Week 6 (Chapter 11)

Question 1

Market segmentation

Answer 1

The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry.

Question 2

Niche market

Answer 2

A place within a market segment that represents a narrow group of customers with similar interests.

Question 3

Product attribute map

Answer 3

Illustrates a firm’s positioning strategy relative to its major rivals.

Question 4

Brand

Answer 4

The set of attributes (positive or negative) that people associate with the company.

Question 5

Brand management

Answer 5

A program used to protect the image and value of an organization’s brand and enable it to increase a firm’s valuation.

Question 6

Brand equity

Answer 6

The term that denotes the set of assets and liabilities that are linked to a brand and enable it to increase a firm’s valuation.

Question 7

Co-branding

Answer 7

When to companies form a partnership to combine their brands.

Question 8

Marketing mix

Answer 8

The set of controllable, tactical marketing tools that it uses to produce the response it wants in the target market:

Product, Place, Promotion, Price

Question 9

Product

Answer 9

The good or service it offers to its target market. The customer must be able to recognize that the product/service adds value.

• Find the early adapters and reference accounts

Question 10

Reference account

Answer 10

An early user of a firm’s product/service who is willing to give a testimonial regarding his/her experience with the product.

Question 11

Price

Answer 11

The amount of moment consumer pay for a product/service. The price a company charges sends an important message to its target market.

• The only element of the marketing mix that produces revenue, not represents costs.

Question 12

Cost-based pricing

Answer 12

The list price is determined by adding a markup percentage to a product’s cost

Question 13

Value-based pricing

Answer 13

The list price is determined by estimating what consumers are willing to pay for a product.

Question 14

Price-quality attribution

Answer 14

When looking at the price of a product, consumers naturally assume that the higher-prices product is also better-quality product.

Question 15

Place

Answer 15

Ensuring access to your product.

• Selling direct
• Selling through intermediaries

Question 16

Selling direct

Answer 16

Many firms sell direct to the customer, maintaining control of the distribution and sales process.

Question 17

Selling through intermediaries

Answer 17

Other firms sell through intermediaries and pass off their products to wholesalers who place them in retail outlets to be sold.

Question 18

Promotion

Answer 18

Communicates the merits of the product to the target audience. The ultimate goal is to persuade people to buy the product.

Question 19

Advertising

Answer 19

Making people aware of a product in hopes to persuading them to buy it. Ofc you have traditional marketing, but also:

• Social media & WOM
• Viral marketing
• Guerilla marketing

Question 20

Social media & WOM (Word of Mouth)

Answer 20

Blogging and connecting with customers and others though SNS

Question 21

Viral marketing

Answer 21

Facilitates and encourages people to pass along a marketing message about a particular product or service- usually via word-of-mouth.

Question 22

Guerilla marketing

Answer 22

A low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.

Question 23

The 4 I’s of Marketing New Ventures

Answer 23

1. Identification of target market
2. Interactive marketing
3. Informal information gathering
4. Intuitive innovation

Question 24

Press kit

Answer 24

A folder that contains background information about the company and includes a list of its most recent accomplishments.

Question 25

Trade show

Answer 25

An event at which the products or services in a specific industry are exhibited and demonstrated.

Question 26

Social plug-ins

Answer 26

Tools that websites can use to provide their users with personalized and social experiences.

Question 27

Traditional marketing

Answer 27

Top-down process
- Traditional segmentation, targeting and positioning

Question 28

Entrepreneurial marketing

Answer 28

Bottom-up process
- Attract an initial customer base then look for more of the same