these
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New Product Development Process (steps):
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1-new product strategy 2-Idea generation 3-idea screening 4-business analysis 5-development 6-test marketing 7-commercialization
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New Product Strategy
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a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
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Product Development
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a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
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Brainstorming
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the process of getting a group to think of unlimited ways to vary a product or solve a problem
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Screening
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the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason
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Concept Test
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a test to evaluate a new-product idea, usually before any prototype has been created
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Business Analysis
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the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
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Development
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the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
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Test Marketing
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the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
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Simulated (Laboratory) Market Testing
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the presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market
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Commercilization
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the decision to market a product
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Innovation
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a product perceived as new by a potential adopter
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Diffusion
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the process by which the adoption of an innovation spreads
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Product Life Cycle (PLC)
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a concept that provides a way to trace the stages of a product's acceptance, from its introduction(birth) to its decline (death)
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Introductory Stage
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the full-scale launch of a new product into the marketplace
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Growth Stage
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the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
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Maturity Stage
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a period during which sales increase at a decreasing rate
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Decline Stage
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a long-run drop in sales
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Service
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the result of applying human or mechanical efforts to people or objects
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Intangibility
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the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
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Inseprarbility
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the inability of the production and consumption of a service to be separated; consumers must be present during the production
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Heterogeneity
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the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
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Perishability
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the inability of services to be stored, warehoused, or inventoried
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Reliability
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the ability to perform a service dependably, accurately, and consistently
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Responsiveness
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the ability to provide prompt service
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Assurance
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the knowledge and courtesy of employees and their ability to convey trust
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Empathy
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caring, individualized attention to customers
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Tagibles
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the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
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Internal Marketing
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treating employees as customers and developing systems and benefits that satisfy their needs
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Nonprofit Organization
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an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
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Market Channel (channel of distribution)
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- a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user of consumer
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Channel Members
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- all parties in the marketing channel who negotiate with one another, buy and sell products and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
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Supply Chain:
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the connected chain of all of the business entities, both internal and external to the company, that perform or support the marketing (or logistics) channel functions
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Retailer
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- a channel intermediary that sells mainly to consumers
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Merchant Wholesaler
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- an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receivers and take title to goods, stores them in its own warehouses, and later ships them
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Agents and Brokers
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- wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
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Logistics
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- the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through and out of channel member companies
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Direct Channel
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- a distribution channel in which producers sell directly to consumers
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Intensive Distribution
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- a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
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Selective Distribution
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- a form of distribution achieved by screening dealers to eliminate all but a few in any single area
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Exclusive Distribution
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- a form of distribution that establishes one or a few dealers within a given area
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Channel Power
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- the capacity of a particular marketing channel member to control or influence the behavior of other channel members
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Channel Control
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- a situation that occurs when on marketing channel member intentionally affects another members' behavior
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Channel Leader (channel captain)
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- a member of marketing channel that exercises authority and power over the activities of other channel members
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Channel Conflict
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- a clash of goals and methods between distribution channel members
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