marketing- chapter 7

a business will do well when consumers perceive the attributes of its product as being

close to the consumer's ideal image.

what is the definition of direct competition?

competition in a market with businesses that offer the same type of product or service

what are the three major positing strategies?

consumer perceptions competitors in the marketplace changes in the business environment

which three things typically affect the selection of a poising strategy?

consumer perceptions competitors in the marketplace changes in the business environment

age, income, education, and gender are examples of:

demographics

what are the two major types of competition strategies businesses use?

direct vs. indirect price vs. nonprice

what is the definition of mass marketing?

directs a company's marketing mix at a large and heterogenous group of consumers

what is the definition of benefit segmentation?

divides consumers into groups depending k. specific values or benefits they expect or require from the use of a product or service

what is the definition of geographic segmentation?

dividing consumers into markets based on where they live

true or false: a negative effect of competition is that consumers usually end upping higher prices for products and services.

false

true or false: because businesses using the marketing concept thoroughly understand the needs of target market, they have little need to gather information about competitors.

false

true or false: the most important influence on a company's positing decision should be the actions of competitors.

false

true or false: all market segments present a market opportunity.

false (need to be substantial, available, etc.)

what is the definition of product usage?

how frequently consumers use products and the quantity of product used

when a supermarket offers prepared meals for consumers to purchase on the way home from work, restaurants would view this as:

indirect competition

what are 2 ethical situations?

information gathered by purchasing g and analyzing a competitor's products information gathered from a survey of a competitor's customers

what is an unethical situation?

information gathered from searching the trash of a competitor

marketing _____________ is the process of gaining competitive market information.

intelligence

why do industry associations distribute information that can be used competitively against their own members?

it pushes the industry to make improvements to their functions, thus growing the industry

a mass market is __________ than a market segment.

larger

what is the difference between market potential and market share?

market potential is the total revenue that can be obtained from a market segment while market share is the portion of the total market potential that each company expects in relation to its competitors

why do businesses that believe in the marketing concept use market segmentation rather than mass marketing?

market segmentation is more specific; it takes the 4 Ps and matches them with a specific group of consumers (better understanding of customer)

what is the definition of market opportunity?

new markets as well as ways to improve a company's offerings in current markets; identified markets with excellent potential based on careful research

what is the definition of indirect competition?

occurs when a business competes with other companies offering products that are not in the same product category but satisfy similar customer needs

from a marketing perspective, what other considerations (besides TV viewership) might enter into any decision as to which city a league might expand to?

other teams in market population- can ppl make it to games? personal income- can they afford tickets? fan base- are they involved? (buy mercy, attend games, etc)

what is the definition of positioning strategy?

outlines how a company will present its product or service to the consumer and how it will compete in the marketplace with other businesses offering similar products and services

what is the definition of psychographics?

people's interest and values

the market ____________ is the total revenue that can be obtained from the market segment.

potential

which basis or bases for positing are illustrated by an online investment brokerage that promotes inexpensive stock trades?

price and quality

the newspaper ads featuring weekly specials at supermarkets are examples of:

price competition

this does not affect positioning strategy:

pricing

what are the five types of information that businessss need to know about their competitors?

pricing strategies distribution channels product/service strategies promotional strategies competitive market position

when pork developed an image as "the other white meat" the method of positing was:

product classification

when the dairy industry runs ads showing famous athletes with milk mustaches, what positing strategy is it employing?

product user- athletes and famous people

which of the marketing mix elements can business change to react to changes by a competitor?

promotion

what 6 benefits do consumers derive from competition among businesses?

reasonable/better prices product improvements new product ideas product variety convenience product quality

what is the definition of price competition?

rivalry among businesses on the basis of price and value

which three things are a typical business response to competition?

search for new product ideas improve product quality and customer service identify additional market segments

why should businesses be cautious when using competitive positing?

•they shouldn't base their positioning solely in the actions of their competitors •people's perceptions are based on price

if the market potential for gasoline sales in one community is $10,385,990 and one convenience store has a market share of 8%, the value of its gasoline sales is

$830,879.20 ($10,385,990 x .08)

what does competitors in the marketplace address?

addresses how the company views others (4 Ps are planned with an eye on the competition)

what does consumer perceptions address?

addresses how the customer views the product and company's position their products to appeal to those views

what does changes in the business environment address?

addresses new products, changing consumer needs, new technology, negative publicity, and resource availability

another name for a product feature is an ____________.

attribute

which basis or bases for positing are illustrated by a sport utility vehicle with a luxury car interior?

attribute

what are the six common bases for positing?

attribute price and quality use or application product user product classification competitor

__________ segmentation is based in the value customers expects to receive from using a product or service.

benefit

what is the definition of non-price competition?

business emphasizes factors of its marketing mix other than price; deemphasizes price by developing a unique offering that meets an important customer need

what is the definition of demographics?

the descriptive characteristics of a market such as age, gender, income, etc.

what is the definition of consumer perceptions?

the images consumers have of competing goods and services in the marketplace

what is the definition of market share?

the portion of the total market potential that each company expects in relation to its competitors

what is the definition of market segmentation?

the process of dividng a large group of consumers into subgroups based on specific characteristics and common needs

what is the definition of market potential?

the total revenue that can be obtained from a market segment

what is the definition of market position?

the unique image of a product or service in a consumer's mind relative to similar competitive offerings

what might a company want to position its product as lower quality?

too appeal to customers who don't want quality, and just want a throw away product

what are some of the best sources of marketing intelligence?

trade shows buy and analyze competitors' products customer records (habits) internet 3rd party information

true or false: an example of a cha he in competitive position is the entry of a new competitor into the market.

true