BASE Marketing

Question 1

Dynamically continuous innovation vs. Discontinuous innovation

Answer 1

DCI: Disrupts consumer’s normal habits, but doesn’t require totally new learning. Ex. Electric toothbrush, invention of satellite TV

Discontinuous innovation: Innovation that creates entirely new market segments. Ex. iPhone, home dry cleaner machine.

Question 2

New product development process

Answer 2

1. New product strategy development
2. Idea generation
3. Screening and evaluation
4. Business analysis
5. Development (where most entrepreneurs start)
6. Market testing
7. Commercialization

Question 3

What are the three main categories of organizational buyers?

Answer 3

Industrial markets
Reseller markets
Government markets

Question 4

The three bases of segmentation?

Answer 4

Geographic
Demographic (ex. annual sales, # of employees, turnover)
Behavioral (ex. type of buyer, product vs. service, etc.)

Question 5

What is the biggest difference between primary and secondary data?

Answer 5

Secondary data has already been collected prior to the proj while primary data is collected for the project

Question 6

Types of secondary data

Answer 6

Internal and external data. Ex. Financial statements, budgets, census reports, business periodicals, trade studies.

Secondary data is CHEAPER to acquire, but may be outdated or not specific to the situation.

Question 7

Types of primary data

Answer 7

Observational data (watching people)
Questionnaire data (asking people)
Other sources of data: Panels and experiments, social media, data mining.

Primary data is more accurate to the situation, but more expensive to acquire.

Question 8

Total addressable market (TAM)

Answer 8

Total number of sales possible in a market for all producers

Question 9

Sales forecast

Answer 9

Level of sales expected for a firm within the target market.

Question 10

In the radio interview that we listened to at the beginning of the semester, the Rachio founders state that they considered which two approaches in setting the price of the Iro?

A. Demand and Cost
B. Cost and Competition
C. Competition and Demand
D. Cost and Profit

Answer 10

B. Cost and competition

Question 11

Standard-markup pricing (a cost oriented marketing approach)

Answer 11

Take the price you get the product at and market it up x%. Common in grocery business, when buying full products.

Question 12

Cost-plus pricing (a cost oriented marketing approach)

Answer 12

Determine cost using cost of labor, overhead, cost of materials. Once you find cost, add percentage to that OR add a fixed fee to that.