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MKT 251 - Intro to Marketing > Exam 2 - Review Guide > Flashcards

Exam 2 - Review Guide Flashcards

1
Q

Types of Markets

A
  • Consumer Products
  • Business Products
  • A product can be either a consumer product or business product, depending on its use
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2
Q

Consumer Products

A
  • Products bought by ultimate consumers for personal use
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3
Q

Business Products

A
  • Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale
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4
Q

The Role of Market Segmentation

A
  • Marketing strategies must be adjusted to meet the needs of different consumer groups
  • Market Segmentation
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5
Q

Marketing Segmentation

A
  • Division of the total market into smaller, relatively homogeneous groups
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6
Q

Criteria for Effective Segmentation

A
  • The segment must present measurable purchasing power and size
  • Marketers must find a way to effectively promote and serve the market segment
  • Segment must be sufficiently large to offer good profit potential
  • Firm must aim for segments that match its marketing capabilities
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7
Q

Segmenting Consumer Markets

A
  • Geographic
  • Demographic
  • Psychographic
  • Product-related
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8
Q

Geographic Segmentation

A
  • Division of an overall market into homogeneous groups based on their locations
  • Marketers look at:
    • Economic variables
    • Geographic indicators
    • Migration patterns
  • Pay close attention to fastest-growing states
  • Government now classifies urban data using several categories
    • CBSA, MSA, MSA, CMSA, and PMSA
  • Focus on core regions -> can draw 40 - 80% of sales from here
  • Residence location within a region is an important variable
  • Provides useful distinctions when regional preferences or needs exist
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9
Q

Demographic Segmentation

A
  • Division of an overall market into homogeneous groups based on:
    • Gender and age
    • Income and occupation
    • Education
    • Sexual orientation
    • Household size
    • Stage in the family lifecycle
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10
Q

Psychographic (behavioral) Segementation

A
  • Division of a population into groups that have similar attitudes, values, and lifestyles
  • Quantify aspects of consumers’ personalities and lifestyles
  • Plan and promote more effectively
  • Acts as a good supplement to geographic and demographic segmentation
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11
Q

Product-Related Segmentation

A
  • Division of a population into homogeneous groups based on their relationships to a product
  • Segmenting by benefits sought -> focuses on the benefits people expect from using the product
  • 80/20 Principle
  • Brand loyalty
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12
Q

Strategies for Reaching Target Markets

A
  • Undifferentiated Marketing

- Differentiated Marketing

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13
Q

Undifferentiated Marketing

A
  • Strategy that focuses on producing a single product and a marketing it to all customers; also called mass marketing
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14
Q

Differentiated Marketing

A
  • Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments
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15
Q

Concentrated Marketing

A
  • Focusing marketing efforts on satisfying a single market segment (Niche Marketing)
  • Approach can appeal to small firms or to firms that offer highly specialized goods and services
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16
Q

Micromarketing

A
  • Targeting potential customers at very narrow, basic levels
  • Internet makes micromarketing more effective
  • Firms can suffer if market is too small and specialized to be profitable
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17
Q

Selecting and Executing a Strategy

A
  • Basic determinants of marketing strategy
    • Company resources
    • Product homogeneity
    • Stage in the product lifestyle
    • Competitors’ strategies
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18
Q

Marketing Research Function

A
  • N. W. Ayer conducted first one in 1879
  • 1930s - more sophisticated -> better sampling techniques, greater accuracy
  • Computer tech.
  • Marketing Information System
  • Marketing Decision Support Systems
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19
Q

Marketing Information Systems (MIS)

A
  • A planned, computer-based system designed to provide decision makers with a continuous flow of information relevant to their areas of responsibility
  • Continually monitors marketing environment and provides instantaneous information
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20
Q

Marketing Decision Support Systems

A
  • Marketing information system component that links a decision maker with relevant databases and analysis tools
  • Develops raw data useful for decision making
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21
Q

Define the Problem

A
  • Clearly increases the speed and accuracy of the research process
  • Confusing symptoms should be avoided
  • First steps: find the target market and the marketing mix elements
  • Conduct Exploratory Research
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22
Q

Exploratory Research

A
  • Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources
  • Internal data
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23
Q

Observation Method

A
  • Researchers view the overt actions of subjects being studied
  • Increasingly sophisticated ways for observing behavior are being used
  • Videotaping consumers is gaining acceptance
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24
Q

Survey Method

A
  • Telephone Interviews
  • Personal Interviews
  • Focus Group
  • Mail Surveys
  • Online Surveys and Other Internet-based Methods
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25
Q

Experimental Method

A
  • Least used method
  • Controlled experiment
  • Test Marketing
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26
Q

Controlled Experiment

A
  • Least used method
  • Scientific investigation in which a researcher manipulates a test group and compares the results with those of a control group
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27
Q

Test Marketing

A
  • Introducing a new product in a specific area and then observing its degree of success
  • Can be expensive
  • Competitors can quickly learn about these products
  • Some are not well suited to test marketing
  • Alternatives:
    • Computer-modeling software
    • Regional product launches
    • Limiting a product to a single retail outlet
28
Q

Conducting International Marketing Research

A
  • Follow some basic steps as for domestic marketing research
  • Researchers must be aware of cultural and legal environments
  • May have to adapt research methods to local conditions
29
Q

Sales Forecasting

A
  • The process of estimating future sales
30
Q

What Is a Product?

A
  • People buy want satisfaction, not objects

- Bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs

31
Q

What Are Goods and Services?

A
  • Services
  • Goods
  • Goods-services Continuum
32
Q

Services

A
  • Intangible tasks that satisfy the needs of consumers and business users
33
Q

Goods

A
  • Tangible products that customers can see, hear, smell, taste, or touch
34
Q

Goods-Services Continuum

A
  • Spectrum along which goods and services fall according to their attributes, from pure good to pure service
35
Q

Importance of the Service Sector

A
  • Makes up more than 3/4 of the U.S. economy
  • Backshoring
  • Homeshoring
  • Most emphasize marketing as a significant activity for two reasons:
    • Growth potential of service transactions
    • Environment for services is changing
36
Q

Backshoring

A
  • Firms return much of their offshore work to the U.S. to save money and improve customer service efficiency
37
Q

Homeshoring

A
  • Hiring workers to do jobs for their homes
38
Q

Clarifying Goods and Services for Consumer and Business Markets

A
  • Consumer (B2C) products
  • Business (B2B) products
  • Some products fall into both categories
39
Q

Consumer (B2C) Products

A
  • Product designed for use by ultimate consumers
40
Q

Business (B2B) Products

A
  • Product that contributes directly or indirectly to the output of other products for resale
  • AKA: industrial or organizational product
41
Q

Classifying Consumer Services

A
  • Marketers rely on five questions to classify services
    • What is the nature of the service?
    • What type of relationship does the service organization have with its customers?
    • How much flexibility is there for customization and judgment on the part of the service provider?
    • Do demand and supply for the service fluctuate?
    • How is the service delivered?
42
Q

Development of Product Lines

A
  • Product Line
  • Desire to grow
    • Growth potential is limited if a company focuses on a single product
43
Q

Product Line

A
  • Series of related products
44
Q

The Product Mix

A
  • Assortment of product lines and individual product offerings
  • Product mix width, length, depth
45
Q

Product Mix Width

A
  • Number of product lines a firm offers
46
Q

Product Mix Length

A
  • Number of different products a firm sells
47
Q

Product Mix Depth

A
  • Variations in each product that the firm markets
48
Q

The Product Lifestlye

A
  • Introductory stage
  • Growth stage
  • Maturity stage
  • Decline stage
49
Q

Introductory Stage

A
  • Products in this stage might bring new technology to a product category
  • Technical problems and financial losses are common
50
Q

Growth Stage

A
  • Sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product
51
Q

Maturity Stage

A
  • Sales of a product category continue to grow during the early part of this stage but eventually reach a plateau as the backlog of potential customers dwindles
52
Q

Decline Stage

A
  • Innovations or shifts in consumer preferences bring about an absolute decline in industry sales
53
Q

Extending the Product Lifestyle

A
  • Increasing frequency of use
  • Increasing the number of users
  • Finding new uses
  • Changing package sizes, labels, or product quality
54
Q

Increasing Frequency of Use

A
  • Convincing current customers to buy a product more frequently boosts total sales even if no new buyers enter the market
55
Q

Increasing the Number of Users

A
  • Attracting new customers who have not previously used the product
56
Q

Finding New Uses

A
  • New applications extend a product’s lifecycle
57
Q

Changing Package Sizes, Labels, or Product Quality

A
  • New packaging and labels with updated images and slogans can help revitalize a product
58
Q

Product Deletion Decisions

A
  • Marketers prune product lines and eliminate marginal products to preserve limited resources
  • Firms may carry unprofitable items to carry a complete product line
  • Shortages or raw materials can prompt a firm to discontinue production
  • Firm may drop products that don’t fit into the direction in which it plans to grow
59
Q

Marketing Brands for a Competitive Advantage

A
  • Brands can influence customer behavior
  • A brand is a name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from competitors’ offerings
60
Q

Brand Loyalty

A
  • Three stages
  • Brand Recognition
  • Brand Preference
  • Brand Insistence
61
Q

Brand Recognition

A
  • Consumer awareness and identification of a brand
62
Q

Brand Preference

A
  • Consumer choice of a product on the basis of a previous experience
63
Q

Brand Insistence

A
  • Consumer refusal of alternatives and extensive search for desired merchandise
64
Q

Product Identification

A
  • Products identified in the marketplace by brand names, symbols, and distinctive packaging
  • Choosing how to identify a firm’s output represents a major strategic distinction for marketers
65
Q

Consumer Adoption Process

A
  • Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again
  • Consumer Innovators
  • Diffusion Process
66
Q

Consumer Innovators

A
  • People who purchase new products almost as soon as the products reach the market
67
Q

Diffusion Process

A
  • Process by which new goods or services are accepted in the marketplace

MKT 251 - Intro to Marketing (10 decks)

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