MTG 350 - Exam 2
What are the 4 unique elements of service?
Intangibility, Inconsistency, Inseparability, Inventory
What is screening and evaluation?
evaluating new product ideas and eliminating those that are not feasible from technical or consumer perspective
What is development?
producing a prototype, testing it in lab with consumers to make sure it meets standards
What does a good brand suggest?
product benefits, memorable, simple and emotional
The various products carried by a retailer can also have dimensions of width and depth. For example, Dick's Sporting Goods carries sports clothes, shoes, exercise equipment, hunting and fishing equipment, camping supplies, and other products. Bass pro shops carries fishing equipment, but has a larger selection of different models and brands. In this case, the product mix of Dick's Sporting Goods is _____________, and the mix of Bass Pro Shops is ____________.
wide; deep
Services are
intangible
What is a component product?
items that become a part of the final product - raw materials and parts
What is business analysis?
features of new product, developing new marketing strategy and marketing program to introduce it, financial forecast
What is commercialism?
positioning and launching the new product
AMD buys silicone, which is used in its chip-making process. AMD produces microchips for use within a wide variety of products for other firms, such as Motorola, LG, and Samsung. AMD is a buyer in a(n) ______________ market
producer
An idea leads to
a product or an action
Dannon Yogurt represents what type of product for most consumers?
Convenience
What are the stages of the product-life concept?
introduction, growth, maturity and decline
What are the key characteristics organizational buying?
- derived demand - few customers, large purchases - semifinished goods - emphasis on delivery time, technical assistance, and post sale service - negotiation
What are a few challenges to packaging?
1) Continuing need to connect with customers 2) Environmental concerns 3) health, safety, and security issues 4) Cost reduction
What are the 5 steps involved in segmenting and targeting markets?
1) Group Potential buyers 2) Group products 3) Estimate size of markets 4) Select target markets 5) Take marketing action
What are the 3 different classes of organizational buys?
1) New Buy 2) Straight Rebuy - buyer rebuys same item 3) Modified Rebuy
What are the 7 biggest buying criteria?
1) Price 2) Quality Specifications 3) Ability to meet delivery schedules 4) Technical Capabilities 5) Warranties and Claim Policies 6) Past performance on previous contracts 7) Production facilities and capacity
How can services be classified?
1) people or equipment 2) business firms or nonprofits 3) government agencies
Quality Tools, Inc., purchases air hammers, wrenches, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Quality Tools, Inc. The company would be part of what type of business market?
Reseller
A group of managers have been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new product development process?
Screening
Gap clothing stores sell primarily what type of products?
Shopping
How can consumers evaluate services?
The five dimensions of quality: - reliability - tangibility - responsiveness - assurance - empathy
How do marketing managers position products in the marketplace?
They locate competing products on maps to visualize the products in the minds of consumers, then they position new products or reposition old products to boost sales and profits
What is one of the benefits of industry classification systems like NAICS?
They make it easy for business marketers to identify potential customers
What are the different roles in a buying center?
Users, influencers, buyer, deciders, and gatekeepers
What is multiproduct branding?
a branding strategy in which a company uses one name for all its products in a product class
What is a market-product grid?
a framework to relate the market segments of potential buyers to products offered or potential marketing actions
A product is a
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value
What is reciprocity?
an industrial buying practice in which two organizations agree to purchase each other's products and services
What is the branding?
an organization's use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products
Samuel is an engineer involved in the product development of a new engineered stone that would be sold to manufacturers of kitchen countertops. Currently, Samuel and his colleagues are considering the potential for profitability of the new product. They are likely in the __________ phase of the new product development process.
business analysis
What is a supplier partnership?
buyer and seller adopt mutually beneficial objectives, policies, and procedures for the purposing of lowering the cost to make or increasing the value of the product
What is market segmentation?
buyers who have common needs and respond similarly to a marketing action
How can products be classified?
by the type of user, products with major distinctions, products bought by ultimate consumer, and business products
What are the two types of business products?
components and support products
Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be ____ since it depends on the demand for new cars.
derived
What is the product-life concept?
describes the stages a new product undergoes in the marketplace
How are services different?
different in the balance of the service that is based upon products and upon service
The Environmental Protection Agency (EPA) Was established on December 2, 1970, to consolidate in one agency a variety of federal research, monitoring, standard-setting, and enforcement activities to ensure environmental protection for residents of the United States. Since it inception, EPA has been working for a cleaner, healthier environment for the American people and is responsible for providing inspection services and cleanup efforts in the case of contamination or hazards. The EPA is a(n) ____________ type of business market
government
When marketers at Link Snacks met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of the new-product development process?
idea generation
What is the importance of branding?
it offers product identification and a means to distinguish products from competitors
What are shopping products?
items for which the consumer compares several alternatives on criteria such as price, quality
What are unsought products?
items that the consumer does not know about or knows about but does not initially want
What are specialty products?
items that the consumer makes a special effort to search out and buy
What are convenience products?
items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
What is a support product?
items used to assist in producing other goods or services and include installations, accessory equipment, supplies, and industrial services
A business customer evaluates the characteristics and quality of the products being considered to determine whether they
meet specifications
Aderholt Distribution Company has purchased 15 forklifts over the past 2 years. As it plans to place its next order for another 5 machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Aderholt, these new forklifts represent a ____________ purchase
modified rebuy
What are the different branding strategies?
multiproduct branding, private branding, and mixed branding
After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
product development
What is the role of packaging and labeling a product?
provides communication, functional, and perceptual benefits
What is the importance of service quality?
quality has to be high for consumers to come back
What is new product strategy development?
role of new product in firm's overall objectives
A new variety of Doritos is initially introduced in Fort Worth, Texas; Columbia; South Carolina; Peoria, Il; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then in adjacent states, and finally the entire country. Frito-Lay is using a _____________ for its new variety of Doritos
roll-out approach
The United States Air Force purchases uniforms from a single supplier. For the last 25 years, the trousers purchased from this supplier have not changed and have been bought every six months, in multiple sizes. This example is called a
straight rebuy
Goods are
tangible
Sarah and Felix at Dryad Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____________ stage of the new-product development process
test marketing
Top managers at ESCORT Radar believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process
test marketing
What is brand equity?
the added value a brand name gives to a product beyond the functional benefits provided
What is customer experience management?
the process of managing the entire customer experience within the company
What is idea generation?
the systematic search for new product ideas
What is internal marketing?
treating employees as customers and developing systems and benefits that satisfy their needs
Chris works at a large electronic firm. He needs a new type of software and sends in a purchasing request. The request gets approved. Jared works as a purchasing agent and is in charge of selecting the suppliers and negotiating the terms of purchase. However, before he does so he consults with Shana, an engineer who works in IT and is highly familiar with the latest software. In this case Chris is _________, Jared is ___________, Shana is ___________.
user, buyer, influencer
What is private branding?
when manufacturers sell products under the name of a wholesaler or retailer
What is mixed branding?
where a product markets its product under its own name and that of a retailer
What are the 7 P's of the marketing mix?
1) Pricing - charges, fees, fares 2) Place - provides convenience 3) Promotional Tools - advertising 4) People - responsible for the creation of service 5) Physical Environment - the appearance of place service is given 6) Process - procedure, mechanisms, and activities 7) Product - use of brand name or logo to identify a service
What are the stages in organizational buying process?
1) Problem Recognition 2) Information Search 3) Alternative Evaluation 4) Purchase Decision 5) Postpurchase Behavior
What factors contribute to the fail or success of a new product?
1) not different 2) incomplete marketing or product protocol 3) failure to satisfy consumers needs on multiple factors 4) bad timing 5) no economical access 6) poor execution of marketing mix 7) too little market attractiveness 8) poor quality
What are the steps of the new product process?
1. new product strategy development 2. idea generation 3. screening and evaluation 4. business analysis 5. development 6. market testing 7. commercialization
When do you use market segmentation?
Do this when it increases sales, profits, and ability to serve customers better
As the new sales representative for Parkland Electronics, Angelique is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Angelique knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that Parkland's information brochures and new product diagrams actually get to the management staff. In this situation, Angelique is exhibiting her knowledge that administrative assistants are often ____________ in the buying decision process
Gatekeepers
What are the 4 market segment bases?
Geographic, demographic, psychographic, behavior
What are the three organizational markets?
Industrial, Reseller, and Government
What is market testing?
exposing actual products to perspective consumers under realistic purchasing conditions and seeing if they buy the product
