Exam 2 Flashcards
To test knowledge and study for Exam 2. (130 cards)
1
Q
Frequency Marketing
A
Loyalty Program
2
Q
Database Marketing
A
Using large amounts of data to make marketing decisions
3
Q
Formal Service Recovery
A
Empathy (not severe but, not at fault – no action)
Fix it (not severe but, at fault – fix it)
Red Carpet (BIG problem, at fault – roll out red carpet to fix it)
Hero (BIG problem, but not at fault – play “Hero” to save the day and get good word of mouth)
4
Q
Compatibility
A
Affected by how ‘compatible’ the new product is with the culture it’s being introduced to
(Dishwashers and Japan)
5
Q
Cross-functional Teams
A
Bringing different departments together to make sure a new idea is good
6
Q
Service Four I’s
A
Intangibility (what a service is considered)
Inconsistency (good service one day, bad the next)
Inseparability (dependency on place and time)
Inventory
7
Q
Industrialize the Production of Services
A
Making inconsistency, consistent (automation of services – or intangible goods)
8
Q
Dimension of Service Quality (RATER)
A
Reliability
Assurance (things are going to be taken care of)
Tangibles (store cleanliness, free samples, Comcast couch example)
Empathy (showing they care)
Responsiveness (having the service available when the customer wants it)
9
Q
Convivence Products
A
Frequent, quick purchases
10
Q
Shopping Products
A
Compare several alternatives based on price, quality, or style
11
Q
Off Peak Pricing
A
An example is airlines reducing price during ‘off peak’ months
12
Q
“Me-too”
A
Copying a successful innovation
Coke flavor machine and Pepsi tried to copy it
13
Q
Dynamically Continuous
A
Innovation to a product that requires some learning or changes in behavior, but usually an improvement.
(Introducing AI to Barbie’s)
14
Q
Continuous Innovation
A
Innovation that does not change much about how consumers use the product or live their everyday life
(ProGlide adding ‘Flexball’ to their razor)
15
Q
Discontinuous Innovation
A
Rare, Huge changes
Innovations that change the way we live our lives.
(the Internet, maybe Electric Cars)
16
Q
Concept Testing
A
Testing the IDEA or ‘concept’ with consumers
17
Q
Feasibility Screening
A
Critical examination on each idea – making sure it’s worth pursuing
18
Q
Cannibalization
A
Eating into your own sales with a new product (Gatorade and G2)
19
Q
Adoption Process (order)
A
Deciding to adopt a new product
Awareness Interest Evaluation Trail Purchase Adoption
20
Q
Multiple Branding
A
Procter and Gamble has multiple brand names such as Ace, Always, Bounty, Crest
21
Q
Family Branding
A
Same basic brand name on all products it sells
(Nike branding their shoes to swimsuits)
(Apple watch, Apple iPhone, Apple Computer)
22
Q
Development
A
Prototype Phase
23
Q
Marketing Testing
A
Exposing the actual product to ‘prospective customers’ to see if they will buy
24
Q
Commercialization
A
The final stage. Full scale production
25
Screening and Evaluation
Internal / External evaluation of new product ideas to eliminate those that warrant no further effect
26
Gap Analysis
Assessing service quality -- differences between the consumers expectations and experience are identified
(failure to meet expectations)
27
Customer Contact Audit
Flowchart of the points of interaction between the consumer and the service provider
28
Internal Marketing
Encouraging employees to perform better (increasing wages, fair treatment, etc)
29
Augmented Benefit
Benefits above and beyond what the customer expected
| Firestick purchase came with 1 year Netflix sub -- unexpected
30
Expected Benefit
Expecting a product to have certain features already (expected to be included)
(Think Hotel WiFi now -- from augmented to expected)
31
Core Benifit
The basic level of benefits the product has to offer to fit into a product category
32
Brand Equity
Value a brand name gives an ordinary product
| Duracell vs. 'ordinary battery'
33
Brand Extension
An example is Honda putting their brand name on snow blowers and lawn mowers
34
Line Extension
Same product, new 'flavors' or 'extensions'
(Ice-cream... Cherry, Vanilla, Choco Mint)
(Colgate with same toothpaste but, different ingredients)
35
Category Extension
When a parent brand is used to enter a different product category
(Doritos Chips introducing Dorito Salsa)
36
Mixed Branding
Higher end product to cheaper end
| Planters Peanuts to Great Value -- name brand to just as good
37
Co-branding
Strong brands paired together to provide mutual benefit
| (Betty Crocker offers Hershey cupcake Mix
38
Trading Up
Adding value to the product through more features or higher quality material
39
Trading Down
Reducing product features or quality
40
Trade Character
Think Ronald McDonald
41
Primary Demand
Demand for a product class
42
Specific Demand
Demand for a specific brand
43
Growth Stage
Sales increase fast (rapid growth), products at peak. Competition grows. Repeat purchases -- "Emphasize Differentiation"
Competitive Entry occurs here
44
Maturity Stage
Keeping existing customers and maintain market share -- "To Remind"
Competitive Shake Out occurs here
45
Decline Stage
Harvesting / Deletion
46
Product Class
Product Category (Toothbrush)
47
Product Form
Variations within product class/category
| Toothbrush > Electric Toothbrush
48
Product Modification
Altering a characteristic of a product to increase product sales
49
Product Reposition
Changing the place a product occupies in a consumers mind (kid product to adult product)
50
Customer Pyramid
Plat, Gold, Iron, Lead
(from most profitable to least profitable customers)
Iron provides the volume needed to utilize a firms capacity but, not profitable enough to warrant special treatment.
51
Pioneering Advertisement
Introduce potential customers to a new concept and create a buzz around the launch of a new product that's unique in the marketplace.
52
Competitive Advertisement
Advertisements that tout the brands strengths and benefits (can also be comparative advertising, which compares one brands strengths to those of its competitors)
53
Reminder Advertisement
Reinforce previous knowledge.
| V-day ad might remind you to buy flowers or candy for your loved one
54
Q-Score
Measure of celebrity endorsers popularity and effectiveness (similar to Davie-Brown Index)
55
Guerilla Marketing
Companies attempt to do something outlandish in order to garner attention
(Tic-Tac flash mob ad)
56
Ambush Marketing
Other companies try to seize some of the goodwill associated with being a sponsor without paying to be an actual sponsor
57
Sponsorship
A company pays to have its name or ad attached to some portion of an event
58
Event Marketing
Self-sponsored event
| Nathans Hot Dog Eating Contest
59
Cross Promotion
An arrangement in which a movie or a TV show features a product and the maker of the product, in turn, advertise for the movie / TV show.
(Stranger Things and Eggo Waffle)
60
Barter
Company provides a product in return for exposure
| Cars, tech, and other expensive products
61
Branded Entertainment
Uses entertainment to gain viewers attention and focus them on a specific brand or product
(Chipotle "Farmed and Dangerous ad -- can YouTube it)
(Gatorade coming out with a Snapchat Lens)
62
Product Placement
Brand name product in a movie, TV show, video or commercial for another product
(Reese's Pieces in E.T.)
63
Aided Recall
Shown an ad, then ask when they recall previously being expose to it.
64
Attitude Tests
See if their attitude changed from the ad
65
Inquiry Test
An ad that offers product samples or premiums, it is assumed the ads that got the most inquires were the most effective.
66
Sales Test
Controlled experiments and consumer purchase tests are used to analyze the effectiveness of individual marketing variables
67
Reverse Product Placement
Fictional product is brought to the market place
| Bubba Grump Shrimp
68
Pretests
Used to determine whether an ad communicated the intended message
69
Portfolio Tests
Analyze copy (advertisement) alternatives
70
Jury Tests
Panel of consumers to analyze the effectiveness of an ad without having consumers look at alternatives
71
Theatre Tests
Showing consumers TV shows during which the commercial is shown.
Viewers record their feelings about the ads simultaneously through recording devices.
72
Institutional Advertisement
Designed to build goodwill or an image for the organization rather than promote a specific good or service
73
Direct Marketing
Face to face selling, catalogs, telemarketing, and online marketing, spam mail/email
74
Noise
Failure to communicate with consumers.
| affects customers ability to interpret a message
75
Pull Strategy
Encouraging the consumer to ask the retailer for the product
| Drug companies directly advertising to get consumers to ask their doctor about a drug
76
Competitive Parity Budgeting
Matching competitors or share of market
77
All-You-Can-Afford Budgeting
Risky.
| Involves allocating funds to promotion only after all other budget items are covered.
78
Objective and Task Budgeting
Allocating funds where the company determines its prime objectives, outlines and tasks, and the cost of performing these tasks.
79
Source
A company person who has information to convey
80
Message
The information sent by the source to a receiver during the communication process
81
Channel of Communications
The means (salesperson, advertising media, public relations tool) by which a message is conveyed to the receiver.
82
Receiver
Consumer who reads, hears, or sees the message sent by the source during the communication process
83
Encoding
The process by which the sender transforms an idea into a set of symbols
84
Decoding
Receiver takes a set of symbols (the message) and transforms it back into an idea
85
Consumer Promotions
Sales tools used to support a company's advertising and personal selling directed to the 'ultimate consumer' NOT retailers
Coupons, Premiums, Contests, Sweepstakes, Samples, Loyalty Programs, Point-of-purchase displays, Rebates
86
Social media can be classified on two dimensions: ________ and_______.
Media richness; Self-disclosure.
87
Private Label
Great Value, Publix Brand, Target Brand
88
Generic Brand
No brand name at all
| Lays vs No Name Chips
89
Competitive Entry
A firm enters the industry once they know there is a huge market opportunity -- Related to "Growth" stage
90
Competitive Shakeout
Competitors decide to exit the market and invest their money elsewhere.
Occurs in the "Mature" stage.
91
Product Feature
A feature is an aspect built into the product
| Umbrellas are made of cloth, wood handle, unbreakable
92
Product Benefit
What a product does and what people get out of it
| Umbrellas protect you from the sun / rain
93
New Product Development Process Order
```
New-product Strategy Development
Idea Generation
Screening and Evaluation
Business Analysis
Prototype
Market Testing
Commercialization
```
94
Crowdsourcing
Involves soliciting ideas from the general public
95
Relative Advantage
How great the advantage of the new product is over existing products
(It is the MOST important factor that affects the rate of product diffusion)
96
Marketer Controlled
A company can control the content and the delivery of the information
97
Pulse Schedule
A steady schedule of advertising is supplemented with heavy periods of promotion because
of increases in demand
98
Market Penetration
Selling more of the product within the same market.
99
Market Development
Extending a product's life cycle by looking for new markets.
| Usually Geographical reach -- Oreos trying to get into China market with an ad
100
Ingratiation
Attempting to make the prospect more receptive by giving them compliments -- "false flattery"
101
Foot-in-the-door
Making a small request, then a following it up with a larger request
102
Door-in-the-face
Large request that you know won't be granted before making a smaller, more reasonable request
103
Idle production
A situation where a service provider is available but there is no demand for the service
104
Open Innovation
The practices and processes that encourage the use of external and internal ideas and
collaboration when conceiving, producing, and marketing new products
105
Full-service Agecny
The most complete range of services, including digital purchasing, buying influencer time, making a TV advertisement, market research, media selection, copy development, artwork, and production.
106
Limited-service Agency
Specializes in one aspect of the advertising process. A limited-service agency might focus on a specialty like creative services for developing ad content, or might have expertise in digital or social media advertising.
107
In-house Agency
The company's own advertising staff, which may provide full services, or it may provide a limited range of services and outsource other advertising functions.
108
Product Line
A group of closely related product items
109
Pull Strategy
Manufacturer to the retailer
110
Rich Media
Interactive media
111
Idle Production Capacity
Service provider available but, there is no demand.
112
Ancillary Service
Any support or assistance that needs to be provided after a product has already been purchased
113
Formula Selling
This is equal to a canned speech
| Points of the the sale are highly organized and are usually memorized.
114
What Makes a Product "New"
Functionally different from an already existing product or products
115
Two effective factors that determine the effectiveness of an influencer
Credibility and Attractiveness
116
CPA
Cost Per Action or Cost Per Acquisition
Advertisers pay the host for every purchase that originated from an ad on the site.
117
Relationship Marketing
An effort by the company to develop a long term, cost effective link with individual customers for the mutual benefit of the customer and the organization
118
Reach
The number of houses or people that can potentially be exposed to an advertisement
119
Service Continuum is used to determine...
The mix of tangible and intangible factors involved in a firms offerings
120
Advocacy
An institutional advertisement that relates a firm position on a given issue.
121
Straight Fee Placement
Occurs when a producer chargers a product manufacture a certain price for the product to be placed in the movie/TV/etc.
122
Trade Name
Legal Name under which a company does business
123
A Premium
A premium is a product of products offered either free or at a discount that is intended to advertise for a firm or different product
124
Credence Properties
Elements of a service that a consumer doesn't really understand even after the service is completed
125
Experience Properties
Purchases such as a massage, a concert, and lawn maintenance, ski instructors, tanning salons
They can evaluate the services after
126
Search Properties
Product characteristics that customers can easily evaluate and compare prior to purchasing the product
127
Dual Mediation Theory
The more a person likes a commercial, the more they will accept to information in the commercial as being true
128
Protocol
A statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.
129
Partnership Selling
Focuses on creating a buying environment based on customer defined value
130
Missionary salesman
a manufacturer's sales representative sent into a territory to stimulate sales of a product (as through special promotions, public-relations work)
Think JW
