Exam 2 Flashcards

1
Q
  1. What is a product?
A

Everything, both favorable and unfavorable (i.e., value), that a person receives in an exchange.

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2
Q
  1. What is associated in product “P” decisions?
A

a. Core Customer Value
b. Actual Product
c. Associated Services

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3
Q

a. Core Customer Value

A

i. What are the basic problem solving benefits that you want your product to have

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4
Q

b. Actual Product

A

i. Brand name
ii. Packaging
iii. Quality level
iv. Features/design

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5
Q

c. Associated Services

A

i. Financing
ii. Product warranty
iii. Product support

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6
Q
  1. How does the product “p” relate to the other p’s?
A

a. It comes before all of the other p’s

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7
Q
  1. What is a brand?
A

Includes a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products

Gives a personality to a non-living object

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8
Q
  1. What are some aspects of branding?
A

Brand name
Brand mark
Brand equity

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9
Q

d. Brand name

A

that part of a brand that can be spoken, including letters, words, and numbers.

i. Examples
1. Nike, 3m, Pepsi

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10
Q

e. Brand mark

A

the elements of a brand that cannot be spoken.

i. Examples
1. The golden arches, nike swoosh, mickey mouse ears

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11
Q

f. Brand equity

A

the value (assets and liabilities) of the brand name; ability to create demand and secure future earnings

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12
Q
  1. Brand awareness
A

measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it.

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13
Q

g. Trademarks

A

the exclusive right to use a brand

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14
Q

h. What is a registered trademark?

A

i. A governmental office declares whether or not you are worthy of getting a registered trademark

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15
Q

ii. What parts of a brand can be registered for trademark protection?

A
  1. Name, sounds, products, etc.
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16
Q

iii. How do you continuously protect it?

A
  1. You must re-register for a registered tm every 10-12 years
  2. You must actively use the brand and actively fight if someone is using your tm
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17
Q

iv. What happens if you don’t continuously protect it?

A
  1. You run the risk of your brand becoming generic
  2. Examples
    a. Aspirin, thermos, cola, zipper, trampoline
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18
Q

i. Licensee

A

the people who want to borrow the brand

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19
Q

j. Licensor

A

the people who own the brand

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20
Q

k. What are royalties?

A

i. When the licensee pays the licensor in order to use their brand

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21
Q

i. Infringement

A

l. What is it called when you use someone else’s brand without permission?

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22
Q

p. What is cobranding

A

The practice of marketing two or more brands together on the same package or promotion

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23
Q

o. Private brand

A

Brands developed and marketed by a retailer and available only from that retailer

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24
Q

Manufacturer brand

A

Brands owned and managed by the manufacturer

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25
Q

What is a market

A

A group of people with the same general need/want that also have the ability and willingness to buy

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26
Q

What is a segment

A

A smaller group of the market with a specific need/want

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27
Q

What is the step after segmentation

A

Pick a segment to target

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28
Q

What is the step after picking a segment to target

A

Develop your marketing mix for that segment

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29
Q

Why do companies bother with segmentation

A

To refine the needs/wants and develop the 4 p’s that connect better with the consumers needs/wants

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30
Q

What is a segmentation variable

A

Characteristics of individuals, groups, or organizations used to divide the total market into segments

We segment people, not products

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31
Q

Common segmentation variables

A

Geography, demographics, psychographics, usage rate, and occasion/situation of use

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32
Q

Geography segmentation

A

Where will the consumer use the product

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33
Q

Demographic segmentation

A

Age, gender, ethnicity, income, family size

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34
Q

Psychographic segmentation

A

Lifestyle, attitudes, interests, AIO (attitudes, interests, and opinions)

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35
Q

Usage rate segmentation

A

How often will the product be used

36
Q

Occasion/situation of use segmentation

A

When will the product be used

37
Q

Family life cycle

A

Combines 3 demographic variables:

Age, married (Y/N), and children (Y/N)

38
Q

Young and single (Family life cycle)

A

You buy products that you specifically want

39
Q

Young and married without kids (Family life cycle)

A

People come together with different brand preferences and they will eventually come to a common household brand

40
Q

Young and married with kids (Family life cycle)

A

Now the parents kids will continue with their parents preferences

41
Q

Middle aged married with kids (Family life cycle)

A

More focused on durable goods

42
Q

Middle aged married without dependent kids (Family life cycle)

A

Focus on self improvement

Cooking classes, vacations, remodeling, more education

43
Q

Older and married (Family life cycle)

A

More focused on healthcare

44
Q

Older and unmarried (Family life cycle)

A

Focused on attention and affection from family members

45
Q

Geodemographic segmentation

A

Segmenting potential customers into neighborhood lifestyle categories; combines geography, demographics, and psychographics

46
Q

What are the different targeting strategies

A

Undifferentiated/mass marketing
Concentrated/niche
Differentiated/multi-segment
Micromarketing/1-1/mass customization

47
Q

Undifferentiated/mass marketing

A

Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix

Ex. commodities (sugar, salt, water)

48
Q

Undifferentiated/mass marketing advantages/disadvantages

A

Potential savings on production and marketing costs

Unimaginative product offerings and more susceptible to competition

49
Q

Concentrated/niche

A

A strategy used to select one segment of a market for target marketing efforts

50
Q

Concentrated/niche advantages/disadvantages

A

Can charge higher prices

All eggs are in one basket, very small market

51
Q

Differentiated/multi-segment

A

A strategy that chooses two or more well defined market segments and develops a distinct marketing mix for each

52
Q

Differentiated/multi-segment advantages/disadvantages

A

Greater financial success (bigger market share), economies of scale (cost/unit decreases as you produce more), lower overall risk (all of your eggs are not in your basket)

Higher costs and cannibalization (when sales for one product eat into the sales of another product)

53
Q

Micromarketing

A

When a firm tailors part of the marketing mix to suit an individual customers wants/needs

Theoretically meets the needs/wants the best

It is individualized, expensive, relies heavily on technology, and difficult to execute

54
Q

Positioning

A

A process of defining the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product does or what the company represents in comparison with the competition

55
Q

Value proposition

A

Communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it

Includes the target market, brand name, product/service category, and unique benefits/differences from the competition

56
Q

Product lines

A

A group of closely related products

Ex. SUV’s (Ford), trucks (Ford), or sedans (Ford)

57
Q

Product item

A

A specific version of a product that can be designated as a distinct offering among an organization’s products

Ex. Ford Escape, Ford Taurus, Ford F-150

58
Q

Product mix

A

All product that an organization sells

Ex. Ford –> SUV’s, Sedans, trucks

59
Q

Product mix width/breadth

A

The number of product lines in a mix

Adding a line would be going after a new market

60
Q

Increasing product mix width/breadth would…

A

Diversifies risk

Capitalizes on established reputations
Brand extension - Adding a new product line with the same brand name

61
Q

Adding product mix width/breadth would be like…

A

Apple going from iPod –> iPhone –> iPad –> iMac

62
Q

Product line depth

A

The number of product items in a line

63
Q

Increasing product line item depth would…

A

Attract new buyers with different preferences

Increase sales by further market segmentation

Capitalize on economies of scale (as you produce more of a product, the cost/unit goes down)

64
Q

Increasing product line item depth would be like…

A

Adding a product line item would add a segment

65
Q

Product line extension would…

A

Increase depth

66
Q

Product line contraction would…

A

Decrease depth

67
Q

What is innovation

A

The process by which ideas are transformed into new offerings including products, services, processes, and branding concepts that will help firms grow

68
Q

Why do firms innovate

A

If they don’t change, then the competitors will

Wants and needs are constantly changing

Things go out of style

69
Q

What is the product life cycle

A

A concept that provides a way to trace the stages of a product’s acceptance from its introduction (birth) to its decline (death)

70
Q

What is the point of the product life cycle

A

It is one of the most helpful tools for marketing managers becasue it tells them what the 4 p’s look like over the life of a product

71
Q

What stage of the PLC has the highest sales

A

Maturity

72
Q

What stage of the PLC are profits the highest

A

Growth

73
Q

Introductory stage

A

Price is high, costs are high, sales are low, and usually have a negative profit

High failure rates. Only 3% of new products survive this stage

Little competition

Limited distribution

High ad and production costs

Promotion focuses on awareness and information of the product category benefits

Intensive personal selling to channels

74
Q

Growth stage

A

Increasing rate of sales

Initial healthy profits

Entrance of competitors

Prices normally fall

Market becomes more segmented

Aggressive advertising of the difference between brands

Wider distribution

75
Q

Maturity stage

A

Defined by sales increase at a decreasing rate

Saturated markets

Annual models appear

Lengthened product lines

Go after new geographic markets and segments

High promotion and distribution costs

Prices and profits fall

76
Q

Decline stage

A

Defined by long run drop in sales

Elimination of all nonessential marketing expenses

Organized abandonment (Every 2-3 years, you should review all your product items and ask if we knew what we knew now, would we start making the product)

77
Q

What is diffusion of innovation

A

The process by which adoption of an innovation spreads throughout a market, over time and a cross various categories of adopters

Tells us how consumers change

78
Q

Pioneers/breakthrough products

A

New to the world products that create their own market/industry because they drastically change the way consumers do things and their preferences

79
Q

What is an adopter

A

Someone who used the product

Someone who was satisfied by the product

Someone who intends to buy the product again/keep using the product

80
Q

Categories of adopters

A
Innovators
Early adopters
Early majority
Late majority
Laggards
81
Q

Innovators

A

High socioeconomic status
Has ties outside the community with manufacturers
Like to take risks
Obsessed with being first

82
Q

Early adopters

A

Heavily involved in the community
Less risky but still somewhat risky
Opinion leaders (ones who influence others)

83
Q

Early majority

A

Do a lot of research
Very deliberate
Don’t like risks

84
Q

Late majority

A

Very skeptical
Little bit older
Only get the product if it is a gift or they are peer pressured into buying it

85
Q

Laggards

A
Lower socioeconomic status
Old
Forced into buying the product
Very suspicious of the new product
Get ignored by marketers
Still uses the old version of the product even with the new product available
Typically one PLC behind
86
Q

Product characteristics that affect the rate of adoption

A
Complexity
Compatibility
Relative advantage
Observability
Trialability