MKC1 Study Guide Flashcards Big Set
Disadvantages of Second Mover Strategy
- hard to get market share - hard to get brand loyalty as customers are already familiar with First Mover
What is FTC
- has broadest power to influence marketing activities - regulates unfair business practices - stops false & misleading advertising - regulates communication by wire, radio & tv
Attributes of the Specialty Consumer Product Category
- highly differentiated - limited channels - not substitutable by anything else Ex: Rolls Royce, OC Choppers, Lush Cosmetics
When is Market-Plus pricing used
- hot new products - when products appeal to lead users, early adopters, trendsetters
Advantages of Oral Media
- immediate feedback - interactive - non-verbal cues - express emotion
Benefits of strong market orientation
- improves market success - improves overall performance - positively impacts new prod dev and innovation - better understands customer experiences and buying habits - better equipped to design products of higher quality and meet customer requirements
Attributes of Growth Stage
- increasing sales and profits - more competitors in the market
Why Marketers Monitor the Technological Environment
- innovations give competitive edge - benefits society - may enhance customer service
How do you minimize filtering of your message by the receiver
- keep messages short - reduce # of layers to convey message (people) - focus on practical 'how to'
What tactics do companies use during Stage 1 of the PLC?
- low initial pricing - free samples or product trials - offer rewards to encourage repeat business
Attributes of the Convenience Consumer Product Category
- low involvement - low risk - easily available Ex: fast good
Disadvantages of Written Media
- not good for speedy feedback - lacks non-verbal cues - time / resources to create and distribute - elaborate documents req'd - skills in presentation & production
Behavioral Characteristics
- occasions - benefits - user status - usage rates - loyalty status
What does the Physical Distribution System involve
- order processing - inventory control - transportation and logistics - protective packaging & materials handling - warehousing - customer service
Disadvantages of Oral Media
- physically restrictive - no permanent record - reduced control of message - no way to reverse
What can a company do when substitutes enter market
- find a new market - change prices - compete in other ways
For which type of offering do customers generally spend time comparing features, prices, and other characteristics of various brands?
specialty offerings
For which type of offerings is building brand recognition and educating buyers about key product differences critical?
specialty offerings
Quota Sample
specifies the # and characteristics of people to contact - handpicked
SWOT analysis
An acronym for strengths, weaknesses, opportunities, and threats, the SWOT analysis is a tool that frames the situational analysis.
portfolio planning approach
An approach to analyzing various businesses relative to one another.
product-oriented
An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices.
situation analysis
An assessment of an organization's internal and external environments.
joint venture
An entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.
depth interview
An exploratory research technique of engaging in detailed, one-on-one, question-and-answer sessions with potential buyers.
What is projectve technique?
An exploratory research technique used to reveal information research respondents might not reveal by being asked directly.
projective technique
An exploratory research technique used to reveal information research respondents might not reveal by being asked directly.
service
An intangible component of an offering.
unsought offering
An offering consumers don't typically shop for until it is needed. Examples include funeral and towing services
shopping offering
An offering for which the consumer will make an effort to compare various firms' offerings and select a brand
specialty offering
An offering that is highly differentiated from other offerings and is designed to satisfy a similar need or want.
impulse offering
An offering that is purchased on impulse, without prior planning.
rearch design
An outline that specifies the research data to be gathered, from whom, how, and when the data will be analyzed once it has been obtained.
What is consumer insight?
An understanding of consumers that results when both quantitative and qualitative info are gathered about them.
consumer insight
An understanding of consumers that results when both quantitative and qualitative information are gathered about them.
What is the Product Strategies Matrix Called
Ansoff Matrix
sampling error
Any type of marketing research mistake that results because a sample was utilized.
Which of the following is true about convenience offerings?
Marketers of convenience offerings try to get these products in many locations.
green marketing
Marketing environmentally safe products and services in a way that is good for the environment.
vertical market managers
Marketing managers who oversee B2B products sold to a particular industry
How does marketing research differ from marketing intelligence?
Marketing research focuses on a specific problem at a specific time whereas marketing intelligence is gathered on an ongoing basis.
Stage 3 of PLC and attributes
Maturity Stage - sales mainly from repeat or replacement customers (as opposed to new customers) - competitor landscape has grown which slows sales growth - intense competition causes profits to fall - companies must aggressively differentiate in the market
physiological measurements
Measurements that record people's involuntary physical responses to marketing stimuli, such as an advertisement.
What are Product Lifecycle Extension strategies
Modify or improve product Find new uses for product Find new secondary markets
Non-personal selling techniques
Most commonly used - Ads - Product placement - Direct Marketing - PR - Viral / Guerilla Marketing
Market Development Product Strategy
New Market Existing Products
Primary Research Methods
Observations Surveys Controlled - experiements
diversification strategy
Offering products that are unrelated to other existing products produced by the organization.
Which consumer product category most dependent on brand and sellers' image?
Shopping and Specialty
Market-Plus pricing is also known as
Skimming
Define Data Mining.
The process of accessing different databases to get the right data to the right places for decision-making in marketing.
What is market segmentation?
The process of breaking down all consumers into groups of potential buyers with similar characteristics.
market segmentation
The process of breaking down all consumers into groups of potential buyers with similar characteristics.
What is Marketing research?
The process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems so as to improve a company's bottom line. Done on an as-needed or project basis, not on an ongoing basis. What a company has to resort to if it can't answer a question by using market intelligence, internal company data, or analytical software.
marketing research
The process of collecting, analyzing, and reporting marketing information that can be used to improve a company's bottom line.
data mining
The process of extracting information from large databases so as to uncover patterns and trends.
industrial espionage
The process of gathering corporate information illegally or unethically.
microtargeting
The process of gathering multiple sources of data available on people, everything from their tax and phone records to the catalogs they receive, so as to market to them.
What is microtargeting?
The process of gathering multiple sources of data available on people, everything from their tax and phone records to the catalogs they receive, so as to market to them. (It has ethical implications)
geocoding
The process of plotting geographic marketing information takes on a map.
data cleaning
The process of removing research data that have accidentally been duplicated (entered twice into the computer) or correcting data that have obviously been recorded wrong.
market research
The process of researching a specific market to determine its size and trends.
What is "Market" research
The process of researching a specific market to determine its size and trends. (Narrower activity)
proximity marketing
The process of segmenting buyers geographically and target them within a few hundred feet of a business businesses using wireless technology.
brand extension
The process of utilizing an existing brand name or brand mark for a new product category.
Define consumer behavior.
The reasons why—personal, situational, psychological, and social—people shop for products, buy and use them, and then dispose of them.
What is target market?
The select groups of people you sell to.
brand name
The spoken part of an identity used to describe of a brand.
family life cycle
The stages families go through over time and how it affects people's buying behavior.
total cost of ownership (TCO)
The total amount of time and money spent to acquire, use, and dispose of an offering.
What is non-verbal communication also known as
Time and space
convenience sample
Type of nonprobability sample that's drawn because it's readily available and convenient to do so.
Gender roles are more equivalent in the
US
What two countries have the greatest difference in culture and communication
US business and Asian businesses
What is the personal value equation?
Value = Benefits received − [Price + Hassle]
objectives
What organizations want to accomplish (the end results) in a given time frame.
divest
When a firm drops or sells a product or business.
harvest
When a firm lowers investment in a product or business.
cannibalization
When a new product takes sales away from the same company's existing products.
contract manufacturing
When companies hire manufacturers to produce their products in another country.
Take a look at the following survey item: Rate your satisfaction regarding the quality of Wendy's hamburgers and fries: _____ I am highly satisfied with their quality. _____ I am somewhat satisfied with their quality. _____ I am neither satisfied nor dissatisfied with their quality. _____ I am somewhat dissatisfied with their quality. _____ I am highly dissatisfied with their quality. Is there a problem with the wording?
Yes. This is a double-barreled item.
: Which marketing position is more likely to be found in consumer marketing companies than in the B2B environment?
a brand manager
What is the position found at the retail level at each store who is responsible for more than one manufacturer's offering of a product?
a category manager
14: Parkington Industries decides to launch its new product offering with a new advertising campaign. They contract with a well-respected advertising to develop the campaign. What have they purchased from the advertising agency?
a facilitating offering
What is another name for a sell-side Web-based auction?
a forward auction
three-way product classification system
a framework for classifying consumer products as either a convenience good, a shopping good, or a specialty good. Applying the categories helps to guide marketers in developing successful strategies.
Who is responsible for business decisions for a geographic region, a particular segment, or a channel of distribution?
a market manager
Which type of e-commerce Web site helps the seller get the highest price for its product?
a sell-side Web-based auction
A thirty-second "elevator speech" stating specific benefits of a product or service offering that it provides to a buyer is ________.
a value proposition
What is marketing?
"The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." (4 "p's = Product, Promotion, Place, Price)
What is Competitive Pricing
"in the ballpark" of the competition
Product Mix Width
# of product lines sold by the company
Product line depth
# of products in a product line
Name the 2 steps to take when determining strategic opportunities.
(1) Analyze recent past for developing trends (2) Predict the future based on emerging trends
Name the stages of Consumer Purchasing Process.
(1) Need Recognition, (2) Search for Product Info (3) Product Evaluation (4) Product Choice & Purchase, (5) Post purchase use & evaluation of product, (6) Disposal of product.
intranet
A private, internal Web site accessible only to a firm's employees.
Attributes of the Shopping Consumer Product Category
- consumers shop and compare - consumer make some effort to get best product for their needs - Ex: laptop, jeans, tv
What are the two elements of every marketing strategy?
(1) Product Strategy (2) Market Strategy -market penetration strategy- Selling more of existing products and services to existing customers. -product development strategy- Creating new products or services for existing markets.
In preparing a business case gather demographics and pyschographic data to get a clear picture of target market. Translate data into what two crucial descriptions.
(1) Purchase patterns description (2) Buying sensitivities description
Identify common types of positioning strategies:
(1) attribute or benefit- This is the most frequently used positioning strategy. (2) use or application- how the product will be used (3) User: (4) product or service class (5) Competitor (6) price or quality Bottom-line know what your customers want!
What is penetration pricing?
(AKA market minus) Offering low prices when first entering the marketing during the Introduction Stage
Maslow's Hierarchy of Needs
(Bottom Up - Pyramid) Physiological, safety Needs, Social Needs, Esteem Needs, Self Actualization.
Identify criteria for market segmentation
(a) Measurable purchasing power and size: The market should be sizeable enough to be profitable given your operating cost. (b) Good profit potential: The market should be growing and not saturated with competitors. (c) Able to serve the market segment: Either the market is already accessible or you can find a way to reach it. (d) Match with marketing capabilities: You might have a great idea to market home electronics to a large number of smaller market segments, but this can be prohibitively expensive. (e) Ability and resources to compete. (f) Consistent with firm's mission.
Ethical Issues for Place (distribution)
- exclusive territories - dumping - dealer rights - predatory competition
What is the difference between a business plan and a marketing plan?
- Business plan is a detailed plan setting out the objectives of a business, the strategy and tactics planned to achieve them, and the expected profits, usually over a period of three to ten years. - Marketing plan is a strategic plan at the functional level that provides a firm's marketing group with direction. the strategy for implementing the components of marketing: creating, communicating, delivering, and exchanging value.
Advantages of Written Media
- control and plan message - geographic dispersement - permanent record - minimize message distortment - avoid immediate interaction - control emotional aspects of communication
What forces does environment scanning evaluate?
- Economic - Political - Competitive - Legal / Regulatory - Technology - Socio-Cultural
Overcoming resistance
- express understanding - bring resistance into the open - evaluate others' objections fairly
Media Richness is medium's ability to
- convey message through more than 1 informational cue (visual, verbal, vocal) - facilitate feedback - establish personal focus
Advantages of Visual Media
- conveys complex ideas and relationships quickly - less intimidating than text heavy content - reduces burden on audience to figure out how pieces fit
Market Differentiated Pricing
- different prices by country - every market exchange rate differences - typically based on dynamic market conditions MOST COMMON
Disadvantages of Electronic Media
- easy to overuse - privacy risks - security risks - productivity concerns
Characteristics of Effective Communication
- factual - concise - clear - persuasive
Demographics
- age - gender - income - education - occupation - stage of family cycle
Ethical Issues for Promotion
- bait & switch ads - False/deceptive advertising - promotional allowances - bribery
Examples of unethical communication
- plagiarism - omitting essential info - selective misquoting - misrepresenting numbers - distorting visuals - failing to respect privacy or security needs
Ethical Issues for Product
- planned obsolescence - quality and safety - fair packing and security - pollution
Ethical Issues for Price
- price fixing - price discrimination - price increases - deceptive pricing
7 measures to help teams resolve conflict
- proaction - communication - openness - flexibility - fair play - alliance
Advantages of Electronic Media
- quick delivery - reach - persuasive power of multi-media - increases accessibility and openness in an org
Porters 5 Forces - Impact of Internet
- reduces barriers to entry - shifts greater power to end consumer - increases bargaining power of suppliers - blurs differences among competitors - creates substitute threats - alternatives and price comparisons more easily available
Disadvantages of Visual Media
- requires artistic and technical skills - time to create - more difficult to transmit and store
Standard Worldwide Pricing
- same price - all countries Uncommon used when consumers in all countries are aware of the products' price and can share other markets anyway
Factors considered in establishing target market
- segmentation - demographics - geography - psychological - behavioral
First Movers MUST
- show technological leadership - control its resources - control buyer switching costs
What are the advantages and disadvantages of being a second mover?
-Advantages: Ability to observe competitors' successes and failures. Lower risk in product development and less controversy. Revising rather than creating and competitor surprise, and stealing market share rather than creating it. -Disadvantages: Persuading customers to "switch", communicating your value add.
What is the difference between strategic and tactical planning?
-Strategic planning is the process of determining an organization's primary objectives and finding and implementing steps that will achieve the objectives. -Tactical planning is setting short-term actions that are needed to complete larger strategies.
What are the advantages and disadvantages of being a first mover?
-Three benefits (advantages) of being first: technology leadership, control of resources, and buyer switching costs. -Disadvantages: Later entrants can overcome advantages, must heavily entice customers to try new type of product (high education expense), some first movers may become complacent with changing customer needs.
Describe and give examples of the three primary research methods.
1) Observation = traffic controls, Nielsen TV ratings, Taping shopping habits, 2)surveys= Focus group interview, telephone survey, online survey , 3)controlled experiments= test market
Name the 4 general consumer offerings categories.
1. Convenience offerings: Low-priced, frequently purchased products and services that require little shopping effort. 2. Shopping offerings: An offering for which the consumer will make an effort to compare various firms' offerings and select a brand. 3. Specialty offerings: An offering that is highly differentiated from other offerings and is designed to satisfy a similar need or want. 4. Unsought offerings: An offering consumers don't typically shop for until it is needed. Examples include funeral and towing services.
What are the types of Research Design?
1. Exploratory research design 2. Descriptive research design 3. Causal research design (experiments)
Name the 4 elements of Relationship Marketing.
1. Gather Customer Info - (Demographics,purchase & lifestyle characteristics) 2. Analyze Data-modify marketing mix to deliver diff msg to individual cust's 3. Monitor Interactions- satisfaction/dissatisfaction, calc cost/profits for new cust's 4. CRM (Cust Relationship Mgmt) - sophisticated technology for intimate knowledge of cust's & their preferences.
What tactics can companies use during Stage 4 of PLC
1. Harvesting - reduce expenses to boost profits 2. Divesting - drop or delete product, sell to another company, reduce price to deplete inventory
Steps in planning a presentation
1. why does the company need to give the presentation 2. who is the audience and what do they need 3. if multiple audiences, is more than 1 presentation required 4. when communicating complex details, determine the best way to present information
EE's who experience constant barrage of email, text, IM and phone calls experience what drop in IQ
10%
Product Development Strategies
1. Market Penetration: increase sales of current products in existing mkts. 2. Mkt Development: expand sales of current products in new mkts. Est new distribution channels or promote new uses of product. 3. Product Development; introduce new product in established mkt. 4. Product Diversification: (most risky) new product in new mkts.
What characteristics make a good target market
1. Measurable & sufficient size 2. Measurable & sufficient purchasing power (aka potential profit) 3. Promotional effectiveness (promotional accessibility) 4. Match the marketing capabilities of the firm
What is the consumer buyer process
1. Need recognition 2. Search for product info 3. Product evaluation 4. Product choice and purchase 5. Post purchase use and evaluation of product 6. Disposal of product
3 levels of consumer problem solving
1. Routinized response behavior 2. Limited problem solving 3. Extended problem solving Refers to how complex the thought process is
What are the top 5 countries that have a penchant for bribery?
1. Russia 2. China 3. Mexico 4. India 5. Italy
Product development process.
1. generate ideas, 2. evaluate ideas, 3. conduct feasibility research, 4. develop product, 5. test product, 6. sell product.
Best approaches in addressing organizational conflict
1. have groups present their strongest case (instead of watering it down) 2. don't ignore small conflicts (as they tend to grow bigger)
How audience receives messages
1. senses presence of message 2. selects it from all other messages 3. perceive it as actual message
Fair Trade Laws
1930s - 1970s (now repealed) Allowed manufacturers to set / maintain a min price for their products
Environmental Scan
1st step in marketing strategy
Marketing Mix
4 P's Product Pricing Placement
How long can you have "new" on your product
6 months
New products that fail
80%
How much time do top mgrs spend communicating
85%
% of consumers who have better shopping experience when researched online first
90%
How would you describe first-mover strategy?
A Market innovator, not a follower- Corporate level strategy theorizing that being the first organization to offer a product in the marketplace will be the long-term market leader.
What is Market Orientation?
A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers.
tagline
A catchphrase designed to sum up the essence of a product.
feature
A characteristic of an offering
original equipment manufacturer (OEM)
A company that assembles and manufactures a product into its final form.
marketing plan
A document that is designed to communicate the marketing strategy for an offering. The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.
portfolio
A group of business units owned by a single firm.
product line
A group of offerings that serve similar needs and are sold under the same name.
focus group
A group of potential buyers brought together to discuss a marketing research topic with one another.
exploratory research design
A less-structured type of research design used to initially investigate a marketing research project that hasn't yet been defined well enough for an in-depth study to be conducted.
marketing research aggregator
A marketing research company that doesn't conduct its own research but instead buys it from other marketing research companies and then sells the reports in their entirety or in pieces to other firms.
field experiment
A marketing research experiment conducted in a natural setting such as a store versus a simulated setting in a laboratory or on a computer.
manufactured material
A material that has been processed into a finished good but is not a stand-alone product; it still has to be incorporated into something else to be usable.
margin of error
A measure of the possible inaccuracy of the data reported in a survey.
brand
A name, picture, design, or symbol, or combination of those elements, used by a seller to differentiate its offerings from competitors'.
line extension
A new idea or offering that occurs when a company comes out with another model (related product or service) based on the same platform and brand as one of its other products.
brand manager
A person responsible for all business decisions regarding offerings within one brand. A brand manager is often charged with running his or her brand as if it is its own separate business.
mystery shopper
A person who is paid to shop at a firm's establishment or one of its competitors' to observe the level of service, cleanliness of the facility, and so forth, and report his or her findings to the firm.
What is sales orientation?
A philosophy that products must be pushed through selling and advertising in order for a firm to compete successfully.
general electric approach
A portfolio planning approach that examines a business' strengths and the attractiveness of industries.
boston consulting group matrix
A portfolio planning approach that examines strategic business units based on their relative market shares and growth rates. Businesses are classified as stars, cash cows, question marks (problem children), or dogs.
strategic planning process
A process that helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, and be competitive in a market-driven economy.
back translation
A process whereby a native speaker translates a research instrument such as a survey into a foreign language and then back again to the original language to determine if there are gaps in meaning.
probability sample
A research sample in which each would-be participant has a known and equal chance of being selected.
nonprobability sample
A research sample that's not drawn in a systematic way.
branding
A set of activities designed to create a brand and position it in the minds of consumers.
Define postpurchase dissonance.
A situation in which consumers rethink their decisions after purchasing products and wonder if they made the best decision.
sample
A small amount of a product given to consumers to try for free.
value proposition
A statement that summarizes the key benefits or value for target customers. It explains why customers should buy a product, why stakeholders should donate, or why prospective employees may want to work for an organization.
valid (study)
A study that actually tests what it was designed to test and not something else.
What is descriptive research design?
A study that involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who, what, where, when, and how.
descriptive research design
A study that involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who, what, where, when, and how.
case study
A study that looks at how another company, or companies, solved a problem being researched.
reliable (study)
A study that, when repeated, produces the same or nearly the same result.
double-barreled question
A survey question that is potentially confusing because it asks two questions in the same question.
brand mark
A symbol or logo used to identify a brand
Define marketing information system
A system, either paper or electronic, used to manage information a firm's marketing professionals and managers need to make good decisions.
marketing information system (MIS)
A system, either paper or electronic, used to manage information a firm's marketing professionals and managers need to make good decisions.
product
A tangible good that can be bought, sold, and owned
When should a company use marketing orientation (concept)?
A time when there are many competing products and services available to customers.
perceptual map
A two-dimensional graph that visually shows where a product stands, or should stand, relative to its competitors.
What is a perceptual map?
A two-dimensional graph that visually shows where your product stands, or should stand, relative to your competitors, based on criteria important to buyers. The criteria can involve any number of characteristics—price, quality, level of customer service associated with the product, and so on. To avoid head-to-head competition with your competitors, you want to position your product somewhere on the map where your competitors aren't clustered.
causal research design
A type of research design that examines cause-and-effect relationships to allow researchers to answer "what if" types of questions.
What is ethnography?
A type of study whereby marketing researchers interview, observe, and often videotape people while they work, live, shop, and play
ethnography
A type of study whereby marketing researchers interview, observe, and often videotape people while they work, live, shop, and play.
what comprises psychographics
AIOL Attitudes Interests Opinions Lifestyles
strategies
Actions (means) taken to accomplish objectives.
Digital Millennium Act
Adds false & misleading advertising to FTC
Wheeler Lea Act
Amends / adds to FTC for additional business practices Gives FTC jurisdiction for false and misleading advertising
Three examples of Marketing Myopia
American Express - Credit Card Company Disneyland - Amusement Park BMW - Automobile
vertical market
B2B customers that compose a particular industry, such as the health care industry.
What are the two popular portfolio planning approaches?
BCG model and the GE approach.
Different buyer characteristics used to segment markets.
Behavioral, demographic, geographic, psychographic.
Anti-Competitive Pricing
Below cost pricing (illegal)
cash cow
Business or offering with a large share of a shrinking market.
star
Business or offering with high growth and a high market share.
dog
Business or offering with low growth and a low market share.
question marks or problem children
Businesses or offerings with a low share of a high-growth market.
strategic business unit
Businesses or product lines within an organization that have their own competitors, customers, and profit centers.
Where can secondary research sources be found?
Census Data, web sites, publications, trade associations, syndicated research and Market aggregators.
Global Market targets
China, Russia, India, and Brazil because of their fast-growing middle classes.
targeted marketing
Choosing select groups of people to sell to.
geodemographics
Combining both demographic and geographic information for marketing purposes.
What are producers?
Companies that purchase goods and services that they transform into other products.
What are resellers?
Companies that sell goods and services produced by other firms without materially changing them.
What is marketing myopia?
Companies/industries defining themselves too narrowly, which renders them incapable of adapting to changing markets.
Which consumer product category has the longest distribution channel
Convenience
first mover strategy
Corporate level strategy theorizing that being the first organization to offer a product in the marketplace will be the long-term market leader.
How would you describe second-mover strategy?
Corporate level strategy theorizing that closely observing the innovations of the first movers, and then improving on them can help an organization gain advantage in the marketplace.
second mover strategy
Corporate level strategy theorizing that closely observing the innovations of the first movers, and then improving on them can help an organization gain advantage in the marketplace.
product development strategy
Creating new products or services for existing markets.
segmentation bases
Criteria used to classify buyers.
Describe psychographics?
Customer activities, interests, opinions, values, attitudes, lifestyles
What product strategy is it when a company stays in existing markets but improves the product
Market penetration
What is secondary data?
Data already collected by your firm or another organization for purposes other than the marketing research project at hand.
secondary data
Data already collected by your firm or another organization for purposes other than the marketing research project at hand.
What is clickstream data?
Data collected from Web sites showing the Web pages visitors clicked on and the order of their clicks.
clickstream data
Data collected from Web sites showing the Web pages visitors clicked on and the order of their clicks.
What is primary data?
Data collected using hands-on tools such as interviews or surveys to answer a question for a specific research project.
primary data
Data collected using hands-on tools such as interviews or surveys to answer a question for a specific research project.
Stage 4 of PLC and attributes
Decline Stage - study decline in demand - usually technology makes product obsolete
mission statement
Defines the purpose of the organization and answers the question of how a company defines its business.
In b2b, what is fluctuating demand in b2b?
Demand that fluctuates sharply in response to a change in consumer demand.
In b2b, what is derived demand?
Demand that springs from, or is derived from, a secondary source other than the primary buyer of the product.
What strategy did Apple use when they entered the MP3 player market?
Diversification (new product, new market)
behavioral segmentation
Dividing people and organization into groups according to how they behave with or act toward products.
Divesting
Drop or delete product Sell to another company Reduce price to rid of inventory
What is the key advantage of administering a survey face-to-face?
It allows more inclusion of longer, more complex questions.
The Law and Religion in the Workplace
ER's must accommodate ee's religious beliefs to a reasonable degree
Environmental Framework
Economic Socio-Cultural Competitive Political-Legal
advergames
Electronic games sellers create to promote a product or service.
Fair Trade Commission Act
Enforces good business practices
Second Mover Strategy
Enter the market after First Mover
First Step in Market Strategy Is
Environmental scanning
Federal Food and Drug Act
Est 1906. For preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes.
Federal Trade Commission Act
Est 1914. The act established the Federal Trade Commission (FTC) (primary purpose to protect consumers) to challenge any "unfair methods of competition ... , and unfair or deceptive acts or practices in or affecting commerce." To ensure the smooth operation of our free market system, the FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices, such as telemarketing fraud, Internet scams or price-fixing schemes. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition and harm consumers.
Robinson-Patman Act
Est 1936. Amendment to the Clayton Act of 1914. It prohibits sales that discriminate in price on the sale of goods to equally-situated distributors when the effect of such sales is to reduce competition.
The Wheeler-Lea Act
Est. 1938. AKA-Advertising Act. Amendment to the Fed Trade Comm Act. This Act attempts to tackle the evils of false and misleading advertisement.. The FTC is given the power to check false advertising of any foods, drugs, medical devices, and cosmetics.
What is the Consumer Product Safety Act?
Est. 1972 to "assist consumers in evaluating the comparative safety of consumer products; to develop uniform safety standards for consumer products and to minimize conflicting state and local regulations; and to promote research and investigation into the causes and prevention of product related death, illnesses, and injuries." The act also established the Consumer Product Safety Commission (CPSC) to "protect the public against unreasonable risks associated with consumer products." The CPSC has authority to set mandatory standards, ban products, order recalls of unsafe products, and institute labeling requirements.
North American Free Trade Agreement (NAFTA)
Est. 1994 - It is designed to remove tariff barriers between the U.S., Canada and Mexico. Includes two important side agreements on environmental and labor issues that extend into cooperative efforts to reconcile policies, and procedures for dispute resolution between the member states.
National Environmental Policy Act
Establishes EPA dealing with pollution and companies that create pollution
Issues with Offshoring
Ethical (workers, pollution, wages) Strategic (lose of control, know how and design)
What is the difference between ethics and social responsibility?
Ethics requires companies do no harm. Social Responsibility is the idea that companies should manage their businesses not just to earn profits but to advance the well-being of society.
Define the Strategic planning Process
Evaluate External Environ / Evaluate Internal Environ Mission, Objectives, Value Prop & Strategy Formulation
Market Penetration Product Strategy
Existing Market Existing Products
Product Development Product Strategy
Existing Market New Products
Fee Extension Act
Extends Telemarketing Sales Rules Sets annual fees for telemarketers to access DNC Registry
What happens if violating company refuses to comply with FTC request?
FTC issues cease-and-desist order for final demand to stop illegal practices
one-to-one marketing
Forming close, personal relationships with customers and giving them exactly what they want.
What company is a good example of Marketing Concept
franchising
Granting an independent operator the right to use your company's business model, techniques, and trademarks for a fee.
What is Stage 2 of PLC
Growth Stage
Strategic issues for companies during Stage 2 of PLC
Growth Stage Early growth stage - must be ready to scale with demand Late growth stage (and maturity stage) - must different from competition
What is a benefit of segmenting and targeting markets?
It allows you to develop new offerings and expand profitable brands and product lines.
scanner-based research
Information collected by scanners at checkout stands in stores.
market intelligence
Information gathered on a regular, ongoing basis to enable a firm's decision makers to stay in touch with what's happening in the marketplace.
3 Levels of Distribution Intensity
Intensive Selective Exclusive
Why is interactive marketing an important tool for marketers?
Interactive marketing is interactive dialog w/ cust's. Allows companies to learn what cust's want and like, allows company to educate cust's on value and where to find products, allows companies to solve cust issues.
Psychographics
Internal characteristics - AOIL Attitudes Opinions Interests Lifestyle
Making internal data accessible to employees and managers for information needed for decision-making can be accomplished through use of a(n)
Intranet
rolling launch
Introducing a new offering across markets one by one in order to work out any challenges or problems related to marketing and supporting the offering.
Stages of Product Lifecycle (PLC)
Introduction Growth Maturity Decline
What occurs in Stage 1 Product Lifecycle
Introduction Stage - Generate awareness - persuade customers to try product
How would you describe product-related (behavioral) segmentation?
It divides people and organization into groups according to how they behave with or act toward products. (1) Benefits sought from the product (2) How often the product is used (usage rate) (3) Usage situation (daily use, holiday use, etc.) (4) Buyer's status and loyalty to product (nonuser, potential user, first-time users, regular user)
What is a key advantage of the service-dominant approach to marketing as opposed to the product-dominant approach?
It integrates the product, price, and service dimensions of an offering.
What is the purpose of a marketing plan?
It is a road map that improves the firm's understanding of its competitive situation. It helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its objectives.
What are the best criteria to use when developing a perceptual map?
It will vary but should be based on criteria important to the marketer's buyers.
What company is an example of marketing myopia?
Kodak
convenience offering
Low-priced, frequently purchased products and services that require little shopping effort
What product strategy did Disney use when they began messaging to empty nesters
Market Development (new market, same product)
Relationship Orientation is often combined with
Market Orientation
facilitating offerings
Offerings that support an organization's ability to do business but do not go into the final product.
maintenance, repair, and operations (MRO)
Offerings used to maintain, repair, and operate the physical assets of an organization.
Offshore vs Outsource
Offshore - part of manufacturing process Outsource - purchase an established good made by someone else
retro brands
Old brands or products companies "bring back" for a period of time.
Personal Selling
Oldest form of selling
Concerning primary data versus secondary data in the marketing research process what should one think about.
One should always look at the availability of secondary data before gathering primary data
Which of the following statements is true concerning primary data versus secondary data in the marketing research process?
One should always look at the availability of secondary data before gathering primary data.
direct investment
Owning a company or facility overseas.
One company that does not allow religious support groups in workplace
P&G
tertiary packaging
Packaging designed for the shipping and efficiently handling of large quantities of a product.
primary packaging
Packaging designed to hold a single retail unit of a product.
secondary packaging
Packaging designed to hold a single wholesale unit of a product.
What is Market-Minus pricing also known as
Penetration Pricing
What happens to customers (consumers) during recession.
People are earning less money. Causes companies to lower prices to stay competitive.
Which corporate example was provided in this section to illustrate the different levels of strategic planning?
PepsiCo
business level plans
Plans developed for each strategic business unit typically have their own mission statement.
corporate level plans
Plans developed for the corporation as a whole take place at the corporate level.
Name the five forces that Michael Porter created
Potential new entrants Bargaining power of suppliers substitutes Bargaining power of buyers Competitive Rivalry(Direct Competitiors)
Anti-Competitive Pricing is also known as
Predatory Pricing
syndicated research
Primary data marketing research firms collect on a regular basis and sell to other companies.
Which two companies mentioned in the text drew criticism in recent years for using extreme means to gather marketing intelligence about their competition?
Procter & Gamble and British Airways
What product strategy due Coke use when they introduced Coke Zero
Product Development (new product to existing market)
OEM offerings or components
Products, or parts, sold by one manufacturer to another that get built into a final product without further modification.
Clayton Act
Prohibits discrimination or lessoning of competition
Sherman Antitrust Act
Prohibits monopolization and restraint of trade
Stratified Sample
Put people into groups, then do simple random sample provides precision - efficient, representative groups
open-ended questions
Questions that ask respondents to elaborate upon, or explain, their answers.
closed-ended questions
Questions that limit a respondent's answers. Multiple-choice and yes-and-no questions are examples of closed-ended questions.
raw materials offering
Raw material products firms offer other firms so they can make a product or provide a service. These offerings are processed only to the point required for economic handling and distribution.
Anti-Competitive (Predatory) Pricing was outlawed by
Robinson-Patman Act
Effective Targeting Requires
STP - Identify & profile groups of buyers who differ in needs and preferences (segmentation) Select one or more target markets (target market) Position brand against other brands and highlight characteristics that are appealing to consumer (positioning)
What is SWOT analysis?
SWOT analysis-An acronym for strengths, weaknesses, (internal & controllable) opportunities,and threats (external & mostly uncontrollable), the SWOT analysis is a tool that frames the situational analysis. Determine competitive advantage.
What are different ways to demographically segment customers?
Segment by tangible personal characteristics. Age, generation, Income, Gender, Family life cycle, Ethnicity, Family size, Occupation, Education, Nationality, Religion, Social class
STP
Segmentation Targeting Positioning
demographic segmentation
Segmenting buyers by tangible, personal characteristics such as their ages, incomes, ethnicity, family sizes, and so forth
geographic segmentation
Segmenting buyers by where they are located.
psychographic segmentation
Segmenting people by their activities, interests, opinion, attitudes, values, and lifestyles.
export
Sell products to buyers in foreign markets.
license
Sell the right to use some aspect of the production process, trademark, or patent to individuals in foreign markets.
market development strategy
Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.
market penetration strategy
Selling more of existing products and services to existing customers.
mass marketing
Selling the same product to all consumers.
analytics software
Software that utilizes a firm's data, regression models, linear programming, and other statistical methods to help managers who are not computer experts make decisions.
category manager
Someone responsible for managing a broad group of products that may belong to multiple manufacturers.
market manager
Someone responsible for managing efforts within a particular market, such as a geographic market or another grouping of customers into a market (e.g., a single industry or size).
product manager
Someone with business responsibility for a particular product or product line. Like brand managers, product managers must make decisions, such as which offerings to include, advertising selection, and others.
Which consumer product category has the shortest distribution channel
Specialty
Companies that allow religious support groups in workplace
TI, AA, Ford, Intel
positioning
Tailoring a product or its marketing so that it stands out from the competition and people want to buy it.
What is market positioning?
Tailoring your product so that it stands out from the competition and people want to buy it.
capital equipment offering
Tangible equipment business purchases that are depreciated.
What comprises the product mix
Target Market (who to market to) What and How to sell to the target market
concentrated marketing
Targeting a very select group of customers.
niche marketing
Targeting an extremely select group of consumers
multisegment marketing
Targeting multiple groups of consumers.
What are the 4 components of the marketing mix?
The 4 P's - Product, Promotion, Place, Price a marketing plan is a mix of these four components.
repositioning
The process of "moving" a product to a different place in the minds of consumers.
price
The amount exchanged by the buyer to receive the value offered by the product or service.
Which of the following is the best statement of a value proposition for a prospective college student?
The best value proposition is dependent on what benefits the student is seeking.
What is a name, picture, design, symbol, or combination of those items used by a seller to identify its offerings and to differentiate them from competitors' offerings?
The brand
technology platform
The core technology that is the basis for an offering or product.
benefit
The degree to which a feature satisfies a buyer's need or desire.
customer profile
The description of a type of customer based on market segmentation criteria.
product mix
The entire assortment of products that a firm offers
offering
The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers.
population
The entire target market being studied.
research objective
The goal(s) marketing research is supposed to accomplish.
target market
The group of customers toward which an organization directs its marketing efforts.
sampling frame
The list from which a research sample is drawn. The sampling frame won't perfectly match the population.
line breadth
The number of different, or distinct, product lines offered by a company.
population density
The number of people per square mile.
line depth
The number of variations in a single product line.
test market
The place an experiment is conducted or the demographic group of people an experiment is administered to.
Many companies have used the Internet to expand their selection of target markets into new geographic markets. What characteristic of an attractive market is best reflected by companies pursuing this strategy?
accessibility to market
Marketing ERA
after 1950s meet customer need
Which pricing approaches are competitive decisions
all of them
Product Mix
all product sold by the company
Intensive Distribution
as many locations as possible used in Convenience goods
Selective Distribution
available at select locations used in Shopping goods
When dealing with translation issues while conducting international marketing research, some firms use native speakers to translate the survey into the foreign language and then translate it again to the original language to reveal gaps in meaning. This process is called
back translation
Anti-cybersquatting Consumers Protection Act
bans bad faith purchase of domain names that are too close to registered trademarks
Opinion Leaders
based on their knowledge and interests in certain products (trendsetters) Experts, bloggers Info flows from mass media, to opinion leader to consumers
Production ERA
before 1920 a good product will sell
Sales ERA
before 1950s persuade people to buy
Clairol designs its shampoo products to correspond to offset whether a customer has dry, normal, or oily hair. In this case, Clairol's segmentation base is ________.
behavioral segmentation
Ocean Spray plans it production and marketing of its canned cranberry sauce in response to the higher demand for this product during the November and December holiday season. They are using ______________.
behavioral segmentation
Horizontal Channel Conflict
between same level of channel partners EX: 2 distributors fighting over territory
Vertical Channel Conflict
between those on different levels EX: manufacturer disagreement with a distributor
How do Asian businesses state expectations
beyond the message time of day method other factors tells the receiver about what is expected of them
Honda's addition of snow blowers to its categories of offerings to buyers would be adding another product line or increasing the ______________ of its offerings.
breadth (or width)
What dimensions does the GE approach use in portfolio analysis?
business strength and industry attractiveness
Examples of Oligopolies include
cable tv providers, cell phone companies, etc due to the barriers to entry
One risk of offering a line extension or a brand extension is that sales of these items may take away sales from your existing offerings. This is called
cannibalization
Identity Theft & Assumption Deterrence Act
cannot use someone's ID to violate the law
Price discrimination
charging different prices to customers for the same products within the same market or charging a group more to keep them from buying the product
Advantages of Second Mover Strategy
cheaper to follow another company (they have already made mistakes, invested in R&D) can copy best practices
A company who tracks how many visitors its Web site gets daily is analyzing
clickstream data
Most markets are not monopoly or oligopoly, they are
competitive markets
When to use richer media
complicated messages
FTC enforces laws by
consent order to violating company - company can agree to voluntary compliance w/o admitting guilt
Strategies and actions implemented at the corporate, business, and functional levels must be ________ to help an organization achieve its objectives.
consistent
Limited problem solving
consumer has already established a set of criteria for a particular kind of purchase but then encounters a new, unknown brand
Low involvement does not always mean which goods
convenience
Name the different levels of strategic planning in an organization.
corporate, business, and functional. The number of levels may vary. However, if a company has multiple planning levels, the plans must be consistent, and all must help achieve the overall goals of the corporation.
Goal of Marketing
create a profitable exchange between buyer and seller
Amendments of the Telemarketing Sales Rule
created the Do Not Call Registry restricts the number and duration of calls generated by autodialers creating dead air space restricts unauthorized billing requires telemarketers to display caller ID
Motor Carrier Act & Staggers Rail Act
deregulates trucking and railroad industries by allowing them to negotiate rates and services
The answers to who, what, where, when, and how can often be found in what type of research design?
descriptive
The process of accessing different databases to get the right data to the right places for decision-making in marketing is called
data mining
What is the first step in the marketing research process?
defining the problem
Goal of Distribution
deliver the right product, at the right time and of the right amount demanded by the consumer
PRIZM combines which two bases of marketing segmentation to generate its categories of customers?
demographics and geography
Telecommunications Act
deregulates telecommunication companies removes barriers to competition in local and long distance phone and cable and tv markets
Differentiated Marketing
different marketing mix for each target market
What is another term for targeted marketing?
differentiated marketing
: Which form of market entry offers the challenge of providing the most control, but incurring the most risk?
direct investment
How do US business state expectations
directly
Place (Distribution) includes
entire manufacturing / delivery chain from raw materials through customer service and returns
Consumer Product Safety Act
establishes Consumer Product Safety Commission sets safety standards for most products
What are the three categories of research designs given in this section?
exploratory, descriptive, and causal
Do Not Call Improvement Act
extends Telemarketing Sales Rules Makes DNC Registry Permanent
What is the richest media
face to face
John and Sylvia Hammond have seen their travel destination choices change throughout their marriage. On their honeymoon, they went on a romantic trip to Las Vegas. When their children were young, it was always Disney World. Now that they are retired and the children have their own lives, John and Sylvia like going to National Parks. This best describes the impact of which demographic characteristic?
family life cycle
Consumer orientation
first determine unmet consumer needs then design a way to meet them
First Move Strategy
first to introduce product
Communication style of males
focused on factual content
Communication Style of females
focused on what the message indicates about the relationship between the sender and receiver
When is the direct method of communication used and how
for negative messages or those that may not be received well usually starts off with some context or story
When is the direct method of communication often used
for positive messages
Which form of market development entry strategies, which is popular with service industries, allows a local partner to benefit from advertising and brand recognition without having to commit to actually producing products?
franchising
Electronic Signature Act
gives electronic signature same weight as handwritten signature
Probability Samples
gives everyone in the population a chance of being selected - simple random simple (lottery) - stratified samples - cluster samples
Airline Deregulation Act
gives freedom to commercial airlines in setting fares and choosing new routes
Product Line
group of closely related products
Assistive Technologies
helps disabled ee's perform activities otherwise difficult - communicate - operate computers and other equipment - mobility
Publishers who place their magazines near checkout counters in supermarkets recognize that for many customers these are
impulse offerings.
When is it best to lock in prices with suppliers and other contracts?
in inflation
When is it not good to lock down prices with suppliers and other channel partners/contracts
in recession
What term refers to gathering corporate information unethically or illegally?
industrial espionoge
What source of marketing intelligence would be best for finding specific industry activities and marketplace trends?
industry publications
Technological Environment Scan
info based on science, inventions and innovations
Knowledge Management System
intelligent DB use to collect a companies policies, procedures, experiences and learning available for use when making decisions
Channel Conflict
issues between distribution channel members
What do free samples or product trials due for consumers
its considered a learning process
Advantages of First Mover Strategy
larger market share high brand loyalty
The distribution process helps the buyer and the seller to
locate one another
Which type of B2B offerings are usually sold through distributors who often carry thousands of items through salespeople and online purchasing Web sites?
maintenance, repair, and operations (MRO) offerings
Ethical dilemma
making a choice when the alternatives aren't completely wrong or right
Offerings from a U.S. firm to new, rapidly emerging markets such as Russia, China, and India would represent which type of growth strategy?
market development
When the Campbell Soup Company offers coupons and recipes to customers who have purchased their products, what product/market entry strategy are they pursuing?
market penetration
Penetration pricing
market-minus pricing33
Skimming pricing
market-plus pricing
Customers needs should not exceed
marketing capabilities of the firm
Best location of promotions
specialize to your market (reach them where they are)
Difference between men and women communication styles
men - emphasize content women - emphasize relationship mgmt
Personal Selling is used when
message needs to be tailored to each individual ex; car sales
: Which section of the research report contains the margin of error of the study's findings?
methodology
Which of the following has the greatest ethical implications?
microtargeting
Sequence of stages in the B2B buying process.
need recognition, description and quantity of purchase need, search for suppliers, request for proposals sought, establishment of an order routine, and post-purchase evaluation conducted and feedback provided to vendor.
Dual Pricing
one price domestic (US) different price in foreign countries VERY COMMON
Which trend, proposed in a book by Peppers and Rogers, is seen as a vision of what life will be like after mass marketing, where collaborative relationships would enable customers to get exactly what they want from marketers?
one-to-one marketing
In beginning a situation analysis, a SWOT analysis is often conducted. Which of the following is correct in naming an element within SWOT and its environmental focus?
opportunities—external
Which category of B2B offerings would include component parts?
original equipment manufacturing (OEM) offerings
Reference Group
people or institutions such as family, friends or celebrities whose opinions are valued
Marketing Concept
philosophy that firms should analyze the needs of their customers then make decisions to satisfy those needs, better than the competition
Tailoring your product or its marketing so that it stands out from the competition and people want to buy it defines ________.
positioning
For years, Hallmark has used "When you care enough to send the very best" in its marketing of its greeting cards. This is a ________________ strategy using a(n) ___________.
positioning; tagline
Environment Management
predicting and influencing competitive, soci0-cultural, economic, and technological environments
Clayton Act is about
price discrimination
What happens to prices in recession
prices go down consumers stop making extra purchases peripheral customers go away and become non-buyers
What happens to prices during inflation
prices go up, as do manufacturing prices
Under the BCG matrix, what is the term used to refer to SBUs who have a high market growth rate but a low relative market share?
problem child
What would be a recommended strategy if the GE approach of portfolio resulted in a yellow light?
proceed with caution depending on industry and company strengths
What are the four basic categories of business buyers?
producers, resellers, governments, and institutions.
What strategy is marketing implementing when they attempt to get existing customers to buy new product offerings?
product development
A group of related offerings is called a what?
product line
A group of related offerings is called a
product line.
Federal Food & Drug Act
prohibits misbranding of food & drugs for interstate commerce strengthened by Food, Drug & Cosmetic Act & Ketauver Harris Drug Amendment Act
Robinson Pattman Act
prohibits price discrimination in sales to wholesalers, retailers, other producers prohibits selling at unreasonably low prices to eliminate competition
Consumer Telephone Records Act
prohibits the sale of cell phone records
Public Health Smoking Act
prohibits tobacco ads on tv and radio
Which type of qualitative data is used to get respondents to reveal insights that might not be gathered through direct questioning?
projective techniques
Paraphrasing
specialized form of feedback used to ensure alignment of message between sender and receiver`
Segmentation of a market according to the customers' thoughts and values as well as how they live their lives describes ________.
psychographic segmentation
High Involvement decision making
purchase is highly important with a degree of perceived risk process is front of mind for consumer ex: need to buy a suit for important meeting
Low Involvement decision making
purchase is less important and has low degree of perceived risk
Consumer insight results when you use what type of information
quantitative and qualitative
Convenience Sample
readily available respondents Used for exploratory research Also called "accidental sample"
How can companies avoid marketing myopia?
redefined themselves beyond their original products
Harvesting
reduce expenses to boost profits
A marketing firm is concerned that a recent research study had flaws and that the findings would not be the same if the study was conducted again. Their concern is with the study's
reliability
Non-Probability Sampling
relies on personal judgment in selection process (researchers decide which groups to study)
Mountain Dew, a carbonated beverage brand of PepsiCo, was originally marketed as "zero proof moonshine" with depictions of hillbillies on the bottle until 197Since then, the product is now marketed as a high-energy beverage targeted to lovers of extreme sports. This strategy can be described best as ________.
repositioning
Children's Online Privacy Protection Act
requires parental consent before asking children marketing research questions
There are only a handful of jet aircraft manufacturers globally. What reason does not make this an attractive market for those considering this industry?
resources necessary to compete
Routinized problem solving
routinely made purchases by selecting a preferred brand or from a limited group of acceptable brands
Low involvement decisions are not the same as
routinized response behavior
Undifferentiated Marketing
same marketing mix for all target markets
American Express offers its cardholders different benefits, depending on which color card is issued to the customer. The different cards vary according to the annual fee paid and the benefits and credit lines associated with each card level. American Express engaged in ________.
segmentation and targeted marketing
Common barrier to effective listening
selective listening
Exclusive Distribution
sell at only a few retailers used for Specialty goods
What is an action that provides a buyer with an intangible benefit?
service
Real ID Act
sets min standards for state driver's licenses and IDs
Marketing Myopia
short sighted views of the needs of the company not prioritizing needs and wants of its customers
leanest media
simple with no intention of feedback
Relationship ERA
since 1990s long term relationships with customers and suppliers = success
Cameron Industries are fortunate in that they have identified a profitable select target market with high market growth potential for their Domine Dominoes game in which they have a dominant share with little or no competitive challengers. Under the BCG matrix, their Domine Dominoes offering would most likely be a ________.
star
Large firms may have different divisions, each focusing on a business or product line within the organization. These are called ________.
strategic business units
Environment scan leads to
structure of industry
Oligopoly is
where just a few companies exist in the market
Although they are only tools to be used by marketers, what are two of the most widely used portfolio planning approaches?
the BCG matrix and the GE approach
Price discrimination was outlawed by
the Clayton Act
The consumer buying process is also known as
the Product Adoption Process
Monopolies were outlawed by
the Sherman Anti-trust Act
Porter's five forces model is most useful in assessing which external environment?
the competitive environment
What is a sampling frame?
the list from which the sample is drawn
Despite its strong brand awareness, which change did PepsiCo implement in 2008, but customers' mixed reviews forced PepsiCo to return to its previous strategy?
the packaging of Tropicana
Physical Distribution System
the portion that involved the finished product
At the beginning of the marketing research process, what should be put into writing by the researcher?
the research objective
What doesn't the Physical Distribution System involve
the steps prior to the having the actual product (such as raw materials or the manufacturing process itself)
What serves as an effective guide for developing a company's strategies for a particular target market?
the value proposition
How long does the Introduction Stage last
there is no set amount of time
How do the 4Ps and the company's strategy, goals and objectives interact
they are all interdependent and influence/impact one another
What happens to companies with marketing myopia?
they go out of business
: One of the VALS types has members who are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. These are categorized by VALS as ________.
thinkers
What is an important function of packaging?
to communicate the brand and its benefits, to protect the product during shipment, to prevent leakage of the contents, and to present government-required warnings and information labels
When do companies use Market-Minus pricing
to increase market share often used during the introduction stage of PLC
Why do people buy things?
to satisfy or solve needs
What term refers to the total amount someone pays to own, use, and eventually dispose of a product?
total cost of ownership
Henry Ford's success at developing and marketing the Model T was an example of ________.
undifferentiated marketing
MediQuick is a 24-hour emergency health care office. They still must advertise so customers will be knowledgeable if the need for their services arises. For these customers, MediQuick offering is in the category of
unsought offerings
Cluster Samples
used when entire population cannot be listed or enumerated. cost efficient
Behavioral Shaping
using a set of rewards to encourage more complex behaviors
Although companies can no longer regulate their pricing in the market, they can have better control of what distributors and retailers charge by
using limited and / or specific contracts to maintain prices for their goods Often seen in specialty products
Operant Conditioning
using positive rewards to strengthen a behavior
Disadvantages of First Mover Strategy
very expensive (esp R&D) learning / mistakes are costly and easy for competitors to learn from
The focus of a value proposition is ________.
what customers want
Cannibalization
when a company's new product competes with its existing product
Extended problem solving
when brands are difficult to categorize or evaluate, typical of high involvement purchases
When is it legal to offer your product below competition
when it is offered at cost and just above
When is product orientation good for a company?
when there is no competition
