Final Exam Study Guide Flashcards
What are the 5 reasons firms create new products?
- Changing Customer Needs
- Market Saturation
- Managing Risk through Diversity
- Fashion Cycles
- Improving Business Relationships
What are the 4 types of products?
Convenience
Shopping Product
Specialty
Unsought
a good, service, or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers’ needs
and is received in exchange for money is known as
Products
What are the items called that have tangible and intangible attributes
Goods
Goods that have one or few uses are known as
Non-durable
Goods that lasts over many uses are known as
Durable Goods
Intangible activities or benefits are known as
Services
A thought that leads to a product or action is known as
Idea
Purchases that are frequent, conveniently, with minimum shopping effort are classified as
Convenience Products
What are the 3 types of convenience goods?
Staples
Impulse
Emergency
What type of goods are purchased at least once a month
Staples
What type of goods are purchased without planning?
Impulse
What type of goods are needed in a hurry
Emergency
How are consumer products classified?
- Effort spent decision
- Attributes used in making decision
- Frequency of purchase
What type of product is bought by consumers comparing several alternatives on criteria such as price, quality, or style. They are nought less frequently than convince items and take more time to consider options
Shopping Products
What type of products require consumers to make a special effort to search out and buy?
Specialty Products
What type of products have consumers purchases because of unique characteristics or loyalty to a specific brand that are not easily substitutable
Specialty Products
What type of products are usually not known about before the purchase or items that are not initially sought after?
Also known as “no desire to buy under normal circumstances”
Unsought Products
What term refers to the entire category or industry of a product?
Product Class
What term refers to a specific product that has an unique brand, size, or price identified by an SKU unit
Product Item
What term refers to groups of associated items/products
Product Line
What term refers to the complete set of all products/services offered by a firm
Product Mix
The number of product lines offered by a firm is known as
Breadth
The number of product within a product line is known as
Depth
What are the 4 ways to define a product as new?
- New compared to existing products
- New based on the consumer’s perspective
- New in legal terms
- New based on the organizations perspective
Which type of newness has new features and capabilities compared to current offerings?
New compared to existing products?
What are some examples of new products compared to existing products?
Flip phone to iPhone
90s Nintendo to switch noq
What are the three types of innovation based on newness from a consumers perspective?
Continuous Innovation
Dynamically Continuous Innovation
Discontinuous Innovation
Which type of innovation requires no new learning by consumers?
Continuous innovation
Which type of innovation disrupts consumer’s normal routine but does not require totally new learning?
Dynamically Continuous Innovation
Which type of innovation requires new learning and consumption patterns by consumers?
Discontinuous Innovation
What is newness in legal terms?
6 months from when the product enters distribution
The incremental improvement of an existing product line the company already sells is known as
Product Line Extension
Putting a brand name on a new product in an unfamiliar market is known as
Brand Extension
Which type of newness results in new flavors of Coke or Oreos?
Newness: The Organization’s Perspective
A statement made before product development begins that identifies a well defined target market, specific customer needs/wants, and what the product will and be to satisfy its customers is defined as
Protocol
What are the 8 reasons for new product failures in the market place?
- Insignificant point of difference
- incomplete market and product protocol before product development starts
- not satisfying customer needs on critical factors
- bad timing
- no economical access to buyers
- poor product quality
- poor execution of the marketing mix
- too little market attractiveness
The stages a new product goes through in the marketplace is defined as the
Product Life Cycle
What causes products to move through the product life cycle?
- the changing customer needs
- the launch of better, more efficient prodcust
slide 8
What are the 4 stages of the product life cycle?
Introduction
Growth
Maturity
Decline
Which stage of the PLC has slow sales and low profit?
Introduction Stage
What are the marketing objectives for the introduction stage?
competition
product
price
promotion
place
- Competition- few
- product- one
- price- skimming or penetration
- promotion - inform, educate
- place - limited
Setting prices high to recover costs is known as
Skimming Prices
Setting lower prices to gain large market share is know as
Penetration Pricing
Demand for a TYPE of product is known as
Primary Demand
Which stage of the product life cycle results in fast sales growth and increasing profit?
Growth Stage
When public awareness rises, more competitors occur, repeat purchasers come back, new features are introduced, broad distribution is provide, and their is demand for a specific brand
this is all apart of which stage of the PLC?
Growth Stage
What are the marketing objectives for the growth stage?
competition
product
price
promotion
place
- Competition : More
- Product : More versions
- Price : Gain market share, deal
- Promotion: stress points of difference
- Place : more outlets
Which stage of the product life cycle has sales growth that Strat to slow and level out. The profit growth also Strats to slow and begins to drop
Maturity Stage
Which stage of the PLC stage has product differentiation, many competitions, many products part of the product line, and focuses on reminding consumer to buy the brand is in
Maturity Stage
What are the marketing objectives for the maturity stage?
competition
product
price
promotion
place
Competition: Many
Product: Full Product line
Price: Defend market share, profit
Promotion: Reminder-oriented
Place: Max outlets
Which stage of the product life cycle has a slow decrease in sales growth and profits decrease at a rapid pace
Decline Stage
What are the marketing objectives for the decline stage?
competition
product
price
promotion
place
Competition: Reduced
Product: Best sellers
Price: Stay profitable
Promotion: minimal promotion
Place: Fewer outlets
Demand for a specific brand is known as
Selective Demand
What are the 3 ways to manage the product life cycle?
Product Modification
Market Modification
Repositioning
What type of management of the PLC alters one or more of the product’s characteristics to increase value and increase sales? This term also does product bundling and provides new characteristics?
Product Modification
What type of management of the PLC uses one of three categories
1) Finding new customers
2) Increasing a Product’s use
3) Creating a New Use Situation
Market Modification
What type of management of the PLC changes the place product occupies in consumer’s mind relative to competition by
reacting to a competitor’s position, reaching a new market, catching a rising trend, and changing the value offered
Repositioning the Product
The use of any of the following to identify or distinguish from competitors like name, logos, or slogans are all examples of this term too
Branding
The added value a brand name gives to a product beyond the functional benefits provided and can provide the following benefits:
facilitate purchases, establish loyalty, protect from competition, are assets, and affect market value
Brand Equity
What are the 4 aspects that determine brand equity?
Brand Awareness
Perceived Value
Brand Associations
Brand Loyalty
How familiar customers are with a brand are known as
Brand Awareness
The relationship between benefits and cost is known as
Perceived Value
The mental and emotional links consumers make between brand and key attributes are known as
Brand Associations
What are the 4 branding strategies?
- Multiproduct Branding Strategy
- Multibranding Strategy
- Private Branding Strategy
- Mixed Branding Strategy
What type of branding strategy uses one brand name for all products. Capitalize on brand equity and lower advertising and promotion costs?
Multiproduct Branding
The practice of marketing two or more brands together on the same package or promotion is known as
Co-branding
Which type of branding strategy gives each product a distinct name when each brand is intended for a different market segment that have higher advertising and promotion costs. It also limits the risk of poor product performance impact on other brands
Multibranding Strategy
Which type of branding sells under the bran name of wholesaler or retailer
Private Branding
The container the product is sold in and the label is apart of which term
Packaging
What are the 3 benefits of packaging?
Communication Benefits
Functional Benefits
Perceptual Benefits
Which packaging benefits gives directions and ingredients
Communication Benefits
Which packaging benefit has storage of products, protection, and convenience
Functional Benefits
Which packaging benefit has strong branding and the positioning is important
Perceptual Benefits
The process of conveying a message to others, and it requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding is known as
Communication Process
What order is the communication process in?
Source to Encode to Channel of Communication to Decode to Receiver to Response to Feedback
Which part of the communication process may be a company or person who has information to convey?
Source
The information sent by a source, such as a description forms what element?
Message
The message is conveyed by means of a ** such as a salesperson, advertising media, or public relations tools
Channel of communications
Consumers who read, hear, or see the message are the **
Receivers
The process of having the sender transform an idea into a set of symbols is known as
Encoding
The reverse or the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea is known as
Decoding
The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences is known as the
Integrated Marketing Communications (IMC)
The combination of one or more communication tools used to (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product is known as the
Promotional Mix
What are the 3 goals of the promotional mix
- Inform prospective buyers ( create awareness)
- Persuade them to try product (encourage trial)
- Remind them of benefits (encourage repeat purchase)
What are the 6 elements of the promotional mix?
Advertising
Personal Selling
Public Relations
Sales Promotion
Direct Marketing
Online Marketing
The paid form of non-personal communication about product/service/ company is known as
Advertising
The two way communication between buyer and seller is known as
Personal Selling
What term builds good relations with the public by using unpaid publicity
Public Relations
The short-term incentives or inducement of value is known as
Sales Promotion
The direct communication to obtain to generate response is known as
Direct Marketing
The websites, blogs, and social media is known as which element of the promotional mix
Online Marketing
GO TO CHAPTER 15 SLIDES FOR ALL DESCRIPTIONS/ STRENGTHS/WEAKNESSES OF PROMOTIONAL TOOLs
Which of the 6 elements of the promotional mix have the following strength?
Efficient means for reaching large numbers of people
Advertising
Which of the 6 elements of the promotional mix have the following strength?
- Immediate feedback
- Very persuasive
- Can select audience
- Can give complex information
Personal Selling
Which of the 6 elements of the promotional mix have the following strength?
- Often most credible source in the consumer’s mind
Public Relations
Which of the 6 elements of the promotional mix have the following strength?
- Effective at changing behavior in the short run
- Very flexible
Sales Promotion
Which of the 6 elements of the promotional mix have the following strength?
- Messages can be prepared quickly
- Facilitates relationship with customer
Direct Marketing
Which of the 6 elements of the promotional mix have the following weaknesses?
- High absolute costs
- Difficult to receive good feedback
Advertising
Which of the 6 elements of the promotional mix have the following weaknesses?
- Extremely expensive per exposure
- Messages may differ b/w salespeople
Personal Selling
Which of the 6 elements of the promotional mix have the following weaknesses?
- Difficult to get media cooperation
Public Relations
Which of the 6 elements of the promotional mix have the following weaknesses?
- Easily abused
- Can lead to promotion wars
- Easily duplicated
Sales Promotion
Which of the 6 elements of the promotional mix have the following weaknesses?
- Declining customer response
- Database management is expensive
Direct Marketing
What are the 6 factors that affect the promotional mix?
Nature of the Product
Stage in Product Life Cycle
Target Market Factors
Stage of Buying Decision
Promotion Funds
Push or Pull Strategy
Which factor of the promotional mix handles the 3 key attributes of products such as complexity
risk and ancillary services?
Nature of the Product
The more a product has of complexity, risk, and ancillary services, the greater the reliance of personal selling
True
What are the promotional objectives in order of each stage of the product life cycle?
Introduction, Growth, Maturity, and Decline
To inform
TO persuade
To remind
TO phase out
When advertising to specific target markets what tactic is best for consumers?
More mass media
more promotion
When advertising to specific target markets what tactic is best for businesses?
Personal selling
DIrect MArketing
Promotions
Advertising in trade pubs
How do you find your target market?
By using market research
and the market segmentation process
What are the 4 ways to set a budget?
- % of sales
- Competitive parity
- All you can afford
- Objective and Task
What is the most efficient way to budget?
Objective and Task
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking
the product is known as
Push Strategy
What are the examples of the push strategy?
Personal Selling
Advertising in trade publications and trade events
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product also known to use of mass selling tools is known as which strategy?
Pull Strategy
any paid form of
nonpersonal communication about an organization, product, service, or idea by an identified sponsor is known as
Advertising
What are the two types of advertisements?
Product Ads
Institutional Ads
The promotion of products to induce customers to purchase it is known as
Product Advertising
The promotion of a company not a product, where they do not attempt to sell product directly is known as
Institutional Ads
What are the 3 different types of product ads
Pioneering
Competitive
Reminder
The objectives listed below are for which type of production advertisement?
- For new products
- Gets people excited for the launch
-Informational to build brand awareness
- Tells people about a product or where it can be found
Pioneering Ads
The objectives listed below are for which type of production advertisement?
- Persuasive to encourage action
- Promotes brand features
- Comparative to strengths of competitors
Competitive Ads
The objectives listed below are for which type of production advertisement?
- Reinforce knowledge of products
-are well recognized products in the mature phase
- stimulate repeat purchases
- assures users they made the right choices
Reminder Ads
Which type of advertisements goal is to promote a company’s overall reputation rather than a particular product or service where the effort is to promote its mission, vision, philosophies and principles
Institutional Advertisements
What are the three type of appeals used for message content?
Fear
Sex
Humorous
What are the two types of message content elements?
Informational Element
Persuasive Element
Which type of ad content appeals to emotions?
Pathos
What type of ad content appeals to logic or reason
Logos
What type of ad appeals to the credibility or character
Ethos
What type of appeal persuades people to feel they are assuming risk if they don’t purchase the product or take action?
Fear Appeal
T/F- Make sure the fear appeal it is strong enough to get attention and cause concern but not too strong that they tune out the message
True
What type of appeal suggests products will increase the attractiveness of user and studies show this appeal illicit greater response than any other?
Sex Appeal
What type of appeal implies directly or indirectly that product is more fun or exciting than competitors. This appeal can wear out easily and lose interest of consumers
Humorous Appeal
What are the media planning goals?
Maximize exposure
Minimize Cost
