question

STP steps

answer

1. establish overall strategy or objectives 2. use segmentation methods 3. evaluate segment attractiveness 4. select a target market 5.identify and develop positioning strategy

question

geographic segmentation

answer

organizes customers into groups on the basis of where they live

question

demographic segmentation

answer

organizes customers in terms of age, gender, education, and income

question

psychodynamic segmentation

answer

how customers describe themselves

question

self value

answer

overriding desires that drive how a person lives (life goals)

question

self concept

answer

the image one ideally has of themself

question

lifestyle

answer

the way we live

question

Value and lifestyle survey (VALS)

answer

8 segments, identify underlying motivations, shows correlations between psychology and lifestyle choices

question

benefit segmentation

answer

groups on basis of the benefits they derive from products and services

question

behavioral segmentation

answer

basis of how they use a product or service (measures include occasion and loyalty)

question

occasion segmentation

answer

time when a product or service is purchased or consumed (special event times)

question

loyalty segmentation

answer

retention and loyalty initiatives using multiple segmentation methods

question

geodemographic segmentation

answer

combination of geographic, demographic, and lifestyle characteristics

question

evaluate segment attractiveness (step 3 of STP)

answer

1. identifiable 2. substantial (measure a market's size) 3. reachable 4. responsive (customers must act similarly and positively to firms offering) 5. profitable

question

segment profitability formula

answer

(segment size x segment adoption % x purchase behavior x profit margin%) - fixed cost

question

select target market strategies ( step 4 of STP)

answer

1. undifferentiated targeting strategy 2. differentiated targeting strategy 3. concentrated targeting strategy 4. micromarketing

question

undifferentiated targeting strategy

answer

"mass marketing," when everyone might be considered a potential user of its product (ex. coke using polar bears around christmas time )

question

differentiated targeting strategy

answer

target several market segments with different offering for each

question

concentrated targeting strategy

answer

selecting a single target market and focusing all its energies on providing a product to fit that markets needs

question

market positioning

answer

defining market mix variables so that target customers have clear understanding of what product does

question

value proposition

answer

communicates to the customer the benefits of the product or service

question

perceptual map

answer

displays in 2+ dimensions, the position of products or brands in customers mind

question

ideal points

answer

where particular market segments ideal product would be on a map

question

the marketing research process

answer

1. defining the objectives and research needs 2. designing the research 3. collecting data 4. analyzing the data and developing insights 5. developing and implementing an action plan

question

secondary data

answer

pieces of info that have been collected prior to the start of the focal research project (includes external and internal data)

question

primary data

answer

data collected to address specific research needs, more expensive and time consuming (ex. focus groups, in-depth interviews, or surveys)

question

sample

answer

choosing a group of customers that represent the customers of interest and then generalize opinion to describe all customers with the same characteristics

question

data

answer

raw #'s or other factual info that on their own have limited value to marketers

question

info

answer

when data is interpreted, resulting from organizing, analyzing, and interpreting data and putting them into a form that is useful

question

types of secondary data

answer

1. inexpensive external 2. syndicated external 3. internal

question

inexpensive external secondary data

answer

provided data about businesses by countries and zip codes

question

syndicated data

answer

purchased, available from commercial research firms such as IRI

question

scanner data

answer

used in quantitative research obtained from scanner readings of Universal Product Code (UPC) labels at checkout counters

question

panel data

answer

info collected from a group of consumers, organized into panels, over time

question

data warehouses

answer

millions of pieces of individual data stored in large computer files

question

data mining

answer

uses a variety of statistical analysis tools to uncover previously known patterns in data or relationships among variables

question

churn

answer

# of participants who discontinue use of service / the avg of total participants

question

big data

answer

field of marketing research has seen big changes because of explosion in amounts of data that firms can't handle

question

primary data collection techniques

answer

1. qualitative research 2. quantitative research

question

qualitative research

answer

used to understand the phenomena of interest through broad, open ended responses. Provides initial info that helps the researcher more clearly formulate objectives 1. observation 2. social media 3. in-depth interviews 4. focus group interviews

question

quantitative research

answer

structured responses that can be physically tested, provided info needed to confirm insights and hypothesis from qualitative or secondary data 1. survey 2. panel and scanner based 3. experimental

question

unstructured questions

answer

open ended, allows respondents to answer in their own words (ex. what's your favorite food)

question

structured questions

answer

close ended questions for which a discrete set of response alternatives or specific answers is provided for respondents to evaluate

question

experimental research

answer

systematically manipulates 1 or more variables to determine which have a causal effect on others

question

biometric data

answer

includes 1 or more physical traits such as facial characteristics , iris scans, or fingerprints

question

innovation

answer

process by which ideas are transformed into new offerings, including products, services, processes, and branding concepts

question

why firms create new products

answer

1. changing customer needs 2. market saturation 3. managing risk through diversity 4. fashion cycles 5. improving business relationships

question

diffusion of innovation

answer

the process by which the use of an innovation process spreads throughout a market group, over time, and across various categories of adopters

question

pioneers (breakthroughs)

answer

establish completely new market or radically change both rules of competition and consumer preferences in a market

question

first movers

answer

first to create the market or product category, they become readily recognizable to customers and establish a commanding and early market and share lead

question

diffusion of innovation curve

answer

1. innovators 2. early adopters 3. early majority 4. late majority 5. laggards

question

innovators

answer

1st subgroup buyers who want to be the first on the block to have the new product or service (ex. waits outside or overnight until store opens)

question

early adopters

answer

2nd subgroup buyers that begin to use product or service innovation, generally don't like to take as much risk but will wait to purchase until product review

question

early majority

answer

3rd subgroup of buyers, crucial because its a large group who makes new products and services profitable, waits until bugs are worked out. The time when competitors have reached their peak and theres many price and quality choices

question

late majority

answer

4th subgroup of buyers, when they buy the product it has reached its full market potential, sales may level off or be in decline at this point

question

laggards

answer

5th subgroup of buyers, 16% of buyer population, they avoid change and rely on traditional products

question

promotion and pricing strategies

answer

1. relative advantage 2. compatibility 3. observability 4. complexity 5. trialability

question

relative advantage

answer

better than most substitutes, most people can use the product

question

compatibility

answer

diffusion process can be faster or slower depending on international and cultural differences

question

observability

answer

when products are easily observed, benefits and uses can be easily communicated which enhances process

question

how firms develop products

answer

1. idea generation 2. concept testing 3. product development 4. market testing 5. product launch 6. evaluation of results

question

reverse engineering

answer

taking apart a product, analyzing it, and creating an improved product that doesn't infringe on competitors patterns

question

lead users

answer

innovative product users who modify existing products according to their own ideas to suit their specific needs

question

concept testing

answer

process where concept statement is presented to potential buyers to obtain their reaction

question

concepts

answer

ideas with potential to turn into concepts

question

product development (product design)

answer

a process of balancing various engineering, manufacturing, marketing, and economic consideration to develop a products form or features

question

prototype

answer

first physical form or service description of a new product, still in rough or tentative form, which has same properties as a new product but is produced through different manufacturing processes

question

what prototypes are tested through

answer

1. alpha testing 2. beta testing

question

alpha testing

answer

firm attempts to determine whether product will perform according to its design and whether it satisfies intentional need

question

beta testing

answer

uses potential customers who examine product prototype in a real use setting to determine functionality, performance, potential problems, and other issues specific to use

question

premarket tests

answer

performed before they actually bring a product or service to a market to determine how many customers will try and continue to use it according to a small group of potential customers

question

test marketing

answer

a method of determining the success potential of a new product by introducing to a limited geographical area

question

trade promotions

answer

to wholesalers or retailers to get them to purchase the new product

question

introductory price promotions

answer

limited duration, lower than normal prices designed to provide retailers with an incentive to try the products

question

trade show

answer

temporary concentration of manufacturers that provides retailers the opportunity to view what is available and new

question

slotting allowance

answer

a fee paid simply to get new products into stores or to gain more or better shelf space for their products

question

the product life cycle

answer

defines the stages that products move through as they enter, get established in, and ultimately leave market 1. introduction stage 2. growth stage 3. maturity stage 4. decline stage

question

introduction stage

answer

when product category first launches, starts with a single firm, initial losses, innovators are ones to try new offering

question

growth stage

answer

product gains acceptance, demand and sales increase, more competitions emerge and market gets segmented, increase in product adopters and available product, profits rise or firms exit market

question

maturity stage

answer

industry sales reach peak so firm rejuvenates products by adding new features, adoption of product by late majority, and intense market competition, costs increase, and market has become saturated

question

decline stage

answer

firms position themselves for a niche segment of diehard consumers or those with specific needs or they exit the market, laggards adopt products

question

components of a product

answer

1. core customer value 2. actual product 3. associated services

question

types of products

answer

1. specialty 2. shopping 3. convenience 4. unsought

question

specialty products/services

answer

those that customers express a strong preference that they will expend considerable effort to search for the best suppliers. (ex. luxury cars, designer apparel)

question

shopping products/services

answer

consumers will spend a large amount of time comparing alternatives (ex. furniture, apparel, fragrances, appliances, travel alternatives)

question

convenience products/services

answer

consumer isn't willing to expense any effort to evaluate prior to purchase, frequently purchased commodity items usually bought with little thought (ex. beverages, bread, soap)

question

unsought products/services

answer

consumers don't normally think of buying or don't know about, these products require a lot of marketing effort and promotion

question

product mix

answer

the complete set of all products and services offered by a firm, usually consists of various product lines

question

product lines

answer

groups of associated items that consumers tend to use together or think of as part of a group of similar products or services

question

breadth

answer

represents firms count of number of product lines offered by firm (ex. BMW has 4)

question

depth

answer

number of products within a product line

question

primary packaging

answer

the one the consumer uses that is convenient for storage, use, and consumption (ex. toothpaste tube)

question

secondary packaging

answer

the wrapper or exterior carton that contains the primary package and provides UPC label used by retail scanners and includes additional product info

question

heterogeneity

answer

variability in service's quality

question

knowledge gap

answer

reflects the difference between customers expectations and the firms perception of those customer expectations

question

standards gap

answer

the difference between the firm's perceptions of customers expectations and the service standard it sets

question

delivery gap

answer

difference between the firms service standards and the actual service it provides to customers (customer directly interacts w service provider)

question

communication gap

answer

difference between the actual service provided to customers and the service that the firm's promotion program promises

question

service recovery

answer

1. listening to the customers and involving them in the service recovery 2. providing a fair solution 3. resolving the problem quickly

question

distributive fairness

answer

pertains to a customers perception of the benefits he/she received compared with the costs

question

procedural fairness

answer

refers to the perceived fairness of the process used to resolve them

UMaine Marketing Test 3 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards