Marketing Test 2

Breaking bulk

wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers.

____ probe a bit more deeply by testing consumer beliefs or feelings about a product before and after being exposed to messages about it.

Attitudinal measures

Step 5: Choose the Media

Media planning is a problem-solving process for getting a message to a target audience in the most effective way. Planning decisions include audience selection and where, when, and how frequent the exposure should be. Thus, the first task for a media planner is to find out when and where people in the target market are most likely to be exposed to the communication. This is called an aperture, the best "window" to reach the target market.

Messages can be blocked by noise, which is anything that interferes with effective communication. ____ can occur at any stage of the communication.

Noise

____ is how visible a new product and its benefits are to others who might adopt it.

Observability

____ is the ease of sampling a new product and its benefits.

Trialability

____ tests by telephone survey or personal interview whether a person remembers seeing an ad during a specified period of time without giving the person the name of the brand.

Unaided recall

Step 4: Pretest What Will Be Said

Advertisers try to minimize mistakes by getting reactions to ad messages before they actually place them. This is called pretesting. Pretesting goes on in the early stages of a campaign and centers on gathering basic information that will help planners be sure they've accurately defined the product's market, consumers, and competitors.

____ is nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience.

Advertising

Step 2: Establish Advertising Objectives

Advertising objectives should be consistent with the overall communications plan. Advertising objectives will generally include objectives for both the message and the budget.

____ uses the name of the brand and sometimes other clues to prompt answers.

Aided recall

____ is the extent to which a new product is consistent with existing cultural values, customs, and practices.

Compatibility

____ is the degree to which consumers find a new product or its use difficult to understand.

Complexity

Step 3: Design the Ad

Creative strategy is the process that turns a concept into an advertisement. The goal of an advertising campaign is to present a series of messages and repeat it to a sufficient degree to meet the desired objectives.

____ is the process whereby a receiver assigns meaning to a message. Marketers hope that the target consumer will decode the message the way they intended.

Decoding

___ provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer.

Distribution channels

____ is the process of translating an idea into a form of communication that will convey the desired meaning.

Encoding

Many marketing experts believe that integrating all forms of marketing communications is essential for successful marketing. ____ is the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences.

Integrated marketing communications (IMC)

____ means developing and implementing a process to ensure that the firm always has sufficient quantities of goods available to meet customer's demands.

Inventory control

____ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime. With CRM, a customer's lifetime value is identified and is the true goal, not an individual transaction.

Lifetime value of a customer

Understanding people's needs is an even more complex task today because technological and cultural advances in modern society have created a condition of ______. This condition occurs when people's diverse interests and backgrounds divide them into numerous different groups with distinct needs and wants. Because of this diversity, the same good or service will not appeal to everyone.

Market Fragmentation

____ includes the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.

Order processing

In ____, marketers use a variety of sources to come up with great new-product ideas that provide customer benefits and that are compatible with the company mission. These ideas can come from customers, salespeople, service providers, etc. Research is often conducted to come up with new product ideas.

Phase 1: idea generation

In ____, ideas are expanded into more complete product concepts. When screening, marketers and researchers examine the chances that the product concept might achieve technical and commercial success. Estimating technical success is assessing whether the new product is technologically feasible. Estimating commercial success is deciding whether anyone is likely to buy the product.

Phase 2: Product Concept Development and Screening

In the third phase, marketers must identify the target market, estimate its size, and determine how the product can be positioned to effectively address the target market's needs. This stage includes planning for pricing, distribution, and promotion expenditures both for the introduction of the new product and for the long run.

Phase 3: Marketing Strategy Development

A ____ is conducted to find out if a product can be a profitable contribution to the organization's product mix. Questions to be considered include, how much potential demand is there for the product and does the firm have the resources that will be required for successful development and introduction of the product?

Phase 4: Business Analysis

In ____, a firm's engineers work with marketers in refining the design and production processes.

Phase 5: Technical Development

In ____, the firm tries out the complete marketing plan—the distribution, advertising, and sales promotion—but in small geographic areas that are similar to the larger market it hopes to enter.

Phase 6: Market Testing

____ means the launching of a new product, and it requires full-scale production, distribution, advertising, and sales promotion. A launch requires planning and careful preparation. A launch involves a huge element of risk.

Phase 7: Commercialization

____ means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition. Developing a positioning strategy entails gaining a clear understanding of the criteria target consumers use to evaluate competing products and then convincing them that your product will meet those needs. Positioning can be done in many ways.

Positioning

____ means conducting research on consumers' responses to advertising messages they have seen or heard.

Posttesting

____ is the value that customers give up or exchange to obtain a desired product. Payment may be in the form of money, goods, services, favors, votes, or anything else that has value to the other party.

Price

____ has many meanings. In some cases, product quality means durability. Some product objectives focus on quality or the ability of a product to satisfy customer expectations—no matter what those expectations.

Quality

____ is the degree to which a consumer perceives that a new product provides superior benefits.

Relative advantage

Product Factors Affecting the Rate of Adoption

Relative advantage, compatibility, complexity, trialability, observability.

____ is the process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristic. ____ is often necessary in both consumer and industrial markets.

Segmentation

____ is the management of flows among firms in a supply chain to maximize total profitability. The flows include physical flows of goods as well as flows of information about the goods.

Supply chain management

The following is a list of the major categories of media.

Television, Radio, Newspapers, Magazines, Directories, Out-of-home media (blimps, transit ads, billboards, etc.), Internet Advertising

The ____ of the product life cycle is characterized by a decrease in product category sales. Although a single firm may still be profitable, the market as a whole begins to shrink, profits decline, there are fewer variations of the product, and suppliers pull out. In this stage, there are usually many competitors, with none having a distinct advantage.

The Decline Stage

In the ____, sales increase rapidly while profits increase and peak. Marketing's goal is to encourage brand loyalty by convincing the market that this brand is superior to others. In this stage, marketing strategies may include the introduction of product variations to attract market segments and increase market share.

The Growth Stage

In the ____, customers get the first chance to purchase the good or service. During this early stage, a single company usually produces the product.

The Introduction Stage

The ____ of the product life cycle is usually the longest. Sales peak and then begin to level off and even decline while profit margins narrow. Competition grows intense when remaining competitors fight for their share of a shrinking pie. Price reductions and reminder advertising may be used to maintain market share. Sales are often to replace a "worn-out" item or to take advantage of product improvements. During the maturity stage, firms will try to sell their product through as many outlets as possible because availability is crucial in a competitive market.

The Maturity Stage

Step 1: Identify the Target Audience

The best way to communicate with an audience is to understand as much as possible about them and what turns them on and off. The target market is often identified from research related to the client's segmentation strategy.

The ____ is the physical good or the delivered service that supplies the desired benefit. The ____ also includes the unique features of the product, such as its appearance or styling, the package, and the brand name.

actual product

The ____ is the actual product plus other supporting features such as warranty, credit, delivery, installation, and repair service after the sale. Adding these supporting features to a product is an effective way for a company to stand out from the crowd.

augmented product

The difference between a supply chain and a channel of distribution is the number of members and their function. A supply chain is broader and consists of those firms that supply the raw materials, component parts, and supplies necessary for a firm to produce a good or service plus the firms that facilitate the movement of that product to the ultimate users of the product. The last part—the firms that get the product to the ultimate users—is the ____.

channel of distribution

In the ____, a message is transmitted through some medium from a sender to a receiver who (we hope) is listening and understands the message. The message is designed to capture attention and relate to needs. The communication model explains how ideas are translated into messages and transmitted from the marketer (the source) to the consumer (the receiver) who (we hope) understands what the marketer intended to say.

communications model

When a firm focuses its efforts on offering one or more products to a single segment, it is using a concentrated targeting strategy. A ____ is often useful for smaller firms that do not have the resources or the desire to be all things to all people.

concentrated strategy

The ____ consists of all the benefits the product will provide for consumers or business customers. A benefit is an outcome that the customer receives from owning or using a product.

core product

Ideally, marketers should be able to define segments so precisely that they can offer products and services that exactly meet the unique needs of each individual or firm. A ____ is common in industrial contexts in which a manufacturer often works with one or a few large clients and develops products and services that only these clients will use.

custom marketing strategy

Today many highly successful marketing firms embrace ____ programs that allow companies to talk to individual customers and adjust elements of their marketing programs in light of how each customer reacts to elements of the marketing mix.

customer relationship management (CRM)

A company that chooses a ____ develops one or more products for each of several customer groups with different product needs. A ____ is called for when consumers are choosing among brands that are well known in which each has a distinctive image in the marketplace and in which it's possible to identify one or more segments that have distinct needs for different types of products.

differentiated targeting strategy

____ describes how the use of a product spreads throughout a population. After months or years spent developing a new product, the real challenge to firms is getting consumers to buy and use the product and to do so quickly to recover the costs of product development and launch.

diffusion

Many firms have automated this process through ____ systems. An ERP system is a software solution that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and trans¬portation. Data is entered once and then shared and linked throughout the organization.

enterprise resource planning (ERP)

To complete the communications loop, the source receives ____ from receivers. These reactions to the message help gauge the effectiveness of the message so that the marketer can fine-tune it.

feedback

From a marketing perspective, a new product or ____ is anything that customers perceive as new and different. Innovations may be cutting-edge; may provide benefits never available before; or may simply be an existing product with a new style, in a different color, or with some new feature.

innovation

____ is the moving of products into, within, and out of warehouses. Once in the facility the goods may be handled over a dozen separate times. Procedures that limit the number of times a product must be handled decrease the likelihood of damage and reduce the cost of materials handling.

materials handling

Marketers place a great deal of emphasis on ____, the process of designing, managing, and improving the movement of products through the supply chain.

logistics

A ____ specifies the exact media to use for the campaign as well as when and how often the message should appear. The ____ outlines the planner's best estimate of which media will be most effective in attaining the advertising objective(s) and which specific media vehicles will do the most effective job.

media schedule

The ____ is the communications vehicle used to reach members of a target audience. This vehicle can be television, radio, a magazine, a billboard, and so forth. Ideally, the attributes of the product should match the ____.

medium

The ____ is the actual communication going from sender to receiver. It must include all the information necessary to persuade, inform, remind, or build a relationship. ____ may include both verbal and nonverbal elements and must be carefully constructed so that they can connect with a wide variety of consumers or business customers.

message

Five logistics functions

order processing, warehousing, materials handling, transportation, inventory control

How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a ____, which is a vivid way to construct a picture of where products or brands are "located" in consumers' minds.

perceptual map

The delivery of goods to customers involves ____, which refers to the activities used to move finished goods from manufacturers to final customers. ____ activities include order processing, warehousing, materials handling, transport¬ation, and inventory control.

physical distribution

Consumers often use price to make inferences about the quality of a product. In fact, marketers know that price is often an important means of communicating not only quality but also image to prospective customers. The image --enhancement function of pricing is particularly important with ____, which have a high price and appeal to status-conscious consumers.

prestige products (or luxury products)

A ____ is everything that a customer receives in an exchange. A product is made up of the core product, the actual product, and the augmented product. Marketers need to consider how to satisfy customers' wants and needs at each of these three levels.

product

____ is the process by which a consumer or business customer begins to buy and use a new good, service, or idea.

product adoption

The ____ is a useful way to explain how product features change over the life of a product. Product marketing strategies must evolve and change as they continue through the product life cycle.

product life cycle

A ____ is a firm's total product offering designed to satisfy a single need or desire of a group of target customers. The number of separate items within the same category determines the length of the line.

product line

A firm's ____ is its entire range of products. In developing a product mix strategy, planners usually consider the width of the product mix, that is, the number of different product lines produced by the firm. By developing several different product lines, firms can reduce the risk associated with putting all their eggs in one or too few baskets. Normally, firms develop a mix of product lines that have some things in common, be it distribution channels or manufacturing facilities.

product mix

The communication elements, that the marketer controls, are called the ____. These elements are personal selling, advertising, sales promotion, public relations

promotion mix

Typically, a company's research-and-development department will develop one or more physical versions or ____ of the product, which may be evaluated by potential customers.

prototypes

Creating assortments

providing a variety of products in one location so that customers can buy many different items from one seller at one time.

Communication cannot occur unless a ____ is there to get the message. The receiver can be any individual or organization that intercepts and interprets the message. Assuming that the customer is paying attention, the meaning of the message is interpreted in light of that individual's unique experiences.

receiver

A ____ is a profile or description of a "typical" customer in that segment. A ____ might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.

segment profile

In each case, the marketer must decide on one or more useful _____, that is, dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences.

segmentation variables

Historically, marketers have measured success in a product category by their share of market. Because it is always easier and less expensive to keep an existing customer than to get a new customer, CRM firms focus on increasing their ____, not share of market.

share of customer

The ____ is the organization or individual sending the message.

source

The ____ encompasses components external to the firm, including all activities that are necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer.

supply chain

In targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm's ____.

target market

Marketers select a _____ in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments.

target marketing strategy

Logistics decisions take into consideration the modes of ____ and the individual freight carriers a firm needs to use to move products among channel members.

transportation

An ____ is one that appeals to a wide-spectrum of people. If successful, this type of operation can be very efficient, especially because production, research, and promotion costs benefit from economies of scale—it's cheaper to develop one product or one advertising campaign than to choose several targets and create separate products or messages for each. The company must be willing to bet that people have similar needs or differences among them that are trivial.

undifferentiated targeting strategy

The ____ concept is a way of looking at how firms deliver value. Companies deliver value by coordinating a range of activities that result in delivering a product or service to the customer.

value chain

A ____ should satisfy the following requirements: • Are members of the segment similar to each other in their product needs and wants and, at the same time, different from consumers in other segments? • Can marketers measure the segment? • Is the segment large enough to be profitable now and in the future? • Can marketing communications reach the segment? • Can the marketer adequately serve the needs of the segment?

viable target segment

____ means storing goods in anticipation of a sale or transfer to another member of the channel of distribution. ____ enables marketers to provide time utility to consumers by holding on to products until consumers need them.

warehousing