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Comm 223 Marketing > Quiz 2 Prep > Flashcards

Quiz 2 Prep Flashcards

1
Q

What is a service in marketing terms?

A

A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

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2
Q

What are the three levels of product?

A
  • Core product (value of)
  • Actual product (features)
  • Augmented product (bonuses)
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3
Q

What are the two main classifications of products?

A
  • Consumer products
  • Industrial products
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4
Q

What type of products are bought by final consumers for personal consumption?

A

Consumer products.

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5
Q

What type of products are bought by individuals and organizations for further processing or for use in conducting a business?

A

Industrial products.

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6
Q

Poo

A

Yes

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7
Q

How does branding help buyers?

A
  • Identify products
  • Determine quality
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8
Q

What are the functions of packaging?

A
  • Hold and protect
  • Promote the product
  • Differentiate the product
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9
Q

What is a product line?

A

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and are marketed through the same types of outlets.

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10
Q

What is line stretching?

A

Adding products that are higher or lower priced than the existing line.

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11
Q

What is line filling?

A

Adding more items within the present price range.

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12
Q

What does a product mix consist of?

A

All the product lines and items that a particular seller offers for sale.

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13
Q

True or False: Services account for 70% of Canada’s GDP.

A

True.

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14
Q

What are the four service characteristics? (InvInsVarPer)

A
  • Intangibility
  • Inseparability
  • Variability
  • Perishability
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15
Q

What is brand equity?

A

The positive differential effect that knowing the brand name has on customer response to the product or service.

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16
Q

What is brand value?

A

The total financial value of a brand.

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17
Q

What is customer equity?

A

The value of customer relationships that the brand creates.

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18
Q

What are the major branding decisions? Pnsd

A
  • Brand positioning
  • Brand name selection
  • Brand sponsorship
  • Brand development
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19
Q

What are the three levels of brand positioning? ( selling product without demand)

A
  • Product attributes
  • Benefits
  • Beliefs and values
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20
Q

Fill in the blank: A good brand name should be _______.

A

[easy to pronounce, recognize, and remember]

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21
Q

What are the advantages of line extensions for a business?

A
  • Lower marketing costs
  • Leverage existing brand equity
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22
Q

What are the disadvantages of brand extensions?

A
  • Risk of diluting the brand
  • Potential negative impact on the parent brand
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23
Q

Difference betweeen Actual and Augmented product

A

Actual: actual product

Augmented; secondary benefit that comes with the purchase of the product
“Warranty”

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24
Q

4 unique characteristics of a service product

A

Intangibility
- experience
Inseparability
- service from employees
Variability
- employee variability
Perishability
- brewed coffee and seats cannot be saved for later use

25
Q

8 steps to product market development (in order)
GST SAP TC

A

Idea generation
Idea screening
Development and testing
Marketing strategy
Business analysis
Production
Test marketing
Commercializations

26
Q

What is crowdsourcing for product innovation

A

Getting public’s opinion on potential new product developments

27
Q

What is concept development and testing

A

Development: detailed prototype/version of idea chosen

Testing: testing new product amongst group of target consumers to see if they want it

28
Q

What is business analysis (8 steps)

A

Review of costs sales and profits to see if new product will be beneficial for the company

29
Q

What is product development 2(8 steps)

A

Turning concept into physical product or prototype
May require large investment

30
Q

What is TEST. MARKETING 8 steps (StanContSim)
What are the 3 types and what do they do

A

Standard test marketing:
Testing product and marketing program in realistic market setting; high cost but high representation

Controlled Test Market:
Choose 3 or 4 vendors instead of markets.
Faster response; cheaper costs

Simulated test market:
In a lab with test subjects. Maybe biased results.
Cheapest and fastest.

31
Q

What is commercialization (8 stages) FIX

A

Last stage

Officially launch new product
Large investment
Consider where and when to launch

32
Q

What are the 2 common PRICING mistakes

A

Dropping price too soon to sell more products

Pricing based on cost over customer value

33
Q

What are the 3 major considerations in setting price (spectrum)

A
  1. Costs (basic)
  2. Competition and external factors (middle majority
  3. Consumer perception of value (ceiling)
34
Q

Pricing Strategy: what is cost based; what is FORMULA for Unit cost and Price

A

Selling product at a fair rate based on fixed and variable costs

Unit cost = (Fixed/unit sales) + variable cost
PRICE= Unit cost/ (1- desired return)

35
Q

Pricing strategy: customer value based pricing

A

Pricing based on buyers perceptions of value rather than sellers cost

Kinda difficult

36
Q

Steps to cost based pricing vs value based

A

Cost: 1. design product 2. Determine costs 3. Set price based on costs 4. convince buyers of value

Value based:
1. Assess customer needs
2. Match price to perceived value
3.determine costs
4. Design product at desired value and target price

37
Q

Pricing strategy; value based vs value added

A

Value based : quality and good service at fair price

Value added: used to differentiate from companies charging high prices

38
Q

Pricing strategy; what is competition based pricing

A

Pricing based on competitors strategy/ cost

39
Q

What are the 5 factors that affect pricing decision (2 internal, 3 external)

A

Internal:
Overall strategy and objectives
Organization considerations
External
Market and demand
Economy
Affect on other parties in environment

40
Q

FORMULA FOR BREAK EVEN PRICE AND MARKUP PRICE: given: fixed cost, variable cost, expected sales, markup %

A

Break even: Unit cost= (fixed cost/unit sales) + variable cost per unit

Markup price = unit cost/(1-markup%)

41
Q

FORMULA: Markup $ and %

A

Markup $ = selling price - cost

Markup %= markup$/cost OR $makrup/selling price

42
Q

FORMULA: Supplier price

A

Wholesaler price before discount: MSRP-(%margin1 x msrp)

Wholesaler price with discount: wpbd- (% margin2 x wpbd)

43
Q

FORMULA : Profit goal break even (units and $)

A

Unit volume = (fixed cost + profit goal)/ (unit price- variable cost)

Dollar sales= unit volume x unit price

44
Q

FORMULA: Demand Market Potential

Give formula and definition of variables

A

Q = nqd

Q= total market demand

N=# of buyers in market
q = # of units purchased by average buyer per year
p = price of average unit

45
Q

What is chain ratio method? Formula example

A

Estimating market demand by multiplying base market by nicher markets

Ex) total # of households in Canada * total % of CTV product owners * total % of households willing to buy CTV products

46
Q

Pricing strategy: why bundle?

A

People have different value perceptions for different products, bundling helps them sell more of their products

Ex: idgaf about fries in the Wendy’s combo but the bundle allows me to get the drink and burger so I’ll buy the trio to get them all

47
Q

What are marketing channels

Why are they useful

A

Set of INTERDEPENDENT organizations that make up the process of creating and delivering the product to the consumer

They deliver better value to both consumers, suppliers, and retailers by providing:
- maximizes contact efficiency
- Better matching of supply and demand
-bridges time and possession gaps between supplier retailer and distribution

48
Q

True or false: Producers gain more control and ease with increases in channel levels

A

False: they lose control and gain complexity

49
Q

Marketing channels: difference between direct and indirect channels

A

Direct:
B2C (eventually)

Indirect
B2B uses one or more levels of intermediaries to bring products to final consumers

50
Q

Marketing channels: difference between direct and indirect channels

A

Direct:
B2C (eventually)

Indirect
B2B uses one or more levels of intermediaries to bring products to final consumers

51
Q

Five flows of channel member connections
(PIPPO)

A

Payment flow
Information flow
Physical flow
Promotional flow
Ownership flow

52
Q

Channel conflict: horizontal vs vertical

A

Horizontal : conflict among firms at the same channel level

Vertical: conflict at different levels

53
Q

Conventional distribution channel vs Vertical Marketing system

A

Conventional: independent channels seeking to maximize profits

Vertical: unified system with contracts of contribution levels

54
Q

3 types of Vertical Marketing System VMS

(CorConAdm)

A

Corporate vms:
Common whole ownership

Contract VMS: Indivdual firms that join through contracts ( franchise)

Administered VMS :
Ownership determined by size and power (size queen)

55
Q

Def: Horizontal Marketing system

A

Companies work at same level as channel members

56
Q

Def: multichannel distribution system

A

Firm uses two or more marketing channels (bodog)

57
Q

Def: Disintermediation

A

Producers cut out market channel intermediaries

58
Q

3 levels of distribution intensity and when to use them

A

Intensive; as many outlets as possible; convience goods

Selective; not all but some; retail

Exclusive ; one per market area; specialty

59
Q

Big picture: 4 steps of channel design decision ASIE

A

Step 1: Analyze Consumer Needs (cost and feasability)

Step 2: Setting Channel Objectives (based on size and financials)

Step 3: Identifying Major Alternatives (intermediary decisions)

Step 4: Evaluating Major Alternatives (Threats)

Comm 223 Marketing (4 decks)

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