BA311 Exam 2 Study Guide

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy?

Table salt

Niche or concentrated

Vey specific ex. shoes for vegan women high profit %

Behavioral Bases

What benefits are the market seeking? ex. cars, eco-friendly (Subaru)

Product mix equation

width x length x depth

Socioeconomic market segmentation is another name for _____ segmentation.

demographic

The most common method of market segmentation is:

demographic

Oscar Mayer, a marketer of a variety of meat products introduced Lunchables, a product specifically aimed at children. This is an example of:

differentiated marketing.

Products marketed to consumers who may not yet recognize a need or rarely use them are called _____ products.

unsought

Without intermediary

More contracts (bilateral contracts) 3x3=9

shopping products

expensive, not frequently bought ex. washer + dryer

speciality products

highly expensive, status symbol ex. jewelry

Quantitative

online tests

Qualitative

smaller samples, focus groups

3 Conditions of Marketing Research

1. associated variation ex. + or - correlation 2. temporal sequence ex. cause before effect 3. eliminate alternative explanations

Supply chain steps

Begins with raw-material inputs for production Ends with the movement of final product to customers Takes place in two directions: upstream and downstream

Style

A basic and distinctive mode of expression. Short life cycle

Horizontal Integration

Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level *illegal supply chain

Individual branding

Big names has different brands ex. P+G owning Tide, OralB... advantage if product fails disadvantage is launching a new line

Supply chain

Complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise.

Market development

Concentrates on finding new markets for existing products undifferentiated/diff/niche

Product positioning

Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands

How does middle man or intermediaries provide economies and efficiencies?

Decreasing contracts

Foundations of segmentation

Descriptors "who" Bases "why" moving towards bases (lifestyle) Behaviors "what"

Which of the following statements is true of differentiated marketing?

Differentiated marketing helps a company to diversify and reach new customers.

In addition to traditional drug stores, Dr Scholl's foot care company sells its products through convenience stores as well as through telemarketing to podiatrists. Which of the following is being employed by Dr Scholl's foot care company to sell its products?

Dual Distribution

Kitchen-Aid has established an electronic storefront so that its customers can purchase mixers and accessories from its website. This establishment of electronic storefront is likely to result in _____ conflict between Kitchen-Aid and its brick and mortar retailers.

Horizontal

Cannibalization

Introducing a new product that adversely affects sales of existing products ex. iPhone killed iPod

With intermediary

Less contracts 3+3=6

Which of the following is most likely to be the primary factor that attracts a consumer to a generic product?

Low price

Advantages of brand equity

More leverage in bargaining power, customers expect them to carry the brand Can charge a higher price based on perceived quality

undifferentiated

No segments ex. gasoline, bread reaches a larger audience, lower profit %

Umbrella branding

One brand name for all the products offered ex. starbucks

What is make segmentation

Process of dividing a market intro meaningful, homogeneous and identifiable segments or groups

Quality of service variables

Reliability- consistent Responsiveness- anytime, anywhere Assurances Empathy

Motels and luxury hotels cater to the same want satisfaction-a place to stay. However, their respective guests have considerably different expectations of service. Which of the following characteristics of services best represents these different expectations in service?

Service standards show wide variations

Which of the following is true of services?

Services are inseparable from service providers

Product Depth

Size, color, shape

Differentiated

Specific- breaking into smaller markets ex. women in an age group or location

channel captain

The dominant leader of a marketing channel or a supply channel ex. Walmart

Which of the following is a basic requirement for effective market segmentation?

The market segment must present measurable purchasing power and size.

Product Width

The number of different product lines a business manufactures or sells

Brand equity

The positive differential effect that knowing the brand name has on customer response to the product or service psychological/perception

Why is angel's law important?

The resulting shift in expenditures affects demand patterns and employment structures

What is forward integration?

When a firm attempts to control down stream distribution. ex. Coca Cola, Starbucks

Private branding

a branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. ex. Sears, Walmart advantage if product fails disadvantage is launching a new line

PLC (Product Life Cycle)

a concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death) introduction, growth, maturity, decline

Fashion

a currently accepted or popular style in a given field Shortest life cycle

Six sigma

a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes 3.4 defect parts per million (PPM) opportunities

nonprobability sampling

any technique in which samples are selected in some way not suggested by probability theory does not give the population an equal chance of being chosen

Engel's Law

as disposable income of a consumer increases, the percentage of income spent for food decreases household costs stay the same spiritual education rises

The _____ stage in brand loyalty leads consumers to refuse alternatives and search extensively for the desired merchandise.

brand insistence

unsought products

buy and use rarely ex. fire extinguishers no advertising!

Brand

can change quickly because of competition ex. Ford Taurus

convenience products

cheap, buy frequently ex. milk, eggs no advertising!

American Express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an example of _____ marketing.

concentrated

vertical conflict

conflict between different levels of the same channel

LuLuLemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, LuLuLemon Athletica is using _____ segmentation to segment its markets.

demographic

Marketers applying a positioning strategy want to:

emphasize a product's unique advantages and differentiate it from competitors' options

Vertical marketing systems

forward integration ex. Coca Cola backward integration ex. Costco buying a chicken farm

A firm that divides its customers into homogeneous groups based on their locations is said to be practicing _____ segmentation.

geographic

Before beginning the market segmentation process, a firm should:

identify bases for segmenting markets.

Benefits of vertical marketing

improves chances for controlling and coordinating the steps of distribution development of economies of scale let manufacturer expand into profitable new business

market penetration

increase sales of existing products in existing markets *increased ad expenditures

Pond's and Sunsilk beauty products, marketed by Unilever, are examples of _____ brands.

individual

Service Requirements

intangible- can't hold variability- quality depends on who provides them inseperability- can't be separated from service providers perishability- can't be stored for later scale

When Apple Inc. decided to sell all its products through every possible channel, it went for:

intensive distribution

Disadvantages of vertical marketing

involves some costs marketers lose some flexibility

Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his food. Today, Joshua is earning $80,000 annually. According to Engel's laws, the percentage of income he will spend on his food now will be:

less than 20 percent

Horizontal positioning

lifestyle, all car companies ex. Jeans, won't cost more for a bigger size

selective distribution

limited number of outlets

Product class

longest life cycle ex. gas-powered cars

Vertical positioning

more/smaller/cheaper/faster iPhones- bigger screen means more expensive

Horizontal conflict

occurs among firms at the same level of the channel

Sub-optimization

performance improvement in one part of an organization but only at the expense of decreased performance in another part

The Kirkland brand is owned by Costco, and the products can only be purchased at Costco stores. Costco contracts with manufacturers to produce and package products under the Kirkland name. Kirkland can be regarded as a(n):

private brand.

Vertical Integration

producer, wholesaler, retailer all working together supply chain

Starbucks marketing itself as "Premium coffee" is an example of a positioning strategy that is based on _____.

product class

Brand Loyalty

recognition- consumer awareness insistence- refusal of alternatives preference- choice based on previous experience

Probability Sampling

simple random sampling- close eyes and pick stratified sampling- divide into homogenous groups then SRS cluster sampling- group into heterogenous groups then SRS of groups

exclusive distribution

single wholesaler or retailer in specific geographic location

Product form

standard PLC shape ex. minivans

Intensive distribution

stocking the product in as many outlets as possible

Engel's laws state that, as household income increases:

the percentage of income spent on items such as recreation and education increases.

Marketing Research Definition

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

Psychographic segmentation divides a population into groups based on:

their attitudes, values and lifestyles

Supermarkets usually display items such as candies, gums, and magazines near the checkout counter because:

they tend to be purchased on the spur of the moment as convenience products

Product Length

total number of items a company carries within its product lines

Dell manufactures and markets computers and several related products, such as laptops, desktops, notebooks, and printers, all under the Dell name. Dell is an example of _____ brands.

umbrella