Flashcards
Exam 2 Marketing
Cards in this deck (143)
- 1What is Market Reseach?The process of planning, gathering, and anazying information to make informed marketing ddecisions & reduce risk!
- 2What are the four stages of the product life cycle? At what stage does the product earn the most profit?
- 3What are the 4 risk we seek to confront w/ Market Research?1. Technical risk: Can we make the app?
2. People risk: Will the key players stay together?
3. Financial Risk: Can we keep the company well financed?
4. Market risk: Can we get the dog to eat the dog food? - 4What is the marketing objective during the introduction stage?Gain awareness
- 5What is the marketing objective during the growth stage?Stress Differentiation
- 6What is the marketing objective during the Maturity stage?Maintain brand loyalty
- 7Why do Market Research?To reduce the risk the product/business will fail
- 8What is the marketing objective during the decline stage?Harvesting/ Deletion
- 9List the five product adapter profiles in order from most likely to purchase early to purchases late, in the product life-cycle.Innovators, early adopters, early majority, late majority, laggards
- 10Research Can Help Determine-sales forecasters
-if there is a need
-media plan
-What products will sell the fastest
-Broad perception
-What competitors are doing
-Predict consumer behavior - 11I am venturesome, higher educated, and use multiple information sources. Who am I?Innovator
- 12Out of the 4 Risks which one is the greatest to confront with Market Research?MARKET RISK
- 13I am a leader in a social setting and have slightly above average education. Who am I?Early adopter
- 14"deliberate; many informal social contracts" Who am IEarly majority
- 15I am skeptical and have below average social status, who am I?Late Majority
- 16What are the 5 stages to Market Research?1. Defining the Problem 2. Develop Research Plan 3. Collect Relevant Information 4. Develop FIndings 5. Take Marketing Actions
- 17I have a fear of debt and my information sources are neighbors and friends, who am I?Laggard
- 18Step 1: Define the ProblemIdentify possible actions: may include measure/action standard
Actions may include changing:
1. Adv. message
2. Target market
3. Product features
4. Promotional advertising
5. Pricing - 19Step 2: Develop the Research Plan-Specifiy constraints (Time, money, access)
-Identify Data Needed
-Determine how to collect data - 20For technology products, what does the chasm mean?The chasm is the gap between visionary customers who buy early and pragmatist customers who will "wait and see" before they buy.
- 21What are innovators and early adopters looking for in their products?Technology and performance
- 22What do the laggards and early/late majority look for?Solutions and convenience
- 233 Primary Techniques1. Exploratory Reseach: Gain understanding about a vague issue
2. Descriptive Research: To find the frequency something occurs or identify a relationship
3. Casual Research: Determine impact of one factor on another - 24Examples of Primary Techniques
- 25What are the barriers to adoption? (4)Usage barrier (Sony specific memory card)
Value Barrier (no incentive)
Risk Barrier(physical/emotional,snowboard trike)
Psychological barrier (cultural/image, Coors light) - 26Define BrandingAMA: A brand is a customer experience represented by a collection of images and ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme
- 27What is a trademark?A trademark identifies that a firm has legally registered its brand name (making it the trade name) so the firm has its exclusive use, thereby preventing others from using it.
Ex. the shape of the coke bottle and the color orange on the scissors - 28Step 3: Collect Relevant Information Differences between Primary & Secondary DataPrimary: New Data- Observational, Questionaire
Secondary Data: Already Exists- Internal, External - 29Types of Secondary Internal Data-Sales Data
-Customer Feedback
-Service Data/Compaints
-Web Traffic/Patterns - 30Types of Secondary External DataCan be Public OR Private
-Census Bearu
-Trade Associations
-Business Media
-Syndicated Research
-Scanner Data - 31What is Syndicated Data?Data that can be purchased from online sources like Nelson
- 32Differences between Qualtiative & Quantiative Primary ResearchQualitative: Researcher engages with the sunject through conversation/observation
ex) Interviews, focus groups
Quantitative: Research that can be summarized numerically
ex) surveys, questionaires - 33Primary Data: ObservationalEthnographic Research: Identifying or classifying a culture based on similar charateristics
Ex) exercise we did in class - 34Primary Data: Questionaire-Idea Generation
-Individual/in depth interviews
-Focus groups - 35Primary Data Probability vs Non-Probability SamplingProbability Sampling: Everyone in the group has an equal chance of being sampled-random (info is projectable)
Non-Probability Data: Bias in the group you are sampling (info is not projectable) - 36Primary Data Statistical InferenceUsing a probability sample to make generalizations about a large gtroup
- 37what is the essence of branding?You hope to leverage the familiarity and positive image (halo) of one thing into another
- 38What is a multi-product branding strategy?One brand represents many products. Toro makes lawnmowers, sprinkler systems, and blades. This is less expensive and is less target specific.
- 39What is a multi-branding strategy?One company has many different brand names. Procter and Gamble makes Tide, Cheer, and Bold. This is more expensive and is more target specific
- 40Private Branding strategies are?Store brand stuff like Kenmore to Sears or Kroger to Kings
- 41Mixed Branding strategies are?When i company makes both store brand and its own. Michelin tires and sears brand are the same tire. Epson makes both Epson branded printers and IBM printers.
- 42Questionnaire Formats1. Open Ended
2. Closed Ended
3. Dichotomus: only 2 choices
4. Semantic: Rank (Tasty or Not tasty)
5. Likert (strongly agree, neutral, strongly disagree) - 43Casual vs. Descriptive ResearchDescriptive: The Independent Variable, measured not manipulated
Casual: manipulated
ex) Look at the class to determine how gender (IV) affects those wearing hats (DV) - 44Develop FindingsPresent Data in an easy to read chart to help make sense of valuable information
- 45Step 5: Take Marketing Action
- 46Sales Forecasts1. Judgements of decision maker: Direct (estimating val w/out intervening steps), lost-horse (starting w/ last known val. of forecast & using factors to determine if it will have +/- effect)
2. Surveys of Knowledgeable Groups: surveys of buyers/intentions forecasts, salesforce survey
3. Statistical Methods: Trend exploration, linear trend exploration - 47What is Market Segmentation?customers within target market who respond similarily to the 4Ps
- 48What is the goal of market segmentation??
- 49Segmentation Strategy Segmentation of one mass customizationOffer the same thing to everyone but allow them to custimize it to their needs
Ex) amazon, Google - 50Segementation Strategies Multiple Products and multiple market segmentsEx) P&G or Nestle- offer diff. products (pods, bleach, organic, ice cream) to reach all market segments
- 51Segmentation Strategy One product to many segmentsSame product slight variation to all segments
ex) changing the cover of a sports magazine based on the city - 52Steps to Market Segmentation
- 53Ways to Segment the Market1. Demographic (zip code)
2. Behavioral (light vs. heavy beer drinkers- 80/20 rule)
3. Physcographics (social class, lifestyle, and personal characteristics) - 54Product PositioningHow we want the consumer to think of our brand
- 55Product positioning mapVisual representation of how consumer views your brand
- 56What is a line extensionAdding "SKU'S" to a product line. Ex different flavors of Campells Soup
- 57What is a brand extension?Bringing your brand into a different product class. For example Hummer went into boots.
- 58What is sub brandingThis is when a company has a blanket brand to represent all products and smaller brands within that big brand. For example Kellogs is a food company that owns many different cereals like fruit loops and special k.
- 59Benefits of packagingCreates Customer Value and Competitive Advantage
Types listed below
Communication/Informational Benefits
Functional Benefits (jiffy pop)
Perceptual Benefits (Eco friendly package) - 60The role of priceFrom a macro-economic perspective [Resources]
Price allocates resources since consumers vote with their dollars
From a micro-economic perspective [Utility]
Price is a measure of the utility (value) of a good or service
From a marketer’s perspective [Strategic]
Key lever for the marketer to utilize - 61The pricing process (6 steps)1. Identify pricing objectives
2. Estimate demand and revenue
3. Determine cost, volume and profit relationships
4. Select an approximate price level
5. Set list or quoted price
6. Make special adjustments to list or quoted price - 62Step 1 for pricingIDENTIFY PRICING OBJECTIVES AND CONSTRAINTS
Revenue
Survival
Social responsibility - 63Examples of pricing constraintsDemand for your product (porsch)
Class of your product (sports cars)
Product line (Ipod, cant price cheaper models higher than better ones ext) - 64Step 2 in pricingestimate demand and revenue
demand curve - 65How do you know what the demand curve is for a product?Test markets
Past performance
simulated test markets - 66What causes a shift in the demand curve? What does it mean to move along the demand curve?A shift can be caused with the demand for the category rises or you get a bigger peice of the pie. Newsweek's demand shifts right when Time goes out of business.
When moving along demand curve this is when companies adjust price to gain or reduce total units sold/produced to try and attract more or less customers.
- 67Marginal revenueMR=Change in TR/
One unit increase in Q - 68Define Price Elasticity of DemandElasticity of demand refers to consumers' responsiveness or sensitivity to changes in price
- 69The Equation for price elasticity
- 70Explain Elastic, Inelastic, and Unitary demandElastic Demand (% change in quantity is greater than % change in price)
Inelastic Demand (% change in quantity is less than % change in price)
Unitary Demand (% change in quantity is the same as % change in price) - 71Campbells soup's elasticity is greater than 1. Is it elastic or inelastic?Elastic, if price of Campbells soup is too high people will switch to other brands easily
- 72Fed ex has elasticity less that 1. are they elastic or inelastic?It is inelastic because they could raise their price without losing as many customers to competitors.
- 73Examples of Unitary ElasticityInsulin is unitary because no matter how high a price charged, people will find a way to buy it. Medicines and sometimes oil fits into unitary elasticity
- 74Is elastic Flat steep or neither Is unitary flat steep or neither is inelastic flat steer or neither
- 75Can you have all three elastics in one curve?Yes when the price is low and demand is high your product is elastic. When you reach the point where you are maximizing revenues then elasticity is unitary and as you continue to raise price your product becomes inelastic.
- 76Factors that effect price elasticityNumber of substitutes (chicken for red meat)
Level of necessity (Heart surgery vs Cosmetic repair)
Costs relative to income (Mark zukkerburg and you dining out) - 77T/F Sometimes product categories can be inelastic while the brands within that category are very elastic.True. Coffee as a category could be considered inelastic as we NEED to have it while the consumer may not care if they buy gevalia or folgers. Therefore coffee is inelastic but folgers is elastic
- 78Step three in pricingDETERMINE COST, VOLUME, AND PROFIT RELATIONSHIPS
- 79Marginal analysisMarginal Revenue (MR) = The change in revenue from selling one additional unit
Marginal Cost (MC) = The change in cost from producing one additional unit - 80What do you do when marginal revenue is greater than marginal costs? what about the inverse?As long as MR>MC I should keep selling more.
When MR - 81Break even analysisBreak even point = Fixed costs/
Price-unit variable costs - 82Step 4 in pricingselect an appropriate price
- 83What are the four techniques for setting a price and are they internally or externally focused?Demand oriented approaches- externally (Skimming, penetration, prestige)
Cost oriented approach- Internal (standard mark up, experience curve)
Profit oriented approach-Internally (Target profit)
Competition oriented approach-external (customary, loss leader) - 84Give an example of a skimming strategy?PlayStation and Xbox will enter in at an extremely high price and then gradually reduce over time to try and capture the maximum amount of dollars.
- 85When does skimming make sinceVariance across multiple segments regarding price sensitivity (willingness to pay), with substantial segment size(s) at higher price levels.
Barriers to entry from competition.
Economies of scale don’t lower costs enough to make penetration differentially attractive - 86Example of penetration pricingNetflix entered at a very low price to try and get consumers used to mail delivery of movies rather than going into Blockbuster. The low pricing reduced the customers risk of trying it out
- 87When does penetration pricing make sinceNot enough people willing to pay differentially higher prices, most people price sensitive for the product.
Lack of barriers to entry from competition.
Economies of scale lower costs enough to make penetration differentially attractive. - 88What are some demand oriented pricing strategies?Target pricing (dollar menu)
Bundle pricing(games included with console) - 89What is market segmentation and why is it useful?Segmenting is placing people into categories that behave similarly. This allows for better predictions and forecasts
- 90We want __________ within a segment. But ____________ between segments.homogeneity, heterogeneity
- 91What are the pros and the cons of market segmentation?Market segmentation is expensive and challenging, however it leads to more revenues and happier customers as they are getting exactly what they want.
- 92Whats the perfect pasta sauce??There are only PERFECT SAUCES!
- 93Tide launches a new line of detergent called stain blaster. 65% of the purchasers of the new stain blaster product were originally tide consumers. What happened?The new product Cannibalized the old one.
- 94What does segments of one refer to?Mass customization. How amazon offers the same set of products to everyone they can personalize your experience based on past purchases.
- 95What are the five steps to link needs to actions when segmenting? What do you need to do before these steps? after?
- 96How can you separate customers into segmentsCan be done through intuition and judgment or via rigorous quantitative research
- 97Name some criteria for a market segmentSimplicity and Cost-Effectiveness of Assigning to Segments
Potential for Increased Profit
Similarity of Needs Within a Segment
Difference of Needs Between Segments
Potential of a Marketing Action to Reach a Segment - 98Basis for defining segmentsGeographic – state, city, urban, rural
Demographic – age, ethnicity, children, health condition
Psychographic – attitudes (eco), lifestyle (active), innovator
Behavioral – heavy user, business traveler, dollar store shopper - 99Once segmented often companies will see that large numbers of revenue comes from a relatively small group of customers. What principles is this and what does it tell the business?The Pareto concept. This tells the business where they should focus their attention. They should assign a high priority to the customers providing most of their revenue and a smaller portion to the rest.
- 100Step two in market segmentation states that you need to group products into categories. How does Wendy's accomplish this?They group their products by meal, IE breakfast food at breakfast, dinner food at dinner ext.
- 101Why is STEP 3: DEVELOP A MARKET-PRODUCT GRID important?This gives a visual representation of when or if your segments are purchasing goods. His example showed students on dormitories tended to purchase during the "snack" time at wendys and non dorming students tended to shop during meal times like lunch.
- 102Step four and five of market segmentation are related, what are they?1. Pick a segment or segments
2. Create an advertisement campaign and execute. - 103Wendy's selected both day commuting students and students who may want a snack between lunch and dinner. How might they market to them?His example stated that you could put flyers on both buses and in windshields to reach day commuting students with coupons for 10% off an order between 2:00pm-4:30pm
- 104What is product positioning?It an attempt to have the consumers view your product in a certain way. Like high quality or affordable.
- 105What are some examples of convenience products?Toothpaste and bread
- 106Define standard markup pricingStandard market pricing refers to a pricing strategy where companies (usually department stores) will use a standard markup to price a group of products. For example safeway may markup all fruits at 25% of the cost to purchase. It would be time consuming to price each individual fruit at its own unique price point.
- 107Profit oriented approaches follow what general conceptUsually they would pick a number, say i want to make $300,000 a year in parking revenue for cu boulder. Then they would set an appropriate price to reach this goal. The issue with this strategy is that it assumes all markets are inelastic and that demand would not drop.
- 108What is competition based pricing?A strategy used or forced upon certain industries. Candy bars are a good example competition based pricing because consumers demand a certain price point out of candy.
- 109Why might a company want to keep pricing above that of the competition? Recall his example of the high end ski resort.They would be trying to separate themselves into a category of "high class" where not only are the consumers buying lift tickets (or some other good), but the reputation of being able to afford those ti
- 110What is horizontal price fixing?When companies in a similar industry agree on a price together. THIS IS ILLEGAL
- 111What is predatory pricing? Is it okay to practice this?IT is also illegal. This is when you set a price low to attempt to run someone out of business. This is also illegal
- 112What is a specialty good?A good a consumer will go out of their way to get. His example is of a rare bottle of wine. can we think of any others?
- 113What are unsought goods?Items you may not really want
- 114What are two types of business products in a really basic sense?Components ("ingredients")
Support products (robots or tools) - 115What is derived demand? Can you think of an example?Derived demand occurs when one product is dependent on the demand of another. For example car paint's demand is factor based on the demand of car sales.
- 116Why is it important to understand how the customer perceives the "newness" of a product?It is a factor on how much education you may need to provide to the customer. Like with the robotic surgery, they had to set up schools to teach people how it worked before the customers would buy it.
- 117For every 3,000 raw ideas a company has, how many will be successful?1
- 118Why might a new product fail? (3)Insignificant Points of Difference
Incomplete Market and Product Definition Before Product Development Starts
Too Little Market Attractiveness - 119What are the remaining four reasons a product might fail? Butt nugget put them in a separate place.Poor Execution of the Marketing Mix
Poor Product Quality or Sensitivity to Customer Needs on Critical Factors
Bad Timing (too soon or too late to market)
No Access to Buyers (fail to gain distribution) - 120T/F new product development strategies learned in this course only apply to consumer packaged goods and not to service or consulting firmsFALSE
- 121What are the 7 steps to new product development?
- 122In the new product strategy step in new product innovation what are some elements or steps you may consider?Why pursuing new products?
Seize an opportunity, fill a gap
Where are there opportunities?
Environmental scan
SWOT (where do we have advantage?) - 123What does out professor regard as the 1.5 step in the process?Identifying customer needs
- 124What does a protocol statement identify?(1) target market
(2) customer’s need
(3) description
(4) benefit - 125In the idea generation phase where might "inspiration" or ideas come from?Customer or supplier suggestions
Employees
inventors
there are many more this was just a few - 126what are some Idea Generation Techniques?Use lots of stimuli
Loose ground rules
Builds not bombs
Mix of large and small breakouts
Create energy
Share, spark each other - 127In the screening and evaluation phase of new product development what are the two approaches? Examples that fit into each approach?Internal approach- companies like Apple use internal approaches. (I couldn't find an example :/)
External- This can be market testing like wendy's giving away lunches and surveys to see what people like - 128During the Business Analysis phase of new product development, what are some of the questions a firm will find the answer to? Hint there are 5 and they in some way relate to $What would it cost to develop?
What would it cost to produce it?
Sales projection?
Would it cannibalize?
Profitability projection? - 129In the development stage what are some things a firm may do?Build Prototypes (functional and/or non-functional)
Production assessment
Service and support requirements
Safety tests - 130You are now testing a new product. You need to find a good simulated test market (STM). What are some factors you want in your STM?You want the demographics to parallel that of the whole market you are planning on selling in.
- 131CONGRATULATIONS! you have reached the commercialization phase in new product development. you are launching full scale production, Positioning, Marketing communications campaign. What are you worried about besides the product failing?this is the most expensive phase
- 132What are slotting fees?This is the premium that retailers charge for shelf space.
- 133What are the four stages in the product lifestyle? What stage do you generally make the most $$$$?
- 134If you have a product in the introductory phase, what are some things you may want to do or be concerned with?*Grow the category (primary demand – category benefits)
*Stimulate trial
*Choice of skimming or penetration pricing
*Target Innovators and Early Adopters - 135What are the benefits to a skimming price strategy?Recoup development costs
Capitalize on price insensitivity
Squeeze the most $$ out of each market segment - 136Benefits of a penetration strategy?Build unit volume
Discourage competitive entry - 137During the growth phase, what will you do or be concerned withMore competitors enter
Focus on product differentiation
Expand distribution
Target Early Majority - 138During the maturity phase what are you doing or being concerned with? What are your concerns?Sales growth slows, more profits decline
Shakeout of competitors
Maintain brand loyalty and market share - 139Unfortunately your product has reach the decline phase. What is happening to your product/industry sales? What may cause this? Examples? What are you planning on doing?Industry/ Product sales decline
Environmental changes (digital music vs. CD’s)
Deletion
Harvesting - 140Product life cycles are virtually the same for all products. T/FFALSE, lays baked lasted 18 months, whereas gate raid has lasted 48 years. they vary
- 141These are TRUE/FALSE questions. *A high learning product has a short life cycle and exits the introduction phase quickly. *A low learning product spend the majority of its time in the growth phase and quickly declines after maturity. *Fashion products tend to reach maturity quickly and then decline quickly, never to be seen again. *Fad products rapidly grow and then rapidly decline
- 142What factors effect the speed of adoption?Compatibility with existing lifestyles
Trial ability/Divisibility
Relative Advantage
Product Complexity
Perceived Risk - 143How has nike used its brand to grow its business?Nike started selling primarily shoes and now they have used their brand to enter into clothing and electronic markets.
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- Description
- Help to prepare for marketing 2 midterm
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- mmcclure557 · Mar 2015
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- Feb 11, 2018
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