B BUS 320A: Marketing Management

A unique selling proposition is

a unique attribute that a company chooses about a brand and touts as "number one" in regards to that attribute

Convenience product

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

Industrial product

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

Brand extension

extending an existing brand name of new product categories

Maturity stage

the PLC stage in which a product's sales growth slows or levels off; modifying the market, product offering, or marketing mix

growth stage

the PLC stage in which a product's sales start climbing quickly; increased spending on product improvement, promotion, and distribution

New product development

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

Co-branding

the practice of using the established brand names of two different companies on the same product

Zappos creates​ __________ for its customers by offering a wide​ selection, higher levels of​ service, and​ customer-friendly return policies.

value

Team-based new product development

various company departments working closely together, overlapping the steps in the product development process to save time and increase effeciveness

Service variability

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

Service inseparability

means that services are produced and consumed at the same time and cannot be separated from their providers

Service perishability

means that services cannot be stored for later sale or use

The key to the effectiveness of the segmentation analysis depends on finding segments that are

measurable, accessible, substantial, differentiable, and actionable

A value proposition is

the full mix of benefits on which a brand is positioned

Idea generation

the systematic search for new product ideas

Shopping product

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 product

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

Fashion

A currently accepted or popular style in a given field

Fad

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Product

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

Although Zappos was not legally bound to fulfill customer orders following its pricing​ snafu, failure to do so would have significantly lowered​ __________, which is based on a​ company's performance relative to the​ customers' expectations

customer satisfaction

Product position is

defined by consumers on important attributes--the place the product occupies in consumers' minds relative to competing products

The seller can adopt​ ________, developing different market offers for several segments.

differentiated marketing

Concentrated marketing

a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

The differentiation and positioning task consists of three​ steps: identifying​ ________ that create competitive​ advantage, choosing​ ________ on which to build a​ position, and selecting an overall positioning strategy.

a set of possible differentiations; advantages

Product line filling

adding more items within the present range of the line

Positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

The profile of the early Roomba customers reflected individuals who liked and were comfortable with technology and who also wanted a clean home. Dividing the larger population into smaller groups based on such characteristics is a practice known as​ _____________.

market segmentation

Companies need to consider many factors when choosing a​ market-targeting strategy.​ However, which targeting strategy is best depends on company​ resources, product​ variability, product​ life-cycle stage as well as​ ________________________.

market variability and competitive marketing strategies

Many of​ Zappos' more traditional rivals focus greater attention on the attributes of the products and services they sell rather than on the benefits and experiences produced by their market offerings. This trap is sometimes referred to as​ __________.

marketing myopia

During the economic recovery of the​ mid-1990s, consumers' automotive tastes shifted toward a preference for larger SUVs. Subaru responded to this market trend by introducing the​ Outback, a crossover vehicle that appealed to those who were looking for the recreational capabilities of a SUV but wanted something that drove more like a car.​ Subaru's responsiveness to its customer market reflects its attention to the​ ___________ element of the​ company's marketing environment.

microenvironment

According to the​ video, some individuals living in trendy neighborhoods choose to shop at Goodwill boutiques in order to find fashionable clothing and​ "shabby chic" furniture. According to​ Maslow's theory of​ __________, such shoppers are likely seeking to satisfy social or esteem needs.

motivation

Attributes and benefits

part of brand positioning that is one of the major brand strategy decisions

The video suggests that a key challenge for​ Goodwill's marketers is to change the view of many consumers that secondhand stores are​ musty, low-class operations with​ poor-quality merchandise. This exemplifies the psychological concept of​ __________, which is the process by which people​ select, organize, and interpret information to form a meaningful picture of the world.

perception

Goodwill adapts its store formats and merchandise plans to match the innovativeness and disposable income of shoppers in nearby neighborhoods. For​ instance, customers of its boutique store in the​ Haight-Ashbury neighborhood of San Francisco are more likely to demonstrate greater​ __________ for trendy fashions.

rates of adoption

Idea screening

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

To target the best market segments, the company first evaluates each segment's

size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources

In its communications to customers and​ investors, iRobot proclaims that its goal is to​ "design and build robots that make a difference in​ people's lives." Identifying the​ company's mission is the first step in the​ ______________ process.

strategic planning

Local marketing

tailoring brands and marketing to the needs and wants of local customer segments--cities, neighborhoods, and even specific stores

Individual marketing

tailoring products and marketing programs to the needs and preferences of individual customers

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Subaru has responded to changes in its​ ____________, using social network platforms such as Facebook and Twitter to spur greater brand conversations among Generation X and Millennial customers.

technological environment

introduction stage

the PLC stage in which a new product is first distributed and made available for purchase; offering a basic product

decline stage

the PLC stage in which a product's sales fade away; phasing out weak items

Brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

When iRobot introduced new robot models that would clean gutters and mop floors, this innovation represented which type of market growth strategy?

Product development

During the past few​ decades, concern for the​ ________________ has spawned an environmental sustainability movement among consumers that fits very well with​ Subaru's "green" positioning of its vehicle line.

natural environment

Multibrand

Having more than one brand competing in the same product category

What is social criticism of marketing?

* Marketers produce unsafe products * Marketing leads to higher prices * Marketing takes advantage of disadvantaged persons * Marketing includes high-pressure selling

Style

Basic and distinctive mode of expression

Brand name selection

Begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. A good name can add greatly to a product's success; however, finding the best brand name is a difficult task

Brand extension

Broadening the market's understanding of the brand by offering more products under the existing brand name

How can a product differentiate?

By differentiating on features, performance, or style and design

How can company people different?

By hiring and training better people, company select its customer-contact people carefully and train them well

Variability

Changes in the quality of the same service provided by different vendors; descriptive protocols and standards will minimize the variation as it provides consumers with the knowledge for what to expect

Being told that you are receiving factory or wholesale​ pricing, when in fact the price is the same as that found at​ retailers, indicates that you may have been a victim of​ __________.

Deceptive pricing

A retail establishment offers a new television at an extremely low price.​ However, the retailer is out of stock of the television and uses the low price to lure customers in to purchase other items. Which deceptive practice is the retailer most likely engaged​ in?

Deceptive promotion

Marketing strategy development

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

Product development

Developing the product concept into a physical product to ensure that the product idea can be turend into a owrkable market offering

Global sales of new vehicles fell by as much as​ 40% during the Great Recession in​ 2008-2009. This fact best reflects the impact of which dimension of​ Subaru's marketing​ environment?

Economic envrionment

Customer-centered new product development

Finding new ways to solve customer problems and create more customer-satisfying experiences

How does channel differentiation help?

Firms that practice this gain competitive advantage through the way they design their channel's coverage, expertise, and performance.

What are the four major variables used to segment consumer markets?

Geographic, demographic, psychographic, and behavioral

A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of differentiation is this?

Image differentiation

Product line extension

Introducing a new product--that is similar to what the company already offers that is targeting an existing market by using the current brand name

Crowdsourcing

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

Brand development

Line extensions, brand extensions, multibranding and new brands

Profit Margin formula

Net Income / Sales

Marketing ROI Formula

Net Marketing Contribution / Marketing Expenses

Marketing ROS Formula

Net Marketing Contribution / Net Sales

NMC (Net Marketing Contribution) formula

Net Sales - COGS - Marketing Expenses

What would make a segment less attractive to enter?

New entrants finding it easier to enter the segment

What are the additional variables use to segment business markets but not consumer markets?

Operating characteristics, purchasing approaches, situational factors, and personal characteristics

Brand sponsorship

Private brand, licensing, and co-branding

Concept testing

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

Which governmental entity is responsible for policing marketing​ activities?

The FTC

Product quality

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

Intangibility

The inability to assess the value gained from engaging in an activity using any tangible evidence; used to describe services where there isn't tangible product that the customer can purchase, that can be seen, tasted, or touched

Product line length

The number of items in the product line

Product mix

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

Test marketing

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

Perishability

The way in which service capacity cannot be stored for sale in the future

According to the​ video, iRobot is seeing a lot of competitors coming out with​ lower-priced and​ lower-quality knockoffs. The result is a perception that robot vacuums do not work well. With respect to the broader SWOT​ framework, this analysis would fall under which​ dimension?

Threat

How can a service differentiate?

Through speedy, convenient service

Product line stretching

When a company lengthens its product line beyond its current range

New brand

When the firm is expanding its offering--by developing a new product line that they haven't not offered before--as a result, need to build new brand

Store brand

a brand created and owned by a reseller of a product or service

Differentiation

distinguishing a market offering from other offerings in order to create superior customer value

Age and life-cycle segmentation

dividing a market into different age and life-cycle groups

Geographic segmentation

dividing a market into different geographic units, such as nations, states, regions, counties, cities, or even neighborhoods

Income segmentation

dividing a market into different income segments

Gender segmentation

dividing a market into different segments based on gender

Psychographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

Occasion segmentation

dividing a market into segments according to the moments when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Behavioral segmentations

dividing a market into segments based on consumer knowledge, attitudes, uses, or response to a product

Market segmentation

dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

According to the​ video, Goodwill has often had to cut prices due to poor​ ______ conditions.

economic

Market targeting

evaluating each market segment's attractiveness and selecting one or more segments to enter

Zappos offers customers wide​ selection, excellent​ service, and​ customer-friendly return policies. In​ return, customers are willing to pay more for the​ company's offerings. This act of obtaining a desired object from someone by offering something in return is known as​ __________.

exchange

A competitive advantage is

gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

According to the​ video, Goodwill adjusts its merchandising and store formats in Northern California to better match the​ __________ of individuals living within those​ neighborhoods, as expressed by their respective daily​ activities, interests, and opinions.

lifestyle

A service profit chain

links service firm profits with employee and customer satisfaction

In the Subaru America​ video, the product manager references the need to be well informed regarding numerous aspects of the​ company's __________________, including​ long-term shifts in​ politics, culture, and technology.

macroenvironment

Unsought product

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

Product concept

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

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

Inseparability

A key quality of services as distinct from goods; renders an impossibility to divorce the supply or production of the service from its consumption

While​ Zappos' pricing snafu cost the company nearly​ $1.6 million​ dollars, the company chose to fulfill all the orders because it realized the​ long-term loss of patronage from these customers could be even more expensive. A key metric that measures the​ long-term profitability of individual customers or groups of customers is known as​ __________.

customer lifetime value

The practice of stating that a product works in a way that it​ doesn't is known as​ _________.

deceptive promotion

Just prior to the introduction of the​ Roomba, Electrolux introduced a similar robot in Europe that featured a​ sleek, space-aged design and a​ $1,500 price point. In​ contrast, the form factor of the iRobot Rumba was simple and its price point was much lower. Because of its unique​ ____________, the Rumba easily outperformed the rival product in terms of sales.

differentiation