Marketing: Exam 2
Augumented Products
- Delivery and Credit - Installation - Warranty - After Sale-Service
Speciality Products
Are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort.
Unsought Product
Are consumer products that a consumer either does not know about or knows about but does not normally consider buying.
Shopping Products
Are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
Consumer Products
Are products and services bought by final consumers for personal consumption.
What is positioning?
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience.
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
Benefits Sought
Graphic Segmentation
Calls for dividing the market into different geographical units, such as nations, regions, states, counties, cities, or even neighborhoods.
Occasion Segmentation
Can help firms build up product usage.
A colleague wants to evaluate that attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
Carefully consider the degree of competition and ease fo entry into the segment.
Positioning
Consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Convenience Products
Consumer products and services that consumers usually buy frequently, immediately, and with minimal comparison and buying effort.
Charles Revson, who started Revion, once said "We sell hope." Revson was defining the _____________ of Revion cosmetics.
Core Customer Value
Fashion
Currently accepted or popular style in a given field. - formal business attire
Two external factors which must be considered in pricing decisions are
Demand and the nature of the market.
Marketing Strategy Development
Designing an initial marketing strategy for introducing this car to the market.
Product Concept
Detailed version of an idea stated in meaningful customer terms
Segmentation
Divide the total markets into smaller segments
Psychographic segmentation
Divides buyers into different segments based on lifestyle or personality characteristics.
Behavioral Segmentation
Divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
Demographic Segmentation
Divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Services
Form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Gender Segmentation
Has long been used in marketing clothing, cosmetics, toiletries, toys, and magazines.
Materials and parts, capital items, and supplies and services are groups of ______________ products.
Industrial
What are the four special service characteristics marketers must consider when designing marketing programs?
Intangibility, Inseparability, Variability, and perishability.
Predatory Pricing
Intention to put competitor out of Business
Product Idea
Is an idea for a possible product that the company can see itself offering to the market
Idea Generation
Is the Systematic search for new products.
Market Segmentation
Is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and Consistency
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
Lifestyle
Market-Skimming pricing
Many companies that invent new products set high initial prices to skim revenues layer by layer from the market.
Market Offering
Marketing mix planning begins with building an offering that brings value to target customers.
Most products today are in which stage of their product life cycle?
Maturity
Which Value Proposition is the most difficult to sustain in the long run?
More for less
Price is the only part of the marketing mix that
Produces Revenue
At which stage of the new product development process is a physical product first developed?
Product Development
According to the text, what are the three levels on which brands can be positioned.
Product attributes, desirable benefits, and beliefs and values
Benefit Segmentation
Requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?
Resellers, the government, and social concerns
Decline Stage
Sales may plunge to zero, or they may drop to a low level where they continue for many years.
Targeting
Select the segment or segments to enter
Product Bundle Pricing
Sellers often combine several products and offer the bundle at a reduced price.
Product Development
Shows whether the product idea can be turned into a workable product.
Which of the following statements regarding standard test marketing is correct?
Test marketing can be costly and delay commercialized of the product.
By-Product Pricing
The company seeks a market for these by-products to help offset the costs of disposing of them and help make the price of the main product more competitive.
Core Benefits
The fundamental product benefits that the customer is buying
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
Pure Competition
The market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.
Income Segmentation
The marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel have long used this.
Test Marketing
The stage of product and marketing programs that introduce more realistic marketing settings
Which of the following statements is correct regarding different types of markets?
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
What must companies do to create successful new products?
Understand its consumers, markets, and competitors and develop products that deliver superior value.
Variable Costs
Vary directly with the level of production
When NOT to test the market
When you are trying out new colors or new brand.
When to best test market
When you do not know how product the product is
location-based pricing
a company charges different prices for different locations, even though the cost of offering each location is the same
Price Elasticity
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
Maturity Stage
a period during which sales increase at a decreasing rate. Lasts longer than the previous stages, and it poses strong challenges to marketing management.
Dynamic Pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations.
Fads
are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity - may be part of an otherwise normal life cycle, as in the case of recent surges in the sales of poker chips and accessories
Fixed Costs
are the costs that do not vary with production or sales level.
Total costs
are the sum of the fixed and variable costs for any given level of production.
Industrial Products
are those products purchased for further processing or for use in conducting a business.
Product
as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Actual Product
brand name, quality level, packaging, design, features
Captive-Product Pricing
companies that make products that must be used along with a main product
Social Marketing
consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being
Product from pricing
different versions of the product are priced differently but not according to differences in their costs
Growth Stage
in which the sales will start climbing quickly.
Product Life Cycle
introduction, growth, maturity, decline
Business Analysis
involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.
Differentiation
involves actually differentiating the firm's market offering to create superior customer value.
Competition-Based Pricing
involves setting prices based on competitors' strategies, costs, prices, and market offerings.
Cost-Based pricing
involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk
Product Concept
is a detailed version of the idea stated in meaningful consumer terms.
Product Quality
is one of the marketer's major positioning tools. Quality affects product or service performance; thus, it is closely linked to customer value and satisfaction.
Price
is the amount of money charged for a product or a service.
Brand Equity
is the differential effect that knowing the brand name has on customer response to the product or its marketing.
Brand Value
is the total financial value of a brand.
Product Line Pricing
management must determine the price steps to set between the various products in a line.
Age and Life-Cycle Segmentation
offering different products or using different marketing approaches for different age and life-cycle groups.
A product can also be
organization, person, place, social Marketing
Reasons for Product Failure
overestimated market size, poor design, incorrect positioning, overpriced, poorly advertised, high development costs, resistance from competition
Market-Penetration Pricing
setting a low price for a new product in order to attract a large number of buyers and a large market share
Retail Price Maintenance
tells channel partner what they have to sell their product for.
Segmented Pricing
the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.
Monopolistic competition
the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A range of prices occurs because sellers can differentiate their offers to buyers.
Oligopolistic competition
the market consists of only a few large sellers.
Pure Monopoly
the market is dominated by one seller. The seller may be a government monopoly, a private regulated monopoly, or a private unregulated monopoly. Pricing is handled differently in each case.
Service Profit Chain
which links service firm profits with employee and customer satisfaction