Principles of Marketing Exam 2
what is the long tail concept
Potential for success by marketing products that only a few people want Works well for internet marketers that do not need to stock all the items they sell in a traditional retail store Netflix and Amazon
what are the 4 variations of the consumer decision making process
extended limited habitual impulse
how has time poverty as a situational influence among american consumers led to marketing opportunities
1-hour photo labs Drive-thru pharmacies "Faster download times" Fast food restaurants Shopping online
what are the 5 requirements for successful segmentation
1. Have members with similar product needs/wants who are different from members of other segments 2. Be measureable in size and purchasing power 3. Be large enough to be profitable 4. Be reachable by marketing communications 5. Have needs the marketer can adequately serve
what are the 5 categories of the product adopter process
1. innovators 2. Early adopters 3. early majority 4. Late majority 5. laggards
what are the 3 types of reference groups
1. membership 2. aspiration 3. dissociative
how does the FTC define a "new product"
A product must be entirely new or changed significantly to be called "new", and A product may be called "new" for only six months.
what are the advantages/disadvantages of test marketing
Advantages: measures actions, not intentions; observe competition; measure repeat purchase rate, consumers' characteristics, dealer enthusiasm, etc. Disadvantages: costly; lose confidentiality to competition
what is cognitive dissonance
After a purchase, a consumer may feel doubt or anxiety about the purchase decision
what is geodemography
Combines demographics with geography
what is meant by the term "influencer marketing"
Early adopters are heavy users of social media.. More consumers are looking to influencers (an important part of the Early Adopter segment) to obtain information on products. Traditional advertising is less significant to these consumers. Instead, these consumers look at each other and their favorite personalities, who have huge followings on YouTube, Instagram, Snapchat, Pinterest, etc.
how is family life cycle used to segment markets
Even if importance is constant, needs within category may change (e.g., furniture) families need change over time
what is geocoding
Geographically customized web advertising that feeds local ads to users
what is behavioral targeting and how is it used as a marketing strategy
Marketers deliver ads for products that are of most interest to consumers by observing what they do online A strategy that presents individuals with advertisements based on their internet use
how is the study of lifestyle used in marketing
Marketers seeks to describe people according to activities, interests and opinions
what is a slotting fee? failure fee?
Slotting fee: fee paid to the retailer by the producer to get the new product on the retail shelf Failure fee: penalty fee paid to the retailer by the producer if the new product does not produce the sales it promised
what are the 4 methods of choosing a targeting strategy
Undifferentiated differentiated Concentrated custom marketing
what is a product in generic terms
a bundle of consumer benefits
how is the demographic makeup of american society changing along race and ethnic groups?
asian and hispanic increasing, white and black relatively constant
how is gender used to segment markets
associate appropriate attitudes, behaviors, and opportunities for men and women to products
what are the 6 stages of the product adoption process
awareness interest evaluation trial adoption confirmation
what are the 2 types of behavioral learning concepts
classical and operant conditioning
what does downshopping mean
consumer preferences towards lower-priced products and brands with a practical, more economical image
what are the 4 types of consumer products
convenience shopping specialty unsought
what are the 3 layers of the product concept
core, actual, augmented
what is an AIO inventory
defines what a lifestyle is. stands for activities, interests and opinions
what are the 3 major ways that marketers segment markets
demographics psychographics behavior
what is the difference between a durable good and a nondurable good
durable are consumer products that provide benefits over a period of months, years, or even decades - cars, furniture, appliances nondurable are consumed over the short term - magazines, food
what is an innovation and what are the 3 types
dynamically continuous discontinuous continuous
which of the 5 categories of adopters include MOST opinion leaders of influencers
early adopters
what are the 5 types of b2b products
equipment maintenance, repair, and operating raw materials processed materials and special services component parts
what are the determining factors of social class
family background, occupation, education, income
what are the divisions that distinguish upper, lower, and middle income
highest 20% of incomes are considered "upper income" lowest 20% are considered "lower income"; middle 60% are considered "middle income"
what is cognitive learning
how a person processes and reasons information. It revolves around many factors, including problem-solving skills, memory retention, thinking skills and the perception of learned material.
what are the 7 phases of new product development
idea generation product concept development and screening marketing strategy development business analysis technical development test marketing commercialization
what is the difference between family and household
if the people are related or not
what variables are used to rank society by social class
income, occupation, education, family background
what is the difference between internal and external search during step 2
internal: Consumers search memory and environment for information external: If information is inadequate, consumers seek out additional sources
what is sensory marketing
marketing techniques that link distinct sensory experiences such as unique fragrance with a product or service
what is a national rollout
most products are introduced into the country gradually, a little at a time, and not overnight
what does psychographics mean?
people according to psychological and behavioral similarities
what is an opinion leader
people who influence others' attitudes or behaviors because others perceive them as possessing expertise about the product
what are the levels of maslow's hierarchy of needs in order
physiological, safety, belongingness, ego needs, self actualization
what are the five steps in the consumer decision making process
problem recognition information search evaluation of alternatives product choice postpurchase evaluation
what does Heuristics mean
rules of thumb (mental shortcuts) used by individuals to arrive at good decision with less mental effort
what are the 3 steps in the target marketing process
segmentation targeting positioning
what is the difference between culture, subculture, and microculture
subculture share distinctive set of beliefs/experiences microcultures identify based o n a common activity or art form
what is convergence
the coming together of two or more technologies to create a new system
what is "The Tipping Point"? who originated it?
the point when a product's sales spike from a slow climb to an unprecedented new level, malcolm gladwell
what is product positioning
the process by which marketers seek to influence how a particular product is perceived in the minds of customers relative to competing offerings
what are the different generational markets
the silent generation baby boomers generation x millennials/generation y generation z
what is VALS
values and lifestyles inventory
what is "jamming the test"
when a competitor tries to sabotage a company's test market
how are usage occasions applied to behavioral segmentation
when consumers use a product most i.e. candy, greeting cards, vacations, party supplies
what is consumer socialization
young people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace
