Marketing Exam 2 Nath
brand name
any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's good or services.
services
are intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value
data
are the facts and figures related to the problem, and are divided into two main parts: secondary data and primary data.
What is psychographic segmentation?
based on Lifestyle
What is demographic segmentation?
based on age, gender, Income, Ethnicity, Household
What is geographic segmentation?
based on region
branding
basic decision in marketing products in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors
off peak pricing
charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.
What are the benefits of packaging
communication benefits functional benefits perceptual benefits
gap analysis
compares the differences between the consumers expectations about and experiences with a service based on dimensions of service quality
2 strategies to handle declining products
deletion- dropping the product from the company's product line harvesting- company retains product but reduces marketing costs. (purpose- maintain ability to meet customer requests)
how are services classified
delivery by people or equipment profit or nonprofit organizations government sponsored
inventory carrying cost
depend on the cost of employees and equipment
product life cycle
describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
What is usage segmentation?
divides consumers according to how much they use the product
What is benefit segmentation?
dividing the market based upon the perceived value, benefit, or advantage consumers perceive that they receive from a product or service
What are durable and non-durable goods and how are they different
durable= last over extended number of uses ( blender) Non-durable= consumed in one or few uses
Why is market segmentation important
enables a firm to respond more effectively to the wants of these groups.... to increase sales and profits
people or equipment
figure 12-4
What is perceptual mapping and why is it used? What are the elements that make-up a perceptual map?
A preceptual map is a means of displaying or graphing the location of products or brands in the minds of consumers 1. Identify important attributes for a product class 2. Judgements of Existing Brands on these important attributes 3. Ratings of an "Ideal" Brand's Attributes
What is a product line? Why do firms develop product lines? What is a product mix? Width of product mix? Depth of product line? Product Item?
A product line is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. A product mix is the number of product lines offered by a company(width is types of product categories, depth is number of products in each category) a product item is a specific product as noted by a unique brand, size or price
What are sales forecasting techniques?
Judgements of decison maker Survey of knowledge groups ( survey of buyers intentions Forecast, salesforce survey forecast) Statistical methods (trend extrapolation, linear trend extrapolation)
Open ended question
Lets individual give their own response
What is the 80/20 rule?
a concept that suggests 80 percent of firm's sales are obtained from 20 percent of its customers.
What is a market-product grid and how is it useful in segmentation and targeting?
a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. it helps to show estimated market size of a given product sold to a specific market segment.
product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.
protocol
a statement that, before product development begins, identifies (1) well-defined target market; (2) specific customers needs, wants, and preferences;(3) wha the product will be and do to satisfy consumers
What is market segmentation? What are market segments?
involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action Market segments are the relatively homogenous groups of prospective buyers that result from the market segmentation process
product repositioning
involves changing the place an offering occupies in a consumer's mind relative to competitive products.
statistical inference
involves drawing conclusions about a population from a sample taken from that population. (to draw conclusions about a population, sample must be representative. not biased)
sampling
involves selecting representative elements from a population.
idea generation
is the stage of the new product process that involves developing a pool of concepts as candidates for new products Customer and supplier suggestions Employee and co-worker suggestions Research and development breakthroughs competitive products crowdsourcing
new product strategy development
is the stage of the new-product process that defines the role for a new product in terms of the firm's overall corporate objectives.
shopping goods
items for which the consumer compares several alternatives on criteria, such as price, quality, or style
specialty good
items that a consumer makes a special effort to search out and buy
unsought goods
items that the consumer either does not know about or knows about but does not initially want
convenience good
items that the consumer purchases frequently, conveniently, and with minimum of shopping effort
production goods
items used in the manufacturing process that become part of the final product
support goods
items used to assist in producing other goods and services installations- buildings and fixed equipment accessory equipment- tools and office equipment supplies- staplers, pens, cleaning supplies industrial services- legal counsel, tax advice, repairs
What are the criteria to use in picking target segments?
market size, expected growth, competitive position, cost of reaching segments, compatibility with the organization's objectives and resources
What are the criteria to use in forming segments?
potential for increased profit, similarity of needs of buyers within a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment, simplicity and cost of assigning buyers to segments
maturity stage
slowing of product class sales Sales increase at decreasing rate as fewer new buyers enter the market most consumers who would buy the product are either repeat purchasers of have tried and abandoned product marketing attention directed at holding market share through further differentiation
service continuum
the range of product-dominate to service dominate offerings is
decline stage
sales and profit drop often happens because of environmental changes
brand personality
set of human characteristics associated with a brand name
What are concepts and methods?
Concepts are ideas about products or services, whereas methods are the approaches that can be used to collect data.
alternative PLCs
Figure 11-5
Explain the steps in segmenting and targeting a market (note: understand what happens in each step rather than trying to memorize them and the order in which they are)
1. Group potential buyers into segments 2. group products to be sold into categories 3. develop a market product grid and estimate size of markets 4. select target markets 5. take marketing actions to reach target markets
customer contact audit
A flowchart of the points of interaction between consumers and the service provider
What are the ways of segmenting consumer or organizational markets?
Customer characteristics (geographic, demographic, psychographic) Buying situations (benefits sought, usage/ patronage)
What are the steps of a marketing research project?
Define the problem, Develop the research plan, Collect relevant information, Develop findings, Take marketing actions.
What are the three kinds of research?
Exploratory, Descriptive, causal
reasons for product failure
Insignificant points of difference incomplete market and product definition before product development starts too little market attractiveness poor execution of the marketing mix Poor product quality or sensitivity to customer needs Bad timing No economical access to buyers
Describe the different types of surveys/questionnaires.
Mail/e-mail/ Fax/internet (usually least expensive) (little ability to probe and ask complex questions) (No opportunity for interviewer bias) (high anonymity) Telephone (moderately expenisve) (some ability to probe and ask complex questions) (some ability for interviewer bias) (some anonymity) Personal interviews (most expensive because of interviewers time and travel expenses) (A lot of ability to probe and ask complex questions) (significant ability for interviewer bias) (little anonymity)
New product
Newness compared with existing products (functional difference) Newness in legal terms ( up to 6 months after it enters "regular distribution") Newness from the companys perspective (product line extension, significant jump in innovation or technology, rue innovation) Newness from the consumers perspective ( continuous innovation, dynamically continuous innovation, discontinuous innovation)
What is the difference between probability and non-probability sampling? What are the pros and cons of each?
Probability sampling involves using precise rules to select the sample such that each element of the population has a specific known chance of being selected. (sample is representative - can draw conclusions about pop.) Nonprobability sampling involves using arbitrary judgements to select the sample so that the chance of selecting a particular element may be unknown. (introduces a bias: dangerous to draw conclusions about pop. from this kind of sample)
experimental research
see the drives ( half of the people see one add other half sees a different one)
What is secondary and primary data? What are the ways in which each can be collected? What are the pros and cons of each?
Secondary data are facts and figures that have already been recorded before the project at hand. (internal data- inputs, outcomes---External data - Census, magazines, internet based reports) (advantages- time savings, low cost)(disadvantages- maybe out of date, might not be specific enough) Primary data are facts and figures that are newly collected for the project. (Observational data- mechanical methods, personal methods, neuromarketing---- questionnare data----other sources- social meida, panels, IT and data mining)
Why is defining the problem such an important step?
Sets the research objectives (objectives are measurable goals the decision maker seeks to achieve in solving a problem) and identifies possible marketing actions.
Likert scale
Strongly disagree 1,2,3,4,5,6,7, strongly agree
What is synergy in the context of choosing segments to target? Explain marketing and product synergies.
Synergy is the increased customer value achieved through performing organizational functions more efficiently. Marketing synergies allow for market specialization product synergies allow for product specialization
closed end or fixed alternative questions
gives choices to pick from (dichotomous- yes or no)
Diffusion of innovation (categories)
innovators - venturesome, higher educated, use multiple info sources early adapters- leaders in social setting, slightly above average education early majority- deliberate, many informal social contacts late majority- skeptical, below average social status laggards- fear of debt, neighbors and friends are info sources
4 I's
intangibility- services are a performance rather than an object inconsistency- variability in the quality of services due to variability in people who deliver the services inseparability- services are difficult to separate from deliverer of the service inventory- the cost of maintaining the ability to deliver a service.
capacity management
integrating the service component of the marketing mix with efforts to influence consumer demand.
alternative branding strategies
multiproduct branding strategy- specified category (toro makes yard equipment) multibranding strategy-services different markets (proctor and gamble sells laundry detergent and body soap) private branding- carry different things (sears carries kenmore and craftsman) mixed branding- makes different brands (epson makes epson printers and ibm printers)
steps in new product generation
new product strategy development, idea generation screening and evaluation business analysis development market testing commercialization
idle production capacity
occurs when the service provider is available but there is no demand
3 extra ps (on top of price, product, promotion, place)
people, physical environment, process.
Exploratory Research
provides ideas about a relatively vague problem
What is the difference between qualitative and quantitative research? What are the pros and cons of each?
qualitative is anything that describes without numbers (interviews and focus groups) quantitative describes with numbers. (surveys)
growth stage
rapid increase in sales sales growth comes from- more people trying/using the product, repeat purchasers advertising focus shifts to stimulating selective demand often see changes in product to differentiate from competitors
product positioning
refers to the place an offering occupies in consumers' minds on important attributes relative to competitive products
What are tangible and intangible attributes in the context of a product?
tangible attributes are what consumers five senses can perceive intangible attributes consist of its delivery or warranties and embody more abstract concepts. like becoming healthier.
brand equity
the added value a given brand name gives to a product beyond the functional benefits provided. intangible assets has economic value to firm can increase in value if effectively managed can also decrease in value if not well managed
market testing
the stage of the new product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy Test marketing-(involves offering a product for sale on a limited basis in a defined area for a specific period of time. three main kinds are standard, controlled, and simulated) When test markets dont work (for services sometimes, for expensive products)
screening and evaluation
the stage of the new product process that involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort internal approach- firm evaluates the technical feasibility of the proposal and whether the idea meets the firms objectives External approach- (concept tests - preliminary testing of the new product idea (rather than actual product) with consumers)
commercialization
the stage of the new product process that involves positioning and launching a new product in full-scale production and sales. regional rollouts Speed as a factor in new product success (time to market, parallel development, fast prototyping)
development
the stage of the new product process that involves turning the idea on paper into a prototype Failure analysis safety testing
business analysis
the stage of the new-product process that involves specifying the product features and marketing strategy and making necessary financial projections needed to commercialize a product
causal research
tries to determine the extent to which the change in one factor changes another one.
Descriptive research
trying to find the frequency that something occurs with or extent of a relationship between two factors.
brand extension
use brand name to enter new product class
introduction stage
when a product is first introduced to its target market -sales grow slowly -profit is minimized ( due to development costs) -marketing objective: create customer awareness and stimulate trial -often heavy expenditures on advertising and promotions to build awareness among consumers primary demand- desire for a product class selective demand- preference for specific brand Pricing strategies- (skimming pricing strategy- high initial price---helps company recover costs of development and capitalize on price insensitivity of early buyers)(Penetration pricing strategy-low initial price---helps build unit volume)
idle production capacity
when the service provider is available but there is no demand for service
What is marketing research and for what purposes is it undertaken?
• Is the process of defining a marketing problem & opportunity, systematically collecting & analyzing info & recommending actions • It is used to identify problems and opportunities and to generate and improve marketing actions • It seeks to reduce risk and uncertainty and improve decisions made by marketing managers. • Uses are: demand forecasting, segmentation, market tracking, new product testing, and AD pretesting.
