Marketing Test 2

individual brand

A category of brands in which different brands are used for products owned by one company. jello, classico

inseparable

A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable.

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Service Gaps Model

A managerial tool designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy.

psychographic segmentation

A method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.

Example of geographic segmentation

A national grocery store chain such as Safeway or Kroger runs similar stores with similar assortments in various locations across the United States. But within those similar stores, a significant percentage of the assortment of goods will vary by region, city, or even neighborhood, depending on the different needs of the customers who surround each location.

Behavioral Segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

example of benefit segmentation

Although all movies may seem to provide the same service—entertainment for a couple of hours—film producers know that people visit the theater or rent films to obtain a vast variety of benefits, and market them accordingly

quick response (QR) inventory system

An inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it; see also just-in-time (JIT) inventory system.

heterogeneity

As it refers to the differences between the marketing of products and services, the delivery of services is more variable. The more humans are needed to provide the service

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation.

Benefit

Example of psychographic segmentation

BuzzFeed's segmentation strategy is based on both consumers' behaviors and their interests.

Example of Product Mix

Daimler AG, the company that owns Mercedes-Benz,

Example of Product line

Daimler's product lines (brands) for consumers include, for example, Mercedes-Benz cars, Mercedes-AMG cars, smart cars, and Mercedes-Benz vans and camper vans.

Firms with products in the ________ stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.

Decline

type of segmentation

Geographic, Demographic, Psychographic, Benefit, Behavioral

Product line

Group of associated items, such as those that consumers use together or think of as part of a group of similar products.

Example of demographic segmentation

Kellogg's uses age segmentation for its breakfast cereals: Coco Loops, Froot Loops, and Cocoa Frosties are for kids; Corn Flakes and Special K are for adults.

brand awarness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Product Breadth

Number of product lines offered by a firm; also known as variety. [depict just four of the lines offered by Daimler AG.]

Which element of the marketing mix specifically deals with supply chain management?

Place

________ in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.

Power

unsought products

Products or services consumers either do not normally think of buying or do not know about. Because of their very nature, these products/services require lots of marketing effort and various forms of promotion.

shopping products

Products or services for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances. [luxury cars, legal or medical professionals, or designer apparel, including specialty watches,]

convenience products

Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase.

specialty products

Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

example of specialty product

Road bike enthusiasts, like those interested in the Trek Madone, devote lots of time and effort to selecting just the right one.

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

Test Marketing

demographic segmentation

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

geographic segmentation

The grouping of consumers on the basis of where they live. [state, city, zip code]

Product Depth

The number of categories within a product line. [AG clearly maintains the most products under its Mercedes-Benz line of cars, and it adds more as needed to appeal to various consumers.]

innovation

The process by which ideas are transformed into new products and services that will help firms grow.

brand equity

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

diffusion of innovation

The theory surrounding the diffusion of innovation helps marketers understand the rate at which consumers are likely to adopt a new product or service.

example of convenience product

They are frequently purchased commodity items, usually bought with very little thought, such as common beverages, bread, or soap.

fulfillment center

Warehouse facilities used to ship merchandise directly to customers.

What type of transactions (B2B and B2C) occur between players within the supply chain?

When Lenovo sells computers to a university or business, it engages in a business-to-business (B2B) transaction, but when it sells to students or employees individually, it is a B2C (business-to-consumer) operation.

example of shopping product

When people need new sneakers, for instance, they often go from store to store shopping—trying on shoes, comparing alternatives, and chatting with salespeople. [furniture, apparel, fragrances, appliances, and travel.]

example of unsought products

You must not have heard yet of HeatMax HotHands Hand Warmers, air-activated packets that provide warmth for up to 10 hours. Do you have an internship in a less developed country and your regular insurance cannot give you the coverage you may need in case of an emergency? You now can turn to a Medex insurance policy

distribution center

a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists

What is service-product continuum

a spectrum of what is considered to be a service from pure service ot pure good - most offerings lie somewhere in the middle

brand licensing

an agreement whereby a company permits another organization to use its brand on other products for a licensing fee

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?

associated services

The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.

assurance

What makes a brand?

brand name, URLs, logos and symbols, characters, slogans, jingles/sounds

manufacturer brands (national brands)

brands owned and managed by the manufacturer[are owned and managed by the manufacturer.]

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed

Why do firms create new products?

changing customer needs, market saturation, managing risk through diversity, fashion cycles, improving business relationships

voice-of-customer (VOC) program

collects customer inputs and integrates them into managerial decisions

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

concentrated

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are ________ goods.

convenience

flow of information

customer to store, store to buyer, buyer to manufacturer, store to manufacturer, store to distribution center, manufacturer to distribution center and buyer

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.

differentiated targeting

Along the service-product continuum, which of the following would be considered the most service dominant?

doctor office

The diffusion of innovation curve begins with innovators. Who follows that group?

early adopters

pioneers (breakthroughs)

establish a completely new market or radically change both the rules of competition and consumer preferences in a market. has the advantage of being first movers

One of the potential benefits to a firm of introducing new-to-the-world products or services is

establishment of a completely new market

When Walmart relies on its experience and knowledge to decide how to market a product without giving the supplier much of a say in the matter, this is an example of

expertise power

A(n) ________ is used in the shipment of products directly to customers.

fulfillment center

Best Life Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using ________ segmentation.

geodemographic

benefit segmentation

groups consumers on the basis of the benefits they derive from products or services.

family brand

he individual brands benefit from the overall brand awareness associated with the family name. [Kraft Foods also uses its family brand name prominently on its cheese, pasta, and condiment brands (e.g., Kraft Macaroni & Cheese, Kraft Singles, Kraft Mayo).]

example of behavioral segmentation

health care companies and governments can target people experiencing acute illness like the flu or COVID-19 based on their usage of a smart thermometer.

Power

in marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distributions.

importance of marketing channel/ Supply Chain Management

in the right quantities, to the right location. at the right times

When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.

inseparable

What is a service

intangible offering that involves a deed, performance, or effort that cannot be physically possessed

A company's product mix consists of

its various product lines.

Which of the following groups are included in the diffusion of innovation curve?

late majority

Just-in-time (JIT)

management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; also known as quick response (QR) inventory system in retailing.

co-branding

marketing two or more brands together on the same package, promotion, or store. enhance perceptions of quality link between brand

strategic relationship

mutual trust, open communication, common goals, interdependence, credible commitments

Del Monte, Nike, Pepsi, KitchenAid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.

national

brand loyalty

occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category

A ________ is often used to illustrate the position of a firm's products or brands in consumers' minds.

perceptual map

standards gap

pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets.

A ________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

product mix

product mix The complete set of all products offered by a firm.

consumer products

products and services used by people for their personal use

retailer/store brands (private-label brands)

products developed by retailers and available only from that retailer

Venicia is assessing market growth, market competitiveness, and market access for each segment she has identified. Venicia is assessing the ________ of each potential market segment.

profitability

zone of tolerance

refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service

communication gap

refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises

knowledge gap

reflects the difference between customers' expectations and the firm's perception of those customer expectations

brand extension

same brand name in different product line

line extension

same brand name within the same product line

Stores like Home Depot and Costco act as wholesalers when they

sell to contractors or restaurant owners

perishable

services cannot be stored for later use

Types of Products

specialty, shopping, convenience, unsought

delivery gap

the difference between the firm's service standards and the actual service it provides to customers

brand assoication

the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, a slogan, or a famous personality. ["Like a good neighbor, State Farm is there,"]

perceived value

the relationship between a product's or service's benefits and its cost. Customers usually determine the offering's value in relation. [retailers have created retailer/store brands, such as Target's A New Day for women and Goodfellow & Co. for men, to create well-designed pieces at Target-level prices]

intangible

they cannot be touched, tasted, or seen like a pure product can.

Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.

zone of tolerance