MKT 331 Test I (Anderson University)

How can a marketing use positioning?

(By repositioning) change the position of the product in consumers' minds relative to the positions of competing products. (Honda makes Acura)

What is the purpose of marketing research?

To know thy customer (Who and why they bought/action triggers)

What is the usual objective of marketers in reference to the PLC?

To try and expand each stage as long as possible.

Champion... What are the benefits to this philosophy?

1 owner enables focus, consistency, power, and impact

PLC... What is the promotion mix in the introduction stage?

1. Benefits 2. How to use it

What are the 2 Philosophies of Product Management?(*)

1. Champion 2. Diversification of Work

What four sources are used for secondary data collection?

1. Current comany data 2. Government Data (TIGER - topographic/geographic) (most important source of market data). 3. Private Data - (Encyclopedia of Associations/syndicated services - segmentation - ex. experian). 4. Online Sources of Secondary Data - cyberspace "caveat emptor").

What four techniques are used to conduct Primary Research?

1. Observation Method (action figures ex. - acually watch). 2. Survey Method - close ended questions (1-7 is better). 3. Personal Interviews - detailed (interviewers can clear-up q's). 4. Focus Groups - procedure in which 8-12 individuals discuss a given subject

What are the buyer decision process steps?

1. Problem opportunity recognition. 2. Search 3. Alternative Evaluation 4. Purchase Decision 5. Purchase Act 6. Post-purchase evaluation

What are 3 reasons to avoid buyer remorse?

1. Rebuys 2. Returns 3. Word-of-mouth

What criteria are necessary for effective segmentation?

1. Segments must be measurable 2. Marketers must be able to effectively promote to and serve a market segement. 3. Segments must be large enough to be profitable 4. Number of segments must match firm's capabilities.

What are the 4 Stategies for Marketing Segments?

1. Undifferentiated 2. Differentiated 3. Concentrated/niche 4. Micro

What must be changed in order to be considered a new segment?

2 P's of the marketing mix

PLC... What percentage of customers buy the product in the introduction stage?

2.5-13%

PLC... What percentage of customers buy the product in the decline stage?

3-13%

PLC... What percentage of customers buy the product in the growth stage?

33-38%

PLC... What percentage of customers buy the product in the maturity stage?

33-38%

How many steps are in the buyer decision process?

6 steps

Was is the key to Marketing Research?

Ask the right questions in the right way

PLC... What is the promotion mix in the maturity stage?

Brand

What is Buyer Remorse?

Buyer remorse

How can marketers affect the evaluation of alternatives step in decision making?

By setting the evaluation criteria

How can marketers affect the purchase act step of decision making?

By understanding action triggers.

Example of non-traditional marketing?

Cause (get someone to do/not do something), event, person, place (attract customers to particular areas).

PLC... What is the product mix in the maturity stage?

Commodity (all really the same)

How is Marketing Myopia avoided?

Companies must broadly define goals toward consumer needs (train industry ex.)

What is primary research methods?

Conducting new research that has never been done.

Law I... What is the goods-services continuum?

Device that helps marketers to visualize the difficulties and similarities between goods and services.

Diversification of work... What is the benefit of this philosophy

Different aspects of marketing the product can be allocated to different people

Diversification of work... What is the premise of this philosophy?

Divide to functionality. Divide the responsibility for product success.

PLC... What is the price mix in the growth stage?

Drop

PLC... What is the price mix in the maturity stage?

Drop

Product Deletion Decisions occurs during which stage?

During the maturity stage

PLC... What is the customer called in the introduction stage (b)?

Early Adopters

PLC... What are the customers called in the growth stage?

Early Majority

PLC... What is the place mix in the maturity stage?

Everywhere

PLC... What is the place mix in the decline stage?

Few ---> none

PLC... What is the place mix in the introdcution stage?

Few places ($promote distribution points)

What is secondary data collection?

Finding research which has already been done

What does the firm do during the growth stage?

Firm usually begins to realize substantial profits, funds R&D for improvements, and promotes features and functions (competitors are attracted)

What does the firm do during the introduction stage?

Firm works to stimulate demand for new market entry (prices high, financial losses are common due to heavy promotional and R&D costs).

What types of segmentation exist?

Geographic Demographic (age, gender, etc.)

PLC... What is the price mix in the introduction stage?

Highest

Promotion Mix(*)

Includes the message to the customer (not just goods or services)

What happens during the maturity stage and how is this combated?

Industry sales continue to grow, but eventually plateau. Markets promote heavily through branding. A surplus occurs (product variety within the market is blurred).

Law I... What are some characteristics that distinguish goods from services?

Intangibility, inseparability, perishability, difficulty of standardization, frequent interaction between buyer and seller, variability (can change).

PLC... What are the stages of the Product Life Cycle?

Introduction, Growth, Maturity, Decline

Champion... What are the issues with this philosophy?

It is often too much for one person?

What is Spencer's II Law of Marketing?

Know Thy Customer

What is Spencer's I Law of Marketing?

Know Thy Product

Diversification of work... What are the issues with this philosophy?

Lack of focus on a central view and force to get things done.

PLC... What is the customer called in the decline stage?

Laggard

PLC... What is the price mix in the decline stage?

Marginal Cost = Marginal Revenue (profit so low we kill it)

PLC... What is the product mix in the decline stage?

Milk it, kill it

PLC... What is the product mix in the introduction stage (a)?

New ($R&D)

PLC... What is the product mix in the introduction stage (b)?

New Features and Functions

PLC... What is the promotion mix in the growth stage?

New features and functions (start branding)

What happens during the decline stage?

New innovations or shifts in consumer preferences cause a decline in industry sales. Firms cut prices to win the dwindling market. (products are dropped - some may have to keep products for specific customers).

Why do we segment?

No single marketing mix can satisfy everyone. Different customers need to be targeted differently

What are the 4 Ps? (Marketing Mix) (*)

Product, Price, Place, and Promotion

What is the product manager responsible for?

Responsible for the product, its success, the 4ps, and Profit and Loss

What methods are used to market research?

Secondary Data Collection and Primary Research Methods

What occurs in Product Deletion Decisions ?

Sometimes product lines must be pruned and marginal products must be eliminated.

PLC... What is the customer called in the maturity stage?

The Late Majority

What is the place mix? (*)

The distribution system (production to customer and sometimes back)

PLC... What is the customer called in the introduction stage (a)?

The innovator

What is Marketing? (*)

The process of planning and executing the conception, pricing, promotion, and distribution of: ideas, goods, services, organizations, and events, to satisfy individual and organizational objectives.

Champion... What is the role of the product manager in this school of thought?

The product champion is responsible to do, decide, or motivate others to do or decide whatever is necessary for the product. (Penultimate-manager)

Law I... What is a product?

a bundle of physical, service, and symbolic attributes

What is the product mix? (*)

a bundle of physical, service, and symbolic attributes designed to satisfy customer wants and needs (a product is synonymous with its brand/marketing)

What is the price mix? (*)

a system for firms to receive payments for selling items. (includes cost of product, cost of developing product, promotion costs, etc./influences what market you target.)

Law I... What is a service?

an intagible task that satisfies consumer or business user needs

PLC... What is the product mix in the growth stage?

competitors ---> new features/functions ($R&D)

What is a low involvement decision?

decisions are routine purchases that pose little risk to the consumer

What is psychographic segmentation?

divides a population into groups with similar psychological characteristics, values, and lifestyles (vals and vals2 - principle, status, or action oriented)

Define Market Segmentation

division of the total market into smaller, relatively homogeneous groups.

Define Line-Extension

introduction of a new product that is closely related to other products in the firms existing line - but in a new category. (i.e. coke and powerade).

Define Brand-Extension

introduction of a new product that is not related to other products in a firm's existing line (fake ex. coke selling cars).

Define Product-Extension

introduction of an ancillary product or a new version of an old product (coke and cherry coke).

What is micromarketing?

involves targeting potential customers at a very basic level such as ZIP code, specific occupation, lifestyle, or individual household (% discount triggers)

Law I... What does this law involve and require.

involves understanding of all aspects of your product (ex.'s: good, service, symbolic attributes, regulations, PLC, etc.)

Law II... What does the law involve and require?

involves understanding who your customer is, what they want, and how to sell it to them. (research, data analyzation, and mastery of the market mix for each segment).

What is Marketing Myopia?

is management's failure to recognize the scope of its business

What is positioning?

positioning relates to what the customer thinks or how the customer classifies the product in terms of specific attributes about the product.

What is cognitive dissonance?

post-purchase anxiety

How can marketers affect the search step in decision making?

products that immediately come to mind

What is a high involvment decision?

purchase decisions are those with high levels of potential social/economic consequences

PLC... What is the place mix in the growth stage?

somewhere ---> everywhere

Define Marketing Research

the process of collecting and using information for karketing decision making.

What is the cohert Effect

the tendency among members of a generation to be influenced and drawn together by significant events occuring during their key formative years.

What is concentrated/niche marketing?

when a firm commits all of its marketing resources to serve a single market segment (specialty shop)

What is differentiated marketing?

when a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments (costly)

What is undifferentiated marketing?

when a firm produces one product and promotes it with one marketing mix designed to satisfy everyone (cheaper)