MRKT 341 Exam 2

which stage of the product life cycle would an early adopter customer be found? A. introduction B. growth C. maturity D. r&d

B. growth

chad needs to buy a new toothbrush because he dropped his on the ground this morning. he also needs to pick up some groceries at target as well. when chad goes to target, he picks the first toothbrush he sees and gives the purchase no additional thought. which level of involvement went into purchasing this toothbrush? A. high involvement purchase B. low involvement purchase C. no involvement purchase D. medium involvement purchase

B. low involvement purchase

which of the following is not part of the p's of the services industry? A. people B. program C. productivity D. physical space

B. program

what is the main driver of repeat business? A. customer lifetime value B. satisfaction C. unique products D. competitive advantage

B. satisfaction

why do marketers care about consumer motivations and behaviors?

create products and services that have meaningful benefits, make offerings at right time and place, communicate meaningful and relevant information

social factors (influential purchasing factor)

culture, family, reference group, opinion leaders, formal leader, aspirational group

liscensing

entering foreign markets through developing an agreement with a licensee in the foreign market (adidas + nebraska)

true or false: an augmented product is the core benefit that the product brings to the customer

false

positioning map

graphical representation of the consumer's perceptions of our offering versus those of our competitors

consumer behavior

how customers satisfy their needs and wants by consuming certain products

new product development process

idea generation: search for new product ideas idea screening: separate good ideas from bad concept testing: new product idea in consumer terms marketing strategy: target market, 4p's, financials business analysis: review sales, cost, profit projections product development: turn idea into physical product test marketing: put product in the market commercialization: intro new product into market

research & development stage (PLC)

identifying a fashion or fad; fulfill a societal need

theory of consistency

if a patient takes a little step, he is more likely to take a bigger step

four I's of services

intangibility, inconsistency, inseparability, inventory

five factors of differentiation

product, service offering, brand, channel (place), people

which is not part of the 4 p's of marketing? A. product B. productivity C. price D. place

productivity

satisfaction is a main driver in...?

repeat business

three characteristics that make a desirable target market

segment size & growth, structural attractiveness, company objectives

target marketing

selecting and focusing on a market segment; this is done by tailoring the marketing mix for that segment; set of buyers who share common needs or characteristics that a company decides to serve

product life cycle

the course of a product's sales and profits over its lifetime

true or false: positioning is a marketer's efforts to stake out a unique and favorable territory of the customer's mind

true

five elements of a good brand

meaningful, transferrable, likable, memorable, protectable

brand equity formula

price(brand)-price(private label)

theory of anchoring

consumers use reference points when making judgments (ex. tj maxx "compare at" on price tags)

market segmentation

process of dividing the market into smaller distinct groups who seek different benefits or have different characteristics, or behaviors

situational factors (influential purchasing factor)

physical environment, time

four customer motivations for purchasing

physical, lifestyle, psychological, symbolic

example of psychological motivation

"i am more attractive when i drive my lambo"

example of lifestyle motivation

"i have made a commitment to the environment"

example of physical motivation

"i need to get around"

example of symbolic motivation

"i've made it"

five step buyer decision making process

1. problem recognition (need identified) 2. information search (gather information) 3. evaluation (criteria and alternatives) 4. decision (pick a solution) 5. post decision (level of satisfaction)

three steps of segmentation

1. understand the benefits that customers seek 2. partition the market and develop prototypical customer profiles based on those benefits 3. find observable variables (demographics) that discriminate among the benefit segments

which of the following is a brand extention? A. Bounty (paper towels) decides to make a stain resistant laundry detergent which also is designed to keep surfaces clean B. Doritos decides to make a new flavor chip called "Doritos: Zesty Orange" C. McDonalds and Oreo team up to make the Oreo McFlurry D. Little Caesar's buys the rights to use Batman pictures on there new pizza box

A. Bounty (paper towels) decides to make a stain resistant laundry detergent which also is designed to keep surfaces clean

which of the following is NOT an example of differentiation? A. Macy's and Dillard's sell the same style of Nike shoe B. Louis Vuitton sells premium handbags at a higher cost because of the quality of material and unique product features C. Tiffany & Co offers a unique customer experience by offering champagne when customers enter the door D. Walmart offers lower prices compared to one of their closest competitors, Target

A. Macy's and Dillard's sell the same style of Nike shoe

which of the following is true about segmentation? A. Market segments should be similar enough within each segment but different enough between segments so marketers can identify unique needs and benefits sought B. All segments should be the exact same size C. Companies should go after the biggest segments because those will provide the most profit D. Companies can only perform segmentation using demographic characteristics of customers such as their age and ethnic background

A. Market segments should be similar enough within each segment but different enough between segments so marketers can identify unique needs and benefits sought

denise is the owner of a furniture store in lincoln. she is having a hard time keeping up with the competition in the area. she needs to create a product that no one else has in their stores in order to lure more customers into her store. based on what you have learned in this class, which concept should denise research more and improve on? A. differentiation B. segmentation C. target market D. high involvement purchase

A. differentiation

rebecca is considering buying a new car because her current car has been in the shop every week for the past two months. she has been doing extensive research on the kinds of cars that are in her budget, what qualities she is looking for in a vehicle, and where she should potentially buy a car from. what kind of purchase is rebecca making? A. high involvement purchase B. low involvement purchase C. no involvement purchase D. medium involvement purchase

A. high involvement purchase

don's company "fishing with friends" buys the rights to use spiderman on their new fishing pole. this is an example of what? A. licensing B. cobranding C. ingredient branding D. company expansion

A. licensing

which of the following is the best example of a category expansion? A. nike decides to make a new line of cars B. north face starts making eco-friendly compostable clothing C. lifealert uses their same technology and makes watches instead of necklaces D. the owner of bob's burgers opens bob's ice cream

A. nike decides to make a new line of cars

which of the following is an example of licensing? A. The University of Nebraska opens a new hospital on campus B. John pays the creators of Dora the Explorer to use the character on his custom lunch boxes C. Steven's company "Super Pillows" and Jill's company "Dragon Friends" work together to make a product line called "Super Pillow's fluffy Dragon Friends" D. Runza makes a new sandwich called the "Runza burger extreme"

B. John pays the creators of Dora the Explorer to use the character on his custom lunch boxes

a box of 10 rice krispies bars sells for $10. target's version, of 10 krispy rice bars sells for $4. calculate the brand equity of this situation? A. The brand equity of Rice Krispies Bars is = (10 x $10) - (10 x $4)= $60 B. The brand equity of Rice Krispies Bars is = ($10) - ($4)= $6 C. The brand equity of Krispies Rice Bars is = $4 D. We cannot compute the brand equity given this information

B. The brand equity of Rice Krispies Bars is = ($10) - ($4)= $6

which of the following is the best interpretation of product positioning? A. Where a product is located in a store front or if the company chooses to sell the product online B. The place a product occupies in the consumer's mind based on relevant attributes relative to the competing products C. Dividing the larger population into smaller groups and choosing to target marketing efforts to that segment D. Product positioning is hiring the best employees in your company to make a better company

B. The place a product occupies in the consumer's mind based on relevant attributes relative to the competing products

which of the following concepts relates the most to the concept of segmentation? A. Taya operates a department store in Lincoln and decides that her clothing is not selling well so she instead focuses on selling shoes B. Runza opens a new store in Las Vegas to maximize profits C. Kum and Go divides the population into smaller groups to determine which kinds of customer the company should focus on D. Culver's divides their store between in store purchases and online orders so customers know which area of the restaurant to go to

C) Kum and Go divides the population into smaller groups to determine which kinds of customer the company should focus on

madelyn is looking to buy a new phone because her current one has a broken speaker system. she is worried she is going to choose the wrong phone during her selection process because phones are a costly expense. therefore, madelyn decides to research the current phones on the market and customer ratings for each phone. from here, she creates a spreadsheet with cost, aesthetics, and customer ratings. which stage in the buying decision process is madelyn during her research? A. problem recognition B. decision C. information search D. evaluation

C. information search

intel chips are used inside dell computers. this is an example of what? A. brand extention B. licensing C. lngredient branding D. line extension

C. ingredient branding

which of the following is not a aspect of services? A. The quality of your service will change based on who provides the service and on when it is provided B. A service perishes over time C. The service you are receiving will resulting in an unseen, untouchable gain D. A service can be done without the provider

D. A service can be done without the provider

tony's company sells fancy cd players. over the past 4 years his competitors have downsized. which section of the product lifestyle theory would this product fall under? A. Growth B. Maturity C. Plateau D. Decline

D. Decline

when seasons change, dick's has a difficult time selling their swimsuits, especially in the winter months. in order to sell the swimsuits in december, they discount all swimwear and place promotional signs at the front of the stores. this kind of promotion is most likely known as...? A. Promotion using demographics B. Psychographic segmentation C. Promoting to a segment based on annual income rates D. Usage occasion promotions

D. Usage occasion promotions

which of the following is NOT an element of brands? A. jingles B. colors C. logos D. all are elements

D. all are elements

14 oz of cheerios cost $14. 10 oz of the general brand wheaties cost $5. what is the brand equity of 14 oz of cheerios? A. $9 B. $0.50 C. $14 D. cannot be computed with given info

D. cannot be computed with given info

which of the following is not an element of services? A. intangibility B. variability C. inseparabilitiy D. inventoried

D. inventoried

melissa, the lead emergency medicine surgeon at mayo clinci, is looking for a new pair of shoes to work in. her current shoes are losing tread, have started to fade in color, and have one hole on the side. in order to be on her feet for multiple hours consecutively for surgery, melissa needs a reliable pair of shoes. doctors in the hospital reccomend nike shoes for surgeons like herself. based on melissa's current situations, which of the following is influencing her need to buy a new pair of shoes? A. personality B. lifestyle C. aspiration group D. occupation

D. occupation

which of the following is a product? A. pepsi B. lay's C. toyota D. potato chips

D. potato chips

lululemon has performed the segmentation analysis and needs to decide which market segment to actively target. lulu sells high quality athletic wear for premium prices. which of the following criterial should lululemon consider when selecting a target market? A. The age of different market segments B. The disposable income of each group of consumers C. The competing brands also selling athletic wear and their target markets D. None of the above should be considered when selecting a target market E. A, B, and C should be considered when selecting a target market

E. A, B, and C should be considered when selecting a target market

introduction stage (PLC)

a new product is first distributed and made available for purchase

decline stage (PLC)

a product's sales fade away

maturity stage (PLC)

a product's sales growth slows or levels off

growth stage (PLC)

a product's sales start to climb quickly

positioning statement

a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

ingredient branding

a type of branding in which branded materials become "component parts" of other branded products (ex. tide + downy)

personal factors (influential purchasing factor)

age, occupation, lifestyle, personality, economics

category expansion

applying an existing brand name to a new product in a different product category (ex. nike line of cars)

line expansion

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category (ex. coke, diet coke, cherry coke)

brand expansion

extending an existing brand name to new product categories (ex. bic lighter, pencils, razor)

five types of expansion

line expansion, brand expansion, cobranding, ingredient branding, licensing

theory of reciprocity

people feel obliged to give back to others (ex. "get a shot, give a shot")

theory of likeability

people prefer to say yes to people they like

theory of authority

people will follow credible, knowledgeable experts (ex. doctors having certificates in office)

theory of consensus

people will look to the behaviors of others to determine their own actions

three influential purchasing factors

personal, situational, social

positioning

the marketer's efforts to stake out a unique and favorable "territory of the mind" in the target customer's mind

cobranding

the practice of using the established brand names of two different companies on the same product (ex. oreo flavored jello)

why would a company choose to focus on one group of customers versus another? why not just try to sell to whomever they can?

ultimately, each company must identify the parts of the market that it can serve the best

market differentation

what we do to make our offering different (and better than) the competing offerings; gives a reason to buy OUR product over our competitors