Marketing - Test 2 - Chapter 5, 6, 7, 8

idea screening

screening new product ideas to spot good ones and drop poor ones as soon as possible

Actual Product

At the "Core of Customer Value" is ________ _________. - Brand name - Quality level - Packaging - Design - Features

d) cost to the company

A company adding new features to a product will most likely assess each feature's value to customers relative to its: a) performance in the market b) benefits to the company c) cost to the customers d) cost to the company e) benefits to the supplier

Augmented Product

After the "Core of Customer Value" is ________ ________. - Delivery and credit - After-sale service - Product support - Warranty

a) a company creates a forum where anyone can contribute new product ideas

In which of the following cases is crowdsourcing used for new product development?: a) a company creates a forum where anyone can contribute new product ideas b) a company hires a marketing agency to generate new product ideas c) a company reviews the sales, costs, and profit projections of an existing product d) a company depends on its R&D department to come up with new ideas e) a company partners with a design agency to create a few prototypes

service profit chain

The following 5 links describe what? - Internal service quality - Satisfied and productive service employees - Greater service value - Satisfied and loyal customers - Healthy service profits and growth

business organizations

The following describes services what can offer? - Airlines - Banks - Hotels, insurance companies - Consulting firms - Medical and legal practices - Entertainment and telecommunication companies - Real estate firm - Retailers

government

The following describes services what can offer? - Courts - Employment services - Hospitals - Military services - Police and fire departments - Postal services - Public education

private not-for profit organizations

The following describes services what can offer? - Museums - Charities - Churches - Colleges - Foundations - Hospitals

Convenience

The following describes what type of customer buying behavior? - Frequent purchase - Little planning - Little comparison or shopping effort - Low customer involvement

Shopping

The following describes what type of customer buying behavior? - Less frequent purchase - Much planning and shopping effort - Comparison of brands on price, quality, and style

Specialty

The following describes what type of customer buying behavior? - Strong brand preference and loyalty - Special purchase effort - Little comparison of brands - Low price sensitivity

Specialty

The following describes what type of distribution? - Exclusive distribution in only one or a few outlets per market area

Shopping

The following describes what type of distribution? - Selective distributions in fewer outlets

Convenience

The following describes what type of distribution? - Widespread distribution - Convenient locations

Shopping

The following describes what type of promotion? - Advertising and personal selling by both the producer and resellers

Unsought

The following describes what type of promotion? - Aggressive advertising and personal selling by the producer and reseller

Convenience

The following describes what type of promotion? - Mass promotion by the producer

Specialty

The following describes what type of promotion? - More carefully targeted promotion both producer and resellers

New Product Development

The following describes what?

service intangibility

The following is an example of what? - People undergoing cosmetic surgery cannot see the result before the purchase

product line filling

The following reasons support what? - reaching for extra profits - satisfying dealers - using excess capacity - being the leading full-line company - plugging holes to keep out competitors

idea generation

The new product development process usually starts with what?

short

The product line is too ________ if the manager can increase products by adding items.

long

The product line is too ________ if the manager can increase profits by dropping items.

Material and parts, capital items, supplies and services

What are the 3 groups of industrial products and services?

intangibility, perishability, variability, inseparability

What are the 4 aspects of service?

motivation; perception; learning; beliefs and attitudes

What are the 4 psychological factors to buying behavior?

occupation; age and stage; economic situation; lifestyle; personality and self-concept

What are the 5 personal factors that influence buyer's decisions?

price, product, promotion, place

What are the four Ps of marketing?

target market, planned value proposition; and sales, market-share, and profit goals

What are the three parts of the marketing strategy statement?

developing new products to replace the old one

What is the challenge of new product development?

a firm must be good at adapting its marketing strategies in the face of changing tastes, technologies, and competition as products pass through stage

What is the challenge of product life-cycle strategies?

total quality management (TQM)

________ ________ ________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes

d) Marketing strategy/development

________ refers to designing a new plan for a new product based on the product concept. a) Business analysis b) Idea generation c) Concept screening d) Marketing strategy/development e) Test marketing

c) Test marketing

________is the stage where a product and its proposed marketing program are introduced into realistic market settings. a) Market strategy/development b) Concept testing c) Test marketing d) Concept development e) Business analysis

convenience products

a consumer product that customers usually buy frequently, immediately, and with minimal comparison or buying effort

unsought products

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

shopping products

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price and style

specialty products

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

belief

a descriptive thought that a person holds about something

product concept

a detailed version of the new product idea stated in meaningful consumer terms

subculture

a group of people with shared value systems based on common life experiences

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

reference group

a group that serves as direct or indirect point of comparison reference in forming a person's attitudes or behavior

brand

a name, term, sign, symbol, or design, or a combination of these that identifies the products and services of one seller or group of sellers and differentiates them from those competitors

motive (drive)

a need that is sufficiently pressing to direct the person to seek satisfaction of the need

opinion leader

a person within a reference group who, because of special skills, knowledge personality, and other characteristics

attitude

a person's consistency favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea

lifestyle

a person's pattern of living as expressed in his or her activities, interests, and opinions

consumer products

a product bought by final consumers for personal consumption

industrial products

a product bought by individuals and organizations for further processing for use in conducting a business

business analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives

services

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in ownership of anything

return-on-quality

an approach viewing quality as an investment and holding quality efforts accountable for bottom-line results

product idea

an idea for a possible product that the company can see itself offering to the market

product

anything that can be offered to a market for attention, acquisition, or consumption that might satisfy a want or need

acquisition

buying a whole company, a patent, or a license to produce someone else's product

learning

changes in an individual's behavior arising from experience

product development

company growth by offering modified or new products to current market segments

marketing strategy development

designing an initial marketing strategy for a new product based on the product concept

influencer marketing

enlisting established influencers or creating new influencers to spread the word about a company's brand(s)

conformance quality

freedom from defects and consistency in delivering a targeted level of performance

total marketing strategy

integrating ethnic themes and cross cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

commercialization

introducing a new product into the market

crowdsourcing

inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

product line filling

involves adding more items within the present range of the line

team-based new product development

new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

customer-centered new product development

new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

controlled test markets

new products and tactics are tested among controlled panels of shoppers and stores

product line stretching

occurs when a company lengthens its product line beyond its current range

online social networks

online social communities - blogs, online social media, brand communities, and other online forums - where people socialize exchange information and opinions

internal marketing

orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction

consistency of product mix

refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way

product line depth

refers to the number of versions offered of each product in the line

product mix length

refers to the total number of items a company carries within its product lines

social class

relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors

simulated test markets

researchers measure consumer responses to new products and marketing tactics in a laboratory stores or simulated online shopping environments

service inseparability

services are produced and consumed at the same time and cannot be separated from their provider

service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

service perishability

services cannot be stored for later sale or use

internal service quality

superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which results in satisfied and productive service employees

concept testing

testing new products concepts with a group of target consumers to find out if the concepts have strong consumer appeal

packaging

the activities of designing and producing the container or wrapper for a product

service profit chain

the chain that links service firm profits with employee and customer satisfaction

product quality

the characteristics of a product or service that bear on its ability to satisfy or implied customer needs

new product development

the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts

word-of-mouth influence

the impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior

product line length

the number of items in the product line

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

performance quality

the product's ability to perform its functions

service variability

the quality of services may vary greatly depending on who provides them and when, where, and how they are provided

product mix (or product portfolio)

the set of all product lines and items that particular seller offers for sale

culture

the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

test marketing

the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

idea generation

the systematic search for new product ideas

personality

the unique psychological characteristics that distinguish a person or group

societal marketing

the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being

product image

the way consumers perceive an actual or potential product

interactive marketing

training service employees in the fine art of interacting with customers to satisfy their needs