Marketing: Exam 2

Augumented Products

- Delivery and Credit - Installation - Warranty - After Sale-Service

Speciality Products

Are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort.

Unsought Product

Are consumer products that a consumer either does not know about or knows about but does not normally consider buying.

Shopping Products

Are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Consumer Products

Are products and services bought by final consumers for personal consumption.

What is positioning?

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Which of the following statements is true regarding costs?

Average cost tends to decrease with accumulated production experience.

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep​ monitoring, text​ notification, and wireless sync to their smart phone. In serving these two very different​ groups, Fitbit is using​ __________ segmentation.

Benefits Sought

Graphic Segmentation

Calls for dividing the market into different geographical units, such as nations, regions, states, counties, cities, or even neighborhoods.

Occasion Segmentation

Can help firms build up product usage.

A colleague wants to evaluate that attractiveness of a particular market segment. Which of the following would be good advice for your colleague?

Carefully consider the degree of competition and ease fo entry into the segment.

Positioning

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

Convenience Products

Consumer products and services that consumers usually buy frequently, immediately, and with minimal comparison and buying effort.

Charles Revson, who started Revion, once said "We sell hope." Revson was defining the _____________ of Revion cosmetics.

Core Customer Value

Fashion

Currently accepted or popular style in a given field. - formal business attire

Two external factors which must be considered in pricing decisions are

Demand and the nature of the market.

Marketing Strategy Development

Designing an initial marketing strategy for introducing this car to the market.

Product Concept

Detailed version of an idea stated in meaningful customer terms

Segmentation

Divide the total markets into smaller segments

Psychographic segmentation

Divides buyers into different segments based on lifestyle or personality characteristics.

Behavioral Segmentation

Divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.

Demographic Segmentation

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

Services

Form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Gender Segmentation

Has long been used in marketing clothing, cosmetics, toiletries, toys, and magazines.

Materials and parts, capital items, and supplies and services are groups of ______________ products.

Industrial

What are the four special service characteristics marketers must consider when designing marketing programs?

Intangibility, Inseparability, Variability, and perishability.

Predatory Pricing

Intention to put competitor out of Business

Product Idea

Is an idea for a possible product that the company can see itself offering to the market

Idea Generation

Is the Systematic search for new products.

Market Segmentation

Is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.

In determining product quality, what are the two dimensions of quality marketers must decide upon?

Level and Consistency

There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?

Lifestyle

Market-Skimming pricing

Many companies that invent new products set high initial prices to skim revenues layer by layer from the market.

Market Offering

Marketing mix planning begins with building an offering that brings value to target customers.

Most products today are in which stage of their product life cycle?

Maturity

Which Value Proposition is the most difficult to sustain in the long run?

More for less

Price is the only part of the marketing mix that

Produces Revenue

At which stage of the new product development process is a physical product first developed?

Product Development

According to the text, what are the three levels on which brands can be positioned.

Product attributes, desirable benefits, and beliefs and values

Benefit Segmentation

Requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?

Resellers, the government, and social concerns

Decline Stage

Sales may plunge to zero, or they may drop to a low level where they continue for many years.

Targeting

Select the segment or segments to enter

Product Bundle Pricing

Sellers often combine several products and offer the bundle at a reduced price.

Product Development

Shows whether the product idea can be turned into a workable product.

Which of the following statements regarding standard test marketing is correct?

Test marketing can be costly and delay commercialized of the product.

By-Product Pricing

The company seeks a market for these by-products to help offset the costs of disposing of them and help make the price of the main product more competitive.

Core Benefits

The fundamental product benefits that the customer is buying

Which of the following statements regarding socially responsible product decisions is correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

Pure Competition

The market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

Income Segmentation

The marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel have long used this.

Test Marketing

The stage of product and marketing programs that introduce more realistic marketing settings

Which of the following statements is correct regarding different types of markets?

Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.

What must companies do to create successful new products?

Understand its consumers, markets, and competitors and develop products that deliver superior value.

Variable Costs

Vary directly with the level of production

When NOT to test the market

When you are trying out new colors or new brand.

When to best test market

When you do not know how product the product is

location-based pricing

a company charges different prices for different locations, even though the cost of offering each location is the same

Price Elasticity

a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

Maturity Stage

a period during which sales increase at a decreasing rate. Lasts longer than the previous stages, and it poses strong challenges to marketing management.

Dynamic Pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations.

Fads

are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity - may be part of an otherwise normal life cycle, as in the case of recent surges in the sales of poker chips and accessories

Fixed Costs

are the costs that do not vary with production or sales level.

Total costs

are the sum of the fixed and variable costs for any given level of production.

Industrial Products

are those products purchased for further processing or for use in conducting a business.

Product

as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Actual Product

brand name, quality level, packaging, design, features

Captive-Product Pricing

companies that make products that must be used along with a main product

Social Marketing

consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being

Product from pricing

different versions of the product are priced differently but not according to differences in their costs

Growth Stage

in which the sales will start climbing quickly.

Product Life Cycle

introduction, growth, maturity, decline

Business Analysis

involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.

Differentiation

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

Competition-Based Pricing

involves setting prices based on competitors' strategies, costs, prices, and market offerings.

Cost-Based pricing

involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk

Product Concept

is a detailed version of the idea stated in meaningful consumer terms.

Product Quality

is one of the marketer's major positioning tools. Quality affects product or service performance; thus, it is closely linked to customer value and satisfaction.

Price

is the amount of money charged for a product or a service.

Brand Equity

is the differential effect that knowing the brand name has on customer response to the product or its marketing.

Brand Value

is the total financial value of a brand.

Product Line Pricing

management must determine the price steps to set between the various products in a line.

Age and Life-Cycle Segmentation

offering different products or using different marketing approaches for different age and life-cycle groups.

A product can also be

organization, person, place, social Marketing

Reasons for Product Failure

overestimated market size, poor design, incorrect positioning, overpriced, poorly advertised, high development costs, resistance from competition

Market-Penetration Pricing

setting a low price for a new product in order to attract a large number of buyers and a large market share

Retail Price Maintenance

tells channel partner what they have to sell their product for.

Segmented Pricing

the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.

Monopolistic competition

the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A range of prices occurs because sellers can differentiate their offers to buyers.

Oligopolistic competition

the market consists of only a few large sellers.

Pure Monopoly

the market is dominated by one seller. The seller may be a government monopoly, a private regulated monopoly, or a private unregulated monopoly. Pricing is handled differently in each case.

Service Profit Chain

which links service firm profits with employee and customer satisfaction