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Flashcards in Exam 3 Deck (46)
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1
Q

Technology helps marketers lower cost and deliver value.

A

True

2
Q

What is People marketing?

A

Services produced and consumed at the same time, using people to physically market

3
Q

Is perceived value as important as actual value?

A

Yes, everything is based on the consumer. So what they perceive may or may not benefit the company.

4
Q

Event Marketing

A

Marketing/Sponsoring athletic, cultural, or charitable events (olympics, Super bowl, etc.)

5
Q

Idea Marketing

A

Public and private orgs marketing ideas meant to change the way people think or act (buckling seatbelt, recycling, donate blood, etc.)

6
Q

Is it true that delivering value to customers is the only way to achieve long-term profitability?

A

No

7
Q

Demographic segmentation

A

Dividing the market into smaller groups based on measurable characteristics about people (age, income, ethnicity, gender)

8
Q

Primary data vs. Secondary data

A

Primary- New data that marketers compile for a specific research project

Secondary- Existing data that marketers gather or purchase for a research project

9
Q

Where do Consumer Markets direct their effort?

A

To people who are buying products for personal consumption (food, toothpaste, clothes)

10
Q

Cognitive Dissonance

A

Consumer discomfort with a purchase decision, typically for a higher priced item

11
Q

Ownership Utility

A

Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer

12
Q

Customer Loyalty

A

when customers buy a product from the same supplier again and again

13
Q

Geographic segmentation

A

Dividing the market based on where consumers live (easier to find surfboards in hawaii than nebraska)

14
Q

How do you over-promise a customer?

A

by promising things you may not be able to deliver

15
Q

As a marketer, what can you acheive from customer loyalty

A

valuable feedback, customers that may require less service, they may refer friends, competitive edge, helps you learn more about customer target.

16
Q

Relationship Era

A

focus on customer relationships, they may advocate for business in the future.

17
Q

SImilarities between demographic and psychographic segmentation?

A

Both target certain consumers. Either people with certain views on environment, etc (psychographic) or certain age groups/incomes (demographic)

18
Q

Two key aspects of producer quality

A

Quality level (how well the product performs its core functions)

Product consistency (how consistently the product delivers promised level of quality

19
Q

what is co-branding?

A

When est. brands from different companies join forces to market the same product (DQ making Girlscout flavors, SW Airlines and Seaworld w/ shamu planes)

20
Q

What constitutes dynamically continuous innovations?

A

marked changes to existing products. (cell phones, digital cameras), innovations that require some user learning for significant benefits

21
Q

brand extension

A

when brands launch products in different categories (Bic has pens, lighters, and razors). Sometimes brand extensions fail

22
Q

When does cannibalization occur in regard to a productr

A

When companies add lower priced items, they lose money because higher priced items won’t be bought as consistently

23
Q

Product Life cycle

A

a pattern of sales and profits that typically changes over time. helps marketers plan future for existing and new products.

  1. Introduction- low sales and no profit. Company invests in awareness of product
  2. Growth- sales rise, profits peak
  3. Maturity- sales peak, profits decline.
  4. Decline- Sales and profits decline due to technological change or change in consumer needs.
24
Q

.Does packaging have an impact in the customer decision-making process?

A

YES. consumers buy on impulse sometimes

25
Q

Unsought products

A

The goods and services that hold little to negative interest for consumers. (disability insurance, prepaid burial plots, giving blood)

26
Q

When does product diffusion happen?

A

When a product is new. 5 things:

Observability, Trialability, Complexity, Compatability, Relative advantage

27
Q

National Brands

A

aka Manufacturers’ brands, brands that the producer owns and markets. (brand name oreos)

28
Q

One benefit derived from licensing

A

More people will buy your product because of association (characters on cereal boxes)

29
Q

Trialability

A

How easily can consumers test out your product. This is why samples are given out & test driving cars.

30
Q

Sponsorship in relation to a business

A

When businesses are involved in events the consumers care about, it can provide millions of dollars worth of advertisement

31
Q

Product Line

A

a group of products closely related to eachother

32
Q

What items are included in a consumer promotion?

A

Promotional products, samples, coupons, rebates, displays

33
Q

Pure Good

A

products that do not include any services

34
Q

Product Mix

A

Total number of product lines and individual items sold by a single firm

35
Q

Breakeven Point

A

The number of units needed to be sold in order to make cost of production 0

36
Q

High/Low pricing

A

designed to drive traffic to retail stores by special sales on a limited # of products and highter everyday prices on others

37
Q

Multilevel Marketing

A

Hiring independent contractors to sell products to their personal network of friends & recruit new salespeople. (mary kay, pampered chef)

38
Q

Supply chain management (SCM)

A

Planning and coordinating the movement of products along the supply chain

39
Q

Odd Pricing Strategy

A

Practice of ending prices below even $ and cents to create a perception of a greater value to consumer

40
Q

What constitutes a supermarket in regard to its merchandise?

A

Offers a wide range of food items, plus limited nonfood items (Whole foods, trader joes)

41
Q

What contitutes a Warehouse Club in regard to its merch?

A

Sells discounted food and general merch to club members in a warehouse format. (Costco, Sam’s club)

42
Q

Can a business determine upfront how much money it needs to make for each item it sells?

A

Yes, Breakeven analysis

BP = FC/P-VC

43
Q

Everyday-Low Pricing (EDLP)

A

long-term discount pricing designed to achieve profitability through high sales volume (Walmart low prices)

44
Q

Do companies in pricing strategies express volume goals in terms of profitability?

A

No, they express volume goals in terms of Return on Investment (ROI) and Return on Sales (ROS) to build profitability.

45
Q

Composition of a true mode of Transportation

A

Factors to consider include (depending on needs of the business): cost, speed, dependability, flexibility, availability, and frequency of shipments.

46
Q

Makeup of members of a distribution channel and their functions

A

Retailers- distributors that sell directly to consumer (sbux, urban outfitters)
Wholesalers- buy products from producer and sell them to retailers, wholesalers, and business users

Ex. costco is both retailer and wholesaler