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
2
Q
Consumer Products
A
- Products bought by ultimate consumers for personal use
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
4
Q
The Role of Market Segmentation
A
- Marketing strategies must be adjusted to meet the needs of different consumer groups
- Market Segmentation
5
Q
Marketing Segmentation
A
- Division of the total market into smaller, relatively homogeneous groups
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
7
Q
Segmenting Consumer Markets
A
- Geographic
- Demographic
- Psychographic
- Product-related
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
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
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
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
12
Q
Strategies for Reaching Target Markets
A
- Undifferentiated Marketing
- Differentiated Marketing
13
Q
Undifferentiated Marketing
A
- Strategy that focuses on producing a single product and a marketing it to all customers; also called mass marketing
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
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
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
17
Q
Selecting and Executing a Strategy
A
- Basic determinants of marketing strategy
- Company resources
- Product homogeneity
- Stage in the product lifestyle
- Competitors’ strategies
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
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
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
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
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
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
24
Q
Survey Method
A
- Telephone Interviews
- Personal Interviews
- Focus Group
- Mail Surveys
- Online Surveys and Other Internet-based Methods
25
Q
Experimental Method
A
- Least used method
- Controlled experiment
- Test Marketing
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
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
