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IBM 301 > IBM Ch.6,7,8 > Flashcards

IBM Ch.6,7,8 Flashcards

1
Q

In what 4 ways are products categorized?

A
  1. New-to-the-market products
  2. New category entries
  3. Product line extensions
  4. Revamped products
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2
Q

What category of products do firms with a strong research and development focus on?

A

new-to-the-market products

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3
Q

How long can a “New and Improved” label be used on a shelf?

A

6 mos.

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4
Q

How many stages does new-product development consist of?

A

7

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5
Q

What are the stages of new-product development? (PG.164)

A
  1. New-product strategy development
  2. Idea generation
  3. Idea screening
  4. Business analysis
  5. Product development
  6. Test marketing
  7. Product Launch
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6
Q

What is a NEW-PRODUCT STRATEGY DEVELOPMENT? What step is this?

A

Strategy that determines the direction a company will take if it developed a new product. Step #1

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7
Q

What is IDEA GENERATION? What step is this?

A

Involves coming up with a set of product concepts from which to identify potentially viable new products. Step #2

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8
Q

What is IDEA SCREENING? What step is this?

A

Stage where firm evaluates an idea to determine whether it fits into the new-product strategy. Step #3

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9
Q

Why is ROI important during the IDEA SCREENING?

A

Companies have a minimum ROI “hurdle” in which a new-product must pass. If it does not pass the ROI, it’s rejected.

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10
Q

What is a CONCEPT TEST?

A

Marketers ask consumers for their reactions to verbal descriptions and rough visual models of a potential product.

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11
Q

What is a great way to do CONCEPT TESTING in 2015?

A

Social Media

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12
Q

What is a BUSINESS ANALYSIS? What step is it?

A

Process of analyzing a new product to determine its profitability. Step #4

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13
Q

If a new product passes the IDEA SCREENING, does that mean it will be profitable?

A

No

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14
Q

What does a BUSINESS ANALYSIS include?

A
  1. Estimating costs
  2. Identifying what price it will be sold
  3. Estimating demand for the product
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15
Q

What is PRODUCT DEVELOPMENT? What stage is this?

A

Firm determines that the good can be produced or the services can be offered in a way that meets customer needs and generates profits. Stage #5

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16
Q

What is TEST MARKETING? What stage is this?

A

Introducing a new product in it’s final form to a geographically limited market to see how well the product sells and get reactions from potential buyers. Stage #6

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17
Q

During test marketing, what does the firm test?

A

The product AND the marketing strategy.

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18
Q

What are risks of test marketing?

A
  1. Process is expensive
  2. Time-consuming
  3. Firms open themselves to imitation from competitors
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19
Q

What is a SIMULATED TEST MARKET?

A

Procedure in which the firm builds a mock shopping experience for participants to observe their response to marketing stimuli

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20
Q

What is the most expensive part of the new-product development?

A

Product launch

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21
Q

What is TIME TO MARKET?

A

Speed in which a company launches a product

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22
Q

What is SEQUENTIAL NEW-PRODUCT DEVELOPMENT?

A

Utilizes a progressive sequence in which functional areas consecutively complete their development tasks.

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23
Q

Whats a major risk in SEQUENTIAL NEW-PRODUCT DEVELOPMENT?

A

Can be time consuming? If there is a delay in the process, it can hold up the whole process.

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24
Q

Whats a major risk in CONCURRENT NEW-PRODUCT DEVELOPMENT?

A

New-product development that uses cross-functional teams made up of representatives from various departments to develop goods and services.

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25
Q

When does the highest level of risk in new product development occur?

A

When products fail to generate sales or prove to be dangerous and defective.

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26
Q

What are 5 ways a company can reduct the risk of new product failures?

A
  1. Listen to the customer carefully.
  2. Make a commitment to the NPD process
  3. Understand current market trends and anticipate changes in the market
  4. Ask the right questions
  5. Be willing to fail on occasion
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27
Q

What is DIFFUSION?

A

Process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through which the products will spread into markets.

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28
Q

What is the CONSUMER ADOPTION PROCESS?

A

The process by which customers formally accept and purchase products.

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29
Q

What 5 product characteristics impact the adoption rate?

A
  1. Competitive advantage
  2. Compatibility
  3. Observability
  4. Complexity
  5. Trialability
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30
Q

Page 178

A

page 178

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31
Q

What are the 4 stages of the product life cycle?

A
  1. Introduction
  2. Growth
  3. Maturity
  4. Decline
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32
Q

What is the Introduction stage characterized as?

A

Innovators buy, few or no competitors, sales are typically slow, usually need incentives for people to buy

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33
Q

What is the Growth stage characterized as?

A

Early adopters buy, sales and profits rise, competitors enter market which forces prices down.

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34
Q

What is the Maturity stage characterized as?

A

Late majority and repeat buyers, main objective is profitability and maintaining the firms market share. Companies not doing well will drop out here. Profits begin to decline.

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35
Q

What is the Decline stage characterized as?

A

Falling of sales and profits causes competitors to drop out. Goods become obsolete and are sold to discount retailers.

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36
Q

What is a PRODUCT MIX?

A

Combination of all the products a company sells.

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37
Q

What is a HIGH-LEARNING PRODUCT?

A

Products that take longer for consumers to see the benefits of. Ex: electric cars

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38
Q

What is a LOW-LEARNING PRODUCT?

A

Products with benefits customers can easily see. Ex: free checking account

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39
Q

What is a FAD PRODUCT?

A

Popular product for a short time.

40
Q

What is MARKET SEGMENTATION?

A

Process of dividing a larger market into smaller groups based on meaningfully shared characteristics

41
Q

What is a MARKET SEGMENT?

A

Homogenous groups of consumers that result from the segmentation process

42
Q

What are the 2 things older people have instead of young people?

A

Time and money

43
Q

What does the segmentation bases consist of?

A

Demographic, geographic, psychographic, behavioral

44
Q

What 3 bases do B2B firms generally segmentate?

A

demographic, geographic, behavioral

45
Q

What is the most beneficial segmentation base to B2B firms?

A

Behavioral

46
Q

What 3 segments do firms typically use in international markets?

A

Global, regional and unique

47
Q

What are the 5 criteria for effective marketing segmentations?

A

Substantial, measurable, differentiable, accessible, actionable

48
Q

What is the Substantial criteria?

A

Segment must be large enough for the firm to make a profit. Ex: cereal for 100 year old people will not be profitable

49
Q

What is the Measurable criteria?

A

The size and purchasing power of the segment must be clearly identified.

50
Q

What is global segmentation?

A

Used when a firm can identify a group of consumers needs and wants that spans the entire globe.

51
Q

What is regional segmentation?

A

Used when the similarity in needs and wants only extends across the region or several countries.

52
Q

What is unique segmentation?

A

Used when the similarity in needs and wants exists only within ONE country.

53
Q

What are the 3 basic strategies for targeting markets?

A

Undifferentiated targeting, Differentiated targeting, Niche Marketing

54
Q

What is Undifferentiated targeting?

A

Used when a company decides to communicate the benefits of its product by sending the same promotional message to everyone.

55
Q

What is Differentiated targeting?

A

Targeting strategy that simultaneously pursues several different market segments, usually with a dif. strategy for each

56
Q

What is Niche Marketing?

A

Target strategy that involves pursuing a large share of a small market segment.

57
Q

What is MARKET POSITIONING?

A

Activities a firm undertakes to create a certain perception of its product in the eyes of the target audience.

58
Q

What are the 3 major steps Marketers take to decide how to best position their product?

A 
#1: Analyze Competitors Positions
#2: Clearly define your competitive advantage
#3: Evaluate feedback
59
Q

What is a perceptual map?

A

Competitive analysis tool that creates a visual picture of where products are located in consumer’s minds

60
Q

What is repositioning?

A

Act of reestablishing a products position to respond to changes in the marketplace

61
Q

CH8

A

PG 222

62
Q

What is PROMOTION?

A

All the activities that communicate the value of a product and persuade customers to buy it. Ex: Red Bull

63
Q

What is the PROMOTION MIX?

A

Subset of the marketing mix that includes 4 main elements of marketing communication

64
Q

What are the 4 main elements of the PROMOTIONAL MIX?

A

Advertising, Sales Promotion, Personal Selling, Public Realtions

65
Q

What is ADVERTISING?

A

NONPERSONAL promotional communication about goods, services or ideas that is paid for by the firm identified in the communication

66
Q

What is SALES PROMOTION?

A

Set of NONPERSONAL communication tools designed to stimulate quicker and more frequent purchases of a product

67
Q

What is PERSONAL SELLING?

A

TWO-WAY flow of PERSONAL communication between a salesperson and a customer, paid for by the firm

68
Q

What is PUBLIC RELATIONS?

A

Communication focused on promoting positive relations between a firm and its stakeholders

69
Q

What is IMC?

A

(INTEGRATED MARKETING COMMUNICATIONS) Promotional strategy that involves coordinating the various promotion mix elements to provide consumers with a clear and consistent message about a firms products

70
Q

What are the 3 primary objectives of an ad campaign?

A

Informative, Persuasive, Reminder

71
Q

What’s an ADVANTAGE of Internet Advertising?

A

Reduced Cost, Analytics, reaching consumers

72
Q

What’s an DISADVANTAGE of Internet Advertising?

A

Cluttered ads, Privacy issues

73
Q

What is CPM?

A

Cost-Per-Thousand-Impressions = what the firm pays for a thousand views of an ad

74
Q

What is CPC?

A

Cost-Per-Click = Amount the firm pays each time a customer clicks on an ad.

75
Q

What is CTR?

A

Click-Through-Rate = ratio showing how often people who see an ad end up clicking on it

76
Q

What’s an ADVANTAGE of TV Advertising?

A
  • Target specific audiences; known as narrowcasting EX: Home Channel
  • Ability to add sight, sound and motion
77
Q

What is narrowcasting?

A

Dissemination of info to a small selected audience that is defined by shared values, preferences or demographic attributes.

78
Q

What’s an DISADVANTAGE of TV Advertising?

A

Cost, DVR

79
Q

What are the 2 major ADVANTAGES to radio advertising?

A

Cost-Effective, allows marketers to segment effectively based on the geographic location on a radio station.

80
Q

What’s an DISADVANTAGE of radio Advertising?

A

Audio only

81
Q

What’s an ADVANTAGE of Print Advertising?

A

Good to advertise to local community, Magazines

82
Q

What’s an DISADVANTAGE of Print Advertising?

A

Not primary source, competition in magazine and newspapers, short timeframe

83
Q

What’s an ADVANTAGE of Outdoor Advertising?

A

Flexibility, reduced costs, located where they will be seen

84
Q

What’s an DISADVANTAGE of Outdoor Advertising?

A

Less exposure time, wasted coverage

85
Q

What is the most common type of sales promotion?

A

Coupons

86
Q

What are 2 major approaches to trade sale promotions?

A

allowances and training

87
Q

What are 4 ways organizations use public relations?

A

Annual Reports, speeches, blogs, brochures

88
Q

In what 3 ways do firms determine there promotional budget?

A

Affordable method, Percentage-of-sales method, Objective-and-Task method

89
Q

What is a DISADVANTAGE of the affordable method?

A

Firms who allocate a random dollar amount to the promotion mix guarantee virtually nothing except that the money will be spent.

90
Q

What is the AFFORDABLE METHOD?

A

Promotion mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.

91
Q

What is the PERCENTAGE-OF-SALES METHOD?

A

Promotion mix budgeting strategy in which firms allocate a specific percentage of a periods total sales to the promotional budget for that period. MOST COMMON

92
Q

What is a DISADVANTAGE of the PERCENTAGE-OF-SALES METHOD?

A

Arises when firm’s sales decline, not money to advertise

93
Q

What is the OBJECTIVE-AND-TASK METHOD?

A

Promotion mix budgeting strategy in which firm defines specific objectives, tasks to achieve them and then estimates how much it will cost. BEST ONE

94
Q

What are the 4 factors differentiating services from goods?

A

Intangible, Heterogeneous, Perishable, Insperable

95
Q

What is Inseperable?

A

From the point where it is consumed, used. Ex: Concert, hotel

96
Q

What are the 4 types of GAPS?

A

Communication, Delivery, Knowledge, Standards

97
Q

What are 3 ways to increase service recovery?

A

Resolve problem quickly, provide a fair solution, Listen to the customer

IBM 301 (2 decks)

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