EXAM 1 Flashcards
What are 4 p’s
product price place promotion people
form utility
the condition of the product (assembly)
time utility
speed (2 day shipping mobile restaurant ordering
possession utility
being able to own/buy something easily
trade feedback effect
how 3rd party economies rise due to foreign trade (China/uSA trade helps Russia)
protectionism
tarrif / quotas (regulators help local business
5 step marketing research
1- id potential actions define the problem 2- developing the research plan 3-collecting data 4-analyze data/ develop findings 5-take action
primary data
obtained yourself- exploratory,descriptive, causal
causal
control experiment to determine causation
strategic marketing segmentation
deciding which segments can you market to
tactical marketing segmentation
how to segment groups (lump together or split up)
marketing segmentation approach
- group buyers into segments
- group products to be sold
- develop market-product grid
- select target markets
- take marketing action
bases for segmentation
a) geographic (sleds in tahoe ACE)
b) demographic (gender/income)
c) psychographic (lifestyle)
d) behavioral
positioning statement
audience, product, how if fullfills needs
new product process
a. First determine your firm’s strategy (including a Protocol Statement
b. Generate a lot of ideas (ideas from employees, customers, suppliers – How to Be Like Apple)
c. Screen down and evaluate those ideas using inexpensive research methods
d. For those surviving ideas, do a business analysis
e. If the business analysis shows that the new product should be profitable, develop the product to the point
f. Conduct a test market and/or simulated test
g. Finally, if the test market results are positive, commercialize the innovation and bring it to market.
target market criteria
market size expected growth competitive position cost of reaching segment compatibility w/ biz goals
market size
target marketing criteria how many people would use product
expected growth
target marketing criteria how much will market grow
competitive position
how much competition is adressing the same target market? now/future
cost of reaching segment
how expensive is it to reach said segment
comparative advatage
when a country has resources that make producing a certain good worthwhile
trade feedback effect
when 2 countries trade, it stimulates entire global economy
exchange value
a products trade value
descriptive data
quantifies issue
Which of the following is NOT true about transparency?
a) An increase in transparency creates greater retention
b) Consumers prefer maximum transparency
c) Transparency increases price sensitivity for unique merchandise and decreases for common merchandise.
d) Transparency increases price sensitivity for common merchandise and decreases for unique merchandise
C
- During a trade exercise, traders had the option to exchange or keep their item. The majority found their own objects to be the most valuable. At the end of the exercise, the majority of those who traded were displeased with the item they received. This is an example of…
a) Preference matching
b) Comparative advantage
c) Trade feedback effect d)Exchange value
A
The five-step process to marketing research starts by…
a) Developing a research plan and determining how to collect data
b) Collecting relevant forms of primary and secondary data
c) Making action recommendations and implementing action d)Identifying potential marketing actions and defining the problem
D
- John Skipper, the founder of ESPN Magazine primarily sells to readers of sports magazines and advertisers. While the advertisers prefer a younger market, focusing only on younger men risks losing the brand’s reputation as being respectable. ESPN Magazine chose a design that would appeal to men between the ages of 18-34. This decision is an example of…
a) Strategic segmentation
b) Tactical segmentation
c) Cannibalization
d) A clustering-based approach
A
- A children’s toy company is engaging in exploratory research by testing hypotheses on the amount of time children spend with new and old toy designs. The null hypothesis was rejected. Based on this measure of success,what would be the resulting marketing action?
Null Hypothesis = the hypothesis that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.
a) Continue using the old design and don’t introduce the new design
b) Introduce the new design and discontinue the old design
c) Continue using the old design while the new design is introduced into a larger market
d) Introduce the new design while the old design remains on the market
D
licensing
allowing use of your brand by another company ( trump ties),
franchising
joint venture
mid to high risk/potential,
partner with foreign company/product to form New entity
direct investment
high risk, high potential, greatest marketing control,
domestic firm invests/acquires foreign company
exporting
same product:diff country low profit, low risk
attitudinal questions
scale of importance
behavioral questions data
how often do u do something
preference matching
Preference matching: preferring your own, you are more comfortable/identify with a product already (iPhone, philz)
semantic differential data qs
scale adjective (ex: tasty)
target market selection criteria
1 market size 2 expected growth 3 competitive position 4 cost of reaching segment 5 compatibility with organizational goals
Product life cycle
introduction
growth
maturity
decline
high learning product
slow introduction to market bc of difficulty of use
fashion product
demand swings hihg and low
fad product
briefly in
product class
“milk” “recorded music”
product form
how it is delivered: spotify v CD
multiproduct branding
making a wide variety of products (costco)
multibranding
making a variety of similar products
tide, gain, downy
multibranding: sub-branding
when a parent brand creates a new brand ( kelloggs cereals)
multibranding: line extension
using an existing brand in a new market ( campbells soup making instant soups!)
multibranding: brand extension
using existing brand to enter diff product class (goody makes accessories and blowdryers)
multibranding: co branding
girl scout cookie/ DQ ice cream blizzard
convenience product
frequently purchased with minimum effort: toothpaste, soap
shopping product
something customers will compare many of (TV, car)
specialty
specific item, *will not take substitutions, such as rolex or rolls royce
4 business risks
technical risk
people risk
financial risk
market
dichotomous question
yes/no
likert scale questions
strongly agree/disagree
closed ended/ fixed alernative qs
categories (18-24, 25-30)
