Marketing Exam 2

Front 1

Market Segmentation

Back 1

involves aggregating prospective buyers into groups (1) have common needs. (2) will respond similarly to a marketing action

Front 2

Market Segments

Back 2

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

Front 3

Segmentation Strategies

Back 3

1. One product and multiple market segments. – reduces the costs of developing new products
2. Multiple products and multiple market segments – more effective at meeting customers needs and doesn’t reduce quality
3. Segments of one, OR mass customization - understanding that customers having specific and unique wants and needs.

Front 4

Cannibalization

Back 4

new products or new chain stealing customers and sales from the older or existing ones.

Front 5

Four ways of segmentation

Back 5

geographic, demographic, psychographic, behavioral

Front 6

Usage Rate

Back 6

the quantity consumed or patronage-store visits-during a specific period. (frequency marketing)

Front 7

80/20 Rule

Back 7

a concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers.

Front 8

Market Product Grid

Back 8

is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

Front 9

Criteria for selecting target segments.

Back 9

1.Market Size
2.Expected Growth
3.Competitive Position,
4.Cost of reaching segment 5.Compatibility with organization

Front 10

Marketing Synergies

Back 10

represents an opportunity for efficiency in the segment by markeing to use an ad to promote a line of products to a type of consumer

Front 11

Product Synergies

Back 11

present an opportunity to produce its most easily marketable product.

Front 12

Perceptual Map

Back 12

a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands as well as its own product or brand. This is essential to form actions to promote 1 product over another.

Front 13

differentiation position

Back 13

seeking a less-competitive, smaller market niche in which to locate a brand.

Front 14

Head to head

Back 14

competiting directly with the competitors on similar product attributes in the same market.

Front 15

Product Repositioning

Back 15

changing the place originally chosen to get customers to think its as good as brand a

Front 16

What is a product

Back 16

Anything that can be offered to a market for attention, acquisition, use, or consumption.

Can be a physical object, service, experience, person, place, organization, idea, or a combination.

Front 17

product line

Back 17

is a group of products that are closely related

Front 18

consumer goods

Back 18

are products purchased by the ultimate consumer

Front 19

Business Goods

Back 19

are products purchased by another company and assist in providing products for resale

Front 20

Production Goods

Back 20

are items that are used in the manufacturing process that become part of the final product

Front 21

Support Goods

Back 21

are items that are used to assist in producing goods and services

Front 22

How is newness defined

Back 22

1.Comparison with existing products
2.Legal terminology
3.The innovating organization
4.Consumers

Front 23

Reasons for new product failure

Back 23

Insignificant point of difference
Incomplete market and product definition
Too little market attractiveness
Poor execution of the marketing mix
Poor product quality or little sensitivity to customer needs
Bad timing
No economical access to buyers

Front 24

The New product development market

Back 24

1.new product strategy development
2.Idea generation
3.screening and evaluation
4.business analysis
5.development
6.market testing
7.commercialization

Front 25

Goal is to define the role for a new product in terms of the firm’s overall corporate objectives

A key outcome of this stage is to define the product “protocol”

Cross-functional teams

Back 25

stage 1.New-product Strategy Development

Front 26

involves developing a pool of concepts as candidates for new products

Back 26

stage 2. idea Generation

Front 27

Goal involves conducting internal and external evaluations of new-product ideas to eliminate those that warrant no further effort

Back 27

stage 3. Idea Screening and Evaluation

Front 28

Goal involves specifying the product features and marketing strategy and making necessary financial projections needed to commercialize a product

Back 28

stage 4. Business Analysis

Front 29

Goal is to turn the idea on paper
into a “prototype”

Back 29

Stage 5. Development

Front 30

Stage #6: Market Testing

Back 30

Goal involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy

“Test marketing” involves offering a product for sale on a limited basis in a defined area

Front 31

Goal involves positioning and launching a new product in full-scale production and sales

May use “regional rollouts”

Back 31

Stage #7: Commercialization

Front 32

Four Stages of product life cycle

Back 32

1.introduction
2. growth
3.maturity
4. deadline

Front 33

Introduction Stage

Back 33

Slow sales growth & minimal profit
Goal is to create consumer awareness & stimulate consumer trial
Initial focus on stimulating primary demand
Skimming vs. penetration pricing

Front 34

Growth Stage

Back 34

Rapid increase in sales & competitors
Emphasis shifts to stimulating selective demand
Growing proportion of repeat purchasers
Improved versions & added features

Front 35

Maturity Stage

Back 35

Slowing of industry sales & revenue
Fewer new buyers
Fierce price competition

Front 36

Decline Stage

Back 36

Sales drop
Often driven by environmental factors
Product deletion vs. product harvesting

Front 37

Diffusion of Innovation

Back 37

Concept that explains how a product spreads through the population

Front 38

Product modification

Back 38

involves altering a product’s characteristic to increase the product’s value to customers and increase sales

Front 39

Market modification

Back 39

involves trying to find new customers, increasing a product’s use among existing customers, or creating new use situations

Front 40

brand

Back 40

is the name, phrase, design, symbols—or a combination of these—that identifies the maker or seller of a product or service from those of its competitors

Front 41

Brand Equity

Back 41

is the added value a brand name gives to a product beyond the functional benefits provided.

Front 42

Brand Personalities

Back 42

is a set of human characteristics associated with a brand name.

Front 43

Brand Liscening

Back 43

is a contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee

Front 44

Multiproduct branding

Back 44

involves a company using one name for all its products in a product class

Front 45

Multi Branding

Back 45

involves giving each product a distinct name

Front 46

Co-Branding

Back 46

involves two or more firms linking their brands together in creation of a single product

Front 47

Private Branding (Labeling)

Back 47

involves a company manufacturing products but selling them under the brand name of a wholesaler or retailer

Front 48

Fighting Brands

Back 48

are introduced to directly confront competitor brands

Front 49

Packaging

Back 49

refers to any container in which a product is offered for sale

Front 50

Packing and Labeling Can be used to create customer value & competitive advantage by:

Back 50

Communicating benefits


Providing functional benefits


Providing perceptual benefits

Front 51

Packing and labeling contemporary challanges

Back 51

Contemporary challenges:

Front 52

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

Back 52

Service Quality

Front 53

depicts the range of companies from being good-dominant (offer tangible goods) to service-dominant (offer intangible goods)

Back 53

The Service Contiunuum

Front 54

8 P's Of Service Marketing

Back 54

1. Product (Service)
2. Price
3. Place
4. Promotion
5. People
6. Physical Environment
7. Process
8. Productivity

Front 55

Retailers are classified by

Back 55

Form of ownership
Level of service
Merchandise lines

Front 56

refers to the size of the assortment of each item, such as a shoe store that offers running shoes, dress shoes, and children’s shoes

Back 56

Depth of product line

Front 57

refers to the variety of different items a store carries, such as ranging from appliances to clothes to CDs

Back 57

breadth of product line

Front 58

consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Back 58

Marketing Channel

Front 59

is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Back 59

Dual distribution

Front 60

means that a firm tries to place its products and services in as many outlets as possible.

Back 60

Intensive distribution

Front 61

means that only one retail outlet in a specified geographical area carries the firm’s products.

Back 61

exclusive distribution

Front 62

include distribution, advertising, and selling expenses associated with different types of marketing channels

Back 62

chanell cost

Front 63

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals

Back 63

channel conflict

Front 64

occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones

Back 64

disintermediation