Exam II: Chapter 7

What strategies help with a tornado?

1. "just ship" - mass production 2. extend distribution channels 3. drive to the next lower price point

What three thoughts should one have when deciding which capability or feature to offer?

1. What features will deliver real value to target customers relative to their cost? 2. Which target segment are we meaning to serve? 3. How can we use them to reinforce our competitive positioning?

A product cloud provides

1. a platform for developing software applications 2. a rules engine and analytics platform 3. smart products applications not built into the product

What are benefits for business customers?

1. add-ons 2. core benefits

What 5 mistakes should info-tech firms avoid?

1. adding valueless, needless features 2. underestimating security risks 3. failing to anticipate or recognize new competitive threats 4. moving slowly and letting competition get ahead 5. overestimating internal skills or capabilities

What two ways can brand meaning be captured?

1. brand performance - functional needs 2. brand imagery - psychological or social needs

What are the two different types of sustainability adopters?

1. cautious 2. embracers

What is involved in planning for today?

1. clear, concise definition of the business 2. delineation of target customer segments 3. functions and the business approach 4. shaping up the business to meet the needs of today's customers with excellence

What are the various stages of quality?

1. conformance to standards in meeting specifications 2. quality is more of a technical specialty that drives the core processes of a business 3. quality is relative to that of competitors; it depends on perceptions from the market not consumers (like stage two)

What are the four dimensions of a product market?

1. customer function 2. technological 3. customer segment 4. value-added system

What are the four steps for building a strong brand in the CBBE model?

1. develop brand awareness or brand identity 2. establish the meaning of the brand through unique brand associations (point of difference) 3. elicit positive brand response from customers through marketing programs 4. build brand relationships with customers, characterized by intense loyalty

What are four key guidelines crucial in a business to business setting?

1. employees at all levels must understand the meaning and vision for the brand (mantra) 2. Larger and more complex companies should develop a coherent branding strategy, then build with its reputation 3. A firm with a strong brand can command a price premium for its products and services. 4. Successful branding requires a well-conceived market segmentation plan

What are three types of feelings evoked by brands?

1. excitement 2. security 3. warmth

What is involved in planning for tomorrow?

1. how the business should be redefined in the future 2. reshaping the business to compete more effectively in the future

What are the 6 steps in the product positioning process?

1. identify relevant set of competitive products 2. identify set of determinant attributes that customers use to differentiate 3. collect info from a sample of existing and potential customers concerning ratings of products and determinant attributes 4. determine product's current position vs. competing offerings for each market segment 5. examine the fit between preferences of market segments and current position of product 6. select positioning or repositioning strategy

What are sacrifices to business customers?

1. price 2. acquisition costs 3. operation costs

What are the four categories for industrial product lines?

1. proprietary or catalog 2. custom-built 3. custom-designed 4. industrial services

What are two strategies that a product manager may take for some attributes?

1. pursue a strategy to increase the importance of attribute to customers 2. increase the difference between the competition's and the firm's product

What are the four types of customer judgments vital to the creation of a strong brand?

1. quality 2. credibility 3. consideration set 4. superiority

Companies that excel do "old t hings in new ways" such as outperforming competition on

1. regulatory compliance 2. environment related cost management

What four factors should be considered when deciding whether to embed in a product or deliver by cloud?

1. response time 2. automation 3. network availability, reliability and security 4. frequency of service or product upgrades

What are the five types of tech customers?

1. tech enthusiasts (innovators) 2. visionaries (early adopters) 3. pragmatists (early majority) 4. conservatives (late majority) 5. skeptics (laggards)

Pragmatists need solutions to be __________ percent in a product before buying it.

100

What is ecoimagination?

A business initiative to help meet customers' demand for more energy-efficient products and to drive reliable long-term growth.

What are industrial services?

A company's capability in an area such as manufacturing, technical service or management consulting.

What is shared value?

A meaningful benefit for customers and for society that is also valuable to the business.

What is a technology stack?

A new information-tech infrastructure

What is the bowling alley?

A product gains acceptance in the mainstream market but has yet to be adopted widely.

What does ISO-9000 standards require?

A supplier to thoroughly document its quality-assurance program

How is product positioning found?

By measuring organizational buyers' perceptions and preferences for a product in relation to its competitors.

What strategy is best for the bowling alley?

Customer-based, application-focused strategy

What is the heart of a business marketing strategy?

Delivering customer value

How does a firm identify the types of data that provide meaningful value relative to cost?

Determining how each type of data creates tangible value for functionality.

What must a firm do when at main street?

Develop niche-specific extensions to the basic platform of a product for existing customers.

Many international companies insist that suppliers meet quality standards set out by the

Geneva-based International Standards Organization.

What are the Geneva-based International Standards Organization standards called?

ISO-9000 standards

What is fueling sustainability?

Intensified global competition for natural resources coupled with escalating public and governmental concern about climate change, industrial pollution, food safety and natural resource depletion.

What is a product market?

It establishes the distinct area in which the business marketer competes.

What is a brand?

It is a name, sign, symbol or logo that identifies the products and services of one firm and differentiates them from competitors.

What is brand equity?

It is a set of brand assets and liabilities to a brand, its name and symbol that add or subtract from the value provided by a product or service, and/or to that firm's customers.

Define brand attitude.

It is the percentage of organizational buyers who have a POSITIVE image of a company MINUS those with a NEGATIVE opinion.

What are discontinuous innovations?

New products that require the end-user and marketplace to dramatically change their behavior, with the promise of gaining dramatic new benefits.

What are organizational buyers?

Organizational buyers make buying decisions for their organizations and purchase products and services professionally.

What is the tornado?

Technical or infrastructure buyers are influenced by one another, when one IT employee buys a product it is followed by a huge wave of purchases from other IT employees. Everyone wants the latest innovation.

What is brand awareness?

The customer's ability to recall or recognize a brand under different conditions.

What is the chasm?

The gap from the early market to the mainstream market. It jumps from early innovators to pragmatists.

What is product positioning?

The place that a product occupies in a particular market.

What is the basic premise of Kevin Keller's CBBE model?

The power of a brand lies in what consumers have learned, felt, seen and heard about a brand over time.

What are custom-designed products?

These items are created to meet the needs of one or a small group of customers. Sometimes the product is a unique unit, such as a power plant or a specific machine tool.

What are custom-built products?

These items are offered as a set of basic units, with numerous accessories and options.

What are determinant attributes?

They are attributes used by customers to differentiate among alternatives and determine which brand they prefer.

What are proprietary products?

They are offered only in certain configurations and produced in anticipation of orders. These product-line decisions are concerned with adding, deleting or repositioning products in the line.

What are pragmatists like?

They believe tech is an evolution, not revolution. Reviews tend to be needed before a purchase is made.

What are conservatives like?

They doubt the value from tech and are price sensitive.

What are visionaries like?

They exploit innovation for a competitive edge.

What are tech enthusiasts like?

They want the latest innovation and don't always have proper resources to get it. They are very influential.

What are skeptics like?

They will always be critics, never straying from what they already have.

What is the goal of brand awareness?

To ensure that customers understand the particular product where the brand competes by creating clear connections to specific products or services under the brand name.

What is main street?

When supply exceeds demand during the aftermarket development of a product.

Customer value is determined in terms of consumer choice in

a competitive context.

Customer value represents a business customer's overall assessment of

a relationship with a supplier based on perceptions of benefits received and sacrifices made.

Product policy involves the set of

all decisions concerning the products and services that the company offers.

What is the technological dimension?

alternative ways a particular function can be performed

Sustainability yields both ___________ and ___________ returns.

bottom-line, top-line

Brand equity is impacted by

brand awareness, loyalty, perceived quality and other brand associations and proprietary brand assets.

Customer-based brand equity is the differential effect that customers'

brand knowledge has on their response to marketing activities and programs for that brand.

To achieve the right identity for a brand, the business marketer must create

brand salience.

Proprietary products are nicknamed

building blocks.

With custom-designed products, a customer purchases a _______, which is what is transformed into a custom-designed product.

capability

What is the value-added system dimensions?

competitors serving the market can operate along a sequence of stages

Brand attitude is ______________ and _____________ of brand equity.

component, indicator

Trust has a stronger impact on _______ ________ than product characteristics.

core benefits

Add-on benefits influence customer value more than

core benefits.

In developing a sustainability initiative, a firm must select an area where

customer and company interests intersect.

What is the customer segment dimension?

customer groups who have distinct needs

Product policy attempts to satisfy ________ ___________ and to build a sustainable competitive advantage by capitalizing on its _________ __________________.

customer needs, core competencies

If the firm's performance on a determinant product alternative is higher than competitors, marketing communications can be

developed to bring perceptions in line with reality.

Most high-performing companies are

embracers.

Feelings relate to the customer's __________ ______________ to the brand.

emotional reaction

Brand positioning involves

establishing unique brand associations in the minds of customers to differentiate the brand and establish competitive superiority.

The competitive standing of a form can be advanced by improving the

firm's level of performance on determinant attributes that organizational buyers emphasize.

Embracers believe sustainability

gives them a competitive advantage through innovation, process improvements, brand building and access

An operating system embedded in the product is included in a tech stack, as well as _______ and ________ applications and network communications to provide _________.

hardware, software and connectivity

Sustainability reduces _______ and grows _______.

inputs, revenue

A business marketer's marketplace identity is established through

its brand and through the products and services it offers.

Brand resonance represents the strength of the psychological bond that a customer has with a brand and the degree to which this connection translates into

loyalty, attachment and active engagement with the brand.

Product management is directly linked to

market analysis and market selection.

Brand positioning should incorporate both _________ _ ________ and ______ __ ____________ in the customer value proposition.

points of parity, points of difference

By reducing a customer's costs, a business marketer will not have to only rely on

price to deliver and demonstrate value.

The tech stack also includes a __________________ cloud, which is software operating on the manufacturer's or a third party's server.

product

To provide value and successfully implement marketing programs, a firm must carefully coordinate activities among personnel in

product management, sales and service.

Cautious adopters believe

sustainability is good for cost cutting, resource efficiency and risk management.

Because organizational buyers perceive products as bundles of attributes (quality, service, etc.), the product strategist should examine

the attributes that assume a central role in buying decisions.

What is the customer function dimension?

the benefits that are provided to satisfy the needs of organizational buyers

Sustainability is defined as

the integration of economic, environmental and societal considerations into business decision making.

Products are developed to fit ______ _________ __ ____ ________ and modified as those needs change.

the needs of the market

What strategy is used in main street?

value-based strategy targeted at end-user segments