Marketing EXAM 2 (SUMMER)
Techniques For Grabbing Consumers' Attention
-Doubling the size of an ad -Using certain colors or graphics -Developing unique packaging -Custom advertising
The three major types of vertical marketing systems are corporate, contractual, and
administered
In the hierarchy of effects, the final stage is known as
adoption
Posttests
after it has been shown to the target audience to determine whether it accomplished its intended purpose.
Multichannel Marketing
also called omnichannel marketing, is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
Logan turned around and left the boutique after she saw the price of a simple lightweight cotton blouse was $80. Though it was the first item she looked at, she doubted she could afford anything in the store. A product used in this way is known as a(n)__________ item.
benchmark
In the new-product development process, the __________ stage assesses the total "fit" of the proposed new product with the company's mission and objectives—from whether the product or service can be economically produced to the marketing strategy needed to have it succeed in the marketplace.
business analysis
Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. She considers herself an expert; she knows all about the various manufacturers, the types of products they sell, and even how consumers use these items. She is responsible for what to order, how much to order, and how to price these products in the store. Arianna is engaged in __________ for the store.
category management
Consumers often view ________ shopping as less convenient because of lack of parking, higher crime rates, and exposure to the weather.
central business district
Repositioning
changes the place a product occupies in a consumer's mind relative to competitive products.
growth stage
characterized by rapid increases in sales.
Tylenol products have extensive instructions for users to prevent accidental overdose and associated liver function complications. This is an example of which type of benefit that packaging can provide?
communication benefits
After reading the daily newspaper, the restaurant owner of Zefferelli's Tower of Pizza said, "I see that the owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll have to match his efforts by running our own ad the day after tomorrow." Based on this statement, what promotional budgeting technique is the Zefferelli's restaurant owner most likely using?
competitive parity budgeting
Pretests
conducted before the advertisements are placed in any medium
N.W. Ayer
conducted the first organized marketing research project in 1879
Off-peak Pricing
consists of charging different prices during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service.
Conscious Mind
consists of everything inside of our awareness. It is the aspect of mental processing that we can think and talk about in a rational way.
Unconscious Mind
consists of feelings, thoughts, urges, and memories outside of our conscious awareness. It continues to influence our behavior and experience, even though we are unaware of these underlying influences.
Marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
Sales Quota
contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
When it was introduced, Jergens Ultra Healing Extra Dry Skin Moisturizer was an example of a
continuous innovation
The Coalition of Independent Music Stores, a group of sixty prominent independent record stores across the United States, is a way for these stores to strengthen themselves with tactics such as cooperative advertising. This form of ownership is known as a(n)
contractual system.
According to experts studying services, the ________ should be intentional, planned, and consistent so that every performance is similar, differentiated from other services, relevant, and valuable to the target market.
customer experience
One of the biggest problems an online retailer faces is
customers' tendencies to get to the checkout and leave the website without concluding the purchase.
Frequently, a product enters the __________ stage of its product life cycle not because of any wrong strategy on the part of companies, but because of environmental changes.
decline
As consumer demand for new homes increases, appliance manufacturers and building material suppliers may experience an increase in demand for their products, which is an example of
derived demand
Fitness trackers are in the growth stage of the product life cycle. A manufacturer selling one of these devices would most likely use advertising to
differentiate one brand of device from another.
Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for __________ in the global market
direct marketing
In a strategy known as ________, GE sells its large appliances directly to home and apartment builders, but uses retail stores, including Lowe's home centers, to sell to consumers.
dual distribution
A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Which of the following is the most likely source of that influence?
economic power
Cooperative Advertising.
encourage both better quality and greater quantity in the local advertising efforts
The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies?
finding new users
Logistics
focus on getting the right amount of products to the right place at the right time at the lowest possible cost.
At the Rio Olympics in 2016, members of the U.S. Women's National Team were among the first to use Nike's new lighter soccer cleats that allow for more control of the ball. The cleats also help wick away mud and grass. Shortly after the games, retailers were able to sell the same cleats, allowing them to offer which utility?
form
Public Relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stock-holders, suppliers, employees, and other public's about a company
Consumer products are classified based on the attributes used in making the purchase decision, the effort spent by the consumer, and the
frequency of purchase
Apple's iPad is considered a ________ because it can be touched and its features can be seen and heard.
good
During which stage of the product life cycle does a company need to focus on the differentiation of its brand from competitors, leading to an improved version or new features being added to the original design?
growth
Which of the following is among the six criteria most often mentioned as important in selecting a good brand name?
have no legal or regulatory restrictions
Retailing Mix
includes activities related to managing the store and the merchandise in the store. the retailing mix is similar to the marketing mix.
Retailing
includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
Services are
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
Skimming or penetration pricing are appropriate pricing strategies during the __________ stage of a product's life cycle.
introduction
Interactive Marketing
involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind of amount of information received from the seller.
Product Line
is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.
Advertising
is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
Personalization
is the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking them to request additional information on the telephone or through a website. In terms of direct marketing, this is known as
lead generation
Adding a wholesaler to the marketing channel for consumer products is most common for
low-cost, low-unit value items.
A marketing channel
makes possible the flow of products and services from a producer, through intermediaries, to a buyer.
At which stage in the product life cycle would a company's promotional objective most likely be to remind buyers of the product's existence?
maturity
Presweetened breakfast cereals would most likely be in the __________ stage of the product life cycle.
maturity
Georgina is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to pair with her company's line of food condiments, so she worked with students at a local culinary school to generate recipe ideas. This is an example of
open innovation
Dynamic pricing
practice of changing prices for products and services in real time in response to supply and demand conditions.
Trends among category killers such as office supplies (Staples) and electronics (Best Buy) include moving to smaller stores and ________ to compete with online retailers.
price matching
Retail Pricing
prices for merchandise, retailers must decide on the markup, markdown, and timing for markdowns.
Communication
process of conveying a message to others, and it requires six elements; a source a message, a channel of communication, a receiver, and the processes of encoding and decoding.
Retail Life Cycle
process of growth and decline that retail outlets, like products, experience.
Decoding
process of having the receiver take a set of symbols, the message, and transform the symbols into an idea.
Reverse Logistics
process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.
Over Taker
processes routine orders for products that were already sold by the company.
Direct Channel
producer and ultimate consumers deal directly with each other. many products and services are distributed this way.
introduction stage
product is introduced to its intended target market. during that period, sales grow slowly, and profit is minimal.
Axe Anarchy Bodywash, a men's personal care product, is an example of a
product item
There are two general types of franchises: business-format and __________ franchises.
product-distribution
When choosing a marketing channel and intermediaries, marketing executives typically consider, among other things, which will
provide the best coverage of the target market.
Which element of the promotional mix has the inherent weaknesses related to the difficulty in getting media cooperation?
public relations
When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ strategy.
pull
De-marketing
reducing consumer demand for a good or service to a level that the firm can supply
Process
refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered.
The retailing mix includes store location, merchandise, and which two other elements?
retail communication and retail pricing
__________ includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
retailing
Hewlett-Packard's recycling service for computers and printers is available today in more than 73 countries, regions, and territories. Hewlett-Packard has recycled over 2 billion pounds of used electronic products and supplies to be refurbished for resale or donation or for recovery of materials. Hewlett-Packard is practicing
reverse logistics
The McDonald's Monopoly game is an example of which type of promotion?
sales promotion
Consumer-oriented Sales Promotions
sales tools to support a company's advertising and personal selling.
Customer Service
satisfy users in term of time, dependability, communication, and convenience.
Ideally, before a new product is developed, a firm should have a precise protocol, which includes which of the following?
specific customers' needs, wants, and preferences
Which of the following occurs during the planning stage of the promotion decision process?
specify the objectives
In a _____________ test market, a company chooses test-market cities that are demographically representative of markets targeted for the new product, and sells the product to distributors, wholesalers, and retailers, just as it would do for other products.
standard
Products that the consumer does not know about or knows about but does not initially want are referred to as
unsought products
GUM Soft Picks were introduced as an alternative to flossing to reach and remove food and plaque between teeth. Because the product requires a difference technique, this company would most likely face a(n) __________ barrier with new users.
usage
Trade-Oriented Sales Promotions
used to support a company's advertising and personal selling directed to wholesalers,distributors, or retailers.
Product Placement
uses a brand-name product in a movie, TV show, video game, or commercial for another product.
Behavioral Targeting
uses information provided by cookies for directing online advertising.
When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men's "personal-care powerhouse." The ads that P&G developed shed the older-man image, and the message is now targeted at the 18- to 34-year-old age group. In terms of the communication process, the __________ would decode the message.
younger-men market segment
BCG Matrix
-A market share/market growth matrix that plots market share against market growth potential
Consumer Decision Process
-Awareness of a gap between the existing situation and a desired situation -Gathering information about the attainment of a desired state of affairs -Consumer evaluates the evoked set of options -The consumer narrows the alternatives down to one -Post-purchase evaluation - Buyer feels either: satisfied or dissatisfied
Strategic Business Unit (SBU)
-Can be a single product or brand -Has its own managers, resources, objectives, and competitors -Pursues its own distinct mission and develops its own plans independently - They help focus the attention of company managers
Factors Affecting Consumer Behavior
-Cultural -Social -Personal -Psychological -Buyer
Interpersonal Determinants of Consumer Behavior
-Culture -Subculture -Different types of reference groups -General social influence -The Asch phenomenon -Social pressure -Opinion leaders
Pricing Strategy (Marketing Mix)
-Deals with methods of setting profitable and justifiable prices -Subject to regulation and public scrutiny -Decisions made for other marketing mix variables may effect pricing decisions
Types of Competition
-Direct: among marketers and similar products -Indirect: businesses that don't necessarily sell the same products but offer different alternatives to satisfying the same customer need -This among all firms that are fighting for the same type of consumer. All firms compete for a limited number of dollars that consumers can or will spend
Reference Group (Membership Social Groups)
-Everyone belongs to multiple social groups -Direct impact of these groups: Every group establishes certain norms of behavior the group deems appropriate for its members. -Indirect impact of these groups: Members desire to strengthen their position in the group.Advices provided by the group is perceived as being truthful
Reference Group (Aspirational Social Groups)
-High profile groups/persons: we don't personally know these people, but we admire them. -Individuals who aspire to membership in a group may adopt its standards of behavior and values
Personal Determinants of Consumer Behavior
-Information Processing -Conscious Mind -Unconscious Mind -Affect as Information -Motivation -Maslow's Hierarchy of Needs -Perception -Perceptual screens Techniques for grabbing consumers' attention
Structure of the Market
-Monopoly: market structure in which a single seller dominates the market of a good or service for which buyers can find no close substitute -Antitrust Laws: designed to prevent restraints on trade, such as business monopolies -Oligopoly: Few number of sellers in an industry with high start-up costs which keep out new competitors
Types of Primary Research
-Observation ex: traffic counts, tv ratings -Surveys ex: focus group interviews, telephone and online surveys -Controlled Experiments ex: test market
General Social Influence
-Online reviews -Impact of the crowdedness of the environment/store on consumers' thoughts and behaviors: As the environment becomes more crowded, people automatically become more safety-oriented, and indeed more sensitive to risks in general. -Consumers often modify their responses, consciously or subconsciously, when surrounded by others with conflicting opinions.
4 Step Pyramid of Social Responsibility (Top to Bottom)
-Philanthropic: be a good corporate citizen (Contribute resources to the community. Improve the quality of life) -Ethical: be ethical (Obligation to do what is right, just, and fair. Avoid harm) -Legal: obey the law (play by the rules) -Economic: be profitable (the foundation on which all others rest)
Different Types of Data
-Primary -Secondary
Marketing Mix
-Product -Distribution -Price -Promotion
Perceptual Screens
-The mental filtering processes through which all inputs must pass -Consumers respond selectively to messages that break through this
Social/Cultural Environment
-The relationship between the marketer, society, and culture -Marketers must be sensitive to demographic shifts and changing values, because they represent opportunities and threats.
Seniors
65 or older High discretionary income Spend money conservatively but indulge in luxury Not likely to be the first to try new products
80/20 principle (Praedo's law) (Segmentation by usage rates)
80 percent of a product's revenues come from 20 percent of its customers.
Percentage of Internet B2B sales
91% -- cuts operating costs by processing through e-commerce
How is customer service related to logistics management?
A firm must drive down logistics costs as long as it can still satisfy customer requirements.
Research Design
A master plan or model for conducting research selection of respondents importatn
Research Design
A master plan or model for data collection Important considerations -Does the research measure what it intends to measure? -Primary vs. secondary data -Selection of respondents
Which of the following is not a factor that would be considered noise in the communication process?
A message has been repeated very frequently on radio and television.
Interpretive Method
A researcher observes a customer or group of customers in their natural setting. Interprets their behavior based on an understanding of the social and cultural characteristics of that setting
Straight Rebuy
A routine purchase that may have been made many times before and are red zone decisions
Market Decline
A stage in the PLC when sales are decreasing throughout and new products replace the old (Harvesting/Deletion)
Market Growth
A stage of new competition when the PLC industry sales grow faster but industry profits rise and then start falling (Market Development)
Market Maturity
A stage of the PLC when industry sales rise at a slower rate of increase and competition gets tougher (Product Development)
Introduction
A stage of the PLC when sales are low as when a new idea is first introduced to the market (Market Penetration)
Hypothesis
A statement about the relationship of the variables as to why you're doing research
Which of the following statements regarding Internet marketing channels is most accurate?
A unique feature of these channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers.
Esteem Needs
A universal desire for a sense of accomplishment and achievement
Brand extensions
Attaching a popular brand name to a new product in an unrelated product category.
Extending the Product Lifecycle: Increasing the number of users.
Attracting new customers who have not previously used the product.
________ do not take title to merchandise, but unlike agents, they usually have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task.
Brokers
Product
Bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs. Symbolic attributes: Logo, Shape of product.
B2B Marketing
Business to Business
Label
Carries an item's brand name or symbol, the name and address of the manufacturer or distributor, information about the product's composition and size, and recommended uses.
Caterpillar vs John Deer
Caterpillar makes construction equipment and only sells equipment to businesses (B2B) John Deer sells to consumers and businesses
Brand Licensing
Ch 13 slide 22. Ex disney folders
Marketing Research
Collecting and using information for marketing decision making
Promotion Strategy (Marketing Mix)
Communication link between sellers and buyers. Firms may communicate messages: -directly through salespeople -indirectly through advertisements and promotions
Market Development
Concentrates on finding new markets for existing products.
Political/Legal Environment
Consists of laws that require firms to operate under competitive conditions and to protect consumer rights Ex: Federal Trade Commission (FTC) which has the broadest regulatory powers over marketing
Brand recognition
Consumer awareness and identification of a brand.
Brand preference
Consumer choice of a product on the basis of a previous experience.
Limited Problem-Solving
Consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand
Routinized Response Behavior
Consumer makes many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands
Recovery (Business Cycle)
Consumer purchasing power increases -offering superior service at lower prices, holding down costs because demand is uncertain
Brand insistence
Consumer refusal of alternatives and extensive search for desired merchandise.
Prosperity (Business Cycle)
Consumer spending power is high; buyers are willing to spend more for premium versions of well-known brands. -Offering new products, increasing promotional efforts, and expanding distribution.
Depression (Business Cycle)
Consumer spending sinks to its lowest level
Consumer Behavior (Economist)
Consumers are "rational," that is they rationally weigh the costs and benefits of every possible item and choose the item that maximizes their satisfaction (utility) -Ex:A U of A student is trying to decide what courses he should take, in order to get the highest possible grade point average.
Insistence
Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand
Insistence Goods
Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand
Marketing Research
Data mining to understand your target market, is the root of all product development to meet trends in the industry
Product Strategy (Marketing Mix)
Deciding what goods or services the firm should offer to a group of customers: -customer service -package design -brand names, trademarks, patents, and warranties -lifecycle of a product -product positioning -new-product development
Joint Demand
Demand for a product that depends on the demand for another product used in combination with it ex. if housing construction slows the drop in the supply of lumber will affect the demand for concrete The demand for one resource affects the demand for another
Inelastic Demand
Demand throughout an industry will not change significantly due to a price change ex. if the price of lumber drops construction companies will not buy more unless the overall demand for housing also increases
Volatile Demand
Derived demand creates volatility in business market demand ex. demand for gas pumps may decrease if demand for gas slows down
Product Life Cycle
Describes the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline.
Actualization Needs
Desire to realize potential and find fulfillment. Expressing your unique talents and capabilities
Market Segmentation
Dividing a larger target market into subsets of consumers. These subsets have common needs the goal is to design a marketing strategy to fill their needs
Data Mining
Efficient way to sort through huge amounts of data and make sense of it. Focuses on identifying relationships that are not obvious to marketers
Physiological Needs
Essential requirements for survival ex. food water shelter clothing
Screening
Evaluating and eliminating new product ideas for their potential marketability against some set of standards
Safety Needs
Financial or lifestyle security, protection from physical harm, and avoidance of the unexpected
Safety Needs
Financial or lifestyle security. protection from physical harm, avoidance of the unexpected ex. insurance
Limited Service Research Supplier
Firm that specializes in a number of activities such as conducting field interviews or performing data processing but not sophisticated moduling
Intensive Distrubtion
Firm tries to place its products and services in as many outlets as possible.
Backshoring
Firms return much of their offshore work to the U.S. to save money and improve customer service efficiency.
Product diversification
Focuses on developing entirely new product for new markets.
Target Market
Group of people a company believes would be the most active purchaser of its goods and services or most attractive
Market
Group of people with sufficient purchasing power, authority, and willingness to buy.
Cognitive Dissonance
Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase
Installations
Important capital items such as buildings, land rights, and major equipment
Extending PLC
Increase frequency of use Increase number of uses Find new users Improve existing products
Market penetration
Increase sales of existing products in existing markets.
Form of Ownership
Independent Retailer - Corporate chain - Contractual systems
Response
Individual's reaction to an set of cues and drives
The Asch Phenomenon
Individuals conform to majority rule even if that majority rule goes against their beliefs Peer pressure can change opinions even of obvious facts -- think jurors Can affect many purchase decisions
Social Pressure (Asch Phenomenon)
Individuals conform to majority rule, even if that majority rule goes against their beliefs -The Asch phenomenon can be a big factor in many purchase decisions -From major choices such as buying a car to deciding whether to buy a pair of shoes on sale
Idea Generation
Involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results
AIO Statements
Items on lifestyle surveys that describe various activities, interests, and respondents' opinions.
Accessories
Items such as chairs, desks and projectors in a classroom
Which of the following statements regarding direct marketing is most accurate?
Many customers believe direct marketing saves time, is entertaining, and offers privacy.
Marketing Stratagies
Market Penetration Market Development Product Development Diversification
Purchasing and Negotiation Process
More formal and professional than consumer purchasing process because B2B involves more complex decisions Supplier who serve B2B markets must work with multiple buyers Purchasers require a longer time frame
Why Study Consumer Behavior (Customer)
Need to make a lot of decisions on a daily basis: - In almost any shopping context they choose from a wide array of products differing on several dimensions. - Understanding consumer behavior will make us better consumers
Psychological needs
Needs concerning essential requirements for survival, such as food, water, shelter, and clothing
Extending the Product Lifecycle: Finding new users.
New applications extend a products lifecycle.
Product mix width
Number of product lines a firm offers.
Universal product code (UPC)
Numerical bar code system used to record product and price information.
Primary Data
Observed or collected directly by the company for a specific marketing research project
Second Mover Strategy
Observing the innovations of the first movers and then improving on them to gain advantage in the marketplace
Consumer Attitudes
Person's enduring favorable or unfavorable evaluations, emotions or actions toward some object or idea Components: Cognitive Affective Behavioral
Positioning
Placing a product at a certain point or location within a market in the minds of perspective buyers.
Product Positioning
Placing a product at a certain point or location within a market in the minds of prospective buyers. Distinguishes a company's offering from its competitors
Merchandisers
Plan floor space and secure needed products at the best possible prices and selection
Service Encounter
Point at which the customer and service provider interact.
Product Differentiation
Position products to appeal to distinct consumer groups/segments because of product uniqueness and benefits
Rejection
Potential customers will not buy the product brand unless its image is changed to meet their expectations
Secondary Data
Previously published information: -less expensive -less time consuming
Test marketing
Prior to mass market roll out, assessing the viability of the other marketing mix variables including promotion, distribution requirements, and pricing structure. The product is not tested
Exploratory Research
Process of discussing a marketing challenge with informed sources both within and outside the firm and examining information from secondary sources
Exploratory Research
Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources -Customers -Suppliers -Retailers -Sales force Using internal data -Sources of internal data are sales records, financial statements
Family Lifecycle
Process of family formation and dissolution.
Sampling
Process of selecting survey respondents (research participants)
Component Parts
Processes expense items that become part of a finished product and may be finished goods or materials needing further processing
Marketing Mix: 4P's
Product Place Price Production
Consumer products (B2C)
Product destined for use by ultimate consumers.
Business products (B2B)
Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.
Convenience Goods
Products a consumer needs but is not willing to spend much time shopping for. Red zone buy Staple Goods Impulse Goods Unplanned Goods Emergency Goods
Introductory stage
Products in this stage might bring new technology to a product category; Technical problems and financial losses are common.
New Unsought Goods
Products offering really new ideas that potential customers don't really know about yet
Regular Unsought Goods
Products or services that consumers may need but don't regularly think about their acquisition until a time of recognized need occurs
Unplanned Goods
Products purchased because of merchandising or opportunity and will be consumed or used at some point in the future
Consumer Products
Products purchased by the ultimate consumer.
Shopping Goods
Products that a consumer feels are worth the time and effort to compare with competing products Heterogeneous Homogeneous
Specialty Goods
Products that a consumer really wants Preference Insistence
Staple Goods
Products that are bought often, routinely and without much thought
Observation Methods
Researchers view the overt actions of subjects being studied ex. testing soft drinks, evaluating usage of kitchenware
Extended Problem-Solving
Results when brands are difficult to categorize or evaluate -Typical of high-involvement purchases
Levels of Problem Solving
Routine Limited Extensive
Idea Generation
Seeking ideas supporting new product marketing and new product ideas can come from any and many sources
Family brand
Single brand name that identifies several related products; Tylenol.
Personal Selling Process
Six stages: Prospecting - preapproach - approach - presentation - close - and follow up
Services
Specialized services that support operations of a firm, these are variables
Goods-services continuum
Spectrum along which goods and services fall according to their attributes, from pure good to pure service.
Differentiated Marketing
Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.
Goods
Tangible products that customers can see, hear, smell, taste, or touch.
Strategic Window
Temporary periods when key requirements of a market and a firm's particular competencies best fit together -requires quick action
Social/Belonging Needs
The desire to be accepted by people and groups important to you
Target Market
The group of people (or organizations) toward whom the firm directs its marketing efforts: -specific demographic groups -specific geographical regions -specific organizations
Modified Rebuy
The process where some review of the buying situation is done and especially when a new supplier is evaluated for existing needs and are yellow zone decisions
Conspicuous Consumption
The spending of money on and the acquiring of goods and services to publicly display group membership.
Consumer Behavior
The study of individuals groups or organizations and the processes they use to satisfy needs. The blending of psychology, sociology, social anthropology, marketing, and economics. Assessing the influences on the consumer from all sides The process through which buyers make purchase decisions
Quantitative Forecasting
Use of statistical forecasting techniques ex. test market, trend analysis
Qualitative Forecasting
Use of subjective techniques to forecast sales ex. executive opinion, sales force composite
Trade dress
Visual components that contribute to the overall look of a brand. Visual components may be related to color selections, sizes, package, label shapes, etc.
Product Positioning Strategy
What do customers think of different brands relative to an IDEAL brand and other competing within a product category?
Limited Problem Solving
When a consumer is willing to put some effort into deciding the best way to satisfy a need. Yellow zone
New-Task Buying
When and organization has a new need and the buyer wants a great deal of information and are blue zone decisions
Routine Problem Solving
When consumers regularly select a particular way of satisfying a need when it occurs. Red zone
Maslow's Hierarchy of Needs (Top to Bottom)
-Self-Actualization -Esteem -Love/Belonging -Safety -Psychological
Commercialization
A product is ready for full-scale marketing.
Trialability
A purchasing or consumption event that provides first time or limited experience with a service, product, or brand, the ability to try makes the consumer more inclined to test out because the risk is minimized
Hypothesis
A tentative claim about the cause(s) of the "problem" (A tentative answer to the question) -can include "a cause and an effect" or a numerical prediction -can address an existing phenomenon or a future one
Corporate Social Responsibility
Accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being -Ex: Green Marketing- manufacturing and selling products that can be used and disposed of with minimal impact on the environment
Brand Equity
Added value that a respected, well-known brand name gives to a product in the marketplace. Built sequentially on four dimensions: Differentiation, Relevance, Esteem, Knowledge.
Differential Marketing
Aims to create a highly specialized product or service that appeals to a smaller group of people
Evoked Set
Alternatives that a consumer actually considers in making a purchase decision
Marketing Mix Strategy
Blending the 4 strategy elements to fit the needs and preferences of a specific target market
Baby Boomers
Born between 1946-1964 Popular segment because their money Control 80% of personal financial assets
Generation X
Born between 1968-1979 Largest generation demographic Family oriented, well educated, and optimistic
Product Mix
Consists of all of the product lines offered by an organization.
Recession (Business Cycle)
Consumers focus on basic, functional products -lowering prices, increasing promotions that includes special offers
Product positioning
Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands.
Extending the Product Lifecycle: Increasing frequency of use.
Convincing current customers to buy a product more frequently boosts total sales even if no new buyers enter the market.
Recognition
Customers acknowledge the brand for identification processes
Eight-Second Rule
Customers will abandon their efforts to enter and navigate a website if download time exceeds:
Quality of Services
Determined by 5 variables: Tangibles, Reliability, Responsiveness, Assurances, Empathy.
Line extension
Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
Is Consumer Behavior difficult or easy to predict?
Difficult
Pull Strategy
Directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. seeing demand from ultimate consumers, retailers order the product from wholesalers.
Push Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Psychographic segmentation
Division of a pop into groups that have similar attitudes, values and lifestyles (VALs). 6 types.
Product Related Segmentation
Division of a population into groups based on their relationships/ aspirations to a product
Psychographic Segmentation
Division of a population into groups that have similar attitudes values and lifestyles
Product-related Segmentation
Division of a population into homogeneous groups based on their relationships to a product.
Geographic Segmentation
Division of an overall market into homogeneous groups based on their locations; Marketers look at: Economic variables, Geographic indicators, Migration patterns. Pay close attention to fast growing states. (GIS) = Geographic information system.
Demographic Segmentation
Division of an overall market into homogenous groups based on: Gender and age, Income and occupation Education, Sexual orientation, Household size, Stage in the family life cycle.
Segmenting by brand loyalty
Ex frequent purchaser program.
Service Quality
Expected and perceived quality of a service offering.
Supplies
Expense items that do not become part of a finished product, these are not a part of the finished product
Total logistics Cost
Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.
Market Testing
Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
Economic Environment
Factors that influence consumer buying power and marketing strategies
Evaluative Criteria
Features that a consumer considers in choosing among alternatives
Nonrecognition
Final customers do not recognize the brand even though branders may use the brand name for identification and inventory control
Subcultures
Groups with their own distinct modes of behavior -Can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution -Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow
Diversification
Harvest and delete and focus on improving the best sellers in the market
Relative Advantage
Having a product that is better than others
Primary Data
Information collected for a specific investigation
Relative advantage
Innovation that appears far superior to previous ideas.
Decline stage
Innovations or shifts in consumer preferences bring about an absolute decline in industry sales.
Consumer Behavior (Psychologist)
Many times, we behave in an irrational and inconsistent manner when making decisions
Core Regions
Marketers draw 40 to 80 percent of sales from region.
Full Service Research Suppliers
Marketing research organizations that offer all aspects of the marketing research process
Commercialization
Mass market rollout of the product and developing distribution systems to ensure adequate supportive product flow to the market
RFID tags
May replace some of the functions of UPC codes. Reduce labor costs and improve inventory control.
Perception
Meaning that a person attributes to incoming stimuli gathered through the five senses Results from the interaction of two types of factors: -Stimulus factors -Individual factors
Benchmarking
Measuring quality by comparing performance against industry leaders. Requires two types of analyses: internal and external (Read CHP 12 Slide 24-25).
Complexity
More complex, the slower it moves
Why Study Consumer Behavior (Marketer)
More effective marketing strategies, by understanding: -Customers' thoughts and emotions -How customers are influenced (e.g. family, friends, media) -How customers process information and make decisions?
Brand
Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from competitors' offerings.
Captive brands
National brands sold exclusively by a retail chain Example: Target's sale of products by Michael Graves.
Extending the Product Lifecycle: Changing package sizes, labels, or product quality.
New packaging and labels with updated images and slogans can help revitalize a product.
Idea generation
New-product development begins with ideas from many sources.
Levels of Brand Familiarity
Nonrecognition Recognition Preference Insistance Rejection
Product mix length
Number of different products a firm sells.
Applying the Consumer Products Classification System
Obstacle to implementing this system results from the suggestion that all goods and services must fit within one of the three categories: Convenience goods, Shopping goods, Specialty goods.
Product development
Offering new or improved products for present markets
Offshoring
Out of US; took services to other countries.
Secondary Data
Previously published information Internal Data + External Data
Diffusion process
Process by which new goods or services are accepted in the marketplace.
Trademark Searches
Product names must be carefully trademark searched prior to introduction into the market because products extend globally more today than ever before. What you say in one country doesn't mean the same in another country
Generic products
Products characterized by plain labels, no advertising, and the absence of brand names.
Impulse Goods
Products that are bought quickly because of a felt need
Emergency Goods
Products that are purchases immediately when the need is great
Unsought Goods
Products that consumers do not want yet or even know they can buy New Unsought Goods Regular Unsought Goods
Syndicated Services
Provides standardized data on a periodic basis to its subscribers
Motivation
Purchase behavior is driven by the desire to fill a perceived need. -Need : An imbalance between the consumer's actual and desired states: food,water,warmth, love,status -Once the need is satisfied, this decreases. -Marketers attempt to make a need "felt"
Reinforcement
Reduction in drive that results from a proper response
Factors Affecting the Adoption Curve
Relative Advantage Complexity Compatibility Trialability Observability
Maturity stage
Sales of a product category continue to grow during the early part of this stage but eventually reach a plateau as the backlog of potential customers dwindles.
Growth Stage
Sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product.
Non-Probability Sample
Sample selected from among readily available respondents -Convenience sample -Quota sample
Probability Sample
Sample that gives every member of the population a chance of being selected -simple random sample -stratified sample -cluster sample
Product Line
Series of related products. Desire to grow.
Packaging
Serves three major objectives: Protection against damage (protect product), spoilage, and pilferage. Assistance in marketing the product. Cost effectiveness.
Which of the following statements concerning the pricing of services is most accurate?
Service pricing plays a role in balancing consumer demand for services.
homogeneous Goods
Shopping products the consumer sees as basically the same and wants the lowest price
Heterogeneous Goods
Shopping products the consumer sees as different and wants to inspect for quality and suitability
Individual brand
Single brand that uniquely identifies a product; go pro.
Development
Stage of the new-product process that turns the idea on paper into a prototype.
Adoption process
Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again: Awareness ->Interest ->Evaluation ->Trial -> Adoption/rejection.
Undifferentiated Marketing
Strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing.
Brand mark
Symbol or pictorial design that distinguishes a product.
Preference
Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience
Preference Goods
Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience
Micromarketing
Target potential customers at very narrow, basic levels.
Technological Environment
Technology leads to: -new products -improvements in existing products -better customer service -reduced prices
infomercials
Television advertising - program length advertisements that take a educational approach to communication with potential customers.
The Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their formative year; Ages 17 to 22.
Extensive Problem Solving
The type of problem solving consumers use for a completely new or important need- when they put much effort into deciding how to satisfy it. Blue zone
Brand Equity
Value of a brand's overall strength in the market place Differentiation Relevance Esteem Knowledge
Culture
Values, beliefs, preferences, and tastes handed down from one generation to the next -The broadest environmental determinant of behavior -sets boundaries (norms) for behaviors -characteristics may vary from both county to county and country to country
Product mix depth
Variations in each product that the firm markets.
Family Influences
Very important in consumer behavior. Family structure is changing to more single heads of households Children and Teenagers are a huge market that influence what their parents buy Growing influence because single parent households. Single parents are more likely to engage their children in purchasing decisions
multiproduct branding
a company uses one name for all its products in a product class.
Affect as information
-We tend to assume that our judgments reflect information about the object of judgment. -But...Being happy or sad influences the content and style of thought.
Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.
multichannel
Publicity
nonpersonal, indirectly paid presentation of an organization, product, or service. it can take the form of a news store, editorial, or product announcement.
Showrooming
occurs when a shopper visits a retail store to inspect merchandise but then purchases the merchandise online.
Decline Stage
occurs when sales drop.
Burlington Coat Factory and Ross stores offer customers the sport of searching the racks for great deals on brand-name products. Both retailers use a(n) __________ retailing strategy.
off-price
Scrambled Merchandising
offering several unrelated product lines in a single store.
private branding
often called private labeling or reseller branding, when it manufactures products but sells them under the brand name of a wholesaler or retailer.
Cross-Channel Shopper
online consumer who researches products online and then purchases them at a retail store.
exclusive distribution
only one retailer in a specific geographical area carries the firm's products. usually for specialty products or services.
Branding
organization uses a name, phrase, design, symbols, or combination or these to identify its products and distinguish them from those of competitors.
Charles C Parlin
organized the nation's first commercial research department at Curtis Publishing
Direct selling is likely to grow in markets
outside the United States.
The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as
people, physical environment, and process.
The promotional mix consists of communication tools that include advertising, public relations, sales promotion, direct marketing, and
personal selling
Which element of the promotional mix is characterized by a customized interaction that is extremely expensive but very persuasive and likely to yield immediate feedback?
personal selling
What is the promotional objective of the decline stage of the product life cycle?
phase out
Commercialization
positions and launches a new product in full-scale production and sales.
One step in evaluation of the promotion program is to
post-test the promotion.
Collaborative Filtering
process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
coupons
sales promotions that usually offer a discounted price to the consumer, which encourages trial.
Among recent retailing innovations is Zipcar. With this service, you sign up, receive a Zipcard, book online, walk to a car, scan your card across a reader on the windshield to open the doors, and drive away. This would be considered a __________ retailer.
self-service
hierarchy of effects
sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action.
Capacity Management
service component of the marketing mix must be integrated with efforts to influence consumer demand.
Inconsistency in services refers to the fact that
services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee
An important feature of supply chain management is its application of sophisticated information technology that allows companies to
share and operate systems for order processing, transportation scheduling, and inventory and facility management.
Sales Promotion
short-term inducement of value offered to arouse interest in buying a product or service.
Permission Marketing
solicitation of a consumer's consent (opt in) to receive e-mail and advertising based on personal data supplied by the consumer.
Sales plan
statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.
A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients. The division also deals with about 23,000 suppliers in nearly 100 countries. The individuals who monitor these transactions are engaged in
supply chain management.
Product Advertisements
take three forms; Pioneering (informational) , competitive(persuasive) , and reminder.
Integrated Marketing Communications
taking consumer expectations into consideration, IMC is a key element in a company's customer experience management strategy.
Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?
tattoos
brand equity
the added value a brand name gives to a product beyond the functional benefits provided.
Mass selling is
the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers.
Relationship Selling
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time.
FedEx provides next-morning delivery, which is considered an example of __________ utility.
time
institutional Advertisement
to build goodwill or an image for an organization rather than promote a specific product or service.
A ________ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
trademark
Ralston Purina offers super-premium dog foods based on "life-stage nutrition." The repositioning strategy Ralston Purina is using here is called
trading up.
As part of its ________ function, an intermediary such as a wholesaler performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.
transactional
Opinion Leaders
trendsetters who purchase new products before others in a group and then influence others in their purchases. Act as opinion leaders based on their knowledge of and interest in products
Personal Selling
two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. (usually face to face communication)
Form of ownership, level of service, and the ____________ are important ways that retail outlets can be classified.
type of merchandise line
Salesforce Automation
use of technologies to make the sales function more effective and efficient.
Supply Chain
used to create and deliver a product or service to consumers or industrial users.
According to the __________, retail stores start out simply and gradually add fixtures and more embellishments to their stores to increase the attractiveness for customers.
wheel of retailing
Market Modification
when a company tries to find new customers, increase a product's use among existing customers, or create new use situations.
maturity stage
where most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it.
A channel intermediary in the consumer market that sells to other intermediaries, usually retailers, is called a(n)
wholesaler
Ascribed Status
you are placed into a social status by an inherited position ex. Prince William + Queen Elizabeth
Achieved Status
you earn your social status by achieving ex. Bill Gates + Steve Jobs
Central to integrated marketing communications (IMC) is
a consistent message across all audiences.
Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.
a distinctive point of difference
Which of the following is considered a durable good?
a hand mixer
Brand Personality
a set of human characteristics associated with a brand name.
Channel Conflict
arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
Intel Core processors are purchased by Toshiba for its laptops, and are thus considered what type of business product?
components
Cookies
computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website.
Franchising is a variation of
contractual vertical marketing systems.
The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience is referred to as
customer service
Primary Demand
desire for the product class rather than for a specific brand, since there are few competitors with the same product.
Because soup consumption rises in the winter and declines during the summer, Campbell Soup Co. now advertises more heavily in warm months to encourage consumers to think of soup as more than a cold-weather food. It is primarily using which of the following market modification strategies?
increasing the product's use
Encoding
ins the process of having the sender transform an idea into a set of symbols.
Keith liked how the dry cleaner down the street washed and pressed his clothes, but he found the repeated phone calls from staff about his finished laundry annoying. He began to think of the whole place as annoying, which is a function of the __________ aspect of services.
inseparability
Choiceboard
interactive, internet-enabled system that allows individual customers to design their own products and services.
indirect channel
intermediaries are inserted between the producer and consumers and perform channel functions.
Retailer
intermediary who sells to consumers
Wholesalers
intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets
Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.
introduction
Which of the following is considered a part of total logistics cost, like transportation and order processing?
inventory
2 ways to change attitudes
+ Attempt to produce consumer attitudes that will lead to the purchase of existing products +Evaluate existing consumer attitudes and create or modify products to appeal to these attitudes** **Least costly!!!!
3 fastest growing subcultures
+African Americans +Hispanics +Asians
Components of the Learning Process
+Drive +Cue +Response +Reinforcement
Criteria for Effective Segmentation
+Must present measurable purchasing power and size +Must be sufficiently large to offer good profit potential +Must aim for segments that much its marketing capabilities +Must find a way to effectively promote and serve the market segment
Types of Primary Research
+Observational +Surveys +Controlled Experiments
Maslow's Hierarchy of Needs
+Physiological Needs +Safety Needs +Social/Belonging Needs +Esteem Needs +Actualization Needs
Social Classes -- W. Lloyd Warner
+Upper-Upper +Lower-Upper +Upper-Middle +Lower-Middle +Working Class +Lower Class Determined by family background, education, occupation, income, residence location
Core Values of the U.S.
- Importance of education, freedom, heath, volunteerism - Work ethic - Desire to accumulate wealth - Communicating with anyone, anytime, anywhere -Individualism, "making a difference"
Business Portfolio Analysis
-An evaluation of a company's products and divisions to determine the strongest and weakest -The analysis should fit the company's strengths and weaknesses to opportunities in the environment
Environmental Scanning
-Collecting external marketing environment information to identify and interpret potential trends -Trends represent significant opportunities or threats to the company
5 Environmental Dimensions
-Competitive -Political/Legal -Economic -Technological -Social/Cultural
Distribution Strategy (Marketing Mix)
-Consumers need to find their products in the proper quantities at the right times and places -Involves modes of transportation, warehousing, inventory control order processing, and selection of marketing channels -Some manufacturers sell their products directly to customers without using intermediaries -Technology has opened new channels of distribution in many industries
An antiques dealer buys a grandfather clock for $200. She sets the selling price at $350. When the clock doesn't sell after two months, she raises the price to $800 and moves the clock to her downtown store to appeal to a different market. The clock sells for $800 the next day. What is the maintained markup?
$600
Business Products
(also called B2B products or industrial products) are products organizations buy that assist in providing other products for resale.
Marketing Research Steps
1. Define the problem 2. Conducting exploratory research 3. Formulating a hypothesis 4. Creating a research design 5. Collecting data (primary and secondary) 6. Interpreting and representing the research information
Three Aspects of Product Life Cycle
1. Their length 2. The shape of their sales curves 3. the rate at which consumers adopt products
New-Product Process
1.New product strategy development 2.Idea generation 3.Screening and evaluation 4. Business analysis 5. Development 6. Market Testing 7. Commercialization
Six forms of Nonstore retailing
Automatic vending - Direct mail and Catalogs -Television home shopping - online retailing - Telemarketing - and Direct selling
Esteem Needs
A desire for a sense of accomplishment and achievement
Cue
An object or signal in the environment that determines the nature of the consumer's response to a drive
Agent or broker
Any intermediary with legal authority to act on behalf of the manufacturer
Undifferentiated Marketing
Appeals to a broad market base known as mass marketing ex. milk, gas, bag of ice
Opinion Leaders
Are more knowledgeable about a certain product or service than the average consumer. -Sometimes they purchase new products before others and influence others in their purchases -Examples: Celebrities with Chanel,Rolex
Engel's Laws
As household income increases: -A small percentage of expenditures goes for food. -Percentage spent on housing, household operations, and clothing remains constant. -Percentage spent on recreational and educational items increases.
Gap Analysis
Asks consumers to assess their expectations and experiences on dimensions of service quality.
Business Analysis
Assessing key potential performance factors including profit, margins, turnover, channels acceptance and product prototype development
Business analysis
Assessing the new product's potential market, growth rate, and likely competitive strengths.
The Product Mix
Assortment of product lines and individual product offerings.
Trademarks
Brand for which the owner claims legal protection.
Manufacturer's brand
Brand name owned by a manufacturer or other producer.
Private brands
Brands offered by wholesalers and retailers.
Types of products:
Business and consumer.
SWOT Analysis
Helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
Homeshoring
Hiring workers to do jobs from their homes.
New Product Development Process
Idea Generation Screening Business Analysis Test Marketing Commercialization
Compatibility
If compatible to life then it will be adopted
B-2-B Product Classifications
Installations Accessories Raw Materials Component Parts Supplies Services
FOUR I's of Service
Intangibility, Inconsistency, Inseparability, Inventory
Services
Intangible tasks that satisfy the needs of consumers and business users. Ex -> Warranty, Customer service.
Screening and Evaluation
Internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.
Cannibalization
Introducing a new product that adversely affects sales of existing products.
Product Life Cycle
Introduction Market Growth Market Maturity Market Saturation Market Decline
Product Development
Introduction of new products into identifiable or established markets.
Product Lifecycle
Introductory stage -> Growth stage -> Maturity stage -> Decline stage.
Just in Time Inventory
Inventory policies boost efficiency by cutting inventory and requiring vendors to deliver products in exact quantities and exact timing
Brand name
Part of a brand that can be spoken. Should give buyers the correct connotation of the product's image.
Strategic Alliance
Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market
Which of the following is the best example of a shopping product?
Patagonia jacket
Reference Groups
People such as family, friends, or celebrities: -Whose opinions are valued -To whom a person looks for guidance in his or her own behavior, values, and conduct -With whom a person has emotional connections
Consumer innovators (intro stage)
People who purchase new products almost as soon as the products reach the market.
First Mover Strategy
The company first to offer a product in a market place will be the long term market winner
Business Cycle
The cyclical 4-stage pattern that the economy has historically followed: -prosperity -recession -depression -recovery
Love/Belonging Needs
The desire to be accepted by people and groups important to the person
Relationship Experience
The level of usage of a service or product or brand that provides the consumer with want or need satisfying information
Observability
The more you see things the more they are internalized
Self-Actualization Needs
The need to realize our own potential, to achieve our dreams and ambitions. What a man can do, he must do
Saturation Point
The point in the PLC when sales have reached their peak and will soon begin to fall in sales decline (Product Development)
Research
The process of gathering information to learn about something that is not fully known.
Derived Demand
There is a direct link between demand for a company's output and its purchases ex. demand for a computer microchips is derived from demand for laptops
What do automatic vending, television home shopping, and direct selling have in common?
They are all forms of nonstore retailing.
Product mix decisions
To evaluate a firm's product mix, marketers look at the effectiveness of its depth, length, and width (look for gaps).
Test marketing
To verify that the product will perform well in a real-life environment.
Population
Total group of people a researcher wants to study
Market Development
Trying to increase sales by selling present products in new markets
Market Penetration
Trying to increase sales of a firm's present products in its present markets probably through a more aggressive marketing mix
Raw Materials
Unprocessed, natural or agricultural expense items such as logs, iron ore, wheat, and cotton that are moved to the next production process with little handling
When a manager at Jackie's Bar & Grill sent some of his wait staff home early on a slow Tuesday night, he recognized a need to manage his
idle production capacity
Google's driverless car is an extreme example of the complexity of which step of the new-product process?
development
Drive
fear, pride, greed, jealousy, hunger, thirst, comfort
Some well-known message problems have occurred when U.S. companies have taken their messages to cultures with different ________, resulting in misinterpretations.
fields of experience
Product Modification
involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.
Discontinuous Innovation
involves making the consumer learn entirely new consumption patterns to use the product.
Sales management
involves planning the selling program and implementing and evaluating the personal selling effort of the firm.
Product Item
is a specific product that has a unique brand, size, or price.
__________ begins with new-product purchases first by innovators, and then by early adopters
Diffusion of innovation
General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to China. This distribution arrangement is known as
a strategic channel alliance.
Nonprofit service organizations use them, but public service announcements (PSAs)
alone are not a good foundation because their timing and location are controlled by others.
Hotels or motels without dining facilities are good locations for
automatic vending machines.
Tiffany & Co., the exclusive jewelry retailer, uses ________ when it manufactures about half of the fine jewelry items for sale through its more than 250 specialty stores and boutiques worldwide.
backward integration
A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they
can help identify the strategic role the new product might serve in the firm's portfolio
Product line extensions are a form of which strategy?
multiproduct branding
Discount Fishing Tackle is a shop that carries a large selection of fishing rods and reels, bait, tackle boxes, waders, nets, and a few other fishing implements. Discount Fishing Tackle's breadth of product line would be described as __________ and its depth of product line would be described as __________.
narrow; deep
Looking to attract more millennial tourists, Discover Los Angeles, the city's tourism office, portrays its city as a hipster utopia in a new campaign. It released a 2-minute YouTube video that follows a young couple as they shop for vinyl, take pictures of their food, eat tacos from a food truck, and pose for selfies during a whirlwind day in the city. This ad campaign was an attempt to stimulate __________ demand
primary
