Marketing 301 Exam 2 Review Part 1

Achieving company growth by offering modified or new products to current market segments is called?

Product development

Activities that communicate the merits of the product and persuade the target consumers to buy it

Promotion

Dividing a market into different segments based on social class, lifestyle, or personality characterisitics

Psychographic segmentation

Low share SBU's in high growth markets that require a lot of cash to hold their share are ?

Question Marks

Low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. MGMT must decide which it wants to build upon and which it wants to phase out

Question Marks

When a company is conducting idea screening, it may use RWW to guide the process. What is RWW?

Real cost, winning formula, winning product

All of the following are requirements for effective segmentation except? a- measurable b- sustainable c- replicable d- accessible e- actionable

Replicable

An overall evaluation of the company's strengths, weaknesses, opportunities, and threats

SWOT Analysis

Suggests the company strategy should revolve around creating customer value and the building of profitable relationships with important consumer groups

the marketing concept

What are the problems with the BCG Matrix Approach?

-It can be difficult, time consuming, and costly to implement - Focus mostly on current businesses and don't touch on future planning

What are perceptual maps and why do we use them?

-graphic illustration of your firm vs competitors plotted in an axes -use them to see what people think of us, make decisions, see who our competitors are

What two steps make up the business portfolio?

1) Company must analyze its current portfolio and determine which businesses receive more, less, or no investment 2) Company must shape its future portfolio by developing strategies for growth and downsizing

A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style ex)Phones, Clothes

Shopping Product

What is cognitive dissonance in the context of a consumer purchasing goods?

a discomfort caused by the indifferences between what has been purchased and what could have been purchased

if your supervisor asks you to create a detailed description of the company's new product explained meaningfully in consumer focused terms, they are asking for?

Product concept

Services can not be seen, tasted, felt, heard, or smelled before they are bought

Service Intangibitity

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

Service profit chain

A marker or identification for a product, a promise to the customer, a representation of what perceptions and feelings consumers have toward a product offering

Brand

A financial evaluation of how much a brand is actually worth

Brand Equity

Extending an existing brand name to new product categories

Brand extension

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

Business Analysis

The product life cycle stage in which a products sales fade away

Decline stage

When a company brands multiple brands in the same product category

Multibranding

The initial introduction of a new product into the market

Commercialization

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

Competitive advantage

Translating the product idea into a detailed concept statement in meaningful consumer terms

Concept Development

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

Concept Testing

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort ex) soap, candy, toothpaste

Convenience Product

Inviting broad communities of people into the new product innovation process

Crowdsourcing

The product life cycle stage in which a products sales start climbing quickly

Growth Stage

The systematic search for new product ideas using internal and external sources

Idea Generation

The screening process to reduce the number of ideas by spotting good ones and dropping poor ones

Idea Screening

Orienting and motivating consumer driven employees and supporting service employees to work as a team to provide customer satisfaction

Internal Marketing

The product life cycle stage in which a new product is 1st distributed and made available for purchase

Introduction stage

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

Line extension

the product life cycle stage in which a products sales growth slows or levels off

Maturity Stage

Company activities that make the product available to target customers

Place

The number of products in a product line. Can be adjusted through stretching downward, upward, or both directions, or by filling

Product line length

All the product lines and items that a particular seller offers. Dimensions include length, width, depth, consistency

Product mix

The way a product is defined by consumers on important attributes- the place the product occupies in consumers minds relative to competing products

Product position

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

Specialty Product

A consumer product that the consumer either doesn't know or won't know about and doesn't normally consider buying ex) Home insurance, Loans, Electricity

Unsought Product

The full positioning of a brand-the full mix of benefits on which it is positioned

Value proposition

A

W

What are the 4 steps in strategic planning?

1) Define Company mission 2) set objectives and goals 3) design a business portfolio 4) planning marketing/functional strategies

What are the 4 requirements of a market?

1) Must be a need or desire for a product offering 2) Must have the ability to purchase the product 3) must be willing to use this product 4) Must have authority to make the purchase

In the marketing plan, the executive summary is ?

A brief summary of main goals and recommendations for management review

How should mission statements be oriented?

Always should be geared towards the market to satisfy basic customer needs. Should never be product or technology oriented

The buyer new-product adoption process includes the following:? a- awareness b- interest c- trial d- branding e- a,b,c

Awareness, Interest, and Trial

a portfolio-planning method that evaluates a companys SBU's in terms of market growth rate and relative market share and is made up of 4 parts

BCG (Boston Consulting Group) Growth-Share Matrix

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

Behavioral segmentation

the collection of businesses and products that make up a company

Business portfolio

Low growth, high share businesses or products that need less investment and hold their market share to produce a lot of cash for their company are ?

Cash Cows

Low-growth, high-share businesses or products. These established and successful SBU's need less investment to hold their market share. They produce a lot of cash that the company uses to pay its bills and support other SBU's that need investments

Cash Cows

When a company attains an advantage over another company by offing greater customer value, this is called? a- competitive advantage b- brand image differentiation c- same for less positioning d- none

Competitive advantage

A marketing strategy in which large shares of one or a few small segments are targeted

Concentrated or Niche Marketing

The marketing team at your new employer wants to conduct a market test with controlled groups of shoppers and stores. Your team will be developing a ? a- personal test market b- simulated test market c- controlled test market d- customer centered test market

Controlled test market

A product that customers usually buy frequently, immediately, and with minimal research and buying effort is called a/an? a- convenience product b- shopping product c- unsought product d- industrial product

Convenience product

Public relations efforts undertaken by orgs to market themselves and polish their images are called? a- person marketing b- organizational marketing c- corporate-image marketing d- social marketing e- none

Corporate-image marketing

Fresh understandings of consumers and the marketplace that are derived from marketing information are called?

Customer insights

A customers eval of the difference between all the benefits and all the costs of a marketing offer relative to competing offers is called ?

Customer perceived value

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

Demographic segmentation

A marketing strategy in which several market segments are targeted and the their are separate designs and positioning strategies for each

Differentiated Marketing Strategy

Altering a market offering from competitors to create superior customer value Ex) Audi vs. Mercedes Benz

Differentiation

Achieving company growth through starting or acquiring businesses outside the company's current products or markets is called?

Diversificiation

Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to bring in cash

Dogs

If you were a marketing professional looking at the social factors affecting buyer behavior, you would consider all of the following except? A)Family Groups B)Social Status C)Economic Status D)Social Roles

Economic Status

Which of the following is not considered a factor in consumer purchases? a- psychological b- personal c- educational d- cultural e- social

Educational

Dividing a market into different units, such as nations, states, regions, counties, cities, or neighborhoods

Geographic Segmentation

What are the 4 different types of marketing segments?

Geographics, demographics, pyschographics, behaviorgraphics

A product bought by individuals or orgs to be further processed or for use in conducting a business is called a/an? a- convenience product b- shopping product c- unsought product d- specialty product e- industrial product

Industrial product

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Intermarket or cross-market segmentation

What two parts make up strategic planning and what links them together?

Internal- orgs and opportunities External- marketing opportunities Strategy is the link between the 2

Achieving company growth by identifying and developing new market segments without changing the product itself is called?

Market development

Company's who sell one product line to multiple markets or consumers use ___________?

Market or customer mgmt orgs

Achieving company growth by increasing sales of current products to current market segments without changing the product itself is called?

Market penetration

A group of consumers who respond in a similar way to a given set of marketing efforts

Market segment

Dividing the market into smaller segments of buyers with distinct needs, behaviors, or characteristics that may require the marketer to use separate strategies or marketing mixes is? a- market segmentation b- supplier selection c- undifferentiated marketing d- value prop e- none

Market segmentation

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is called?

Market segmentation

The process of evaluating each market segments attractiveness and selecting one or more to enter the market

Market targeting

the set of tactical marketing tools-product, price, place, and promotion- that the firm blends to produce the response it wants in the target market

Marketing Mix

The net return for a marketing investment divided by the cost of the investment is called?

Marketing ROI

The net return from a marketing investment divided by the costs of that investment

Marketing Return on Investment (ROI)

Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

Marketing control

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Marketing implementation

A marketing strategy that tailors products and marketing programs to suit the tastes of specific demographics or individuals

Micro-Marketing

The Johnsons are a small family living in a well maintained neighborhood outside of a major city. The parents have steady jobs that pay a decent wage. They believe in keeping up with the latest trends and tend to buy products that are considered popular. Which social class best describes them?

Middle Class

A statement of the orgs purpose or what it wants to accomplish in a larger environment

Mission Statement

As a new grad of smeal, you are exploring the business buying process as it relates to new customers you are interested in selling to. Your potential clients will go through the following steps except? a- supplier research b- problem recognition c- new task buying d- performance review e- proposal solicitation

New Task Buying

You have just been hired as a marketing manager for dunking donuts. You are tasked with overseeing the consumer adoption process for a new product. As you develop your plan, it will be influenced by all the following except? a- compatibility b- triability c- observability d- complexity e- none

None

If you were a marketing professional looking at psychological needs that drive buyer behavior, you would consider all of the following except:? A)Motive B)Learning C) Perception D)Values and beliefs E) Occupation

Occupation

Which of the following options is an approach to new product development in which various departments within a company work together closely, overlapping steps in the product development process to save the company time and increase the effectiveness of the produce? a- customer centered new product development b- team based new product development c- org based new product development

Org Based new product development

Which of the following isn't part of the product development process? a- idea screening b- product development c- test marketing d- business analysis e- org marketing

Org Marketing

Organizational activities designed to sell the organization itself are called ? a- person marketing b- organizational marketing c- corporate-image marketing d- social marketing e- none

Organization marketing

Activities undertaken to create, maintain, or change attitudes toward particular people are called? a- person marketing b- organizational marketing c- corporate-image marketing d- social marketing e- none

Person marketing

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of the consumers Ex) Audi vs. Mercedes Benz

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the customer is called?

Positioning

Amount of money customers will pay to obtain a product

Price

What are the 4 P's of the integrated marketing mix?

Price, Place, Promotion, Product

The combination of goods and services that the company offers to the target market

Product

The marketing team at your new employer wants to reduce costs by measuring customer responses to new products. The marketing plan is in a lab, store, or simulated online shopping environment. Together you will develop a ? a- personal test market b- simulated test market c- controlled test market d- customer centered test market

Simulated test market

The buyer decision process includes all of the following except:? a-postpurchase behavior b- purchase decision c- information search d- social roles e- evaluation of alternatives

Social Roles

A product with unique characteristics for which a significant group of consumers is willing to make a special effort to buy is called a/an? a- convenience product b- shopping product c- unsought product d- specialty product

Specialty product

High growth, high share businesses or products that require heavy investments to finance fast growth are ?

Stars

high growth, high-share businesses or products. Often need heavy investments to finance their rapid growth. Eventually their growth will slow down

Stars

If you were a buyer for a business that routinely reorders something without any modifications, you would be engaging in this behavior? a- modified rebuy b- straight rebuy c- new task buying d- solutions selling e- none of the above

Straight rebuy

What are SBU's?

Strategic business units- key businesses that make up the company

Define SWOT analysis.

Strengths, weaknesses, opportunities, threats

The systematic creation of networks of supplier partners to ensure a dependable supply of products and materials is considered which of the following? a- purchasing efforts b- solutions selling c- business purchasing behavior d- business purchasing process e- supplier development

Supplier development

Strategy of choosing the segment most attractive to your organization

Targeting

the 5 stage product life cycle includes all of the following except? a- intro b- growth c- maturity d- decline e- test marketing

Test marketing

Idea generation is ?

The systematic search for new product ideas, created from internal and external sources, the process of creating a lot of good ideas in order to find one or a few good ideas

A marketing strategy in which a firm ignores segmentation strategies altogether and focuses on positioning strategies to the largest number of customers

Undifferentiatied or Mass marketing strategies Ex) Circuit City, WalMart

Kyle is planning to buy a new lawnmower. He has researched the brand he wants and goes to the store to purchase it. However when he gets to the store, he sees another brand on sale for 70 percent off and decides to purchase that brand. What stopped kyle from purchasing the original choice?

Unexpected situational factors

A product that the consumer either doesn't know about or knows about but would not normally consider purchasing is called a/an? a- convenience product b- shopping product c- unsought product d- specialty product

Unsought Product

A network made up of the company, its suppliers, its distributors, and its customers who partner with each other to improve performance of the entire system

Value delivery network

What best describes a new product?

a product perceived as new by potential customers

In the marketing plan, the threats and opportunity analysis is ?

an assessment of major threats and opportunities of the company

company growth through starting up or acquiring businesses outside the company's current products and markets

diversification

company growth by identifying and developing new market segments for current company products ex) expanding to Asian markets, catering to age demographics

market development

company growth by increasing sales of current products to current market segments without actually changing the product

market penetration

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who may require separate products or marketing programs

market segmentation

The logic by which the company hopes to create customer value and achieve profitable customer relationships

marketing strategy

If your supervisor asks you to create a 3 part statement that describes 1)the target market 2) the planned value prop, sales, and market share 3) profit goals and marketing mix for those 3 years, you are being tasked with developing?

marketing strategy statement

Mission statements should be ______ and ________ yet _________?

meaningful and specific yet motivated and not in a press release kind of way

the process by which MGMT evaluates the products and businesses that make up the company

portfolio analysis

company growth by offering modified or new products to current market segments ex) Starbucks milder roast and putting their coffee into k-cups

product development

a portfolio-planning tool for identifying company growth opportunities through market penetration and development, and product development and diversification

product market expansion grid

A series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firms products

value chain