marketing exam 2
product qualitiy
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer need
test marketing
The stage of new-product development in which the product and its proposed marketing program are tested in realistic market settings
product mix width
number of different product lines the company carries
product mix depth
number of verisions offered for each product in the line
market penetration
offer low price initially then higher price once est. customer loyalty
what is the strongest link between a company and a customer
personal selling
idea generation
systematic search for new product ideas
do successful businesses use target or shotgun marketing
target
Selecting which segments of a population to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) differentiation
target marketing
product life cyle
the course that a products sales and profits take over its life time
social behavhior
family, reference groups, roles and status
sustainable marketing focuses on the
future
uniform delievered pricing
geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
four ways to segment the market
geogrpahical, demographic, psycholgrahpic, behavior
Boston consulting group matrix (market growth/market share; dog, star, cash cow, question mark)
graph
draw the product/market expansion graph (new/old products/markets)
grpj
question mark
high growth, low share
market skimming pricing
high initial then low
what are the 8 stages in new-product development
idea generation, idea screening, concept development, marketing development, business analysis, product development, test marketing, commercialization
production concept
idea that consumer want products that are highly affordable and available so businesses should focus on production efficiency
product concept
idea that consumers want products that are innovative and high quality so businesses should focus on constantly improving product
marketing concept
idea that profits are driven by customer satisfaction, must focus on consumers wants and needs
primary data
information collected for a specific purpose
secondary data
information that already exists somewhere
crowdsourcing
inviting broad communities of people into the new product innovation process
cash cows
low growth, high share
value delivery network
made up of suppliers, distributors, and customers that team up to improve the performance of the entire system
types of direct marketing
mail, catalogs, interactive TV and online marketing
Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? ✖ A) the product concept B) the production concept C) the selling concept D) the marketing concept E) the societal marketing concept
marketing concept
marketing information includes
marketing intelligence, internal data and marketing research
The art and science of choosing target markets and building profitable relationships with them is called ________. ✔ A) marketing management B) positioning C) marketing mix D) market offering E) differentiation
marketing management
a set of product, price, promotion and place that the firm blends to produce the response it wants in a market
marketing mix
difference between marketing concept and selling concept
marketing you are getting profit from satisfaction, selling you are getting profit from sales volume
psychological pricing
the pricing says something about the product
mission statements describe what
they describe how they will meet the needs of the customer, emphasize company strengths NOT what they do
what is the objective of advertising?
to persuade, remind and inform
product mix length
total number of items a company carries within its product line
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value to customers B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct an integrated marketing program
understand the market place
demand curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
zone pricing
A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.
freight absorbtion pricing
A geographical pricing strategy in which the seller absorbs all or part of the freight charges to get the desired business
Basing-point pricing
A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer
price elasicity
A measure of the sensitivity of demand to changes in price.
dynamic pricing
Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
product development
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
differientation
Differentiating the market offering to create superior customer value
market segmentation
Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
commericialization
Introducing a new product into the market
Customer-centered new-product development
New-product development that focuses on finding new ways to solve customer problems and create more customersatisfying experiences.
service inseparablitiy
Services are produced and consumed at the same time and cannot be separated from their providers.
experience curve
The drop in the average per-unit production cost that comes with accumulated production experience.
market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
what is the product life cycle
`product development, introduction, growth, maturity, decline
what is a product
a product, service, event, person, organization
what are the three aspects to a product
actual product, augmented product, core customer value
personal
age, occupation, lifestyle, personality
competition based
basing price on competitors strategies, costs and prices
what is the marketing function responsible for
being the voice of the consumer and understanding the consumer
psychological
beliefs and attitudes
According to the five-step model of the marketing process, which of the following is the final step in creating value for customers? ✖
building profitable relationships
the final step of the marketing process is
capturing value
Generation Y
children of the baby boomers from 1977-2000
name the four factors that affect consumer behavior
cultural, social, personal, psychological
cultural behavior
culture, subclass, social class
When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is ________ marketing. ✖
customer driving
FOB orgiin
customer pays for shipping
________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. A) Customer-perceived value B) Customer lifetime value C) Share of customer D) Customer-managed relationship E) Brand value proposition
customer perceived value
Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty? A) customer divestment B) customer-managed relationships C) the societal marketing concept D) partner relationship management E) customer relationship management
customer relationship management
Which of the following is a characteristic of customer-driven marketing? ✖ A) Companies understand customer needs even better than customers themselves do. - Given B) Customers are unaware of their needs. C) Products are created that meet both existing and latent needs, now and in the future. D) Customers know what they want. E) Customers don't know what is possible.
customers know what they want
steps in strategic planning
define mission, goals and objectives, designing business portfolio
a positioning statement
describes why the consumer would by the brand
market strategy developement
designing an initial marketing strategy for a new product based on the product concept
product concept
detailed version of the new product idea stated in meaningful consumer terms
what type of marketing is the fastest growing promotion tool
direct marketing
reference pricing
prices that buyers carry in their minds and refer to when looking at a given product
value based
pricing based on perception of value
four p in marketing
product, place, price, promotion
Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept
production concept
business analysis
review of the sales, costs, and profit projections for a new product
idea screening q
screening new product ideas to spot good ideas and drop poor soons
service intangiability
services cannot be seen, tasted, smell or heard before being bought
market penetration pricing
setting a low price for a new product to attract a large number of buys and a large market share
captive pricing
setting a price for products that must be used along with a main product, blades for razor
cost based
setting based on product, distributing, selling plus marginal
product line pricing
setting prices across an entire product line
Which of the following statements is true of the selling concept? ✖ A) It requires minimum promotion efforts. B) It creates long-term, profitable customer relationships. C) It takes an outside-in perspective. D) It is typically practiced with unsought goods. E) It follows the customer-centered sense-and-respond philosophy.
unsought goods
what are the three major pricing strategies
value based, cost based, competition based
augmented product
warranties, service after sale
