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