Chapter 2

Question 1

Strategic Marketing Plan

Answer 1

Planning framework for specific marketing activities

• Opportunity Analysis
• Competitive Analysis
• Target Market Selection

Question 2

Market Segments

Answer 2

Identifiable groups of customers sharing similar wants, needs, that make them likely to respond in a similar fashion to a marketing program

Question 3

Market Oppotunities

Answer 3

Areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively

Question 4

Competitive Advantage

Answer 4

Something special a firm does/has that gives it an edge over competitors

Question 5

Comparative Advantage

Answer 5

How firm compares to others in the market, and what does it offer that is good

Question 6

Differential Advantage

Answer 6

When compare one business to another, one offers unique qualities that the other doesn’t

Question 7

Distinctive Competencies

Answer 7

Something distinct your business has and is good at

Question 8

Unique Selling Proposition (USP)

Answer 8

The way in which you go about selling your product, service, or idea

Question 9

Target Marketing

Answer 9

Process of identifying needs of segments, selection segment(s) as target, and developing marketing program directed at each

Question 10

Market Segmentation

Answer 10

Dividing market into distinct groups with common needs and will respond similarly to marketing action

Question 11

Bases for Market Segmentation (4)

Answer 11

1. Demographic - gender, age, race, income, marital status
2. Geographic - region, city size, density
3. Psychographic - personality, values/lifestyles
4. Socioeconomic - income, education, occupation

Question 12

Behavioristic Segmentation

Answer 12

Dividing consumers into groups based on usage, loyalties, or buying responses to a product

Question 13

Benefit Segmentation

Answer 13

Grouping consumers based on attributes sought in a product

Question 14

80-20 Rule

Answer 14

20% of buyers account for 80% of sales volume

Question 15

Undifferentiated Marketing

Answer 15

Offering product to entire market

Question 16

Differentiated Marketing

Answer 16

Different products to different markets

Question 17

Concentrated Marketing

Answer 17

Specific product to a specific market

Question 18

PRIZM Social Gorups

Answer 18

• Potential Rating Index for Zip Market

- Geographic and Demographic - Urban, Suburban, Second City, Town and Country (High $ to Low $)

Question 19

Positioning

Answer 19

Fitting the product/service to one or more segments of the market in a way to set it meaningfully apart from the competition

Question 20

Positioning Strategies (7)

Answer 20

1. Attributes & Benefits
2. Price/Quality
3. Use/Application
4. Product Class
5. Product Users
6. Competitors
7. Cultural Symbols

Question 21

Salient Attributes

Answer 21

Important to consumers and basis for making purchase decisions

Question 22

Repositioning

Answer 22

Occurs between declining/stagnant stage of product life cycle because of anticipated opportunities in other market positions

Question 23

Product Symbolism

Answer 23

What product/brand means to consumers and what they experience in purchasing and using it

Question 24

Brand Identity

Answer 24

Combination of name, logo, symbols, design, packaging, and image of associations held by consumers

Question 25

Brand Equity

Answer 25

Intangible asset of added value/goodwill associated with product

Question 26

Marketing Channels

Answer 26

Sets of interdependent organizations involved in the process of making a product/service available for use/consumption

Question 27

Direct Channel

Answer 27

Company sells directly to consumers, no intermediaries

Question 28

Indirect Channel

Answer 28

Network of wholesalers and/or retailers

Question 29

Branding

Answer 29

Brand name communicates attributes and meaning; advertising creates and maintains brand equity

Question 30

Packaging

Answer 30

Increasingly important for identifying product

Question 31

Push vs. Pull Strategies

Answer 31

Push - business/manufacturer gives retailers sail promotion to push product through distribution channel
Pull - consumer makes request to get the product

Question 32

Pricing Decisions

Answer 32

Factors the firm considers - costs, demand, competition, perceived value
consumers give up - time, mental activity, behavioral effect

Question 33

Inverted U

Answer 33

Too little fear/humor doesn’t work enough, moderate most effective, too much- forget the message

Question 34

Trade Advertising

Answer 34

To interest wholesalers and retailers and to motivate them to purchase its products for resale to their customers