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BU352 > Final Exam (8-18, 6) > Flashcards

Final Exam (8-18, 6) Flashcards

1
Q

6 reasons why firms create new products

A
  1. changing customer needs
  2. market saturation
  3. managing risk through diversity
  4. fashion cycles
  5. improving business relationships
  6. innovation and value
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2
Q

5 stages of the adoption cycle + their characteristics

A
  1. innovators - enjoy taking risks, highly knowledgable, not price sensitive
  2. early adopters - generally dont like to take as much risk as innovators
  3. early majority - prefer to “wait until the bugs work out”
  4. late majority - product has achieved its full market potential
  5. laggards - avoid change and rely on traditional products
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3
Q

4 factors affecting product diffusion (adoption rate)

A
  1. relative advantage - if a product is perceived to be better than substitutes, then diffusion will be quick
  2. compatibility - whether the product is compatible with the culture
  3. observability - easily observed, benefits are communicated to others
  4. complexity and trialability - less complex products and easy to try will diffuse quicker
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4
Q

premarket testing

A

conducted before introducing product to the market to determine how many consumers will try and continue to use the product

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5
Q

test marketing

A

introduces product to a small geographic are prior to a national launch

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6
Q

4 stages in the product life cycle + their characteristics

A
  1. introduction - initial losses due to high startup costs and low levels of sales
  2. growth - market becomes more segmented, increasing potential and achieving economies of scale
  3. maturity - adoption by late majority and intense competition, develop strategies to keep profit growth
  4. decline - either position for a niche segment for diehard consumers or exit the market
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7
Q

associated services

A

nonphysical aspects of the product such as product warranties, financing, product support, after-sale service

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8
Q

4 types of consumer products

A
  1. specialty - customers will expend considerable efforts to search for best suppliers (road bikes)
  2. shopping - customers will spend a fair amount of time comparing alternatives (furniture)
  3. convenience products - customer is unwilling to spend any effort (bread)
  4. unsought - products consumers either do not normally think of buying or do not know about (funeral services)
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9
Q

product mix

A

complete set of all products offered by firm; consists of various product lines (breadth) and depth within these lines

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10
Q

6 values of branding

A
  1. facilitate purchases - help consumers make quick decisions
  2. establish loyalty - consumers learn to trust certain brands
  3. protect from competition - strong brands are more established in amrket
  4. reduce marketing costs - brand sells itself
  5. brands are assets - legally protected through trademarks and copyrights
  6. impact market value - direct impact on bottom line
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11
Q

brand equity

A

set of assets and liabilities linked to a brand that add/subtract from the value provided by the product (e.g. recall of lululemon pants hurts brand equity)

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12
Q

brand awareness

A

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

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13
Q

brand association

A

mental links that consumers make between a brand and its key product attributes

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14
Q

3 types of brand ownership

A
  1. manufacturer’s brands
  2. private label brands
  3. generic
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15
Q

3 types of brand names

A
  1. corporate brand - firm uses own name to brand all its product lines
  2. family brand - combination of name to brand similar product lines
  3. individual brand - no connection between brands
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16
Q

4 criteria for choosing a brand name

A
  1. descriptive and suggestive of benefits
  2. easy to pronounce, remember, and recognize
  3. be able to register and protect name
  4. easy to translate into other languages
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17
Q

brand extension

A

the use of same brand name for new products being introduced to the same or new markets (nike, starbucks, coke)

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18
Q

brand dilution

A

brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

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19
Q

how to prevent brand dilution

A

carefully evaluate fit between core and extension

  • evaluate consumer perceptions of the attributes of the core
  • refrain from extending name to too many products
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20
Q

co-branding

A

practice of marketing two or more brands together

  • enhances consumers’ perceptions of product quality by signalling otherwise unobservable product quality through links
  • risky when customers for each brand are vastly different
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21
Q

brand licensing

A

contractual arrangement between firms, allowing one firm to use another’s brand name, logo, symbols in exchange for a fee

  • attracts visibility for brand and builds brand equity while generating additional revenue
  • risk: dilution
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22
Q

5 aspects of packaging

A
  1. attracts attention
  2. promotional tool
  3. allows same product to appeal to different markets with different sizes
  4. protects from damage
  5. convey brand positioning
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23
Q

4 unique characteristics affecting services

A
  1. intangible - must employ symbols and images to convey benefits of services
  2. inseparable - produced and consumed at the same time
  3. inconsistent - fix through training
  4. inventory - perishable
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24
Q

gaps model and 4 aspects of it

A

designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy

  • knowledge gap
  • standards gap
  • delivery gap
  • communication gap
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25
Q

knowledge gap + fix

A

difference between customer’s expectations and the firm’s perceptions of those customer expectations
- voice of customer program
- zone of tolerance
FIX: use of research to match

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26
Q

5 dimensions to determine service quality

A
  1. reliability
  2. responsiveness
  3. assurance
  4. empathy
  5. tangibles
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27
Q

standards gap + fix

A

difference between the firm’s perceptions of customers’ expectations and the service standards it sets
FIX: setting appropriate service standards and measuring service performance

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28
Q

delivery gap + fix

A

difference between the firm’s service standards and the actual service it provides to its customers
FIX - getting employees to meet or exceed standards by empowering employees and providing incentives

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29
Q

communication gap + fix

A

difference between the actual service provided and the service that the firm’s promotion promises
FIX - be more realistic about the service and manage customer expectations effectively

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30
Q

3 parts to service recovery

A
  1. listening to the customer
  2. providing a fair solution
  3. resolving problem quickly
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31
Q

distributive vs procedural fairness

A

distributive: customers’ perception of the benefits they received compared to the inconvenience cost
procedural: perceived fairness of the process used to resolve complaints

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32
Q

5 c’s of pricing

A
  1. company objectives
  2. customers
  3. costs
  4. competition
  5. channel members
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33
Q

5 c’s of pricing: company objectives

4 orientations

A

profit orientation
sales orientation
competitor orientation
customer orientation

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34
Q

5 c’s of pricing: customers

2 aspects

A

demand curve
price elasticity of demand
- income effect
-substitution effect

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35
Q

5 c’s of pricing: competition

4 types of competitive environments

A
  1. monopoly - one firm controls the market
  2. monopolistic competition - many firms selling differentiated products at different prices
  3. oliogopoly - handful of firms control the market
  4. pure competition - many firms selling commodities for the same prices
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36
Q

the influence of the internet on pricing

A

more price sensitive and new categories of products that were difficult to obtain before
- showrooming

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37
Q

the influence of economic factors on pricing

A

increase in consumers disposable income but they are still attempting to shop cheap
- cross-shopping

38
Q

3 pricing methods

A
  1. cost-based
  2. competitor based
  3. value based
39
Q

cost of ownership method

A

customers may be willing to pay more for a product because over its lifetime, it will eventually cost less than a cheaper alternative

40
Q

2 new product pricing strategies

A
  1. price skimming - initial price high to profit from innovative idea
  2. market penetration - set initial price low to build sales/market share
41
Q

4 psychological factors affecting value-based pricing

A
  1. consumers’ use of reference prices
  2. odd prices
  3. everyday low pricing
  4. high/low pricing
42
Q

3 pricing tactics aimed at consumers

A
  1. price lining - establish price floor/ceiling to represent distinct differences in quality
  2. price bundling - selling more than one product for a single, lower price
  3. leader pricing - build store traffic by aggressively pricing a regularly purchased item
43
Q

3 types of consumer price reductions

A
  1. markdowns
  2. quantity discounts
  3. coupons/rebates
44
Q

4 b2b pricing tactics and discounts

A
  1. seasonal discounts
  2. cash discounts
  3. allowances - advertising + listing
  4. quantity discounts
45
Q

uniform delivery vs. geographic pricing

A

uniform - one shipping rate for any location

geographic - different rates depending on delivery area

46
Q

4 types of illegal or unethical pricing

A
  1. deceptive or illegal price advertising (deceptive reference price, loss leader pricing, bait and switch)
  2. predatory pricing - low price for one or more products with intention of driving competitor out of business
  3. price discrimination - suppliers sell same product to different resellers at different prices
  4. price fixing (horizontal and vertical)
47
Q

3 types of distribution channels

A
  1. direct
  2. indirect
  3. multi-channel
48
Q

push marketing strategy

A

manufacturer focuses on promotional efforts to convince supplier to carry its products (personal selling or sales promotion)

49
Q

pull marketing strategy

A

promotional efforts are focused on consumers to build demand that will convince retailers to carry them (tv commercials or print ads)

50
Q

3 types of distribution intensity

A
  1. intensive distribution - designed to get products into as many outlets as possible
  2. exclusive distribution - granting exclusive geographic territories to one or very few retailers
  3. selective distribution - few selected customers in a territory
51
Q

vertical marketing system

A

members act as a unified system because they realize that each part can maximize its individual benefits by working together

52
Q

3 types of vertical marketing systems

A
  1. administered - no common ownership, but dominant member controls the relationship - if either party doesn’t like the relationship it can walk away
  2. contractual - firms join together through contracts to obtain economies of scale - franchising
  3. corporate - parent company has complete control of supply chain
53
Q

data warehouse

A

stores consumer’s purchase data collected at the POS

54
Q

electronic data interchange

A

computer-to-computer exchange of business documents from retailer to vendor and back

55
Q

4 aspects of strategic relationships

A
  1. mutual trust - share relevant ideas, communicate efficiently
  2. open communication - share info, develop sales forecasts
  3. common goals - incentive to pool their strengths and abilities
  4. credible commitments - both sides make tangible commitments
56
Q

just-in-time (JIT) inventory system AKA quick response (QR)

A

deliver less merchandise more frequently

57
Q

storing and cross docking

A

storing - merch is unloaded onto storage shelves

cross docking - merch goes straight to staging area as it is prepackaged

58
Q

3 factors in choosing retail partners

A
  1. channel structure
  2. customer expectations
  3. channel member characteristics
59
Q

7 types of general merchandise retailers

A
  1. discount stores (walmart)
  2. specialty stores (sephora)
  3. category specialists (chapters)
  4. department stores (sears)
  5. drugstores
  6. off-price retailers (winners)
  7. extreme value retailers (dollarama)
60
Q

6 p’s of developing a retail strategy

A
  1. product - right mix of products
  2. price - general price range of a store
  3. promotion - coordinated effort between manufacturer and retailer
  4. presentation - improving shopability by providing more convenient store layouts
  5. personnel - personal selling, csrs
  6. place - convenience of location of the stores
61
Q

benefits of stores for consumers

A
  • browsing
  • touching/feeling products
  • personal service
  • cash and credit payments
  • entertainment and social interaction
  • instant gratification
  • risk reduction
62
Q

benefits of internet retailing

A
  • deeper and broader selection
  • more info to evaluate product
  • personalization
  • expanded market presence
63
Q

integrated marketing communications

A

a variety of communication disciplines in combination to provide clarity, consistency, and maximum communicative impact

64
Q

4 methods of determining a budget in an IMC

A
  1. objective and task - budget based on what is required to undertake specific tasks and accomplishments
  2. competitive parity - budget in line with its market share
  3. percentage of sales - fixed percentage of forecasted sales
  4. affordable budgeting - based on whats left over after other operating expenses
65
Q

2 types of appeals in conveying a message

A
  1. rational appeal - factual info and strong arguments

2. emotional appeals - satisfy consumer’s emotional desires rather than utilitarian needs

66
Q

media planning

A

process of evaluating and selecting the media mix that will deliver the message to the intended audience

67
Q

3 types of advertising schedules

A
  1. continuous - runs steady throughout the year
  2. flighting - implemented in spurts
  3. pulsing - maintains base level but increasing intensity at some points
68
Q

6 types of IMC tools

A
  1. advertising
  2. personal selling
  3. sales promotion
  4. direct marketing
  5. public relations
  6. digital media
69
Q

AIDA model in advertising

A

attention, interest, desire, action

70
Q

aided recall vs top of mind awareness

A

aided recall - consumers recognize brand when its name is presented to them
top of mind - brand has prominent place in people’s memories

71
Q

lagged effect

A

delayed response to a marketing campaign - may take several exposures before viewer processes its message

72
Q

3 types of advertising objectives

A
  1. informative advertising - create brand awareness
  2. persuasive advertising - motivate consumers to take action
  3. reminder advertising - prompt repurchase
73
Q

3 values of personal selling

A
  1. build relationships
  2. educate and provide advice
  3. save time and simplify buying
74
Q

5 steps of personal selling

A
  1. generate and qualify leads
  2. preapproach
  3. sales presentations and overcoming objections
  4. closing the sale
  5. follow up
75
Q

4E framework for social media

A

Excite the customer - social network sites
Educate the customer - thought sharing sites
Experience the product - media sharing sites
Engage the customer - thought sharing and media sharing

76
Q

4 types of social media users

A
  1. creators - use social media as a new way to share their ideas
  2. bonders - use social media to enhance relationships
  3. professionals - use social media to demonstrate how smart they are
  4. sharers - want to help others
77
Q

sentiment analysis

A

analyze data from sources to collect consumer comments about companies and their products

78
Q

exporting

A

producing goods in one country and selling them in another

indirect and direct

79
Q

franchising

A

contractual agreement between a firm, the franchisor, and another firm or individual, the franchisee

80
Q

strategic alliance

A

collaborative relationships between independent firms, though the partnering firms do not invest in one antoehr

81
Q

joint venture

A

firm entering new market pools its resources with those of a local form to form a new company in which ownership, profits, and control are shared

  • contract manufacturing
  • management contracting
82
Q

direct investment

A

firm maintains 100% ownership of its plants, operation facilities, and offices in a foreign country, often through the formation fo wholly owned subsidaries

83
Q

3 ethical issues in global marketing

A
  • environmental concerns
  • global labour issues
  • impact on host country culture
84
Q

culture imperialism

A

belief that ones own culture is superior to that of other nations

85
Q

corporate social responsibility

A

the voluntary actions taken by a company to address the ethical, social and environmental impacts of its business operations and the concerns of its stakeholders

86
Q

consumerism

A

social movement aimed at protecting consumers from business practices that infringe upon their rights

87
Q

4 segmentation bases

A
  1. geographic
  2. demographic
  3. psychographic - how do they live, what is their lifestyle
  4. behavioural - why they buy, how often
88
Q

5 positioning methods

A
  1. value
  2. product attributes
  3. benefits and symbolism
  4. competition
  5. market leadership
89
Q

4 targeting strategies

A
  1. undifferentiated targeting strategy - mass marketing
  2. differentiated targeting strategy
  3. concentrated (niche targeting strategy)
  4. micromarketing - custom
90
Q

3 segmentation methods of behavioural segmentation

A
  1. occasion segmentation - when a product is purchased/consumed
  2. benefit segmentation - based on benefits customers derive from the product
  3. loyalty segmentation - strategy to retain their most profitable customers

BU352 (2 decks)

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