Marketing EXAM 2 (SUMMER)

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Techniques For Grabbing Consumers' Attention

-Doubling the size of an ad -Using certain colors or graphics -Developing unique packaging -Custom advertising

The three major types of vertical marketing systems are corporate, contractual, and

administered

In the hierarchy of effects, the final stage is known as

adoption

Posttests

after it has been shown to the target audience to determine whether it accomplished its intended purpose.

Multichannel Marketing

also called omnichannel marketing, is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

Logan turned around and left the boutique after she saw the price of a simple lightweight cotton blouse was $80. Though it was the first item she looked at, she doubted she could afford anything in the store. A product used in this way is known as a(n)__________ item.

benchmark

In the new-product development process, the __________ stage assesses the total "fit" of the proposed new product with the company's mission and objectives—from whether the product or service can be economically produced to the marketing strategy needed to have it succeed in the marketplace.

business analysis

Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. She considers herself an expert; she knows all about the various manufacturers, the types of products they sell, and even how consumers use these items. She is responsible for what to order, how much to order, and how to price these products in the store. Arianna is engaged in __________ for the store.

category management

Consumers often view ________ shopping as less convenient because of lack of parking, higher crime rates, and exposure to the weather.

central business district

Repositioning

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

growth stage

characterized by rapid increases in sales.

Tylenol products have extensive instructions for users to prevent accidental overdose and associated liver function complications. This is an example of which type of benefit that packaging can provide?

communication benefits

After reading the daily newspaper, the restaurant owner of Zefferelli's Tower of Pizza said, "I see that the owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll have to match his efforts by running our own ad the day after tomorrow." Based on this statement, what promotional budgeting technique is the Zefferelli's restaurant owner most likely using?

competitive parity budgeting

Pretests

conducted before the advertisements are placed in any medium

N.W. Ayer

conducted the first organized marketing research project in 1879

Off-peak Pricing

consists of charging different prices during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service.

Conscious Mind

consists of everything inside of our awareness. It is the aspect of mental processing that we can think and talk about in a rational way.

Unconscious Mind

consists of feelings, thoughts, urges, and memories outside of our conscious awareness. It continues to influence our behavior and experience, even though we are unaware of these underlying influences.

Marketing channel

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.

Sales Quota

contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.

When it was introduced, Jergens Ultra Healing Extra Dry Skin Moisturizer was an example of a

continuous innovation

The Coalition of Independent Music Stores, a group of sixty prominent independent record stores across the United States, is a way for these stores to strengthen themselves with tactics such as cooperative advertising. This form of ownership is known as a(n)

contractual system.

According to experts studying services, the ________ should be intentional, planned, and consistent so that every performance is similar, differentiated from other services, relevant, and valuable to the target market.

customer experience

One of the biggest problems an online retailer faces is

customers' tendencies to get to the checkout and leave the website without concluding the purchase.

Frequently, a product enters the __________ stage of its product life cycle not because of any wrong strategy on the part of companies, but because of environmental changes.

decline

As consumer demand for new homes increases, appliance manufacturers and building material suppliers may experience an increase in demand for their products, which is an example of

derived demand

Fitness trackers are in the growth stage of the product life cycle. A manufacturer selling one of these devices would most likely use advertising to

differentiate one brand of device from another.

Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for __________ in the global market

direct marketing

In a strategy known as ________, GE sells its large appliances directly to home and apartment builders, but uses retail stores, including Lowe's home centers, to sell to consumers.

dual distribution

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Which of the following is the most likely source of that influence?

economic power

Cooperative Advertising.

encourage both better quality and greater quantity in the local advertising efforts

The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies?

finding new users

Logistics

focus on getting the right amount of products to the right place at the right time at the lowest possible cost.

At the Rio Olympics in 2016, members of the U.S. Women's National Team were among the first to use Nike's new lighter soccer cleats that allow for more control of the ball. The cleats also help wick away mud and grass. Shortly after the games, retailers were able to sell the same cleats, allowing them to offer which utility?

form

Public Relations

form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stock-holders, suppliers, employees, and other public's about a company

Consumer products are classified based on the attributes used in making the purchase decision, the effort spent by the consumer, and the

frequency of purchase

Apple's iPad is considered a ________ because it can be touched and its features can be seen and heard.

good

During which stage of the product life cycle does a company need to focus on the differentiation of its brand from competitors, leading to an improved version or new features being added to the original design?

growth

Which of the following is among the six criteria most often mentioned as important in selecting a good brand name?

have no legal or regulatory restrictions

Retailing Mix

includes activities related to managing the store and the merchandise in the store. the retailing mix is similar to the marketing mix.

Retailing

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

Services are

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value

Skimming or penetration pricing are appropriate pricing strategies during the __________ stage of a product's life cycle.

introduction

Interactive Marketing

involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind of amount of information received from the seller.

Product Line

is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

Advertising

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

Personalization

is the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.

Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking them to request additional information on the telephone or through a website. In terms of direct marketing, this is known as

lead generation

Adding a wholesaler to the marketing channel for consumer products is most common for

low-cost, low-unit value items.

A marketing channel

makes possible the flow of products and services from a producer, through intermediaries, to a buyer.

At which stage in the product life cycle would a company's promotional objective most likely be to remind buyers of the product's existence?

maturity

Presweetened breakfast cereals would most likely be in the __________ stage of the product life cycle.

maturity

Georgina is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to pair with her company's line of food condiments, so she worked with students at a local culinary school to generate recipe ideas. This is an example of

open innovation

Dynamic pricing

practice of changing prices for products and services in real time in response to supply and demand conditions.

Trends among category killers such as office supplies (Staples) and electronics (Best Buy) include moving to smaller stores and ________ to compete with online retailers.

price matching

Retail Pricing

prices for merchandise, retailers must decide on the markup, markdown, and timing for markdowns.

Communication

process of conveying a message to others, and it requires six elements; a source a message, a channel of communication, a receiver, and the processes of encoding and decoding.

Retail Life Cycle

process of growth and decline that retail outlets, like products, experience.

Decoding

process of having the receiver take a set of symbols, the message, and transform the symbols into an idea.

Reverse Logistics

process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.

Over Taker

processes routine orders for products that were already sold by the company.

Direct Channel

producer and ultimate consumers deal directly with each other. many products and services are distributed this way.

introduction stage

product is introduced to its intended target market. during that period, sales grow slowly, and profit is minimal.

Axe Anarchy Bodywash, a men's personal care product, is an example of a

product item

There are two general types of franchises: business-format and __________ franchises.

product-distribution

When choosing a marketing channel and intermediaries, marketing executives typically consider, among other things, which will

provide the best coverage of the target market.

Which element of the promotional mix has the inherent weaknesses related to the difficulty in getting media cooperation?

public relations

When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ strategy.

pull

De-marketing

reducing consumer demand for a good or service to a level that the firm can supply

Process

refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered.

The retailing mix includes store location, merchandise, and which two other elements?

retail communication and retail pricing

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

retailing

Hewlett-Packard's recycling service for computers and printers is available today in more than 73 countries, regions, and territories. Hewlett-Packard has recycled over 2 billion pounds of used electronic products and supplies to be refurbished for resale or donation or for recovery of materials. Hewlett-Packard is practicing

reverse logistics

The McDonald's Monopoly game is an example of which type of promotion?

sales promotion

Consumer-oriented Sales Promotions

sales tools to support a company's advertising and personal selling.

Customer Service

satisfy users in term of time, dependability, communication, and convenience.

Ideally, before a new product is developed, a firm should have a precise protocol, which includes which of the following?

specific customers' needs, wants, and preferences

Which of the following occurs during the planning stage of the promotion decision process?

specify the objectives

In a _____________ test market, a company chooses test-market cities that are demographically representative of markets targeted for the new product, and sells the product to distributors, wholesalers, and retailers, just as it would do for other products.

standard

Products that the consumer does not know about or knows about but does not initially want are referred to as

unsought products

GUM Soft Picks were introduced as an alternative to flossing to reach and remove food and plaque between teeth. Because the product requires a difference technique, this company would most likely face a(n) __________ barrier with new users.

usage

Trade-Oriented Sales Promotions

used to support a company's advertising and personal selling directed to wholesalers,distributors, or retailers.

Product Placement

uses a brand-name product in a movie, TV show, video game, or commercial for another product.

Behavioral Targeting

uses information provided by cookies for directing online advertising.

When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men's "personal-care powerhouse." The ads that P&G developed shed the older-man image, and the message is now targeted at the 18- to 34-year-old age group. In terms of the communication process, the __________ would decode the message.

younger-men market segment

BCG Matrix

-A market share/market growth matrix that plots market share against market growth potential

Consumer Decision Process

-Awareness of a gap between the existing situation and a desired situation -Gathering information about the attainment of a desired state of affairs -Consumer evaluates the evoked set of options -The consumer narrows the alternatives down to one -Post-purchase evaluation - Buyer feels either: satisfied or dissatisfied

Strategic Business Unit (SBU)

-Can be a single product or brand -Has its own managers, resources, objectives, and competitors -Pursues its own distinct mission and develops its own plans independently - They help focus the attention of company managers

Factors Affecting Consumer Behavior

-Cultural -Social -Personal -Psychological -Buyer

Interpersonal Determinants of Consumer Behavior

-Culture -Subculture -Different types of reference groups -General social influence -The Asch phenomenon -Social pressure -Opinion leaders

Pricing Strategy (Marketing Mix)

-Deals with methods of setting profitable and justifiable prices -Subject to regulation and public scrutiny -Decisions made for other marketing mix variables may effect pricing decisions

Types of Competition

-Direct: among marketers and similar products -Indirect: businesses that don't necessarily sell the same products but offer different alternatives to satisfying the same customer need -This among all firms that are fighting for the same type of consumer. All firms compete for a limited number of dollars that consumers can or will spend

Reference Group (Membership Social Groups)

-Everyone belongs to multiple social groups -Direct impact of these groups: Every group establishes certain norms of behavior the group deems appropriate for its members. -Indirect impact of these groups: Members desire to strengthen their position in the group.Advices provided by the group is perceived as being truthful

Reference Group (Aspirational Social Groups)

-High profile groups/persons: we don't personally know these people, but we admire them. -Individuals who aspire to membership in a group may adopt its standards of behavior and values

Personal Determinants of Consumer Behavior

-Information Processing -Conscious Mind -Unconscious Mind -Affect as Information -Motivation -Maslow's Hierarchy of Needs -Perception -Perceptual screens Techniques for grabbing consumers' attention

Structure of the Market

-Monopoly: market structure in which a single seller dominates the market of a good or service for which buyers can find no close substitute -Antitrust Laws: designed to prevent restraints on trade, such as business monopolies -Oligopoly: Few number of sellers in an industry with high start-up costs which keep out new competitors

Types of Primary Research

-Observation ex: traffic counts, tv ratings -Surveys ex: focus group interviews, telephone and online surveys -Controlled Experiments ex: test market

General Social Influence

-Online reviews -Impact of the crowdedness of the environment/store on consumers' thoughts and behaviors: As the environment becomes more crowded, people automatically become more safety-oriented, and indeed more sensitive to risks in general. -Consumers often modify their responses, consciously or subconsciously, when surrounded by others with conflicting opinions.

4 Step Pyramid of Social Responsibility (Top to Bottom)

-Philanthropic: be a good corporate citizen (Contribute resources to the community. Improve the quality of life) -Ethical: be ethical (Obligation to do what is right, just, and fair. Avoid harm) -Legal: obey the law (play by the rules) -Economic: be profitable (the foundation on which all others rest)

Different Types of Data

-Primary -Secondary

Marketing Mix

-Product -Distribution -Price -Promotion

Perceptual Screens

-The mental filtering processes through which all inputs must pass -Consumers respond selectively to messages that break through this

Social/Cultural Environment

-The relationship between the marketer, society, and culture -Marketers must be sensitive to demographic shifts and changing values, because they represent opportunities and threats.

Seniors

65 or older High discretionary income Spend money conservatively but indulge in luxury Not likely to be the first to try new products

80/20 principle (Praedo's law) (Segmentation by usage rates)

80 percent of a product's revenues come from 20 percent of its customers.

Percentage of Internet B2B sales

91% -- cuts operating costs by processing through e-commerce

How is customer service related to logistics management?

A firm must drive down logistics costs as long as it can still satisfy customer requirements.

Research Design

A master plan or model for conducting research selection of respondents importatn

Research Design

A master plan or model for data collection Important considerations -Does the research measure what it intends to measure? -Primary vs. secondary data -Selection of respondents

Which of the following is not a factor that would be considered noise in the communication process?

A message has been repeated very frequently on radio and television.

Interpretive Method

A researcher observes a customer or group of customers in their natural setting. Interprets their behavior based on an understanding of the social and cultural characteristics of that setting

Straight Rebuy

A routine purchase that may have been made many times before and are red zone decisions

Market Decline

A stage in the PLC when sales are decreasing throughout and new products replace the old (Harvesting/Deletion)

Market Growth

A stage of new competition when the PLC industry sales grow faster but industry profits rise and then start falling (Market Development)

Market Maturity

A stage of the PLC when industry sales rise at a slower rate of increase and competition gets tougher (Product Development)

Introduction

A stage of the PLC when sales are low as when a new idea is first introduced to the market (Market Penetration)

Hypothesis

A statement about the relationship of the variables as to why you're doing research

Which of the following statements regarding Internet marketing channels is most accurate?

A unique feature of these channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers.

Esteem Needs

A universal desire for a sense of accomplishment and achievement

Brand extensions

Attaching a popular brand name to a new product in an unrelated product category.

Extending the Product Lifecycle: Increasing the number of users.

Attracting new customers who have not previously used the product.

________ do not take title to merchandise, but unlike agents, they usually have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task.

Brokers

Product

Bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs. Symbolic attributes: Logo, Shape of product.

B2B Marketing

Business to Business

Label

Carries an item's brand name or symbol, the name and address of the manufacturer or distributor, information about the product's composition and size, and recommended uses.

Caterpillar vs John Deer

Caterpillar makes construction equipment and only sells equipment to businesses (B2B) John Deer sells to consumers and businesses

Brand Licensing

Ch 13 slide 22. Ex disney folders

Marketing Research

Collecting and using information for marketing decision making

Promotion Strategy (Marketing Mix)

Communication link between sellers and buyers. Firms may communicate messages: -directly through salespeople -indirectly through advertisements and promotions

Market Development

Concentrates on finding new markets for existing products.

Political/Legal Environment

Consists of laws that require firms to operate under competitive conditions and to protect consumer rights Ex: Federal Trade Commission (FTC) which has the broadest regulatory powers over marketing

Brand recognition

Consumer awareness and identification of a brand.

Brand preference

Consumer choice of a product on the basis of a previous experience.

Limited Problem-Solving

Consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand

Routinized Response Behavior

Consumer makes many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands

Recovery (Business Cycle)

Consumer purchasing power increases -offering superior service at lower prices, holding down costs because demand is uncertain

Brand insistence

Consumer refusal of alternatives and extensive search for desired merchandise.

Prosperity (Business Cycle)

Consumer spending power is high; buyers are willing to spend more for premium versions of well-known brands. -Offering new products, increasing promotional efforts, and expanding distribution.

Depression (Business Cycle)

Consumer spending sinks to its lowest level

Consumer Behavior (Economist)

Consumers are "rational," that is they rationally weigh the costs and benefits of every possible item and choose the item that maximizes their satisfaction (utility) -Ex:A U of A student is trying to decide what courses he should take, in order to get the highest possible grade point average.

Insistence

Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand

Insistence Goods

Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand

Marketing Research

Data mining to understand your target market, is the root of all product development to meet trends in the industry

Product Strategy (Marketing Mix)

Deciding what goods or services the firm should offer to a group of customers: -customer service -package design -brand names, trademarks, patents, and warranties -lifecycle of a product -product positioning -new-product development

Joint Demand

Demand for a product that depends on the demand for another product used in combination with it ex. if housing construction slows the drop in the supply of lumber will affect the demand for concrete The demand for one resource affects the demand for another

Inelastic Demand

Demand throughout an industry will not change significantly due to a price change ex. if the price of lumber drops construction companies will not buy more unless the overall demand for housing also increases

Volatile Demand

Derived demand creates volatility in business market demand ex. demand for gas pumps may decrease if demand for gas slows down

Product Life Cycle

Describes the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline.

Actualization Needs

Desire to realize potential and find fulfillment. Expressing your unique talents and capabilities

Market Segmentation

Dividing a larger target market into subsets of consumers. These subsets have common needs the goal is to design a marketing strategy to fill their needs

Data Mining

Efficient way to sort through huge amounts of data and make sense of it. Focuses on identifying relationships that are not obvious to marketers

Physiological Needs

Essential requirements for survival ex. food water shelter clothing

Screening

Evaluating and eliminating new product ideas for their potential marketability against some set of standards

Safety Needs

Financial or lifestyle security, protection from physical harm, and avoidance of the unexpected

Safety Needs

Financial or lifestyle security. protection from physical harm, avoidance of the unexpected ex. insurance

Limited Service Research Supplier

Firm that specializes in a number of activities such as conducting field interviews or performing data processing but not sophisticated moduling

Intensive Distrubtion

Firm tries to place its products and services in as many outlets as possible.

Backshoring

Firms return much of their offshore work to the U.S. to save money and improve customer service efficiency.

Product diversification

Focuses on developing entirely new product for new markets.

Target Market

Group of people a company believes would be the most active purchaser of its goods and services or most attractive

Market

Group of people with sufficient purchasing power, authority, and willingness to buy.

Cognitive Dissonance

Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase

Installations

Important capital items such as buildings, land rights, and major equipment

Extending PLC

Increase frequency of use Increase number of uses Find new users Improve existing products

Market penetration

Increase sales of existing products in existing markets.

Form of Ownership

Independent Retailer - Corporate chain - Contractual systems

Response

Individual's reaction to an set of cues and drives

The Asch Phenomenon

Individuals conform to majority rule even if that majority rule goes against their beliefs Peer pressure can change opinions even of obvious facts -- think jurors Can affect many purchase decisions

Social Pressure (Asch Phenomenon)

Individuals conform to majority rule, even if that majority rule goes against their beliefs -The Asch phenomenon can be a big factor in many purchase decisions -From major choices such as buying a car to deciding whether to buy a pair of shoes on sale

Idea Generation

Involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results

AIO Statements

Items on lifestyle surveys that describe various activities, interests, and respondents' opinions.

Accessories

Items such as chairs, desks and projectors in a classroom

Which of the following statements regarding direct marketing is most accurate?

Many customers believe direct marketing saves time, is entertaining, and offers privacy.

Marketing Stratagies

Market Penetration Market Development Product Development Diversification

Purchasing and Negotiation Process

More formal and professional than consumer purchasing process because B2B involves more complex decisions Supplier who serve B2B markets must work with multiple buyers Purchasers require a longer time frame

Why Study Consumer Behavior (Customer)

Need to make a lot of decisions on a daily basis: - In almost any shopping context they choose from a wide array of products differing on several dimensions. - Understanding consumer behavior will make us better consumers

Psychological needs

Needs concerning essential requirements for survival, such as food, water, shelter, and clothing

Extending the Product Lifecycle: Finding new users.

New applications extend a products lifecycle.

Product mix width

Number of product lines a firm offers.

Universal product code (UPC)

Numerical bar code system used to record product and price information.

Primary Data

Observed or collected directly by the company for a specific marketing research project

Second Mover Strategy

Observing the innovations of the first movers and then improving on them to gain advantage in the marketplace

Consumer Attitudes

Person's enduring favorable or unfavorable evaluations, emotions or actions toward some object or idea Components: Cognitive Affective Behavioral

Positioning

Placing a product at a certain point or location within a market in the minds of perspective buyers.

Product Positioning

Placing a product at a certain point or location within a market in the minds of prospective buyers. Distinguishes a company's offering from its competitors

Merchandisers

Plan floor space and secure needed products at the best possible prices and selection

Service Encounter

Point at which the customer and service provider interact.

Product Differentiation

Position products to appeal to distinct consumer groups/segments because of product uniqueness and benefits

Rejection

Potential customers will not buy the product brand unless its image is changed to meet their expectations

Secondary Data

Previously published information: -less expensive -less time consuming

Test marketing

Prior to mass market roll out, assessing the viability of the other marketing mix variables including promotion, distribution requirements, and pricing structure. The product is not tested

Exploratory Research

Process of discussing a marketing challenge with informed sources both within and outside the firm and examining information from secondary sources

Exploratory Research

Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources -Customers -Suppliers -Retailers -Sales force Using internal data -Sources of internal data are sales records, financial statements

Family Lifecycle

Process of family formation and dissolution.

Sampling

Process of selecting survey respondents (research participants)

Component Parts

Processes expense items that become part of a finished product and may be finished goods or materials needing further processing

Marketing Mix: 4P's

Product Place Price Production

Consumer products (B2C)

Product destined for use by ultimate consumers.

Business products (B2B)

Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.

Convenience Goods

Products a consumer needs but is not willing to spend much time shopping for. Red zone buy Staple Goods Impulse Goods Unplanned Goods Emergency Goods

Introductory stage

Products in this stage might bring new technology to a product category; Technical problems and financial losses are common.

New Unsought Goods

Products offering really new ideas that potential customers don't really know about yet

Regular Unsought Goods

Products or services that consumers may need but don't regularly think about their acquisition until a time of recognized need occurs

Unplanned Goods

Products purchased because of merchandising or opportunity and will be consumed or used at some point in the future

Consumer Products

Products purchased by the ultimate consumer.

Shopping Goods

Products that a consumer feels are worth the time and effort to compare with competing products Heterogeneous Homogeneous

Specialty Goods

Products that a consumer really wants Preference Insistence

Staple Goods

Products that are bought often, routinely and without much thought

Observation Methods

Researchers view the overt actions of subjects being studied ex. testing soft drinks, evaluating usage of kitchenware

Extended Problem-Solving

Results when brands are difficult to categorize or evaluate -Typical of high-involvement purchases

Levels of Problem Solving

Routine Limited Extensive

Idea Generation

Seeking ideas supporting new product marketing and new product ideas can come from any and many sources

Family brand

Single brand name that identifies several related products; Tylenol.

Personal Selling Process

Six stages: Prospecting - preapproach - approach - presentation - close - and follow up

Services

Specialized services that support operations of a firm, these are variables

Goods-services continuum

Spectrum along which goods and services fall according to their attributes, from pure good to pure service.

Differentiated Marketing

Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.

Goods

Tangible products that customers can see, hear, smell, taste, or touch.

Strategic Window

Temporary periods when key requirements of a market and a firm's particular competencies best fit together -requires quick action

Social/Belonging Needs

The desire to be accepted by people and groups important to you

Target Market

The group of people (or organizations) toward whom the firm directs its marketing efforts: -specific demographic groups -specific geographical regions -specific organizations

Modified Rebuy

The process where some review of the buying situation is done and especially when a new supplier is evaluated for existing needs and are yellow zone decisions

Conspicuous Consumption

The spending of money on and the acquiring of goods and services to publicly display group membership.

Consumer Behavior

The study of individuals groups or organizations and the processes they use to satisfy needs. The blending of psychology, sociology, social anthropology, marketing, and economics. Assessing the influences on the consumer from all sides The process through which buyers make purchase decisions

Quantitative Forecasting

Use of statistical forecasting techniques ex. test market, trend analysis

Qualitative Forecasting

Use of subjective techniques to forecast sales ex. executive opinion, sales force composite

Trade dress

Visual components that contribute to the overall look of a brand. Visual components may be related to color selections, sizes, package, label shapes, etc.

Product Positioning Strategy

What do customers think of different brands relative to an IDEAL brand and other competing within a product category?

Limited Problem Solving

When a consumer is willing to put some effort into deciding the best way to satisfy a need. Yellow zone

New-Task Buying

When and organization has a new need and the buyer wants a great deal of information and are blue zone decisions

Routine Problem Solving

When consumers regularly select a particular way of satisfying a need when it occurs. Red zone

Maslow's Hierarchy of Needs (Top to Bottom)

-Self-Actualization -Esteem -Love/Belonging -Safety -Psychological

Commercialization

A product is ready for full-scale marketing.

Trialability

A purchasing or consumption event that provides first time or limited experience with a service, product, or brand, the ability to try makes the consumer more inclined to test out because the risk is minimized

Hypothesis

A tentative claim about the cause(s) of the "problem" (A tentative answer to the question) -can include "a cause and an effect" or a numerical prediction -can address an existing phenomenon or a future one

Corporate Social Responsibility

Accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being -Ex: Green Marketing- manufacturing and selling products that can be used and disposed of with minimal impact on the environment

Brand Equity

Added value that a respected, well-known brand name gives to a product in the marketplace. Built sequentially on four dimensions: Differentiation, Relevance, Esteem, Knowledge.

Differential Marketing

Aims to create a highly specialized product or service that appeals to a smaller group of people

Evoked Set

Alternatives that a consumer actually considers in making a purchase decision

Marketing Mix Strategy

Blending the 4 strategy elements to fit the needs and preferences of a specific target market

Baby Boomers

Born between 1946-1964 Popular segment because their money Control 80% of personal financial assets

Generation X

Born between 1968-1979 Largest generation demographic Family oriented, well educated, and optimistic

Product Mix

Consists of all of the product lines offered by an organization.

Recession (Business Cycle)

Consumers focus on basic, functional products -lowering prices, increasing promotions that includes special offers

Product positioning

Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands.

Extending the Product Lifecycle: Increasing frequency of use.

Convincing current customers to buy a product more frequently boosts total sales even if no new buyers enter the market.

Recognition

Customers acknowledge the brand for identification processes

Eight-Second Rule

Customers will abandon their efforts to enter and navigate a website if download time exceeds:

Quality of Services

Determined by 5 variables: Tangibles, Reliability, Responsiveness, Assurances, Empathy.

Line extension

Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.

Is Consumer Behavior difficult or easy to predict?

Difficult

Pull Strategy

Directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. seeing demand from ultimate consumers, retailers order the product from wholesalers.

Push Strategy

Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Psychographic segmentation

Division of a pop into groups that have similar attitudes, values and lifestyles (VALs). 6 types.

Product Related Segmentation

Division of a population into groups based on their relationships/ aspirations to a product

Psychographic Segmentation

Division of a population into groups that have similar attitudes values and lifestyles

Product-related Segmentation

Division of a population into homogeneous groups based on their relationships to a product.

Geographic Segmentation

Division of an overall market into homogeneous groups based on their locations; Marketers look at: Economic variables, Geographic indicators, Migration patterns. Pay close attention to fast growing states. (GIS) = Geographic information system.

Demographic Segmentation

Division of an overall market into homogenous groups based on: Gender and age, Income and occupation Education, Sexual orientation, Household size, Stage in the family life cycle.

Segmenting by brand loyalty

Ex frequent purchaser program.

Service Quality

Expected and perceived quality of a service offering.

Supplies

Expense items that do not become part of a finished product, these are not a part of the finished product

Total logistics Cost

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.

Market Testing

Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

Economic Environment

Factors that influence consumer buying power and marketing strategies

Evaluative Criteria

Features that a consumer considers in choosing among alternatives

Nonrecognition

Final customers do not recognize the brand even though branders may use the brand name for identification and inventory control

Subcultures

Groups with their own distinct modes of behavior -Can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution -Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow

Diversification

Harvest and delete and focus on improving the best sellers in the market

Relative Advantage

Having a product that is better than others

Primary Data

Information collected for a specific investigation

Relative advantage

Innovation that appears far superior to previous ideas.

Decline stage

Innovations or shifts in consumer preferences bring about an absolute decline in industry sales.

Consumer Behavior (Psychologist)

Many times, we behave in an irrational and inconsistent manner when making decisions

Core Regions

Marketers draw 40 to 80 percent of sales from region.

Full Service Research Suppliers

Marketing research organizations that offer all aspects of the marketing research process

Commercialization

Mass market rollout of the product and developing distribution systems to ensure adequate supportive product flow to the market

RFID tags

May replace some of the functions of UPC codes. Reduce labor costs and improve inventory control.

Perception

Meaning that a person attributes to incoming stimuli gathered through the five senses Results from the interaction of two types of factors: -Stimulus factors -Individual factors

Benchmarking

Measuring quality by comparing performance against industry leaders. Requires two types of analyses: internal and external (Read CHP 12 Slide 24-25).

Complexity

More complex, the slower it moves

Why Study Consumer Behavior (Marketer)

More effective marketing strategies, by understanding: -Customers' thoughts and emotions -How customers are influenced (e.g. family, friends, media) -How customers process information and make decisions?

Brand

Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from competitors' offerings.

Captive brands

National brands sold exclusively by a retail chain Example: Target's sale of products by Michael Graves.

Extending the Product Lifecycle: Changing package sizes, labels, or product quality.

New packaging and labels with updated images and slogans can help revitalize a product.

Idea generation

New-product development begins with ideas from many sources.

Levels of Brand Familiarity

Nonrecognition Recognition Preference Insistance Rejection

Product mix length

Number of different products a firm sells.

Applying the Consumer Products Classification System

Obstacle to implementing this system results from the suggestion that all goods and services must fit within one of the three categories: Convenience goods, Shopping goods, Specialty goods.

Product development

Offering new or improved products for present markets

Offshoring

Out of US; took services to other countries.

Secondary Data

Previously published information Internal Data + External Data

Diffusion process

Process by which new goods or services are accepted in the marketplace.

Trademark Searches

Product names must be carefully trademark searched prior to introduction into the market because products extend globally more today than ever before. What you say in one country doesn't mean the same in another country

Generic products

Products characterized by plain labels, no advertising, and the absence of brand names.

Impulse Goods

Products that are bought quickly because of a felt need

Emergency Goods

Products that are purchases immediately when the need is great

Unsought Goods

Products that consumers do not want yet or even know they can buy New Unsought Goods Regular Unsought Goods

Syndicated Services

Provides standardized data on a periodic basis to its subscribers

Motivation

Purchase behavior is driven by the desire to fill a perceived need. -Need : An imbalance between the consumer's actual and desired states: food,water,warmth, love,status -Once the need is satisfied, this decreases. -Marketers attempt to make a need "felt"

Reinforcement

Reduction in drive that results from a proper response

Factors Affecting the Adoption Curve

Relative Advantage Complexity Compatibility Trialability Observability

Maturity stage

Sales of a product category continue to grow during the early part of this stage but eventually reach a plateau as the backlog of potential customers dwindles.

Growth Stage

Sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product.

Non-Probability Sample

Sample selected from among readily available respondents -Convenience sample -Quota sample

Probability Sample

Sample that gives every member of the population a chance of being selected -simple random sample -stratified sample -cluster sample

Product Line

Series of related products. Desire to grow.

Packaging

Serves three major objectives: Protection against damage (protect product), spoilage, and pilferage. Assistance in marketing the product. Cost effectiveness.

Which of the following statements concerning the pricing of services is most accurate?

Service pricing plays a role in balancing consumer demand for services.

homogeneous Goods

Shopping products the consumer sees as basically the same and wants the lowest price

Heterogeneous Goods

Shopping products the consumer sees as different and wants to inspect for quality and suitability

Individual brand

Single brand that uniquely identifies a product; go pro.

Development

Stage of the new-product process that turns the idea on paper into a prototype.

Adoption process

Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again: Awareness ->Interest ->Evaluation ->Trial -> Adoption/rejection.

Undifferentiated Marketing

Strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing.

Brand mark

Symbol or pictorial design that distinguishes a product.

Preference

Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience

Preference Goods

Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience

Micromarketing

Target potential customers at very narrow, basic levels.

Technological Environment

Technology leads to: -new products -improvements in existing products -better customer service -reduced prices

infomercials

Television advertising - program length advertisements that take a educational approach to communication with potential customers.

The Cohort Effect

Tendency of members of a generation to be influenced and bound together by significant events in their formative year; Ages 17 to 22.

Extensive Problem Solving

The type of problem solving consumers use for a completely new or important need- when they put much effort into deciding how to satisfy it. Blue zone

Brand Equity

Value of a brand's overall strength in the market place Differentiation Relevance Esteem Knowledge

Culture

Values, beliefs, preferences, and tastes handed down from one generation to the next -The broadest environmental determinant of behavior -sets boundaries (norms) for behaviors -characteristics may vary from both county to county and country to country

Product mix depth

Variations in each product that the firm markets.

Family Influences

Very important in consumer behavior. Family structure is changing to more single heads of households Children and Teenagers are a huge market that influence what their parents buy Growing influence because single parent households. Single parents are more likely to engage their children in purchasing decisions

multiproduct branding

a company uses one name for all its products in a product class.

Affect as information

-We tend to assume that our judgments reflect information about the object of judgment. -But...Being happy or sad influences the content and style of thought.

Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.

multichannel

Publicity

nonpersonal, indirectly paid presentation of an organization, product, or service. it can take the form of a news store, editorial, or product announcement.

Showrooming

occurs when a shopper visits a retail store to inspect merchandise but then purchases the merchandise online.

Decline Stage

occurs when sales drop.

Burlington Coat Factory and Ross stores offer customers the sport of searching the racks for great deals on brand-name products. Both retailers use a(n) __________ retailing strategy.

off-price

Scrambled Merchandising

offering several unrelated product lines in a single store.

private branding

often called private labeling or reseller branding, when it manufactures products but sells them under the brand name of a wholesaler or retailer.

Cross-Channel Shopper

online consumer who researches products online and then purchases them at a retail store.

exclusive distribution

only one retailer in a specific geographical area carries the firm's products. usually for specialty products or services.

Branding

organization uses a name, phrase, design, symbols, or combination or these to identify its products and distinguish them from those of competitors.

Charles C Parlin

organized the nation's first commercial research department at Curtis Publishing

Direct selling is likely to grow in markets

outside the United States.

The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as

people, physical environment, and process.

The promotional mix consists of communication tools that include advertising, public relations, sales promotion, direct marketing, and

personal selling

Which element of the promotional mix is characterized by a customized interaction that is extremely expensive but very persuasive and likely to yield immediate feedback?

personal selling

What is the promotional objective of the decline stage of the product life cycle?

phase out

Commercialization

positions and launches a new product in full-scale production and sales.

One step in evaluation of the promotion program is to

post-test the promotion.

Collaborative Filtering

process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.

coupons

sales promotions that usually offer a discounted price to the consumer, which encourages trial.

Among recent retailing innovations is Zipcar. With this service, you sign up, receive a Zipcard, book online, walk to a car, scan your card across a reader on the windshield to open the doors, and drive away. This would be considered a __________ retailer.

self-service

hierarchy of effects

sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action.

Capacity Management

service component of the marketing mix must be integrated with efforts to influence consumer demand.

Inconsistency in services refers to the fact that

services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee

An important feature of supply chain management is its application of sophisticated information technology that allows companies to

share and operate systems for order processing, transportation scheduling, and inventory and facility management.

Sales Promotion

short-term inducement of value offered to arouse interest in buying a product or service.

Permission Marketing

solicitation of a consumer's consent (opt in) to receive e-mail and advertising based on personal data supplied by the consumer.

Sales plan

statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.

A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients. The division also deals with about 23,000 suppliers in nearly 100 countries. The individuals who monitor these transactions are engaged in

supply chain management.

Product Advertisements

take three forms; Pioneering (informational) , competitive(persuasive) , and reminder.

Integrated Marketing Communications

taking consumer expectations into consideration, IMC is a key element in a company's customer experience management strategy.

Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?

tattoos

brand equity

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

Mass selling is

the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers.

Relationship Selling

the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time.

FedEx provides next-morning delivery, which is considered an example of __________ utility.

time

institutional Advertisement

to build goodwill or an image for an organization rather than promote a specific product or service.

A ________ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.

trademark

Ralston Purina offers super-premium dog foods based on "life-stage nutrition." The repositioning strategy Ralston Purina is using here is called

trading up.

As part of its ________ function, an intermediary such as a wholesaler performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.

transactional

Opinion Leaders

trendsetters who purchase new products before others in a group and then influence others in their purchases. Act as opinion leaders based on their knowledge of and interest in products

Personal Selling

two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. (usually face to face communication)

Form of ownership, level of service, and the ____________ are important ways that retail outlets can be classified.

type of merchandise line

Salesforce Automation

use of technologies to make the sales function more effective and efficient.

Supply Chain

used to create and deliver a product or service to consumers or industrial users.

According to the __________, retail stores start out simply and gradually add fixtures and more embellishments to their stores to increase the attractiveness for customers.

wheel of retailing

Market Modification

when a company tries to find new customers, increase a product's use among existing customers, or create new use situations.

maturity stage

where most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it.

A channel intermediary in the consumer market that sells to other intermediaries, usually retailers, is called a(n)

wholesaler

Ascribed Status

you are placed into a social status by an inherited position ex. Prince William + Queen Elizabeth

Achieved Status

you earn your social status by achieving ex. Bill Gates + Steve Jobs

Central to integrated marketing communications (IMC) is

a consistent message across all audiences.

Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.

a distinctive point of difference

Which of the following is considered a durable good?

a hand mixer

Brand Personality

a set of human characteristics associated with a brand name.

Channel Conflict

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

Intel Core processors are purchased by Toshiba for its laptops, and are thus considered what type of business product?

components

Cookies

computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website.

Franchising is a variation of

contractual vertical marketing systems.

The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience is referred to as

customer service

Primary Demand

desire for the product class rather than for a specific brand, since there are few competitors with the same product.

Because soup consumption rises in the winter and declines during the summer, Campbell Soup Co. now advertises more heavily in warm months to encourage consumers to think of soup as more than a cold-weather food. It is primarily using which of the following market modification strategies?

increasing the product's use

Encoding

ins the process of having the sender transform an idea into a set of symbols.

Keith liked how the dry cleaner down the street washed and pressed his clothes, but he found the repeated phone calls from staff about his finished laundry annoying. He began to think of the whole place as annoying, which is a function of the __________ aspect of services.

inseparability

Choiceboard

interactive, internet-enabled system that allows individual customers to design their own products and services.

indirect channel

intermediaries are inserted between the producer and consumers and perform channel functions.

Retailer

intermediary who sells to consumers

Wholesalers

intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets

Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.

introduction

Which of the following is considered a part of total logistics cost, like transportation and order processing?

inventory

2 ways to change attitudes

+ Attempt to produce consumer attitudes that will lead to the purchase of existing products +Evaluate existing consumer attitudes and create or modify products to appeal to these attitudes** **Least costly!!!!

3 fastest growing subcultures

+African Americans +Hispanics +Asians

Components of the Learning Process

+Drive +Cue +Response +Reinforcement

Criteria for Effective Segmentation

+Must present measurable purchasing power and size +Must be sufficiently large to offer good profit potential +Must aim for segments that much its marketing capabilities +Must find a way to effectively promote and serve the market segment

Types of Primary Research

+Observational +Surveys +Controlled Experiments

Maslow's Hierarchy of Needs

+Physiological Needs +Safety Needs +Social/Belonging Needs +Esteem Needs +Actualization Needs

Social Classes -- W. Lloyd Warner

+Upper-Upper +Lower-Upper +Upper-Middle +Lower-Middle +Working Class +Lower Class Determined by family background, education, occupation, income, residence location

Core Values of the U.S.

- Importance of education, freedom, heath, volunteerism - Work ethic - Desire to accumulate wealth - Communicating with anyone, anytime, anywhere -Individualism, "making a difference"

Business Portfolio Analysis

-An evaluation of a company's products and divisions to determine the strongest and weakest -The analysis should fit the company's strengths and weaknesses to opportunities in the environment

Environmental Scanning

-Collecting external marketing environment information to identify and interpret potential trends -Trends represent significant opportunities or threats to the company

5 Environmental Dimensions

-Competitive -Political/Legal -Economic -Technological -Social/Cultural

Distribution Strategy (Marketing Mix)

-Consumers need to find their products in the proper quantities at the right times and places -Involves modes of transportation, warehousing, inventory control order processing, and selection of marketing channels -Some manufacturers sell their products directly to customers without using intermediaries -Technology has opened new channels of distribution in many industries

An antiques dealer buys a grandfather clock for $200. She sets the selling price at $350. When the clock doesn't sell after two months, she raises the price to $800 and moves the clock to her downtown store to appeal to a different market. The clock sells for $800 the next day. What is the maintained markup?

$600

Business Products

(also called B2B products or industrial products) are products organizations buy that assist in providing other products for resale.

Marketing Research Steps

1. Define the problem 2. Conducting exploratory research 3. Formulating a hypothesis 4. Creating a research design 5. Collecting data (primary and secondary) 6. Interpreting and representing the research information

Three Aspects of Product Life Cycle

1. Their length 2. The shape of their sales curves 3. the rate at which consumers adopt products

New-Product Process

1.New product strategy development 2.Idea generation 3.Screening and evaluation 4. Business analysis 5. Development 6. Market Testing 7. Commercialization

Six forms of Nonstore retailing

Automatic vending - Direct mail and Catalogs -Television home shopping - online retailing - Telemarketing - and Direct selling

Esteem Needs

A desire for a sense of accomplishment and achievement

Cue

An object or signal in the environment that determines the nature of the consumer's response to a drive

Agent or broker

Any intermediary with legal authority to act on behalf of the manufacturer

Undifferentiated Marketing

Appeals to a broad market base known as mass marketing ex. milk, gas, bag of ice

Opinion Leaders

Are more knowledgeable about a certain product or service than the average consumer. -Sometimes they purchase new products before others and influence others in their purchases -Examples: Celebrities with Chanel,Rolex

Engel's Laws

As household income increases: -A small percentage of expenditures goes for food. -Percentage spent on housing, household operations, and clothing remains constant. -Percentage spent on recreational and educational items increases.

Gap Analysis

Asks consumers to assess their expectations and experiences on dimensions of service quality.

Business Analysis

Assessing key potential performance factors including profit, margins, turnover, channels acceptance and product prototype development

Business analysis

Assessing the new product's potential market, growth rate, and likely competitive strengths.

The Product Mix

Assortment of product lines and individual product offerings.

Trademarks

Brand for which the owner claims legal protection.

Manufacturer's brand

Brand name owned by a manufacturer or other producer.

Private brands

Brands offered by wholesalers and retailers.

Types of products:

Business and consumer.

SWOT Analysis

Helps planners compare internal organizational strengths and weaknesses with external opportunities and threats

Homeshoring

Hiring workers to do jobs from their homes.

New Product Development Process

Idea Generation Screening Business Analysis Test Marketing Commercialization

Compatibility

If compatible to life then it will be adopted

B-2-B Product Classifications

Installations Accessories Raw Materials Component Parts Supplies Services

FOUR I's of Service

Intangibility, Inconsistency, Inseparability, Inventory

Services

Intangible tasks that satisfy the needs of consumers and business users. Ex -> Warranty, Customer service.

Screening and Evaluation

Internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

Cannibalization

Introducing a new product that adversely affects sales of existing products.

Product Life Cycle

Introduction Market Growth Market Maturity Market Saturation Market Decline

Product Development

Introduction of new products into identifiable or established markets.

Product Lifecycle

Introductory stage -> Growth stage -> Maturity stage -> Decline stage.

Just in Time Inventory

Inventory policies boost efficiency by cutting inventory and requiring vendors to deliver products in exact quantities and exact timing

Brand name

Part of a brand that can be spoken. Should give buyers the correct connotation of the product's image.

Strategic Alliance

Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market

Which of the following is the best example of a shopping product?

Patagonia jacket

Reference Groups

People such as family, friends, or celebrities: -Whose opinions are valued -To whom a person looks for guidance in his or her own behavior, values, and conduct -With whom a person has emotional connections

Consumer innovators (intro stage)

People who purchase new products almost as soon as the products reach the market.

First Mover Strategy

The company first to offer a product in a market place will be the long term market winner

Business Cycle

The cyclical 4-stage pattern that the economy has historically followed: -prosperity -recession -depression -recovery

Love/Belonging Needs

The desire to be accepted by people and groups important to the person

Relationship Experience

The level of usage of a service or product or brand that provides the consumer with want or need satisfying information

Observability

The more you see things the more they are internalized

Self-Actualization Needs

The need to realize our own potential, to achieve our dreams and ambitions. What a man can do, he must do

Saturation Point

The point in the PLC when sales have reached their peak and will soon begin to fall in sales decline (Product Development)

Research

The process of gathering information to learn about something that is not fully known.

Derived Demand

There is a direct link between demand for a company's output and its purchases ex. demand for a computer microchips is derived from demand for laptops

What do automatic vending, television home shopping, and direct selling have in common?

They are all forms of nonstore retailing.

Product mix decisions

To evaluate a firm's product mix, marketers look at the effectiveness of its depth, length, and width (look for gaps).

Test marketing

To verify that the product will perform well in a real-life environment.

Population

Total group of people a researcher wants to study

Market Development

Trying to increase sales by selling present products in new markets

Market Penetration

Trying to increase sales of a firm's present products in its present markets probably through a more aggressive marketing mix

Raw Materials

Unprocessed, natural or agricultural expense items such as logs, iron ore, wheat, and cotton that are moved to the next production process with little handling

When a manager at Jackie's Bar & Grill sent some of his wait staff home early on a slow Tuesday night, he recognized a need to manage his

idle production capacity

Google's driverless car is an extreme example of the complexity of which step of the new-product process?

development

Drive

fear, pride, greed, jealousy, hunger, thirst, comfort

Some well-known message problems have occurred when U.S. companies have taken their messages to cultures with different ________, resulting in misinterpretations.

fields of experience

Product Modification

involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.

Discontinuous Innovation

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

Sales management

involves planning the selling program and implementing and evaluating the personal selling effort of the firm.

Product Item

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

__________ begins with new-product purchases first by innovators, and then by early adopters

Diffusion of innovation

General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to China. This distribution arrangement is known as

a strategic channel alliance.

Nonprofit service organizations use them, but public service announcements (PSAs)

alone are not a good foundation because their timing and location are controlled by others.

Hotels or motels without dining facilities are good locations for

automatic vending machines.

Tiffany & Co., the exclusive jewelry retailer, uses ________ when it manufactures about half of the fine jewelry items for sale through its more than 250 specialty stores and boutiques worldwide.

backward integration

A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they

can help identify the strategic role the new product might serve in the firm's portfolio

Product line extensions are a form of which strategy?

multiproduct branding

Discount Fishing Tackle is a shop that carries a large selection of fishing rods and reels, bait, tackle boxes, waders, nets, and a few other fishing implements. Discount Fishing Tackle's breadth of product line would be described as __________ and its depth of product line would be described as __________.

narrow; deep

Looking to attract more millennial tourists, Discover Los Angeles, the city's tourism office, portrays its city as a hipster utopia in a new campaign. It released a 2-minute YouTube video that follows a young couple as they shop for vinyl, take pictures of their food, eat tacos from a food truck, and pose for selfies during a whirlwind day in the city. This ad campaign was an attempt to stimulate __________ demand

primary


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