Week 4

Question 1

What is cannibalization?

Answer 1

when a company offers a new product and it only gets bought by your current buyers so you end up taking away sales from yourself

Question 2

What are some examples of one product, multiple market segments?

Answer 2

harry potter books, finding dory, frosted flakes cereal

Question 3

What does one product, multiple market segments mean?

Answer 3

one product is hitting various different demographics

Question 4

What is multiple products, multiple market segments?

Answer 4

one company makes multiple products under multiple market names in order to reach multiple market segments

Question 5

What are some examples of multiple products, multiple market segments?

Answer 5

gap’s banana republic, gap, and old navy brands

Question 6

What is segments of one, mass customization?

Answer 6

taking a product and allowing the customer to make it exactly what they need

Question 7

What are some examples of segments of one, mass customization?

Answer 7

nike custom shoes on the app, mini cooper cars, invisalign

Question 8

What are segmentation variables?

Answer 8

characteristics of individuals, groups, or organizations used to divide a market into segments

Question 9

What are the four segmentation variables?

Answer 9

demographic, geographic, psychographic, behavioristics

Question 10

What are some demographic variables?

Answer 10

genders, income levels, age

Question 11

What are some geographic variables?

Answer 11

urban v rural, east coast v west coast

Question 12

What are some psychographic variables?

Answer 12

values, lifestyle, individual differences

Question 13

What are some behavioral variables?

Answer 13

usage pattern, benefits sought

Question 14

What is the target market process?

Answer 14

segmentation, targeting, positioning

Question 15

What is positioning?

Answer 15

the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds

Question 16

What are points of parity?

Answer 16

attributes that inform the consumer that you are capable of providing something that might work

Question 17

What is head to head strategy?

Answer 17

competing directly with competitors on similar product attributes in the same target market

Question 18

What is differentiation strategy?

Answer 18

what makes your brand unique in a way that matters to the consumer

Question 19

What is the product positioning statement?

Answer 19

describes the product and the market in which they compete

Question 20

What is customer value proposition?

Answer 20

a statement that a company uses to convince a customer to purchase its products or services over others

Question 21

What is the intangible characteristic of a service?

Answer 21

cant touch it, hold it so they try to promote aspects of it that feel tangible

Question 22

What is the inseperability characteristic of a service?

Answer 22

cant separate services from those who “create/manufacture” the service

Question 23

What is the inconsistency characteristic of a service?

Answer 23

difficult to standardize

Question 24

What is the no inventory characteristic of a service?

Answer 24

unused service capacity from on time time period cannot be stored for future use

Question 25

What are search attributes?

Answer 25

customers can readily evaluate prior to purchase (ex: size, price, quality)

Question 26

What are experience attributes?

Answer 26

can only be evaluated after the purchase, or once customer has experiences (ex: haircut, flight, meal)

Question 27

What are credence attributes?

Answer 27

can never really be confidently evaluated, even after purchase (ex: psycho-therapy, religious services, acupuncture)

Question 28

What is a product?

Answer 28

a good, service, or idea that satisfies needs

Question 29

What are durable products?

Answer 29

products that maintain their use even after you use them (ex: a remote control)

Question 30

What are non durable products?

Answer 30

products that waste as you use them (ex: food, toothpaste, fuel)

Question 31

What is customer value propostion?

Answer 31

cluster of benefits that an organization promises customers to satisfy their needs

Question 32

What are convenience products?

Answer 32

products that you can find in many locations and you will buy them quickly and often (ex: food, toothpast)

Question 33

What are shopping products?

Answer 33

these are products that are available in fewer locations and are more thought about when buying because they are less frequent (ex: laptop, mattress)

Question 34

What are specialty products?

Answer 34

these are products that you have to hunt for when you are trying to buy them (ex: rolex, bentley)

Question 35

What are unsought products?

Answer 35

products that you need but dont realize you need (ex: life insurance, a fire extinguiser)

Question 36

What is a product item?

Answer 36

a specific product with a unique brand, size, or price

Question 37

What is a product line?

Answer 37

a group of products or services that satisfy a class of needs

Question 38

What is a product mix?

Answer 38

consists of all product lines offered by an organization(ex: apple has mac, iphone, ipad etc)

Question 39

What is innovation?

Answer 39

a product that customers perceive to be new and different from existing products

Question 40

What is the lowest level of innovation?

Answer 40

continuous innovation; requires no new learning by consumers

Question 41

What is an example of continuous innovation?

Answer 41

new and improved shaver, detergent, etc.

Question 42

What is a medium level of innovation?

Answer 42

dynamically continuous innovation; disrupts consumer's normal routine but does not require totally new learning

Question 43

What is an example of dynamically continuous innovation?

Answer 43

electric toothbrush, LED HDTVs

Question 44

What is the highest level of innovation?

Answer 44

discontinuous innovation; requires new learning and consumption patterns by consumers

Question 45

What is an example of discontinuous innovation?

Answer 45

wireless router, electric car

Question 46

What is the product life cycle?

Answer 46

introduction, growth, maturity, decline

Question 47

What are the types of product adopters?

Answer 47

innovators, early adopters, early majority, late majority, and laggards

Question 48

What is an innovator adopter?

Answer 48

higher educated, uses multiple information sources

Question 49

What is an early adopter?

Answer 49

leaders in social setting; slightly above average education

Question 50

What are early majority adopters?

Answer 50

deliberate; many informal social contacts

Question 51

What are late majority adopters?

Answer 51

skeptical; below average social status

Question 52

What are laggard adopters?

Answer 52

fear of debt; neighbors and friends are information sources

Question 53

What is relative advantage?

Answer 53

degree to which consumers perceive the new product as offering superior benefits

Question 54

What is compatibility in rate of adoption?

Answer 54

consistent with existing cultural values, customs and practices

Question 55

What is complexity in rate of adoption?

Answer 55

is this product difficult to understand and use?

Question 56

What is trailability in rate of adoption?

Answer 56

ease if sampling a new product and its benefits

Question 57

What is observability in rate of adoption?

Answer 57

degree to which others can witness the new product and benefits

Question 58

What is a brand?

Answer 58

the emotional connection people have with your business or product, and their perception is reality

Question 59

What are the four elements of brand equity?

Answer 59

brand name awareness, perceived brand quality, brand associations, and brand loyalty

Question 60

What is brand equity?

Answer 60

a brand's financial value to its organization; the added value a brand name gives to a product beyond the functional benefits provided

Question 61

What is individual branding?

Answer 61

separate brands for each product or product line

Question 62

What are some examples of individual branding?

Answer 62

chevrolet, buick, and cadillac are all brands of GM

Question 63

What is umbrella/family branding?

Answer 63

Costco - Kirkland Signature

Question 64

What are some advantages of individual branding?

Answer 64

allows company to serve multiple segments without diluting the image of the brands

Question 65

What are some advantages of umbrella branding?

Answer 65

leverages equity of existing brand, instant recognition

Question 66

What is product repositioning?

Answer 66

change essential aspect of product, often to increase relevance

Question 67

What are brand extensions?

Answer 67

strategy of using establish brand in different context

Question 68

What is an example of a brand extension?

Answer 68

dyson vacuum -> dyson hairdryers/stylers