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MKTG > Test 2 > Flashcards

Test 2 Flashcards

0
Q

Diffusion of Innovation

A 
Innovators - venturesome - 2.5%
Early Adopters - opinion leaders - 12.5%
Early Majority - deliberate - 35%
Late Majority - skeptics - 35%
Laggards - tradition - 15%
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1
Q

Product characteristics that affect the spread of new products:

A 
Complexity
Compatibility
Relative Advantage
Observability
Trialability
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2
Q

Define Product

A

Everything, both favorable and unfavorable, that a person receives in an exchange.

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3
Q

What is the difference in a consumer and a business product?

A

A consumer product is bought to satisfy an individual’s personal wants or needs. A business product is used to manufacture other goods or services, to facilitate an organization’s or to resell to other customers.

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4
Q

What are the 4 categories of consumer products?

A
  1. Convenience product
  2. Shopping product
  3. Specialty product
  4. Unsought product
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5
Q

Define convenience product

A

A relatively inexpensive item that merits little shopping effort.

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6
Q

Define shopping product

A

A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores.

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7
Q

Define specialty product

A

A particular item for which consumers search extensively and are very reluctant to accept substitutes.

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8
Q

Define unsought product

A

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

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9
Q

What is a product item?

A

A specific version of a product that can be designated as a distinct offering among an organization’s products.

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10
Q

What is a product line?

A

A group of closely related product items.

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11
Q

What is a product mix?

A

All products that an organization sells.

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12
Q

What is a brand?

A

A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

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13
Q

What is the difference between a brand name, a brand mark, a trademark, and a service mark?

A

brand name = part of a brand that can be spoken
brand mark = elements of a brand that cannot be spoken (Mercedes symbol)
trademark = exclusive right to use a brand or part of a brand
service mark = a trademark for service

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14
Q

Name 6 branding concepts.

A
  1. General
  2. Manufacturer
  3. Private
  4. Individual
  5. Family branding
  6. Cobranding
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15
Q

Name 4 important characteristics of packaging.

A
  1. V - Visibility
  2. I - Information
  3. E - Emotion
  4. W - Workability
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16
Q

Define implied warranty and give an example.

A

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

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17
Q

Define express warranty and give an example.

A

A written guarantee.

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18
Q

What are the 6 categories of new products?

A
  1. New-to-the-world
  2. New product lines
  3. Additions to existing product lines
  4. Improvements or revisions of existing products
  5. Repositioned products
  6. Lower-priced products
19
Q

Describe “new-to-the-world” as a category of new products and give an example.

A

AKA “discontinuous innovation”
These products create an entirely new market.
Example: Polytron Technologies’ see through smart phone.

20
Q

Describe “new product lines” as a category of new products and give an example.

A

These products, which the firm has not previously offered, allow it to enter an established market.
Example: Moleskine’s first products were journals, now they also have a line of office supplies.

21
Q

Describe “additions to existing product lines” as a category of new products and give an example.

A

New products that supplement a firm’s established line.

Example: Taco Bell and the Doritos locos taco.

22
Q

Describe “improvements or revisions of existing products” as a category of new products and give an example.

A

“new and improved”

Example: new scents of Tide detergents

23
Q

Describe “repositioned products” as a category of new products and give an example.

A

These are existing products targeted at new markets or market segments, or ones repositioned to change the current market’s perception of the product.
Example: Ford redesigning the Mustang for the younger generations.

24
Q

Describe “lower priced products” as a category of new products and give an example.

A

Products that provide performance similar to competing brands at a lower price.
Example: HP’s all-in-one printer.

25
Q

List the 6 steps of the new product development process.

A
  1. Idea generation
  2. Screening
  3. Business Analysis
  4. Development
  5. Test Marketing
  6. Commercialization
26
Q

What are the 4 categories of adopters in the diffusion of a new product?

A
  1. Innovators
  2. Early Adopters
  3. Early Majority
  4. Late Majority
  5. Laggards
27
Q

What are characteristics of “innovators”?

A
  • First 2.5% of all those who adopt a product.
  • Eager to try new ideas
  • Higher incomes
  • Self-confident
  • Well educated
  • Get information from scientific sources and experts.
28
Q

What are characteristics of “early adopters”?

A
  • Next 13.5% (after innovators) to adopt a product
  • Adopt early in product’s life cycle.
  • Rely a little more on group norms and values.
  • more likely to opinion leaders
  • Not distinguished by demographics but by behavior.
  • All ages, gender and income groups.
  • Desire to earn respect
29
Q

What are characteristics of “early majority”?

A
  • Next 34% (after early adopters) to adopt a product
  • Weighs pros and cons before adopting
  • Evaluates more brands
  • Rely on the group for information
  • Unlikely to be opinion leaders
30
Q

What are characteristics of “late majority”?

A
  • Next 34% (after early majority) to adopt a product
  • Pressure to conform
  • Older and below average income and education
  • dominant trait: Skeptic
  • Rely on word of mouth marketing
31
Q

What are characteristics of “laggard”?

A
  • Final 16% (after late majority) to adopt a product
  • Independence is rooted in ties to tradition
  • Longest adoption time
  • lowest socioeconomic status
  • dominant value: tradition
32
Q

What are the 5 characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product?

A
  1. Complexity - how hard the product is to use
  2. Compatibility - does it meet your needs and is it user-friendly
  3. Relative advantage - how much the product is perceived as superior to existing products
  4. Observability - how much the product is in the eyes of potential buyers
  5. Trialability - Can it be tested?
33
Q

List the four stages of the product life cycle (PLC).

A
  1. Introductory stage
  2. Growth stage
  3. Maturity stage
  4. Decline stage
34
Q

Describe the introductory stage.

A

The full scale launch of a new product into the marketplace.

  • High failure rate
  • Little competition
  • Frequent product modification
  • Limited distribution
  • High marketing/advertising costs
  • Sales increase slowly
35
Q

Describe the growth stage.

A

When sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy.

36
Q

Describe the maturity stage.

A

A period during which sales increase at a decreasing rate.

  • Longest stage of PLC.
  • Emergence of “niche marketers”
  • Product design changes become stylistic
37
Q

Describe the decline stage.

A

A long-run drop in sales.

  • Governed by how rapidly consumer tastes change
  • Products are eventually removed from market.
38
Q

How do services differ from goods?

A
  1. Intangibility
  2. Inseparability
  3. Heterogeneity
  4. Perishability
39
Q

Define intangibility.

A

The inability of services to be touched, seen, tested, heard, or felt in the same manner that goods can be sensed.

40
Q

Define inseparability.

A

The inability of the production and consumption of a service to be separated, consumers must be present during the production.

41
Q

Define heterogeneity.

A

The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods.

42
Q

Define perishability.

A

The inability of services to be stored, warehoused, or inventoried.

43
Q

What are the 5 characteristics of service quality?

A
  1. Reliability
  2. Responsiveness
  3. Assurance
  4. Empathy
  5. Tangibles
44
Q

What is a core service?

A

The most basic benefit the consumer is buying.

45
Q

What is supplementary service?

A

A group of services that support or enhance the core service.

46
Q

Why is internal marketing critical in service firms?

A

In service industries, employees deliver the brand promise - their performance as a brand representative - directly to customers.

MKTG (1 decks)

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