Marketing Test 2
individual brand
A category of brands in which different brands are used for products owned by one company. jello, classico
inseparable
A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable.
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
Service Gaps Model
A managerial tool designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy.
psychographic segmentation
A method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.
Example of geographic segmentation
A national grocery store chain such as Safeway or Kroger runs similar stores with similar assortments in various locations across the United States. But within those similar stores, a significant percentage of the assortment of goods will vary by region, city, or even neighborhood, depending on the different needs of the customers who surround each location.
Behavioral Segmentation
A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.
example of benefit segmentation
Although all movies may seem to provide the same service—entertainment for a couple of hours—film producers know that people visit the theater or rent films to obtain a vast variety of benefits, and market them accordingly
quick response (QR) inventory system
An inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it; see also just-in-time (JIT) inventory system.
heterogeneity
As it refers to the differences between the marketing of products and services, the delivery of services is more variable. The more humans are needed to provide the service
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation.
Benefit
Example of psychographic segmentation
BuzzFeed's segmentation strategy is based on both consumers' behaviors and their interests.
Example of Product Mix
Daimler AG, the company that owns Mercedes-Benz,
Example of Product line
Daimler's product lines (brands) for consumers include, for example, Mercedes-Benz cars, Mercedes-AMG cars, smart cars, and Mercedes-Benz vans and camper vans.
Firms with products in the ________ stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.
Decline
type of segmentation
Geographic, Demographic, Psychographic, Benefit, Behavioral
Product line
Group of associated items, such as those that consumers use together or think of as part of a group of similar products.
Example of demographic segmentation
Kellogg's uses age segmentation for its breakfast cereals: Coco Loops, Froot Loops, and Cocoa Frosties are for kids; Corn Flakes and Special K are for adults.
brand awarness
Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.
Product Breadth
Number of product lines offered by a firm; also known as variety. [depict just four of the lines offered by Daimler AG.]
Which element of the marketing mix specifically deals with supply chain management?
Place
________ in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.
Power
unsought products
Products or services consumers either do not normally think of buying or do not know about. Because of their very nature, these products/services require lots of marketing effort and various forms of promotion.
shopping products
Products or services for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances. [luxury cars, legal or medical professionals, or designer apparel, including specialty watches,]
convenience products
Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase.
specialty products
Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.
example of specialty product
Road bike enthusiasts, like those interested in the Trek Madone, devote lots of time and effort to selecting just the right one.
When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in
Test Marketing
demographic segmentation
The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
geographic segmentation
The grouping of consumers on the basis of where they live. [state, city, zip code]
Product Depth
The number of categories within a product line. [AG clearly maintains the most products under its Mercedes-Benz line of cars, and it adds more as needed to appeal to various consumers.]
innovation
The process by which ideas are transformed into new products and services that will help firms grow.
brand equity
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
diffusion of innovation
The theory surrounding the diffusion of innovation helps marketers understand the rate at which consumers are likely to adopt a new product or service.
example of convenience product
They are frequently purchased commodity items, usually bought with very little thought, such as common beverages, bread, or soap.
fulfillment center
Warehouse facilities used to ship merchandise directly to customers.
What type of transactions (B2B and B2C) occur between players within the supply chain?
When Lenovo sells computers to a university or business, it engages in a business-to-business (B2B) transaction, but when it sells to students or employees individually, it is a B2C (business-to-consumer) operation.
example of shopping product
When people need new sneakers, for instance, they often go from store to store shopping—trying on shoes, comparing alternatives, and chatting with salespeople. [furniture, apparel, fragrances, appliances, and travel.]
example of unsought products
You must not have heard yet of HeatMax HotHands Hand Warmers, air-activated packets that provide warmth for up to 10 hours. Do you have an internship in a less developed country and your regular insurance cannot give you the coverage you may need in case of an emergency? You now can turn to a Medex insurance policy
distribution center
a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists
What is service-product continuum
a spectrum of what is considered to be a service from pure service ot pure good - most offerings lie somewhere in the middle
brand licensing
an agreement whereby a company permits another organization to use its brand on other products for a licensing fee
What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?
associated services
The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.
assurance
What makes a brand?
brand name, URLs, logos and symbols, characters, slogans, jingles/sounds
manufacturer brands (national brands)
brands owned and managed by the manufacturer[are owned and managed by the manufacturer.]
A service is any intangible offering that involves a deed, performance, or effort that
cannot be physically possessed
Why do firms create new products?
changing customer needs, market saturation, managing risk through diversity, fashion cycles, improving business relationships
voice-of-customer (VOC) program
collects customer inputs and integrates them into managerial decisions
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
concentrated
Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are ________ goods.
convenience
flow of information
customer to store, store to buyer, buyer to manufacturer, store to manufacturer, store to distribution center, manufacturer to distribution center and buyer
Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.
differentiated targeting
Along the service-product continuum, which of the following would be considered the most service dominant?
doctor office
The diffusion of innovation curve begins with innovators. Who follows that group?
early adopters
pioneers (breakthroughs)
establish a completely new market or radically change both the rules of competition and consumer preferences in a market. has the advantage of being first movers
One of the potential benefits to a firm of introducing new-to-the-world products or services is
establishment of a completely new market
When Walmart relies on its experience and knowledge to decide how to market a product without giving the supplier much of a say in the matter, this is an example of
expertise power
A(n) ________ is used in the shipment of products directly to customers.
fulfillment center
Best Life Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using ________ segmentation.
geodemographic
benefit segmentation
groups consumers on the basis of the benefits they derive from products or services.
family brand
he individual brands benefit from the overall brand awareness associated with the family name. [Kraft Foods also uses its family brand name prominently on its cheese, pasta, and condiment brands (e.g., Kraft Macaroni & Cheese, Kraft Singles, Kraft Mayo).]
example of behavioral segmentation
health care companies and governments can target people experiencing acute illness like the flu or COVID-19 based on their usage of a smart thermometer.
Power
in marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distributions.
importance of marketing channel/ Supply Chain Management
in the right quantities, to the right location. at the right times
When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.
inseparable
What is a service
intangible offering that involves a deed, performance, or effort that cannot be physically possessed
A company's product mix consists of
its various product lines.
Which of the following groups are included in the diffusion of innovation curve?
late majority
Just-in-time (JIT)
management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; also known as quick response (QR) inventory system in retailing.
co-branding
marketing two or more brands together on the same package, promotion, or store. enhance perceptions of quality link between brand
strategic relationship
mutual trust, open communication, common goals, interdependence, credible commitments
Del Monte, Nike, Pepsi, KitchenAid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.
national
brand loyalty
occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category
A ________ is often used to illustrate the position of a firm's products or brands in consumers' minds.
perceptual map
standards gap
pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets.
A ________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
product line
product mix
product mix The complete set of all products offered by a firm.
consumer products
products and services used by people for their personal use
retailer/store brands (private-label brands)
products developed by retailers and available only from that retailer
Venicia is assessing market growth, market competitiveness, and market access for each segment she has identified. Venicia is assessing the ________ of each potential market segment.
profitability
zone of tolerance
refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service
communication gap
refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises
knowledge gap
reflects the difference between customers' expectations and the firm's perception of those customer expectations
brand extension
same brand name in different product line
line extension
same brand name within the same product line
Stores like Home Depot and Costco act as wholesalers when they
sell to contractors or restaurant owners
perishable
services cannot be stored for later use
Types of Products
specialty, shopping, convenience, unsought
delivery gap
the difference between the firm's service standards and the actual service it provides to customers
brand assoication
the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, a slogan, or a famous personality. ["Like a good neighbor, State Farm is there,"]
perceived value
the relationship between a product's or service's benefits and its cost. Customers usually determine the offering's value in relation. [retailers have created retailer/store brands, such as Target's A New Day for women and Goodfellow & Co. for men, to create well-designed pieces at Target-level prices]
intangible
they cannot be touched, tasted, or seen like a pure product can.
Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.
zone of tolerance