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Marketing Exam 2
Marketing Concepts/Terms 9,10, 11, 15, 16, 19
| Question | Answer |
|---|---|
| What is marketing research? | the process of planning, collecting, and analyzing data relevant to a marketing decision |
| How does marketing research connect decision makers and customers? | it connects them through information that allows decision makers to make changes to the current marketing mix |
| What three types of roles does marketing research play in business and marketing decisions? | Descriptive, Diagnostic and Predictive |
| What is the descriptive role of marketing research? | includes gathering and presenting factual statements |
| What is the diagnostic role of marketing research? | includes explaining data |
| What is the predictive role of marketing research? | addresses “what if” questions |
| What is a product? | everything, both favorable and unfavorable, that a person receives in an exchange |
| What are the different kinds of products? | Convenience, Shopping, Specialty, and Unsought |
| What is a convenience product? | a relatively inexpensive item that merits little shopping effort |
| What is a shopping product? | a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores |
| What is a specialty product? | a particular item for which consumers search extensively and are very reluctant to accept substitutes |
| What is a unsought product? | a product unknown to the potential buyer or a known product that the buyer does not actively seek |
| What two classifications do products fall into? | Business and consumer products |
| What is a product item? | a specific version of a product that can be designated as a distinct offering among an organization’s products |
| What is a product line? | a group of closely related product items |
| What is a product mix? | all products that an organization sells |
| What is product line depth? | the number of product items in a product line |
| What is product line mix? | the number of product lines an organization offers |
| What is repositioning? | Involves changing consumers’ perceptions of a brand that is motivated by changing demographics, declining sales, changes in the social environment, and competition |
| What is product line extension? | adding additional products to an existing product line in order to compete more broadly in the industry |
| What is a product line contraction? | Minimizing an overextended product line |
| What are the three benefits of a product line contraction? | Resources become concentrated on the most important products, Resources are no longer wasted on trying to improve the sales and profits of poorly performing products, More financial and human resources are available to promote and manage new products |
| What is a brand? | a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products |
| How is branding used? | as the main tool marketers use to distinguish their products from those of the competition |
| What are the three benefits of branding? | Product identification, Repeat Sales and New-Product Sales |
| What is greenwashing? | when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly |
| What are the functions of packaging? | Contain and protect products, Promote products, Facilitate the storage, use, and convenience of products, Facilitate recycling and reduce environmental impact |
| What is a new product? | a product new to the world, the market, the producer, the seller, or some combination of these |
| What is new product strategy? | a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation |
| What are the steps of new product strategy? | Idea generation, Idea screening, Business analysis, Development, Test marketing and Commercialization |
| What is idea generation? | Coming up with an idea for a new product |
| What is idea screening? | the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason |
| What is business analysis? | the second stage of the screening process, where preliminary figures for demand, cost, sales, and profitability are calculated |
| What is development? | the stage in the product development process in which a prototype is developed and a marketing strategy is outlined |
| What is test marketing? | the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation |
| What is commercialization? | the decision to market a product |
| What is product development? | a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products |
| What is the diffusion process? | the process by which the adoption of an innovation spreads |
| What are the categories of adopters in the diffusion process? | Innovators, Early Adopters, Early Majority, Late Majority, and Laggards |
| What are innovators? | The first 2.5 percent of all those who adopt the product, Eager to try new ideas and products, wealthy, Better educated |
| What are early adopters? | The next 13.5 percent to adopt the product, Rely much more on group norms and values, More oriented to their local community |
| What are the early majority? | The next 34 percent to adopt the product, Weigh the pros and cons through information gathering and evaluation, Trust in recommendations from friends and family |
| What are the late majority? | The next 34 percent to adopt the product, Adopt new products after most of their friends have already adopted them and they feel a pressure to conform, Tend to be older and below average in income and education, Skeptical |
| What are laggards? | Final 16 percent to adopt, Do not rely on group norms, The past heavily influences their decisions, adopt things after they are outdated |
| What is the product life cycle? | a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death) |
| What is a product life cycle used for? | a tool to help marketers forecast future events and suggest appropriate strategies |
| What are the stages of the product life cycle? | Introductory, Growth, Maturity and Decline |
| What is competitive advantage? | one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors |
| What are the goals of promotion? | Inform, Persuade, Remind and Connect with its audience |
| What is public relations? | the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance |
| What does PR helps organizations do? | communicate with its stakeholders and maintain a positive image with the public |
| What is publicity? | public information about a company, product, service, or issue appearing in the mass media as a news item |
| What is a promotional strategy? | a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media |
| How does product life cycle and promotional strategy relate to one another? | Depending on which stage a product is at in the PLC, a company will change its promotional strategy to match this stage. |
| What is promotional mix? | the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization’s overall goals |
| What is a proper promotional mix? | one that management believes will meet the needs of the target market and fulfill the organization’s overall goals |
| What is personal selling? | a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other |
| When is personal selling effective? | It is effective when a long-term relationship can be built between sellers and buyers, and both accomplish their mutual objectives and both benefit |
| What is AIDA concept? | a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action |
| How does advertising work in AIDA? | It is effective for attention and interest |
| How does public relations work in AIDA? | It is effective for attention and interest |
| How does sales promotion work in AIDA? | It is effective for desire and action |
| How does personal selling work in AIDA? | It is effective for interest, desire and action |
| How does social media work in AIDA? | It is effective for attention and interest |
| What is integrated marketing communications? | the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every point at which a company has contact with the consumer |
| Why is IMC important? | Thousands of media choices has made promotion a more complicated task and the mass market has fragmented into more selectively segmented markets |
| What is a push strategy? | a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise |
| What is a pull strategy? | a marketing strategy that stimulates consumer demand to obtain product distribution |
| What is advertising? | Any form of impersonal paid communication in which the sponsor or company is identified |
| What is advertising response function? | a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns |
| What are the effects of advertising? | Inform about products and services and influencing attitudes, beliefs, and purchases, Succeed in transforming a person’s negative attitude, Reinforce positive attitudes toward brands |
| What is institutional advertising? | a form of advertising designed to enhance a company’s image rather than promote a particular product |
| What is product advertising? | a form of advertising that touts the benefits of a specific good or service |
| What is competitive advertising? | a form of advertising designed to influence demand for a specific brand |
| What is comparative advertising? | a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes |
| What is media planning? | the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience |
| What is return on investment (ROI)? | net profit after taxes divided by total assets that measures management’s overall effectiveness in generating profits with the available assets as compared to the industry average |
| What is price? | that which is given up in an exchange to acquire a good or service |
| What are the profit-oriented objectives? | Profit maximization, Satisfactory profits, and Target return on investment |
| What is profit maximization? | Profit maximization means setting prices so that total revenue is as large as possible relative to total costs while still remaining competitive |
| What is satisfactory profits? | Rather than maximizing profits, many organizations strive for profits that are satisfactory to the stockholders and management |
| What is target return on investment? | The most common profit objective is a target return on investment (ROI), sometimes called the firm’s return on total assets |
| What are the sales-oriented objectives? | Market share, and Sales maximization |
| What is market share? | a company’s product sales as a percentage of total sales for that industry |
| What is sales maximization? | Rather than strive for market share, which is not always an indicator of profitability, some companies try to maximize sales. (generates a lot of cash in a short period of time) |
| What is status quo pricing objective? | a pricing objective that maintains existing prices or meets the competition’s prices |
| What is dynamic pricing? | the ability to change prices very quickly, often in real time using software programs |
| What are the four steps to determining price? | Establishing pricing goals, Estimating demand, costs and profits, Choosing a price strategy to help determine a base price, and Fine-tuning the base price with pricing tactics |
| What is a price strategy? | a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product’s life cycle |
| What is price skimming? | a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion |
| What is penetration pricing? | a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market |
| What is pricing goals? | the targets that company sets for its prices that reflect the business's broader goals |
Created by:
Faith64
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