MKT 320F FINAL REVIEW
What does BCG Portfolio Matrix do?
Classifies SBUs by present or forecast growth and relative market share
What is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large?
Marketing
T/F: Shorter marketing channels means fewer intermediaries.
T
T/F: all variable and fixed costs have been absorbed at the break even point
T
T/F: traditional retailers have been unable to respond well to the advance in technology
T
gross margin =
(Price * cumulative demand) - costs
what are the 6 steps in the purchase-decision process for consumers?
1. awareness 2. interest 3. evaluation 4. action 5. loyalty 6. advocacy
what are the 7 basic steps of marketing research process
1. identify and formulate the problem/opportunity 2. plan the research design and gather secondary data 3. specify the sampling procedures 4. collect primary data 5. anaylze the data 6. prepare and present the report 7. follow up
what are the 7 stages of new product development?
1. new product strategy 2. idea generation 3. idea screening 4. business analysis 5. development 6. test marketing 7. commercialization
majority fallacy in identifying target segments
a company targets the largest segment of consumers, which seems wise but is actually a mistake because everyone else is targeting that large segment and it makes competition intense so no one really makes a lot of money
market share
a company's product sales as a percentage of total sales for that industry
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
intensive distribution
a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
exclusive distribution
a form of distribution that establishes one or a few dealers within a given area
product line
a group of closely related product items
supply chain management
a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
perceptual mapping
a means of displaying or graphing the location of products, brands, or groups of products in customers' minds
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
product item
a specific version of a product that can be designated as a distinct offering among an organization's products
marketing objective
a statement of what is to be accomplished through marketing activities
multi-segment targeting
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
concentrated targeting
a strategy used to select one segment of a market for targeting marketing efforts
scanner-based research
a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
yield management system
a technique for adjusting prices that uses complex mathematical software to make use of underutilized capacity and reduce the cost of perishability
marketing mix
a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
what is the predictive role of marketing research
addressing future "what if" questions
product mix
all products that an organization sells
social media
any tool or service that uses the Internet to facilitate conversations
market development
attract new customers to existing products (ansoff)
positioning bases include:
attributes, price/quality, use/application, product user, product class, competitor, and emotion
product mix depth
average number of different products offered in each product line
adaption process for consumers (4 steps)
awareness, interest, evaluation, regular usage
What are the four basic strategies of the BCG Matrix?
build, hold, harvest, divest
According to the BCG Matrix, which category has high market share and low growth rate?
cash cow
According to the BCG Matrix, which category of SBU is in a low-growth stage but has a dominant market share?
cash cow
functional modification of a product
change in a product's versatility, effectiveness, convenience, or safety
quality modification of a product
change in a products dependability or durability
reverse channels
channels that enable customers to return products or components for reuse or remanufacturing
what are the 2 common methods for business segmentation?
company characteristics and buying processes
explain the volume objective of pricing
considers a minimum level of profitability but focuses on gaining market share and increasing sales
brand loyalty
consistent preference for one brand over all others
credence quality
consumers are not able to evaluate the service effectively even through experience
strategic channel alliances
cooperative agreement between business firms to use the other's already established distribution channel
what makes up the "whole" product/service?
core benefit, primary characteristics, secondary characteristics
A major goal of marketing is to:
create an exchange
product development
create new products for present markets (ansoff)
pricing does what 3 things?
creates revenue sends messages about quality and competitive position comprehends an organization's cost structure (while maintaining competitive pressure, legal and economic constraints, and customer demand)
______ ________ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
customer value
what prices for maturity stage
decrease in prices as competition increases
as price increases, demand ____________
decreases
what are the six elements of a marketing plan?
define a mission statement, perform a situation analysis, define objectives, delineate a target market, establish components of the marketing mix, establish the four Ps (product, place, promotion, price)
willingness to pay is the same was what
demand elasticity
what are the 3 roles of marketing research?
descriptive diagnostic predictive
How does a company segment businesses by their buying processes?
determine how much, what kind of things they buy, what kind of service they want, and target them specifically, determine whether they are satisficers or optimizers
receivers in the communication process do what 3 things?
develop messages, adapt messages, spot new communication opportunities
positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
what are the 4 types of marketing channel structures?
direct, retailer, wholesaler, agent/broker
Firms expand their product mix width to __________ _______.
diversify risk
fixed costs
do not vary with unit production or unit sales
According to the BCG Matrix, which category of SBU has low growth potential and a small market share?
dog
According to BCG matrix, which category has low market share and low growth rate?
dogs
Analyze aspects of the marketing environment by ________ ___________
environmental scanning
Who is responsible for marketing?
everyone in the organization
what is the biggest change due to new platforms and services?
everyone is interconnected and marketers can reach consumers anywhere at anytime
what is the diagnostic role of marketing research
explaining data
Mass market has ___________ so IMC is harder.
fragmented
what is the descriptive role of marketing research
gathering and presenting factual statements
Company Characteristics
geographic location, type of company, company size, volume of purchase, product use that can be used to segment business markets
what are the 5 common methods for consumer segmentation?
geographic, demographic, psychographic, benefit, usage
In the BCG Matrix, what is divesting?
getting rid of SBUs with low shares of low-growth markets
In the BCG Matrix, what is building?
giving up short-term profits and using financial resources to achieve the goal
what are some the secondary characteristics that make up the whole product/service?
guarantees and warranties, installation, shipping, credit, associated services
What is the result of declining population growth, rising costs, and shortages of resources?
heightened domestic competition
competitive intelligence
helps managers assess their competitors and their vendors in order to become more efficient and effective competitors
if it is easily evaluated after experience the item, it has _________ experience quality
high
what prices for introductory stage
high prices to recover development costs quickly
Organizations have a __________ level of involvement in their purchases compared to individual consumers.
higher
explain the prestige objective of pricing
higher price indicates higher status and people want to purchase products that others cannot afford
sales orientation
how can we sell more aggressively?
what are the four requirements for effective segmentation?
identifiability and measurability, sustainability, accessibility, and responsiveness
positioning statement
identifies the target market, makes an important claim about the product relative to competitor offerings, provides support for their advantage
search quality
if something can be easily assessed before purchase
advertising
impersonal, one-way mass communication about a product or organization that is paid for by a marketer
what are the two uses of marketing research
improves the quality of decision making for management helps managers understand whether and when changes should be made to existing products/services
market penetration
increase market share among existing customers (ansoff)
diversification
increasing sales by introducing new products into new markets (ansoff)
In the BCG Matrix, what is harvesting?
increasing short-term cash return without too much concern for long-run impact
senders in the communication process do what four things?
inform, persuade, remind, connect
Which 3 categories of product adopters exist in the introduction/growth stage?
innovators, early adopters, early majority
what are the 5 categories of product adopters?
innovators, early adopters, early majority, late majority, laggards
what are the four characteristics that make services different from products?
intangibility, inseparability of production and consumption, heterogeneity, perishability
In what 3 ways does the organization buying process differ from the individual buying process?
involves more people, is more methodical , is more formal
Value is found _____ in brand recognition and more in _______ by others.
less, reviews
What are the 5 objectives of social media?
listen and learn build relationships and awareness promote products and services manage your reputation improve customer service
the more standardized the product, the ________ the distribution channel
longer
What two factors make up cost leadership strategy in porter's generic strategies?
low cost and broad target scope
What two factors make up focus strategy (low cost) in porter's generic strategies?
low cost and narrow target scope
What are the axes of Porter's Generic Strategies?
low cost or product uniqueness and target scope (narrow or broad)
benefits of supply chain management
lower costs, greater flexibility, improved customer service, higher revenues, differentiation
What are the four options in Ansoff's Strategic Opportunity Matrix?
market penetration, market development, product development, diversification
What are the four factors that can influence the selection of the marketing channel structure?
market, product, producer, social factors
product line extension
marketers add related products to an established brand to help reach a larger audience
sales promotion
marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
A __________ ___________ states that the social and economic justification for an organization's existence is the satisfaction of customer want a needs while meeting organizational objectives.
marketing concept
what prices for decline stage
more price decrease to salvage the last demands
What are the 5 steps of the consumer buying process?
need recognition, information search, evaluation of alternatives, purchase, post-purchase behavior
what are the 5 PR tools
new-product publicity, product placement, consumer education, sponsorship, company websites
nontraditional channels
non-physical channels that facilitate the unique market access of products and services
Achieving a marketing orientation involves what 4 things?
obtaining information about customers, competitors, and markets examining the info from a total business perspective determining how to deliver superior customer value implementing actions to provide value to customers
what are some of the primary characteristics that make up the "whole product/service"?
packaging, styling and form, quality level, branding components
market
people or organizations with needs or wants and the ability and willingness to buy
In the BCG Matrix, what is holding?
preserve market share so the organization can take advantage of positive cash flow
functions of PR
press relations, product publicity, corporate communication, public affairs, lobbying, employee and investor relations, crisis management
secondary data
previously collected data for any purpose other the focused-on purpose of the research you're doing
explain the competition objective of pricing
price isn't a factor, utilizes product promotion and place (distribution) to establish competitive advantage that affect pricing as a result
revenue =
price x units
what are the advantages and disadvantage of advertising?
pro: one type of mass communication, directly from marketer to audience con: expensive, impersonal
what are the two types of sampling procedures and what do they mean?
probability - representative of population nonprobability - non-representative of sampling
According to BCG matrix, which category has low market share and high growth rate?
problem children
According to the BCG Matrix, which category of SBU has a low market share in a high-growth industry?
problem children
Which of the four Ps must be the first to be considered?
product
what are the two types of advertising?
product and institutional advertising
what are the three main purposes of branding?
product identification, repeat sales, new product sales
identify the 5 things that make up the hierarchy of a firm's product/service portfolio
product item product line product mix product mix width product mix depth
what are the 8 factors affecting pricing decisions
product life cycle competition distribution intranet/extranet promotion strategy customer demand price/quality relationship price discrimination laws
What two factors make up differentiation strategy?
product uniqueness and broad target scope
What two factors make up focus strategy (differentiation) in porter's generic strategies?
product uniqueness and narrow target scope
What are the four Ps?
product, place, promotion, price
what are the 4 objectives of pricing
profitability volume competition prestige
a survey is an example of qualitative or quantitative data?
qualitative
___________ data is the "what" and _____________ data is the "why
quantitative, qualitative
what are the four types of discrepancies that intermediaries overcome?
quantity, spatial, temporal, assortment discrepancy
what are the benefits of internet surveys?
rapid development, real-time reporting, reduced costs, personalized questions and data, higher response rate, contact with the hard-to-reach
What four things must be true of a marketing objective?
realistic, measurable, time specific, compared to a benchmark
break even analysis helps marketers understand how much more their marketing needs to generate in _________ for profit to be gained
revenue
cannibalization
sales of a new product cut into sales of a firm's existing product
What marketing communication tool is cheap, easy to measure, and has more effect on behavior than attitudes?
sales promotion
gray marketing channels
secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers
describe sustainability of potential market segment
segment must be large enough to warrant developing and maintaining a special marketing mix
responsiveness of potential target segment
segmentation only needs to occur when different segments respond to a marketing mix differently
What are the 5 environmental forces affecting marketing strategies and tactics?
social/cultural/demographic, technological, environmental, economic, and political/regulatory
intermediaries allow firms to:
specialize and focus on what they do best (increases efficiency) improve contact efficiency, intermediaries can reach more people overcome discrepancies between the producer and customer
what prices for growth stage
stable prices because competitors have entered the market
According to the BCG Matrix, which category of SBU is a fast-growing market leader?
star
According to BCG matrix, which category has high market share and high growth rate?
stars
What are the four categories of SBUs in the BCG Portfolio Matrix?
stars, cash cows, problem children, dogs
What does SWOT analysis stand for?
strengths, weaknesses, opportunities, threats
what product characteristics influence the rate of adoption of that product?
superiority to other products relative advantage compatibility observability complexity
what is the most popular method of collecting primary data
survey research
drop and shop
system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store
dynamic pricing
the ability to change prices very quickly, in real time using big data
supply chain
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
market opportunity analysis
the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
publicity
the effort to capture media attention
public relations
the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
describe accessibility of a potential target market
the firm must be able to reach the members of targeted segments with customized marketing mixes
integrated marketing communications
the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
What does the competitive environment encompass?
the number of competitors, the relative size of competitors, and the degree of interdependence within the industry
product mix width
the number of product lines an organization offers
planned obsolescene
the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
price equilibrium
the price at which demand and supply are equal
marget segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups based on wants, needs, behaviors, cost sensitivities, and other factors that require variations in the marketing mix
marketing research
the process of planning, collecting, and analyzing data relevant to a marketing decision
demand
the quantity of a product that will be sold in the market at the various prices for a specified period
target segmentation
the subgroup chosen as the focal point for the marketing program and advertising campaign
Dual or multiple distribution
the use of two or more channels to distribute the same product to target markets
break even quantity =
total fixed cost / (price per unit - variable cost per unit)
price per unit =
total revenues / $ of units sold
types of sales promotion
trade sales promotion and consumer sales promotion
explain the profitability objective of pricing
uses marginal analysis to determine the price at which profit is maximized
variable costs
vary with unit production or unit sales, such as materials included in product or sales commissions
What question does the mission statement answer?
what business are we in?
production orientation
what can we make or do best?
marketing orientation
what do customers want and need?
societal orientation
what do customers want/need and how can we benefit society?
price
what is given up in exchange for a product
contribution margin
what is left over from the revenue after covering the variable cost (price per unit - variable cost per unit)
