Mkt 291 Final

Front 1

What are the four consumer-related segmentation variables?

Back 1

demographics
geographics
psychographics
geodemographics

Front 2

VALS

Back 2

Values and Life Cycles

provided by Strategic Business insights; assesses motivation, willingness to accept change, psychographics, etc.

Front 3

PRIZM

Back 3

developed by Nielsen' search by zipcode for geodemographic lifestyle data

Front 4

80/20 rule

Back 4

80% of profit is generated by 20% of our customers

Front 5

What level of users are not as price sensitive?

Back 5

Light users

Front 6

The three user statuses

Back 6

1. our (our customers)
2. their (purchase the product, but not our brand)
3. non-users (don't purchase the brand)

Front 7

Who usually targets the non-users?

Back 7

Only the company with the top market share typically

Front 8

What are the five types of products?

Back 8

1. tangible
2. services
3. organizations (colleges, hospitals)
4. people (celebrities, models)
5. ideas

Front 9

What are the two types of tangible products?

Back 9

consumer & industrial/business

Front 10

What are the three types of consumer products?

Back 10

1. convenience (low involvement, routine, etc.)
2. shopping (higher involvement such as cars and computers)
3. specialty (high OR low involvement --> the purchase is necessitated by loyalty to the brand)

Front 11

Product Mix Depth

Back 11

having a lot of different products within a product line

Front 12

Product Mix Width

Back 12

having a lot of different product lines

Front 13

Product Mix Consistency

Back 13

having something that ties all of the products together (price range, target market, channels of distribution, genre, etc.)

Front 14

How many new products last more than 2 years?

Back 14

less than 10%

Front 15

How long is the average product life cycle?

Back 15

2-3 years

Front 16

Shake out 1

Back 16

when demand begins to level off and weaker companies can't maintain themselves so they drop out or they are bought out

Front 17

shake out 2

Back 17

demand begins to decline and a number of companies will likely sell their dying brand

Front 18

What are the four stages of the product life cycle?

Back 18

1. Introduction
2. Growth
3. Maturity
4. Decline

Front 19

Primary demand advertising

Back 19

advertising a product category instead of the brand name specifically to educate the public; used in the introduction phase of the product life cycle

Front 20

Innovators

Back 20

people willing to buy a product early on in the introduction period

Front 21

When in the product life cycle does the number of competitors begin to increase?

Back 21

the growth period

Front 22

selective demand advertising

Back 22

differentiating your individual brand vs. competitors

Front 23

What key things happen in the maturity period?

Back 23

The competition is consolidated (shake out) and the only way to increase profits is to steal market share from the remaining competitors --> product differentiation occurs to prevent decline (keep consumers interested i.e. Coke Zero)

Front 24

What are the five aspects of the promotion mix?

Back 24

1. advertising
2. sales promotion (couponing, samples, rebates, etc. -- the catch-all)
3. personal selling (one-on-one presentation)
4. publicity (non-personal and NOT paid for)
5. direct marketing (banner ads, tweets, etc.)

Front 25

What are the two possible objectives of an ad?

Back 25

1. distinguish the brand
2. increase the usage rate

Front 26

What are the three aspects of distinguishing the brand in an advertising?

Back 26

1. characterization (associate brand with a type of person or a character)

2. physical characteristics (what makes your product different--i.e. low calories)

3. functional (how the product works--user friendly?)

Front 27

What are the three aspects of advertisements that increase the usage rate?

Back 27

1. reminder (little product info, heavy brand name)

2. new uses (all the new uses for baking soda)

3. new use occasions (giving new times to use product)

Front 28

What are the three different focuses an ad my have?

Back 28

1. Source
2. Claim
3. Mood

Front 29

Q-score

Back 29

rates your legitimacy as a source (i.e. Tiger Woods' Q-score plummeted after scandal)

Front 30

What are the three types of source attributes (when source is the focus of the ad)

Back 30

1. identifiable
2. powerful
3. credible

(this focus is often used in PSA's)

Front 31

One-sided claim

Back 31

giving reasons to buy your product

Front 32

Two-sided claim

Back 32

admitting to a negative, usually about price, while advertising
(i.e. "Because you're worth it")

Front 33

Two-sided claims work best for what type of consumers?

Back 33

educated, high income consumers

Front 34

What is important to consider when advertising with the focus of humor?

Back 34

the wear out effect--the ad either needs to be revamped with changes or pulled from the air off and on

Front 35

Miscomprehension

Back 35

when a consumer remembers the commercial but not the brand that the commercial advertises

Front 36

Organizational Synergy

Back 36

the increased customer value achieved through performing organizational functions such as marketing or manufacturing more effectively

Front 37

Cannibalization

Back 37

when a company's new brand is stealing revenue form it's older brand

Front 38

What are the five steps in segmenting and targeting markets

Back 38

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 markets
4) Select target markets
5) Take marketing actions to reach target markets

Front 39

What are the four general bases of segmentation (book)

Back 39

1. geographic
2. demographic
3. psychographic
4. behavioral

Front 40

Market-Product Grid

Back 40

a framework relating the segments of a market to products or marketing actions of the firm

Front 41

What are the five criteria to be used in target segment development/evaluation

Back 41

1. market size
2. expected growth
3. competitive position
4. cost of reading the segment
5. compatibility with the organization's objectives and resources

Front 42

Product Positioning

Back 42

the place a product occupies in consumer's minds on important features relative to competitive products

Front 43

Product Repositioning

Back 43

changing the place a product occupies in consumers' minds relative to competitive products

Front 44

What are the two main approaches to product positioning?

Back 44

1. head-to-head positioning
2. differentiation position

Front 45

What are the four steps to positioning a product effectively

Back 45

1. identify the imprtant attributes for product class
2. discover how target customers rate competing products with regards to these attributes
3. discover where the company's brand is on these attributes in the eyes of consumers
4. (Re)position the company's product or brand in the minds of potential consumers

(perceptual map)

Front 46

Idea

Back 46

a thought that leads to action (i.e. getting people to vote)

Front 47

Consumer products

Back 47

products purchased by the ultimate consumer

Front 48

Business products

Back 48

products organizations buy that assist in providing other products for resale

Front 49

What are the three levels on which various consumer products differ?

Back 49

1) the effort the consumer spends on the decision
2) attributes used in making the purchase decision
3) frequency of purchase

Front 50

What are the four types of consumer products?

Back 50

1. Convenience (toothpaste, cake mix)

2. Shopping (cameras, TVs, airline tickets)

3. Specialty (Rolls-Royce car, Rolex watch, heart surgery)

4. Unsought product (burial insurance, thesaurus)

Front 51

Support Products

Back 51

items used to assist in producing other goods and services

Front 52

Product item

Back 52

a specific product that has a unique brand, size, or price

Front 53

SKU

Back 53

stock keeping unit (each size has a separate SKU)

Front 54

Product Line

Back 54

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

Front 55

Product Mix

Back 55

all the product lines offered by a company

Front 56

Services can be delivered by

Back 56

1. people or equipment
2. business firms or nonprofits
3. government agencies

Front 57

What are the four unique elements that distinguish services from goods

Back 57

1) Intangibility
2) Inconsistency
3) Inseparability
4) Inventory

Front 58

Idle production capacity

Back 58

when the service provider is available but there's no demand for the service

Front 59

A product can be defined as new if...

Back 59

it is functionally different from existing products

Front 60

You can have newness in...

Back 60

1. Legal terms
2. The organization's perspective
3. The consumer's perspective

Front 61

Continuous innovation

Back 61

when consumers don't have to learn new behaviors (i.e. toothpaste innovation)

Front 62

Dynamically continuous innovation

Back 62

requires only minor behavioral changes (i.e. Heinze EZ squirt ketchup)

Front 63

Discontinuous innovation

Back 63

making the consumer learn entirely new consumption patterns to use the product

Front 64

Protocol

Back 64

a statement that, before product development begins, identifies a well defined target market, specific customers' needs, wants and preferences, and what the product will be and do

Front 65

New-Product Process

Back 65

the seven stages an organization goes through to identify business opportunities and convert them into salable products or services

Front 66

What are the seven stages in the new-product process?

Back 66

1. New-Product Strategy Development
2. Idea Generation
3. Screening and Evaluation
4. Business Analysis
5. Development
6. Market Testing
7. Commercialization

Front 67

CEM

Back 67

Customer Experience Management - the process of managing the entire customer experience within the company

Front 68

Off-peak pricing

Back 68

changing prices during the day or week to reflect demand fluctuations and maximize profits

Front 69

Test marketing

Back 69

offering product in limited areas (may also be simulated to reduce costs and risks)

Front 70

Slotting fee

Back 70

a payment a manufacturer makes to place a new item on a retailer's shelf

Front 71

Failure fee

Back 71

a penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell

Front 72

TtM

Back 72

time to market - the speed with which a new product enters the market

Front 73

Skimming

Back 73

initially pricing a product high to help recover costs and capitalize on the price insensitivity of early buyers

Front 74

Penetration Pricing

Back 74

initially pricing low to help build unit volume and discourage competitive entry

Front 75

What is the negative aspect of skimming?

Back 75

it encourages competitive entry (because the market appears so profitable)

Front 76

What stage of the product life cycle yields rapid increases in sales?

Back 76

Growth stage

Front 77

At what stage of the product life cycle is maximizing distribution critical?

Back 77

Growth stage

Front 78

At what stage in the product life cycle do changes often appear in the product to help differentiate it in the market?

Back 78

Growth stage

Front 79

At what stage in the product life cycle is there a slowing of total industry sales or product class revenue?

Back 79

Maturity stage

Front 80

At what stage in the product life cycle do sales increase at a decreasing rate?

Back 80

Maturity stage

Front 81

What are the two strategies that may be pursued in the decline stage?

Back 81

Deletion & Harvesting

Front 82

Deletion

Back 82

one of two strategies that may be pursued in the decline stage--dropping the company's product line (the most drastic strategy)

Front 83

Harvesting

Back 83

one of two strategies that may be pursued in the decline stage--retaining the product but decreasing marketing expenditures

Front 84

What are the three important aspects of product life cycle

Back 84

1) Length
2) Shape
3) The Life Cycle & Consumers

Front 85

What are the four shapes of the product life cycle that we discussed in class?

Back 85

high learning, low learning, fashion and fad

Front 86

Diffusion of innovation

Back 86

innovation appeals to different people at different points

Front 87

CDI

Back 87

Category Development Index

Front 88

BDI

Back 88

Brand Development Index

Front 89

Product Repositioning

Back 89

changes the place a product occupies in a consumer's mind relative to competitive products

Front 90

Brand personality

Back 90

a set of human characteristics associated with a brand

Front 91

Value

Back 91

the ratio of perceived benefits to price

Front 92

What are the four common approaches to finding the price level for a product

Back 92

1) demand-oriented
2) cost-oriented
3) profit-oriented
4) competition-oriented

Front 93

Prestige Pricing

Back 93

setting a high price so that quality or status conscious consumers will be attracted to the product and buy it

Front 94

Odd-even pricing

Back 94

$49.99 instead of $50

Front 95

Yield Management Pricing

Back 95

seasonal pricing for increased revenue

Front 96

Price Elasticity of Demand

Back 96

the percent change in the quantity demanded relative to a percentage change in price

(the more elastic demand, the more volatile percent change in demand is relative to price changes)

Front 97

Pricing objectives

Back 97

expectations that specify the role of price in an organization's marketing and strategic plans

Front 98

Steps to setting a final price

Back 98

1. Select an approximate price level
2. Set the list or quoted prices
3. make special adjustments to the list or quoted price

Front 99

Marketing channel

Back 99

individuals and firms involved in the process of making a product or service available for use or consumption

Front 100

What are the different types of utility

Back 100

1. Time utility (having goods when you want it)
2. Place utility (having the good where you want it)
3. Form utility (enhancing a good to make it more appealing)

Front 101

Multichannel marketing

Back 101

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, building relationships with consumers

Front 102

Dual Distribution

Back 102

an arragement whereby a firm reaches different buyers by using two or more different types of channels for the same basic product

Front 103

Vertical Marketing Systems

Back 103

professionally managed and centrally coordinated marketing channels designed to achieved channel economies and maximum marketing impact

Front 104

Intensive Distribution

Back 104

when a firm tries to place its products or services in as many outlets as possible

Front 105

Exclusive distribution

Back 105

when only one retail outlet in a specific geographical area carries the firm's products

Front 106

selective distribution

Back 106

when a firm selects a few retail outlets in a specific geographical area to carry its products

Front 107

What are the four primary interests a buyer might want fulfilled when the purchase a firm's products or services?

Back 107

1. information
2. convenience
3. variety
4. pre- or post-sale services

Front 108

Channel conflict

Back 108

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

Front 109

Disintermediation

Back 109

a channel conflict that arises when a channel member bypasses another member and sells or buys products directly

Front 110

Logistics

Back 110

those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

Front 111

Supply Chain

Back 111

the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users

Front 112

What are the three steps in integrating marketing and supply chain management

Back 112

1. understand the customer
2. understand the supply chain
3. harmonize the supply chain with the marketing strategy

Front 113

Total logistics cost

Back 113

expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling

Front 114

What are the four key customer service factors?

Back 114

1. time (order cycle or replenishment time)
2. dependability (consistency of replenishment)
3. communication
4. convenience (buyer should have to engage in minimum effort in supply chain)

Front 115

Vendor-managed inventory

Back 115

an inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items

Front 116

Retailing

Back 116

all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use

Front 117

Limited Service

Back 117

limited-service outlets provide some services, such as credit and merchandise return, but not others, such as clothing alterations. Examples include Walmart and Target

Front 118

Scrambled Merchandising

Back 118

offering several unrelated product lines in a single retail store

Front 119

retailing mix

Back 119

the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise

Front 120

Category management

Back 120

an approach to managing the assortment of merchandise that maximizes sales and profits

Front 121

Wheel of Retailing

Back 121

a concept that describes how new forms of retail outlets enter the market

Front 122

Retail life cycle

Back 122

the process of growth and decline that retail outlets experience over time

1. early growth
2. accelerated development
3. maturity
4. decline

Front 123

Manufacturer's agents

Back 123

agents who work for several producers and carry noncompetitive complementary merchandise in an exclusive territory

they act as a producer's sales arm in a region

Front 124

Brokers

Back 124

independent firms or individuals whose main function is to bring buyers and sellers together to make sales

unlike agents, brokers usually have no continuous relationship with the buyer or seller

Front 125

Promotional Mix

Back 125

the combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers

Front 126

integrated marketing communications

Back 126

the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences

Front 127

What are the six elements of communication?

Back 127

1. source
2. message
3. channel of communication
4. receiver
5. encoding
6. decoding

Front 128

Advertising

Back 128

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor

Front 129

Personal selling

Back 129

the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision

Front 130

Publicity

Back 130

a nonpersonal, indirectly paid presentation of an organization, product, or service

Front 131

Sales Promotion

Back 131

a short-term offer designed to arouse interest in buying a product or service

Front 132

Direct Marketing

Back 132

Promotional element that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet

Front 133

Push Strategy

Back 133

directing the promotional mix to channel members to encourage them to order and stock a product

Front 134

Pull Strategy

Back 134

directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product

Front 135

Hierarchy of Effects

Back 135

the sequence of stages a prospective buyer goes through:
1. awareness
2. interest
3. evaluation
4. trial
5. adoption

Front 136

Awareness

Back 136

the first stage of the hierarchy of effects

the consumer's ability to recognize and remember the product or brand name

Front 137

Interest

Back 137

the second stage of the hierarcy of effects

an increase in the consumer's desire to learn about some of the features of the product or brand

Front 138

Evaluation

Back 138

the third stage of the hierarchy of effects

the consumer's appraisal of the product or brand on important attributes

Front 139

Trial

Back 139

the fourth stage of the hierarchy of effects

the consumer's actual first purchase and use of the product or brand

Front 140

Adoption

Back 140

the fifth and final stage of the hierarchy of effects

through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand

Front 141

What are the three important qualities promotion objectives should possess?

Back 141

1. be designed for a well-defined target audience
2. be measurable
3. cover a specified time period

Front 142

What are the five basic IMC tools?

Back 142

1. advertising
2. personal selling
3. sales promotion
4. public relations
5. direct marketing

Front 143

The increasing interest in customer relationship management is reflected in the dramatic growth of...(IMC)

Back 143

direct marketing

Front 144

Direct orders

Back 144

the result of direct marketing offers that contain all the information necessary for a potential buyer to make a decision to purchase and complete the transaction

Front 145

Lead Generation

Back 145

the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information

Front 146

Traffic generation

Back 146

the outcome of a direct marketing offer designed to motivate people to visit a business

Front 147

Psychographics are influenced by...

Back 147

Activities
Interests
Opinions

Front 148

Rack Jobbers

Back 148

those who furnish shelves for merchandise in stores, perform all channel functions and sell to retailers

Front 149

Cash and Carry

Back 149

only sell to those with cash (no credit, no delivery)

Front 150

Drop-shipper/desk jobber

Back 150

own merchandise but they don't deliver it (they order it for you)

Front 151

truck jobbers

Back 151

get goods from a warehouse and deliver items via truck to retailers (perishable items)