MRKT Exam 3 (9, 11, 12, 13)

d

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy. A. concentrated targeting B. lifestyle segmentation C. benefit segmentation D. undifferentiated targeting E. differentiated segmentation

Beta Testing

Having potential customers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use

Segment Attractiveness

Identifiable Reachable Substantial Profitable Responsive

Test Marketing

Introduces a new product or service to a limited geographic area (usually a few cities) prior to national launch

Product Breadth

Number of product lines offered by a firm; also known as variety

Communication Gap

The gap between Actual service delivered and Retailer communications about service quality

Innovators

Those buys who want to be the first to have the new product or service

A

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension

Early Majority

A group of consumers in the diffusion of innovation model that represents approx 34% of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products & services can be profitable until this large group buys them

Undifferentiated Targeting

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. (MASS MARKETING)

A

A service is any intangible offering that involves a deed, performance, or effort that A. cannot be physically possessed. B. is high-priced. C. is supported solely through advertising. D. can be transformed into a physical product. E. offers benefits but not costs.

Differentiated Targeting

A strategy through which a firm targets several market segments with different offering for each.

Alpha Testing

An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firms R&D dept.

Premarket Test

Conducted before a product or service is brought to market to determine how many customers will try and then continue to use it

Laggards

Consumers who like to avoid change and rely on traditional products until they are no longer available

Geographic Segmentation

Continent: North America, Asia, Europe, Africa Within the United States: Pacific, mountain, central, south, mid-Atlantic, northeast

Benefits Segmentation

Convenience, economy, prestige

B

Differences in weather and climate create opportunities for A. concentrated targeting. B. geographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. demographic segmentation.

A

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. A. growth B. introduction C. maturity D. decline E. innovation

D

Which of the following is NOT one of the benefits to a firm of new product development? A. reduced costs of production. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. keeping up in a market where sales come mostly from new products.

Delivery Gap

The gap between Standards specifying service to be delivered and Actual service delivered

B

It is almost impossible to watch a sporting event on television without seeing Nike's swoosh check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

Psychographic Segmentation

Lifestyle, self-concept, self-values

Demographic Segmentation

Most common segmentation strategy Age, gender, income

Behavioral Segmentation

Occasion, loyalty

Diffusion of Innovation

Process by which the use of an innovation, whether a product or service, spreads throughout a market group over time and over various categories of adopters.

Consumer Product

Products and services used by people for their personal use

Unsought Products (or services)

Products or services consumers either do not normally think of buying or do not know about.

Specialty Products (or services)

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 (Rolex, vacations)

D

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to A. develop an advertising plan to promote the upcoming sales. B. find marketing interns or hire new staff to help with implementation. C. create pro forma financial statements to complete the package. D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. E. use the Internet, catalogs, and vendor information to draw up a list of new products.

Maturity Stage

Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

Decline Stage

Stage of the product life cycle when sales decline and the product eventually exits the market

Growth Stage

Stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category

Introduction Stage

Stage of the product lifecycle when innovators start buying the product

Positioning

Step Five •Identify and Develop Positioning Strategy

Segmentation

Step One •Strategy or Objectives Step Two •Segmentation Methods

Targeting

Step Three •Evaluate Segment Attractiveness Step Four •Select Target Market

F

T or F A company's product line consists of its various product mixes.

T

T or F Even if products succeed, not all consumers adopt new-to-the-world products at the same time.

T

T or F For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

F

T or F Kellogg's sells many breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix.

F (gender is demographic)

T or F NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

T

T or F Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

F

T or F The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.

Early Adopters

The 2nd group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review

Product Mix

The complete set of all products offered by a firm

B

The decision to delete a product is never taken lightly because, generally, manufacturers have A. offered the product line to other firms for purchase. B. made substantial investments in product development and manufacturing. C. promised consumers they will maintain the product. D. used brand repositioning to improve results. E. federal standards that must be met when taking products off the market.

Knowledge Gap

The gap between Customer expectations for service quality and Management perceptions of customer expectations

Standards Gap

The gap between Management perceptions of customer expectations and Standards specifying service to be delivered

Late Majority

The last group of buyers to enter a new product market; when they do. the product has achieved its full market potential

Associated Services

The non physical attributes of a product including product warranties, financing, product support, and after-sale service.

Product Depth

The number of categories within a product line

Innovation

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

Convenience Products (or services

Those for which consumers are not willing to spend any effort to evaluate prior to purchase

Shopping Products

Those for which the consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances