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Marketers should look beyond the attributes of the products and services they sell to also

create brand experiences for customers.

Is it cheaper for a company to aquire new customers than to maintain relationships with current customers?

No, it is more expensive.

Consumer-generated marketing, wheteher invited by marketers or not, has become

a significant marketing force.

The customers evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers is what?

customer-perceived value

The production concept and product concet are

orientations that can lead to marketing myopia

Are marketing offers limited to just physical products?

No

New communication technologies create ________________ as well as ________________ for marketers.

*challenges
*advantages

The societal marketing concept calls on marketers to balance what?

*consumer wants and desires
*company profits
*society's interests

Large scale marketing approaches that foster two-way customer relationships are made possible how?

by new communication technologies

The twofold goal of marketing is to attract new customers by

promising new superior value and to keep and grow current customers by delivering satisfaction.

What are the four P's that make up a companies marketing mix?

*Product
*Price
*Place
*Promotion

Human needs are:

states of felt deprivation

What is the difference between human needs and wants?

needs are not influenced by marketers

Both _________ and ___________ of products, services, and ideas practice marketing.

*buyers
*sellers

Who is in charge of classifing customers according to potential profitability and managing the relationship accordingly?

The company

What are the four classifications for customers potential profitability?

*strangers
*butterfiles
*true friends
*barnacles

If your customer is a stranger, what is the potential profit and projected loyalty?

low potential profitability and little projected loyality.

If your customer is a butterfly, what is the potential profit and projected loyalty?

potentially profilable but not loyal.

If your customer is a true friend, what is the potential profit and projected loyalty?

both potentially profitable and loyal.

If your customer is a barnale, what is the potential profit and projected loyalty?

Highly loyal but not very profitable

What is the fit for between the company's offerings and a "stranger's" needs?

no fit. don't invest in this customer

What is the fit for between the company's offerings and a "butterfly's" needs?

good fit, however, only lasts for a short time, then they're gone. Invest for the moment, but let them go.

What is the fit for between the company's offerings and a "true friends" needs?

strong fit. continuously invest.

What is the fit for between the company's offerings and a "barnacles" needs?

limited fit.

A stock market investor who trades shares often and in large amounts but who enjoys hunting out the best deals without building a regular relationship with any single brokerage company is an example of what type of customer?

Butterfly

A small bank customer who banks regularly but doesn't generate enough returns to cover the costs of maintaining their account, is what type of customer?

Barnacle

What is the most problematic customer?

Barnacle

Marketing management is the art and science of choosing what?

target markets and building profitable relationships with them.

The selling concept holds that consumers will not buy enough of the firm's products unless, what?

it undertakes a large-scale selling and promotion effort.

What is shaped by culture and individual personality?

Human wants

What are the two important questions underlying marketing strategies?

*who is our target market?
*what's our value proposition?

Marketing is

managing profitable customer relationships?

Is marketing synonymous with selling and advertising?

No

Human _______ are states of felt deprivation.

Needs

What is the basic part of the human makeup?

Needs

When back by buying power, wants become what?

Demands

_______ is the act of obtaining a desired object from someone by offerinig something in return.

Exchange

When marketers are so taken with their products that they focus only on the existing wants of the customers and lose sight of underlying customer needs, what is happening?

Marketing myopia

A modern marketing system includes what?

suppliers-->company-->marketing intermediaries-->consumers
suppliers-->competitors-->marketing intermediaries-->consumers
the consumers can go back into suppliers or company

Trying to reduce demand in short term is what?

demarketing

Why would marketers use demarketing?

Marketors have limited resources. Some markets are simply more profitable based on size and demand.

What is the starting point, focus, means, and ends of the selling concept?

*factory
*existing products
*selling and promoting
*profits through sales volume

What is the starting point, focus, means, and ends of the marketing concept?

*market
*customer needs
*integrated marketing
*profits through customer satisfaction

During customers-perceived value, costs _________ and benefits __________.

*decrease
*increase

Which customers are short term customers?

*butterflies
*strangers

Which customers are long term customers?

*true friends
*barnacles

What is the second layer of the marketing process?

*product
*price
*promotion
*place

What is the third level of the marketing process?

*marketing analysis
*marketing planning
*marketing implementation
*marketing control

What is the fourth level of the marketing process?

*suppliers
*marketing intermediaries
*publics
*competitors

What is the fifth level of the marketing process?

*Demographic-economic environment
*Technological-nature environment
*Social-culture environment
*Political-legal environment

What is a fit between marketing oportunities and organizational goals and capabilities?

Strategic planning

What are the four peices of the Boston Consulting Group Approach?

*Star
*Question mark
*Cash cow
*Dog

Which two pieces of the Boston Consulting Group Approach generate a high market growth rate?

*Star
*question mark

Which two pieces of the Boston Consulting Group Approach generate a low market growth rate?

*Cash cow
*Dog

Which two pieces of the Boston Consulting Group Approach generate a high relative market share?

*star
*cash cow

Which two pieces of the Boston Consulting Group Approach generate a low relative market share?

*question mark
*dog

What are the three pieces of a customer driven marketing strategy?

*Segmentation
*Targeting
*Positioning

Dividing a market is what?

market segmentation

Occupy a niche in consumer's mind vis-à-vis competition is what?

Positioning

Members of the _______________ help marketers build relationships with customers.

microenvironment

Age, gender, race, location, occupation, are all what?

Demography

Baby boomers are years?

1946-1964

Generation X are years?

1965-1976

Generation Y are years?

1977-2000

What is the basis for creating customer value relationships?

having a fresh understanding of customers from customer insights

What are the three ways of defining problems and research objectives?

*exploratory or qualitative
*descriptive or survey
*casual or expiraments

Define the problem and suggest research are qualities of what?

exploratory or qualitative

Describes things is what?

discriptive or survey

Cause and effect relationships are what?

Casual or expiraments

The objective of ____________ is to gather preliminary information that will help define the problem and suggest hypotheses.

exploratory research

The objective of __________ is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.

descriptive research

The objective of _________ is to test hypotheses about cause and effect relationships.

causal research

Information that already exists somewhere, having been collected for another purpose is what?

Secondary Data

Information collected for the specific purpose at hand

Primary Data

The central question for marketers is what?

How do consumers respond to various marketing efforts the company might use?

A motive is a need that is

sufficiently pressing to direct the person to seek satisfaction of the need

From bottom to top, what are the 5 levels of Maslow's Hierarchy of needs?

*Physiological needs
*Safety needs
*Socail needs
*Esteem needs
*Self-actualization needs

What are the 4 management functions?

*Analysis
*Planning
*Implementation
*Control

What are the 5 steps to the buyer decision process?

*need recognition
*information search
*evaluation of alternatives
*purchase decision
*postpurchase behavior

What is the Buyer Decision Process for New Products Stages in the adoption process?

*Awareness
*Interest
*Evaluation
*Trial
*Adoption

What are the 4 major segmentation variables?

*geographic
*demographic
*psychographic
*behavioral

Which of the following best describes the role of a product steward?

to protect consumers from harm and to protect the company from liability by identifying and solving potential product problems

Explain how the PLC applies differently to a product class than to a product form.

Product classes have longer life cycles, while product forms tend to have the standard PLC shape

Companies rarely solicit ideas from customers during the idea generation stage of product development (t/f)

False

Introducing a new product into the market is called___

commercialization

A detailed version of a new idea stated in meaningful customer terms is called a

product concept

Which of the following CANNOT be described using the PLC concept?

product image

the second part of the marketing strategy statement outlines the product's planning price, distribution, and ___ for the first year.

marketing budget

The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?

save time and increase effectiveness

Although test marketing costs can be high, they are often small when compared with____.

the costs of a major mistake

Which of the following costs is most likely associated with the commercialization stage of new-product development?

building or renting a manufacturing facility

After concept testing, a firm would engage in which stage in developing and marketing a new product?

marketing strategy development

Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

People who are surveyed tend to tell less than the truth

New product development starts with____?

idea generation

Top management can install a(n)___ to direct the flow of new-product ideas to a central point where they can be collected, reviewed, and evaluated.

innovation management system

JoAnn Fabrics, Inc, has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers perceive its new product. The firm is concerned with the product____.

image

According to your text, which of the following is perhaps the most important external source of new-product ideas?

customers

In the concept testing stage of new-product development, a product concept in_____ form is presented to groups of target consumers/

physical or symbolic

Marketers can prolong the lives of many products in the maturity or decline stage of the PLC, sometimes even moving these products back into the growth stage. How can this happen?

Marketers can change any element of the marketing mix, change the number of uses or the number of users, or even change the frequency of the product use

using the PLC concept to develop marketing strategy can be difficult because strategy is both a ____ and a(n) ____ of the product's life cycle.

cause; result

The maturity stage of the PLC is characterized by a slowdown in sales growth. t/f

True

Some products that have entered the decline stage have been cycled back to the growth stage through____.

repositioning

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the products life cycle. T/F

TRUE

Using the R-W-W new-product screening framework, marketers first ask "Is It real?" Explain

The question "Is it real?" leads marketers to investigate whether there is a real need and desire for the new product, and whether customers will buy it. The question also leads marketers to determine if there is a clear product concept and if that product will satisfy the market

Wainwright Industries will build a new prototype riding lawnmower especially for women. In the product development stage, Joe Wainwright and his staff will incorporate the functional features and convey the ____.

intended psychological characteristics

What is the advantage of using a concrete and physical presentation of the product concept in the concept testing stage of new-product development?

A physical presentation of the concept instead of a symbolic presentation such as words or pictures, generally elicits more reliable feedback from consumers during the concept test

Which stage in the PLC normally last longer and poses strong challenges to the marketing managers?

maturity

Which of the following is a disadvantage of a team-based approach to new-product development?

Organizational confusion and tension can affect the process

When kraft focused on cost-cutting with its older and established brands, leaving them without much investment or modification, Kraft had decided to___ the older products.

harvest

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluation the business attractiveness of the proposal in the ___ stage of the new-product development process.

business analysis

Explain the importance of the role of timing in the commercialization stage.

Introduction timing is critical so that a product launch does not take attention away from existing successful products.

An attractive idea must be developed into a ____

product concept

Carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?

few customers concern about company image

When sales of a product falter during the PLC, a company can take several approaches. The more common ones are to modify the marketing mix, modify the product, or modify the market T/F

TRUE

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall. T/F

TRUE

Under what circumstances might it be wise for a company to do little or not test marketing?

when the costs of developing and introducing the product are low

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to markets T/F

False

In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called____

team-based new-product development

General Electrics campaigning stating, "We bring good things to life" is an example of_____.

corporate image marketing

For a fee, some companies_____ names or symbols previously created by other manufacturers, name of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name.

license

To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customers____.

experiences

______are consumers products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Specialty products

Product support service identify the product or brand, describe several things about the product, and promote the product through attractive graphics. T/F

False

How might a flower shop engage in line stretching?

A flower shop may offer single-stem, fresh-cut flowers that are sold individually, small arrangements, bouquets, or large ceremonial sprays; with line stretching, the flower ship will offer a wide array of products geared toward all types of flower buyers.

Product planners must design the actual product and also find ways to ____ it is order to create the bundle of benefits that will create the most customer value.

augment

A company can stretch its product either upward or downward, but not both directions. T/F

False

A_____ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

product

A company might stretch its product line upward to add prestige to its current products. T/F

True

A key element in a company's relationship with consumers, a ____ represents consumers' perceptions and feelings about a product and its performance

brand

Which of the following is NOT a desirable quality for a brand name?

The name should be a long word to get attention

All of the following are methods for developing a differentiated service delivery EXCEPT which one?

developing symbols and branding

An alternative to product line stretching is_____, adding more items within the present range of the line.

product line filling

Services are characterized by four key characteristics.Name and describe these four characteristics.

The four service characteristics are intangibility, inseparability, variability, and perishability. Services are intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought. Services are inseparable: they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Services are variable: their quality may vary greatly, depending on who provides them and when, where, and how they are provided. Services are perishable: they cannot be stored for later sale or use.

Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product. T/F

True

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Services

Gina's Nail Salon is serious about pleasing its customers. Employees are trained to immediately and pleasantly respond to any customer complaints, and they are empowered to offer discounts and free add-ons to customers who believe they have received anything less than the best service. Gina's Nail Salon focuses on ________.

good service recovery

Co-branding is a form of product sponsorship that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
T/F

FAlse

A hickory rocking chair, handmade by an Amish woodcarver in northern Indiana from locally grown wood, is an example of a(n) ________.

specialty product

The Ad Council of America has developed dozens of ________ marketing campaigns, including classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can Prevent Forest Fires."

social

When a company lengthens its product line beyond its current range, it is ________.

product line stretching

Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has high brand ________.

equity

One aspect of managing service differentiation is the company's service delivery. T/F

TRUE

Compare product mix width, length, consistency, and depth.

Product mix width refers to the number of different product lines the company carries; product length refers to the total number of products carried in a company's product lines. Consistency refers to how closely related the various product lines are in end use. Product depth refers to the number of versions offered of each product in the line.

A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies that maker or seller of a product or service.

brand

Which strategy involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories?

megabrand

An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented?

brand extension

How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?

A service offer can include innovative features that differentiate the company's offers from competitors. Service delivery can be differentiated by hiring and training more reliable customer-contact people, developing a superior physical environment in which the service is delivered, and designing a superior delivery process. Services can also be differentiated through symbols and branding, creating an image that sets a company's services apart from competitors.

Consider a massage. What service characteristics definitely define the massage as a service?

Intangibility, variability, inseparability, and perishability all define the massage as a service.

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