Marketing Final Exam

calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

Geographic segmentation

Stage in the product life cycle that is characterized by rapid market acceptance and increasing profits

Growth

According to Freud, a person's buying decisions are primarily affected by

subconscious motives

Causes a specific brand's life cycle to change quickly

Competitive attacks and responses

The most basic determinant of a person's wants and behavior

Culture

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Demographic segmentation

involves actually distinguishing the firm's market offering to create superior customer value

Differentiation

What is the most important consumer buying organization in society?

Family

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Positioning

consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter

Market targeting

Stage in the new product development that a firm would engage in immediately after the completion of concept testing

Marketing strategy development

stage in the product life cycle where sales growth slows because the product has achieved acceptance. Profits level off because the marketing costs increase in the face of competition

Maturity

Four major psychological factors that influence a person's buying choices

Motivation, Perception, Learning, and Belief

Which of the following statements is true of social class?

People within a social class tend to exhibit similar buying behavior

True statement of the idea generation stage in the new product development process

Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is

Why the buy

Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities--that is, "we are what we consume". According to this premise consumers

buy products to support their self image

Factors a company considers when setting its price include

competitor's strategies, overall marketing strategy/mix, product costs, nature of the market and demand

In the model of buying behavior, which of the following are major types of forces or events in the buyer's environment

economic, technological, social, and cultural

Maslow's theory is on

human needs

New product development starts with

idea generation

Life-stage changes usually result from

life-changing events

involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

market segmentation

A buyer's decisions are influenced by these... such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept

personal characteristics

Maslow's Hierarchy of Needs

physiological, safety, social, esteem, self-actualization

dividing a market into different segments based on social class, lifestyle, or personality characteristics

psychographic segmentation

A person's tendency to screen out most of the information is called

selective attention

The tendency for of people to interpret information in a way that will support what they already believe

selective distortion

Remembering the good points made about a brand they favor and forget good points made about other brands

selective retention