Exam 2 Flashcards
an aggregate of people who as individuals or organizations have needs for products in a product class and who have the ability and willingness and authority to purchase such products
market
Name of 2 types of market and describe them
Consumer Market - people purchase products for personal use
Industrial Market - businesses who purchase products to either resell or use to make other products
identifying groups of people with common needs
segmenting
select segment of a market that has a potential to respond to a product
targeting
create a certain image in mind of consumers
positioning
Example of positioning products in terms of Jeans
Company A - comfortable jeans
Company B - function jeans
Company C - durable jeans
Company D - sexy jeans
Describe city size in terms of market segmentation
city size is the total number of people who live in a specific city ex. Cedar falls has 100,000 people who live their and olive garden bases where they place their stores based on population of cities
Describe city size in terms of market segmentation
total potential number of buyers in a market ex. Office depot makes decisions on where to place stores in terms of how many potential buyers they could have in an area
lifestyle variable that consists of shoppers that shop at supermarkets, cook at home, and shop frequently
avid shoppers
lifestyle variable where the consumers are childless, are men or women, and eat a lot of takeout
kitchen strangers
lifestyle variable where people come from low income households
constrained shoppers
lifestyle variable where people are very busy, they eat at home but they take cooking shortcuts
hurried shoppers
life style variable where older working class where all their children have left the home
Unfettered shoppers
lifestyle variable where the consumer is elderly and are light eaters
Kitchen Birds
Describe the different usage rates and how they motivate consumers in a market
heavy usage rate - ex. frequent flyer miles
moderate usage rate - coupons
light - free sample
method of targeting where you target a everyone in a market with products everyone uses ex. sugar
mass marketing, total marketing, undifferentiated strategy
method of targeting where one segment of a market is targeted for a product
concentrated marketing
two or more segments of a market targeted with a product
multi-segmented strategy
Describe the three types of positioning
- by attribute - volvo makes a very strong vehicle
- by quality/price - Wal-mart- price Nordstrom -quality
- competitor - hertz might be number one but avis is working on being better
the purchase behavior of producers, re-sellers, gov’t units and institutions
Organizational Buying Behavior
buy products to use in making their own product
producers
buy finished goods to resell them to consumers
resellers
Government markets
federal, state and local governments buying things for their citizens ex. roads, schools
Institutional Markets
hospitals, fraternities, and sororities
Describe the 3 characteristics of organization transactions (relative to the consumer)
- purchase larger quantities/ purchases
ex. 30 computers for a business over one for a consumer - longer negotiations
ex. prices consumers will take the price whereas organizations will try to get a lower price because they are buying more - reciprocity
ex. GM gives a car to good year in exchange for tires for cars
3 Attributes of organizational buyers
- better informed
- request detailed information
- buyer does best while purchasing
3 Types of Purchases
- New task purchase - buy a computer for the 1st time
- Modified Re-buy purchase - buy a computer with different terms of sale
- Straight Re-buy purchase - buy computer with the same terms of sale
5 Steps of purchasing in an institution
- Users request product - students/professors/staff request computers
- Influencer form a plan - technical department
- Deciders accept or reject plan - dean
- Buyers choose the vendor to purchase from
- Gatekeepers manage the plan - secretaries
we can classify products based on how long we use them and example of this classification is a pop
consumable
we can classify products based on how long we use them and example of this classification is an appliance
durable
we can classify products based on how long we use them and example of this classification is a durable good that has become a consumable an example of this is a disposable camera
disposable
we can classify products based on how long we use them and example of this classification is a consumable good that has become a durable good an example of this is a stamp
collectable
We can classify products based on the buyer orientation of a product an example of this classification is bread
convenience product
We can classify products based on the buyer orientation of a product an example of this classification is clothing
shopping product
We can classify products based on the buyer orientation of a product an example of this classification is a Jaguar car
specialty product
Describe how the marketing mix affects convenience, shopping and specialty products in terms of the number of stores
many, moderate, few
Describe how the marketing mix affects convenience, shopping and specialty products in terms of distribution
Intensive, selective, exclusive
Describe how the marketing mix affects convenience, shopping and specialty products in terms of turnover
high, moderate, low
Describe how the marketing mix affects convenience, shopping and specialty products in terms of profit per item sold
low, moderate, high
Describe how the marketing mix affects convenience, shopping and specialty products in terms of who promotes the product
manufacturer, manufacturer and retailer, and manufacturer and retailer
Describe how the marketing mix affects convenience, shopping and specialty products in terms of who sells the product
packaging, sales person, sales person
specific version of a product ex. tide and gain
product item
group of related items ex. laundry detergent
product line
total number of products in an organization makes available to customers ex. P&G
product mix
number of products in a product line
depth of product mix
number of product lines
width of product mix
person who handles the product line
product manager
person who manages only one brand ex. tide
brand manager
serves a specific group of a customer
market manager
responsible to produce new products and come from many different offices ex. r&d, accounting, marketing etc.
venture team
during the maturity phase of the product life cycle you want to improve your product to extend the life cycle 3 ways to do this is through
quality modification, making the product more functional, and improving the looks or style of the product
during the decline stage of the product life cycle their are three strategies that to take describe these
- phase out - your product is experiencing no profits so continue with the same 4 P’s
- Run out - your product is experiencing some losses so modify your 4 P’s to compensate Ex. less advertising
- Immediately Drop - product is experiencing major losses so drop the product completely
The first step in introducing a new product involves Idea Generation Describe it
- Focus Groups with 6-10 people brainstorming
- wild and crazy ideas with no evaluation
- Example and alarm clock that slaps you in the face
The Second step in introducing a new product involves screening describe it
filter out the products and select the best one
the third step in introducing a new product involves business analysis
analyze the profit of a product
the fifth step in introducing a product is through test marketing which can be done either internally or externally
Internal testing can either be done in a lab or by the managers of the company which is called an in-house test
External testing can be done either with a standard test where you take a small number of cities and expose them to the full marketing mix or a controlled test where you expose a few stores to the full marketing mix
their are two ways to do this either with a roll out where the market is gradually exposed to a new product or a sell in where you sell everywhere at once
commercialization
3 strategies to produce a product and describe them
Duplication - make the same product as competitor
Innovation - make similar product as a competitor
Invention - make different product than competitor
name, term design or symbol associated with a product
brand
name or term associated with a brand
brand name
symbol associated with a brand
brand mark
legal designation indicating the owner has right to use the brand
trademark
trade name legal name of the organization
trade name
ex. brand name - minute made
trade name - coca cola
Name 3 benefits of branding
- helps buyers identify specific brands
- helps buyers identify quality of a product
- brands offer psychological benifits
Name the 2 types of brands
Manufacturer Brands - initiated and owned by producers
Private brands - initiated and owned by resellers
Name the 5 characteristics of a good brand
- short and simple
- easy to sell and read
- easy to remember
- adaptable to packaging needs
- suggestive of product needs ex. I can’t believe its not butter
brand policy where you sell simple items like salt and sugar
generic
brand policy where you name each product differently advantages to this is that a bad product doest contaminate the entire brand and that it provides segmentation
Individual Branding
all firms products under one name advantages include that one name promotes all products
overall family branding
single line brand
line branding
uses part of an existing brand for improved version
brand extension
company permits use of brand for a fee
brand licensing
result of applying human or mechanical effects to people or objects
services
can’t see touch or feel
intangibility
services a produced and consumed at the same time
inseparability
unused capacity that cant be saved
perishability example airplane seats
people perform services that are inconsistent
heterogeneity
describe 3 ways of developing a market for servieces
- hire and maintain high quality people
- improve service by using high quality technology
- customizes services to customers wants and needs
