Marketing Chapters 7-13
Product differentiation refers to...
A marketing strategy that involves a firm using different marketing mix actions to help our consumers perceive the product as being different and better than competing products
Target pricing refers to
A method of estimating the price ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers
13. Brand Personality refers to
A set of human characteristics associated with a brand name
Inelastic demand exists when
A small percentage decrease in price produces a smaller percentage increase in quantity demanded
A new-product or service protocol is
A statement that identifies a well-defined target market, specific customer's needs, wants and preferences, and what the product or service will be and do to satisfy consumers
Break even analysis refers to
A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
In marketing, an idea is
A thought that leads to a product or action
As product adopters, innovators
Are venturesome, higher educated, and use multiple information sources
Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but is worthwhile if it
Better serves customers needs
The swoosh that appears on every Nike product is an example of a
Brand name
Manufacturing a product only when there is an order from a customer is referred to as
Build-to-order
There are seven stages of the new product development process. After screening and evaluation is stage four, the ____ stage
Business analysis
Skimming pricing refers to
Setting the highest initial price that customers who really desire the products are willing to pay
The primary focus of Zappos' market segmentation strategy to sell
Shoes and other products to people who will buy them online and like to use mobile technology
20. The 3M Co. is a master of the pricing strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in."
Skimming
The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon like Pooh on polyester bedsheets sold at Target. This is an example of
Tiffany/Walmart Strategy
A firm's profit equation equals
Total revenue - total cost or [(Unit price x quantity sold) - (fixed cost + variable cost)]
The first step of the marketing research approach is to
define the problem
Research objectives are...
specific and measurable
J.D. Power and Associates and other market research firms recruit groups of consumers for _____, each of whom are paid to record all of their purchases on a regular basis. Businesses pay firms such as J.D. Power for their reports that answer the question, "How many times did our customers buy our products this year compared to last year?"
syndicated panels
Mystery shoppers are people who...
who pose as customers to check on a firm's products or services and on the quality of the customer service provided by employees
Odd-even pricing refers to
Setting prices a few dollars or cents under and even number
You can go to your nearest Hallmark store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser quality materials, but just as sentimental, sold at Barnes and Nobles bookstores. This is an example of
A Tiffany/Walmart strategy
A decision refers to...
A conscious choice among two or more alternatives
19. Brand licensing refers to
A contractual agreement whereby a company allows another firm to use its brand new or trademark with its products or service for a royalty or fee.
A slotting fee is a payment that
A manufacturer makes to place a new product on a retailers shelf
Standard markup pricing refers to
Adding a fixed percentage to the cost of all items in a specific product class
Market segmentation refers to
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
15. At the maturity stage of the product life cycle marketing emphasis
Aims to hold market share through further product differentiation and finding new buyers and uses
Feature bloat is
An excessive number of product functions that overwhelms consumers with unnecessary complexity
A durable good is defined as
An item that usually lasts over many uses
14. Branding refers to
An organization's use of a name phrase design symbol or combo of these to identify its products and distinguish them from those of competitors.
A brand name refers to
Any word device, design, sound, shape, or color or combo of these used to distinguish a seller's products or services
Secondary data can be divided into two parts
Internal secondary data and external secondary data
The third step of the marketing research approach is to
Collect relevant information
For shopping products, the consumer
Compares several alternatives on criteria such as price, quality, or style
Two key elements in deciding how to collect marketing data are
Concepts and methods
With a cost oriented pricing strategy, a price setter stresses the ____ side of the pricing problem and the price is set by
Cost, production and marketing costs
Measures of success refers to
Criteria or standards used in evaluating proposed solutions to a problem
Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the movie, the audience completes a survey to...
Critique the title, plot, and characters
Because early-stage financing is almost always a problem for those starting new businesses, ______ is a way to gather an online community of supporters to financially rally around specific project that is unlikely to get resources from traditional sources
Crowdfunding
Procter and Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice Brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable?
Demographic
The fourth step of the marketing research approach is to...
Develop findings
The second step of the marketing research approach is to
Develop the research plan
Idea generation is the stage in the new product development process that
Develops a pool of concepts to serve as candidates for new products
Appliances and smartphones are classified as
Durable goods
The Largest number of product adaptors with the respect to the diffusion of innovation are found among
Early majority and late majority
Trend extrapolation involves
Extending a pattern observed in past data into the future
A concept test is an
External evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product
Observational data refer to
Facts and figures obtained by watching, either mechanically or in person, how people actually behave
Secondary data are the
Facts and figures that have already been recorded before the project at hand
16. Products that experience rapid sales on introduction and then an equally rapid decline are called products?
Fad products
Which of the following is an example of a multiple products, multiple market segments strategy?
Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for
A prototype is
Full-scale operating model of the product or service under development
Cannibalization would most likely occur if
General Mills launches Caramel Crunch Cheerios
Campbell Soup Co. found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the east and not spicy enough for those in the West and Southwest. Today, Campbells plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. Campbells is using ____ segmentation
Geographic
Gatorade is classified as a ______ brand
Global
The first step in segmenting and targeting markets that links customer needs to marketing actions is to
Group potential buyers into segments
The primary purpose of a sneak peak of a film before its release is to
Identify necessary changes before final editing
According to the price equation, final price equals list price minus _____ + extra fees
Incentives and allowances
A basic test of usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
Increase sales and profitability
A strategy of harvesting may be employed in the decline stage of a product life
Maintain the ability to meet customer requests
A framework is to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a
Market-product grid
Bundle Pricing refers to
Marketing two or more products in a single package price.
Nike employs a _____ strategy at its website, nike.com, which allows users to design a sneaker to their own personal specifications
Mass customization
The best segmentation approach is the one that
Maximizes the opportunity for the future profit and ROI
The Macintosh, iPod, iPhone, iPad, CarPlay, and Apple Watch are all examples of Apple's commitment to
New product development
When Fisher-Price managers attempted to redesign its classic toy, the Chatter Telephone, they considered adding a noisemaker, wheels, and eyes to a basic plastic telephone, and thus they developed several
New prototype concepts
Test marketing involves offering a product for sale
On a limited basis in a defined area
Downsizing reduces the
Package content without changing its size and maintaining or increasing the package price
Penetration pricing refers to
Setting a low initial price on a new product to appeal immediately to the mass market
Target profit pricing refers to
Setting an annual target of a specific dollar volume of the product
For the sake of simplicity and convention, price elasticity figures are shown as...
Positive numbers
Which of the following is criterion used in forming market segments
Potential of a marketing action to reach a segment
11. Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate the desire for the product class, rather than for a specific brand when there are few competitors with the same _____________________ product?
Primary demand
10. Gatorade Thirst Quencher was concocted in 1965 but more recently its marketers introduced Gatorade G series in 2010. This introduction is an examples of a
Product line extension
Convenience products refer to
Products consumers purchase frequently and with a minimum amount of shopping effort
Business products refer to
Products organizations buy that assist in providing other products for resale
Proctor and Gamble repositioned its Old Spice antiperspirant brand from a deodorant our grandfather might use to a strong hip antiperspirant through commercials that showed the target market of 18-30 year old men advocating its use. P&G used this product repositioning strategy with its Old Spice brand antiperspirant to?
Reach a new market
Introducing new products sequentially into geographic areas of the United States to allow production levels and marketing activities to build up gradually to minimize the risk of a new-product failure is referred to as
Regional rollouts
The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in is referred to as
Sampling
The stage of new product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as
Screening and evaluation
A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then____ without encountering excessive cost
Select the market segments to target
Intangible items such as theater performances, legal advice, or music streaming that an organization provides to consumers are referred to as
Services
Prestige pricing refers to
Setting a high price so that quality or status-conscious consumers will be attracted to the product and buy it
Pricing objectives include
Specifying the role of price in an organizations marketing and strategic plans
Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the products sales and profits, but after seven changes in your strategy you have yet to find success. Which of the following actions would be the least appropriate next step.
Stimulate primary demand
The fifth step of the marketing approach is to
Take marketing actions
The final step in segmenting and targeting markets that links customer needs to marketing actions is to
Take marketing actions to reach target markets
17. Trademark refers to?
The identification that a firm has legally registered its brand name so the firm has its exclusive use, thereby preventing other from using it?
Price refers to
The money or other considerations (including other products and services) exchanged for the ownership of a product or service
Value pricing refers to
The practice of simultaneously increasing product and service benefits while maintaining or decreasing price
New product strategy development is
The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives
Variable cost refers to
The sum of the expenses of the firm that change with the quantity of a product that is produced and sold
Total cost refers to
The total expense incurred by a firm in producing and marketing a product, which equals the sum of the fixed cost and variable cost
Total Revenue refers to
The total money received from the sale of a product
A sales forecast refers to
The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts
12. Imagine that Post Foods introduces a cereal bar Trail Mix Crunch just like those Kelloggs and General Mills already have on the market, Post had decided to promote the bards using ads without coupons and to price the bars at about the same price as these other brands Post Trail Mix Crunch cereal bars will also be distributed to the same stores as the products from kelloggs and General Mills, Which of the following barriers to new product adoption will most likely prevent the Post Trail Mix Crunch cereal bars from being a successful product?
Value barrier
Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:
Would segmentation be worth doing and is it possible?
18. Downsizing reduces, the?
a. products price along with the quality of the materials
