Exam 2 Flashcards
What are the four I’s of services?
- intangibility
- inseparability
- inconsistency
- inventory
What are the differences between products and services?
Products are tangible they are physical, you can touch, see, feel and smell them.
Services are intangible. Often part of the challenge of marketing services is creating tangible elements that connect the consumer to the service brand.
Product item vs. products item vs. products mix. What are the differences? (they are related)
Products item - a unique individual item that has its own (SKU) Stock keeping unit
Product line - A group of similar items from the same company
Products mix - total assortment of products and lines from the same company. The percentage of sales that each item makes up of their total sales.
Why do new products fail?
- The product has an insignificant point of difference
- Incomplete market and product protocol before product development starts
- Not satisfying consumer needs on critical factors
- No economical access to buyer (too expensive)
- Bad timing
- Poor product quality
- Poor execution of marketing mix
- Too little market attractiveness
What are the steps in the new product development (NPD) process
- New product development strategy
- Idea generation
- Screening and evaluation
- Business analysis
- Development
- Market testing
- Commercialization
What are the sources for new product ideas? (Where do new product ideas come from?)
- Internally from scratch
- Hire a consultant
- Purchase a product from another company/ or acquire a company
- Steal/ follow strategy. Copy your competitor if they become successful with their product
What are the product life cycle stages?
- Introduction
- Product Growth
- Product Maturity
- Product Decline
Product repositioning. What is it and when is it done?
A marketing decision to change something about the product to make it more appealing (packaging, market, the product itself etc)
This is done when a product has started to decline in some way.
What is brand personality?
A set of human characteristics associated with a brand name, what your brand stands for.
Describe a buying center?
All of the individuals who participate in the purchasing decision making process
Roles in a buying center?
users influencers deciders approvers gatekeepers
3 types of buying situations?
New buy
straight rebuy
modified rebuy
what is marketing research?
Acquiring data to help marketing people make better decisions.
steps in the research process?
- identify a problem or a question
- Design a new research study
- Identify a sample
- Collect Data
- Analyze the Data
- Research Report
- Follow Up
major global trading organizations/agreements?
world trade organization (WTO)
north american free trade agreement (NAFTA)
What is global competition for global customers?
global competition is the services or products provided by competing companies that serve international customers
What is global “scanning” for trading/cultural issues/political issues/economic issues?
Systematically surveys relevant data to identify external opportunities and threats that could influence future decisions.
Done to assess the influences, implication, and impact of prevailing and emerging geo political, economic, social demographic, technological, environmental, and ecological forces
global marketing strategies-exporting to licensing to direct investment and joint venture?
exporting: producing products in one country and selling them in another
licensing: company offers the right to a trade mark, patent, trade secret, or other intellectual property for a royalty or fee.
Joint venture: When a foreign company and local firm invest together to make a local business.
global 4 P’s
product
price
place
promotion
What are the four challenges of packing and labeling?
- the continuing need to connect with customers
- environmental concerns
- health, safety, and security issues
- cost reduction
What are the 5 major ways to segment a total consumer market; give examples to each
Geographic seg: Where prospective customers live or work
Demographic seg: age, gender, income, ethnic background
Psychographic seg: personality/lifestyle of prospective customers
Behavioral seg: observable actions of attitudes of prospective customers
What is positioning? define
The place a product occupies in consumers minds based on important attributes relative to competitive products.
What is a perceptual map?
A means of displaying the location of products or brands in consumers minds.
What is repositioning and why/when is it done?
Changing the place a products occupies in consumers minds relative to competitive products.
Done when:
- sales are declining
- target audience has changed
- products or services have changed
- customer think your outdated
- new competitors have better proposition
