Chapter 4 - Hw Questions
List the four most important variables used in behavioristic segmentation
(1) purchase occasion, (2) benefit sought, (3) user status, and (4) usage rate.
What is a vertical marketing system?
A vertical marketing system (VMS) is a system in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a cooperative group to meet consumer needs.
Describe business markets, the groups that use them, and the products they sell
Business markets (or industrial markets) include manufacturers, government agencies, wholesalers, retailers, banks, and institutions that buy goods and services to help them operate. These products may include raw materials, electronic components, mechanical parts, office equipment, vehicles, or services used in conducting their businesses.
What are the two steps that make up the market segmentation process?
Identifying groups of people who share needs and characteristics and the second step is aggregating (combining) these groups into larger market segments according to their interest in a products utility.
family brand
Family brand is the marketing of various products under the same umbrella name.
What is marketing communications? What are the tools used in marketing communications?
Marketing communications (often called marcom) refers to all the planned messages that companies and organizations create and disseminate to support their marketing objectives and strategies. In addition to advertising, major marketing communication tools include personal selling, sales promotion, direct marketing, and public relations activities.
national brand
National brands refer to product brands that are marketed in several regions of the country
Distinguish between primary demand and selective demand
Primary demand refers to demand for all brands in a product category. Selective demand is demand for a particular brand. A company has to stimulate primary demand when it introduces a major new product category. A company tries to create selective demand for its products when it uses its promotional efforts to impress customers with the subtle advantages of one brand over another.
private labels
Private labels are personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.
Discuss the importance of product differentiation with respect to perceptible differences, hidden differences, and induced differences
Product differentiation creates a product difference that appeals to the preferences of a distinct market segment. In advertising, nothing is more important than being able to tell prospects truthfully that your product is different. Unfortunately, in response to increased competitive pressures, burgeoning innovation and technology, and various constraints on distribution, new-product development cycles have shortened dramatically. Differences between products that are readily apparent to the consumer are called perceptible differences. Hidden differences are not so readily apparent. Induced differences are distinguishing characteristics of products affected through unique branding, packaging, distribution, merchandising, and advertising.
What is the purpose of North American Industry Classification System (NAICS) codes?
The NAICS codes help companies segment markets and do research, and advertisers can even obtain lists of companies in particular NAICS divisions for direct mailings. To give marketers an abundance of information. This information can include the number of firms, sales volume, and number of employees by geographic area.
What is the basic goal of any positioning strategy?
The basic goal of a positioning strategy is to own a concept that establishes the product in the prospect's mind.
Explain how the concept of shared characteristics relates to the marketing segmentation process
The concept of shared characteristics is critical to market segmentation. Marketing and advertising people know that, based on their needs, wants and mental files, consumers leave "footprints in the sand"—the telltale signs of where they live and work, what they buy and how they spend their leisure time. By following these footprints, marketers can locate and define groups of consumers with similar needs and wants, create messages for them and know how and where to send their messages. The goal is to find that particular niche where the marketer's product fits.
Describe the steps in the target marketing process.
The first step in target marketing is to assess which of the newly created segments offers the greatest profit potential and which can be most successfully penetrated. The company designates one or more segments as a target market—those consumers the company wishes to appeal to, design products for, and tailor its marketing activities toward. It may designate another set of segments as a secondary target market and aim some of its resources at it.
List the most important factors for advertising success
The following factors are particularly important for advertising success:ï Strong primary demand trendï Chance for significant product differentiationï Hidden qualities highly important to consumersï Opportunity to use strong emotional appealsï Substantial sums available to support advertising.
Describe the use of push and pull strategies in different stages of the product life cycle.
The pull strategy refers to the marketing, advertising, and sales promotion activities aimed at consumers to induce trial purchases and repurchases. Businesses may use this strategy ahead of a product's release in order to pull it through the supply chain and speed into a growth period. The push strategy involves marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline to accelerate sales by offering inducements to dealers, retailers, and salespeople. Businesses often use this strategy when product has matured in order to build selective demand for the product over other similar items.
What is the product element?
The value associated with the product. Usually depends on the way the product is designed and classified, position, branded and packaged
What are the stages in a product life cycle? Discuss each stage in brief.
There are four major stages in the product life cycle: introduction, growth, maturity, and decline. Introductory phase: The initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest. Growth stage: The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases. Maturity stage: That point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense. Decline stage: The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.
What is the Utility of a Product?
Utility refers to a product's ability to satisfy both functional needs and symbolic or psychological wants. A product's problem-solving potential may include form, task, possession, time, or place utility.
What is the advantage of defining a target market?
When a company defines its target market, it knows exactly where to focus its attention and resources.
Once a company decides to use indirect rather than direct distribution, it must choose one of the three strategies of distribution. Discuss what each choice means in terms of product availability to final consumers
With intensive distribution, products are available to purchasers at every possible location. With selective distribution, the number of outlets that carries a product is limited. Exclusive distribution occurs when a manufacturer grants to one wholesaler or retailer the exclusive right to sell a product in a specific geographic region.
individual brand
involves assigning a unique name to each product a manufacturer produces