Marketing Exam 2 Flashcards
(175 cards)
1
Q
5 Reasons that Firms Create New Products
A
- ) Changing Customer Needs
- ) Market Saturation
- ) Managing Risk Through Diversity
- ) Fashion Cycles
- ) Improving Business Relationships
2
Q
What are the 5 Groups in Diffusion of Innovation?
A
- ) Innovators
- ) Early Adopters
- ) Early Majority
- ) Late Majority
- ) Laggards
3
Q
What are the 1st 2.5% of People to Purchase a New Product called?
A
Innovators
4
Q
What are the 2nd 13.5% of People to Purchase a New Product?
A
Early Adopters
5
Q
What are the 3rd 34% of People to Purchase a New Product?
A
Early Majority
6
Q
What are the 4th 34% of People to Purchase a New Product?
A
Late Majority
7
Q
What are the 5th 16% of People to Purchase a New Product?
A
Laggards
8
Q
The first year they were offered, John wanted a tablet computer, but he did not know which one to choose. He waited until there were more choices, lower prices, and improved quality. John is part of the _____________ diffusion of innovation group.
A
Early Majority
9
Q
Tiffany always asks Samantha about beauty supply products. She considers her a well-informed friend who always knows the latest trends. For Tiffany, Samantha is a(n) ______________ in the diffusion of innovation curve.
A
Innovators
10
Q
Denise and Janet attend a large university in Texas. Denise asked for Janet’s e-mail address, but Janet said she didn’t have one. Janet would probably be considered a(n) ____________ in the diffusion of innovation process.
A
Laggards
11
Q
Breakthroughs
A
Products that are new to the world and establish a completely new market or change the rules of completion
12
Q
On Average, what percentage of new consumer products fail?
A
95%
13
Q
What are the 4 Stages of the Product Life Cycle?
A
- ) Introduction
- ) Growth
- ) Maturity
- ) Decline
14
Q
What are the 6 Ways that Firms Develop New Products?
A
- ) Idea Generation
- ) Concept Testing
- ) Product Development
- ) Market Testing
- ) Product Launch
- ) Evaluation of Results
15
Q
What happens in Idea Generation While Firms are Developing New Products?
A
Development of viable new product ideas
16
Q
What Happens in Concept Testing While Firms are Developing New Products?
A
Testing the new product idea among a set of potential customer
17
Q
What Happens in Product Development While Firms are Developing New Products?
A
Development of prototypes and/or the product
18
Q
What Happens in Market Testing While Firms are Developing New Products?
A
Testing the actual products in a few test markets
19
Q
What Happens in Product Launch While Firms are Developing New Products?
A
Full-scale commercialization of the product
20
Q
What Happens in Evaluation of Results While Firms are Developing New Products?
A
Analysis of the performance of the new product and making appropriate modifications
21
Q
What are 2 Benefits of Internal R&D?
A
- ) Often the source of technological products
2. ) Often the source of breakthrough products
22
Q
What is a negative aspect of Internal R&D?
A
High product development costs
23
Q
What are the 4 Benefits of R&D Consortia?
A
- ) Lower Costs and Risks
- ) Firms Join Together
- ) Form Research Consortiums
- ) Benefits Spread to All Firms
24
Q
What is Licensing?
A
Firms purchase the rights to technology or ideas from other research-intensive firms
25
What is Brainstorming?
Groups working together to generate ideas
26
What is Outsourcing?
Hiring an Outside Firm conduct research or develop a new product
27
What is Reverse Engineering?
Analyzing another product and changing it slightly and calling it your own
28
What percentage of new business or new products come from customers?
85%
29
What is a Concept?
A brief written description of the product
30
What Role do Customers Play in Concept Testing?
Customer reactions determine whether or not it goes forward
31
What are the 4 Parts of the Basic Concept Format?
1. ) Concept Name
2. ) Accepted Consumer Belief (ACB)
3. ) Consumer Benefit
4. ) Product Description
32
What is a Concept Name?
A short and descriptive handle for the idea
33
What is an Accepted Consumer Belief (ACB)?
It expresses the consumer relationship with the brand, category, or product. It also answers "how will this idea fir into my life?"
34
What is a Consumer Benefit?
The promise of the "job" the product will perform for the consumers. It identifies emotional dimensions of the benefit and answers "what's in it for me?"
35
What is a Product Description?
Relevant product features that support the benefit. Includes sizing and pricing and answers "what is it?"
36
If You are Going to Fail, How Should You Go About It?
Fail Fast, Fail Small
37
What are the 3 Stages of Product Development?
1. ) Prototype
2. ) Alpha Testing
3. ) Beta Testing
38
What are the Two Types of Market Testing?
1. ) Premarket Tests
| 2. ) Test Marketing
39
What are the 3 Stages of Premarket Tests?
1. ) Customers Exposed
2. ) Customers Surveyed
3. ) Firm Makes Decision
40
What are the 3 Stages of Test Marketing?
1. ) Mini Product Launch
2. ) More Expansive than Premarket Tests
3. ) Market Demand is Estimated
41
What are the 3 Parts of the New Product Marketing Mix?
1. ) Promotion
2. ) Price
3. ) Place
42
What are the 3 Stages of Evaluation of Results?
1. ) Satisfaction of technical requirements
2. ) Customer Acceptance
3. ) Satisfaction of the firm's financial requirements
43
What does AIDA stand for in the AIDA Model?
A - Awareness
I - Interest
D - Desire
A - Action
44
What is the Lagged Effect?
A delayed response to a marketing communication campaign.
45
What are the 7 Different Steps in the Communication Process?
1. ) The Sender
2. ) The Transmitter
3. ) Encoding
4. ) The Communication Channel
5. ) The receiver
6. ) Noise
7. ) Feedback Loop
46
What is the most visible element of IMC?
Advertising
47
What does IMC Stand For?
Integrated Marketing Campaign
48
What is Advertising good at?
Creating Awareness and Generating Interest
49
What is "free" Media Attention?
Public Relations (PR)
50
What are 3 Benefits of Sales Promotions?
1. ) Can be aimed at both end user consumers or channel members
2. ) Used in conjunction with other forms of IMC
3. ) Can be used for both short-term and long-term objectives
51
What is a negative aspect of Personal Selling?
It is more expensive than other forms of promotion
52
What is a positive aspect of Personal Selling?
Salespeople can add significant value, which makes the expense worth it
53
What are 3 Benefits of Direct Marketing?
1. ) It is growing
2. ) Good for multicultural groups
3. ) Database technology improves
54
What are 3 Types of Online Marketing?
1. ) Websites
2. ) Blogs
3. ) Social Media
55
What are the Different Elements of an IMC Program?
1. ) Advertising
2. ) Sales Promotion
3. ) Public Relations (PR)
4. ) Personal Selling
5. ) Electronic Media
6. ) Direct Marketing
56
What Are the 3 Steps for Planning for and Measuring IMC Success?
1. ) Understand the outcome they hope to achieve
2. ) Short-term or long-term
3. ) Should be explicitly defined and measured
57
What are 2 Methods for Setting and Allocating the IMC Budget?
1. ) Objective-and-task method
| 2. ) Rule-of-thumb methods
58
What are the 4 Methods for Measuring Success Using Marketing Metrics?
1. ) Frequency
2. ) Reach
3. ) Gross Rating Points
4. ) Web Tracking
59
Why is the Objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives
60
How do Firms use GRP to evaluate the effectiveness of traditional media?
When measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications.
61
How would a firm evaluate the effectiveness of its Google advertising?
Using Google AdWords, a firm can assess the effectiveness of his advertising expenditures by measuring the reach, relevance and return on investment for each of the keywords that were used
62
What are used to assess the effectiveness of advertising expenditures?
Mouse Clicks
63
What is Click Through Rate (CTR)?
The number of clicks divided by the number of impressions
64
What is Frequency?
How often the audience is exposed to a communication within a specified period of time
65
What represents reach multiplied by frequency?
GRP - Gross Rating Points
66
What are Impressions?
The number of times an ad appears in front of a user
67
What does the Objective-and-Task Method determine?
The budget required to undertake specific tasks to accomplish communication objectives
68
What is Online Couponing?
A promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store
69
What is Online Referring?
When consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest
70
What is Reach?
The percentage of the target population exposed to a specific marketing communication at least once
71
What is ROI (Return on Investment)?
The difference of the sales revenue and the advertising cost divided by the advertising cost
72
What are Rule-of-Thumb Methods?
They use prior sales and communication activities to determine the present communication budget
73
What is Social Media?
Media content distributed through social interactions
74
What is Web Tracking Software?
It indicates how much time viewers spend on particular Web pages and the number of pages they view
75
What are the 7 Steps in Planning and Executing an Ad Campaign?
1. ) Identify Target Audience
2. ) Set Advertising Objectives
3. ) Determine the Advertising Budget
4. ) Convey the Message
5. ) Evaluate and Select Media
6. ) Create Advertisements
7. ) Assess Impact
76
What are the 3 Advertising Objectives?
1. ) Inform
2. ) Persuade
3. ) Remind
77
What are the 2 Focuses of Advertisements?
1. ) Institutional Advertisements
| 2. ) Product-Focused Advertisements
78
Is most advertising institutionally focused or product focused?
Product focused
79
What are the 3 Considerations that go into Determining an Advertising Budget?
1. ) Role that advertising plays in their attempt to meet their overall promotional objectives
2. ) Expenditures vary over the course of the Product Life Cycle
3. ) Nature of the market and the product influence the size of the budget
80
What is a Unique selling Proposition (USP)?
A concept that conveys core benefits to the target audience.
81
What are the 3 ways to evaluate and select media?
1. ) Media Planning
2. ) Media Mix
3. ) Media Buy
82
What are the 7 different Mediums?
1. ) TV
2. ) Radio
3. ) Magazines
4. ) Newspapers
5. ) Internet
6. ) Outdoors
7. ) Direct Marketing
83
What are the advantages of advertising on TV?
1. ) Wide Reach
| 2. ) Incorporates sound and video
84
What are the disadvantages of advertising on TV?
1. ) High Cost
2. ) Many channel and program options
3. ) May increase awareness of competitor's products
85
What are the advantages of advertising on Radio?
1. ) Relatively Inexpensive
2. ) Can be selectively targeted
3. ) Wide Reach
86
What are the disadvantages of advertising on Radio?
1. ) No video
2. ) Less focused than TV
3. ) Short Exposure
87
What are the advantages of advertising in Magazines?
1. ) Very Targeted
| 2. ) Users pass ad from one to another
88
What are the disadvantages of advertising in Magazines?
1. ) Relatively Inflexible
| 2. ) Takes some time for the magazine to be available
89
What are the advantages of advertising in Newspapers?
1. ) Fexible
2. ) Timely
3. ) Local
90
What are the disadvantages of advertising in Newspapers?
1. ) Can be expensive in large markets
| 2. ) Advertisements have short life span
91
What are the advantages of advertising on the Internet?
1. ) Can be linked to detailed content
2. ) Highly flexible and interactive
3. ) Allows for specific Targeting
92
What are the disadvantages of advertising on the Internet?
1. ) Becoming cluttered
| 2. ) The ad may be blocked by software
93
What are the advantages of advertising outdoors?
1. ) Relatively inexpensive
| 2. ) Offers opportunities for repeat exposure
94
What are the disadvantages of advertising outdoors?
1. ) Not easily targeted
2. ) Placement problems in some markets
3. ) Exposure time is short
95
What are the advantages of advertising using Direct Marketing?
1. ) Highly Targeted
| 2. ) Personalized
96
What are the disadvantages of advertising using Direct Marketing?
1. ) Cost varies
| 2. ) Traditional media more expensive than new media
97
What are the 3 Advertising Schedules?
1. ) Continuous
2. ) Pulsing
3. ) Flighting
98
What do ads attempt to make maximum use of?
The medium's ability to deliver the message
99
What are the 3 ways to assess impact using marketing metrics?
1. ) Pretesting
2. ) Tracking
3. ) Protesting
100
What are the 7 steps involved in planning an ad campaign?
1. ) Identify their target market
2. ) Set Advertising objectives
3. ) Set the advertising budget
4. ) Depict their product or service
5. ) Evaluate and select the media
6. ) Create the ad
7. ) Assess the impact of the ad
101
What are the differences between informational, persuasive, and reminder advertising?
Informative advertising communicates to create and build awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action. Persuasive advertising generally occurs in the growth and early maturity stages of the product life cycle. Reminder advertising is communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle
102
Why do companies utilize public relations as part of their IMC strategy?
Public relations programs are used to build and maintain a positive image of the firm, head off unfavorable stories or events, and maintaining positive relationships with the media.
103
What are the 8 elements of a public relations toolkit?
1. ) Publications
2. ) Video and Audio
3. ) Annual Reports
4. ) Press Kits
5. ) News Releases
6. ) Speeches
7. ) Event Sponsorships
8. ) Electronic Media
104
What are the 10 types of Sales Promotion?
1. ) Coupons
2. ) Deals
3. ) Premiums
4. ) Contests
5. ) Sweepstakes
6. ) Samples
7. ) Loyalty Programs
8. ) POP Displays
9. ) Rebates
10. ) Product Placement
105
What are the advantages of using coupons as a sales promotion?
1. ) Stimulates Demand
| 2. ) Allows for direct tracing of sales
106
What are the disadvantages of using coupons as a sales promotion?
1. ) Has low redemption rates
| 2. ) Has high cost
107
What are the advantages of using deals as a sales promotion?
1. ) Encourages trial
| 2. ) Reduces consumer risk
108
What are the disadvantages of using deals as a sales promotion?
1.) May reduce perception of value
109
What are the advantages of using premiums as a sales promotion?
1. ) Builds goodwill
| 2. ) Increases perception of value
110
What are the disadvantages of using premiums as a sales promotion?
1. ) Consumers buy for premium, not product
| 2. ) Has to be carefully managed
111
What are the advantages of using contests as a sales promotion?
1. ) Increases consumer involvement
| 2. ) Generates excitement
112
What are the disadvantages of using contests as a sales promotion?
1. ) Requires creativity
| 2. ) Must be monitored
113
What are the advantages of using sweepstakes as a sales promotion?
1.) Increases involvement with the product
114
What are the disadvantages of using sweepstakes as a sales promotion?
1.) Sales often decline after the sweepstakes is over
115
What are the advantages of using samples as a sales promotion?
1. ) Encourages trial
| 2. ) Offers direct involvement
116
What are the disadvantages of using samples as a sales promotion?
1.) Has high cost to the firm
117
What are the advantages of using loyalty programs as a sales promotion?
1. ) Creates loyalty
| 2. ) Encourages repurchase
118
What are the disadvantages of using loyalty programs as a sales promotion?
1.) High cost to the firm
119
What are the advantages of using POP displays as a sales promotion?
1. ) Provides high visibility
| 2. ) Encourages brand trial
120
What are the disadvantages of using POP displays as a sales promotion?
1. ) Is difficult to get a good location in the store
| 2. ) Can be costly to the firm
121
What are the advantages of using Rebates as a sales promotion?
1. ) Stimulates demand
| 2. ) Increases value perception
122
What are the disadvantages of using rebates as a sales promotion?
1. ) Is easily copied by competitors
| 2. ) May just advance future sales
123
What are the advantages of using product placement as a sales promotion?
1. ) Displays products nontraditionally
| 2. ) Demonstrates product uses
124
What are the disadvantages of using product placement as a sales promotion?
1. ) Firm often has little control over display
| 2. ) Product can be overshadowed
125
What are the 6 ways to evaluate sales promotions using marketing metrics?
1. ) Realized Margin
2. ) Cost of Additional Inventory
3. ) Potential Increase in Sales
4. ) Long-term Impact
5. ) Potential loss from switches from more profitable items
6. ) Additional sales by customers
126
What is an advertising plan?
A subsection of the firm's overall marketing plan that analyzes the marketing and advertising situation, identifies the objectives of the campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful
127
What is a Continuous Advertising Schedule?
It runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising
128
What is Flighting Advertising Schedule?
Implemented in spurts, with periods of heavy advertising followed by periods of no advertising
129
What are Institutional Advertisements?
They inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation
130
What is a Media Buy?
The actual purchase of airtime or print pages
131
What is a Media Mix?
The combination of the media used and the frequency of advertising in each medium
132
What is Media Planning?
The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience
133
What are Product-Focused Advertisements?
They focus on informing, persuading, or reminding customers about a specific product or service
134
What are Public Service Advertising (PSA)?
They focus on public welfare and generally are sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups
135
What is a Pull Strategy?
A strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it
136
What is a Pulsing Advertising Schedule?
It combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods
137
What is a Push Strategy?
Designed to increase demand by focusing on wholesalers, distributors, or sales people
138
What must an offer be to excite customers?
It must be relevant to its targeted customers
139
How can relevancy be achieved?
By providing personalized offers
140
What is the golden opportunity of educating the customer?
Product's value proposition and offered benefits
141
What is a benefit of engaging the customer?
Positively engaged consumers lead to more profitability
142
What are the 4 E's?
1. ) Excite the customer
2. ) Educate the Customer
3. ) Experience the Product or Service
4. ) Engage the Customer
143
What Social Media elements best work for exciting the customers?
Social Networks like Facebook and Google+
144
What Social Media elements best work for educating the customers?
Blogs and Blogging tools and Youtube
145
What Social Media elements best work for experience the product or service?
Youtube, blogs, and retailer's website
146
What Social Media elements best work for engaging the customer?
Blogging and micro-blogging
147
What are the 4 Different types of Social Networkers?
1. ) Creators
2. ) Bonders
3. ) Professionals
4. ) Sharers
148
What do Media sharing sites do?
1. ) Highlight how consumers can experience
| 2. ) Encourage consumers to engage
149
What are the different types of blogs?
1. ) Corporate blogs
2. ) Professional Blogs
3. ) Personal Blogs
4. ) Microblogs
150
What is an example of microblogs?
Twitter
151
What are the 3 types of social media tools?
1. ) Social Network Sites
2. ) Media Sharing Sites
3. ) Thought Sharing Sites
152
What are the 4 customer segments based on their social media usage?
1. ) Creators
2. ) Bonders
3. ) Professionals
4. ) Sharers
153
What are some of the most popular types of mobile applications
1. ) Price Check Apps
2. ) Fashion Apps
3. ) Location Apps
154
What does Sentiment Analysis do?
Provides insights into what consumers really think
155
What 6 things are analyzed in social media?
1. ) Hits
2. ) Page Views
3. ) Bounce Rate
4. ) Click Paths
5. ) Conversion Rates
6. ) Keyword Analysis
156
What are the 3 main categories of analysis used for understanding data collected from social media?
1. ) Determine the amount of traffic using their sites, visiting blogs or tweeting
2. ) Learn who the visitors are, what they are doing, and what engages and excites them
3. ) Analyze data that comes from other sites
157
5 Steps of a Social Media Marketing Campaign
1. ) Identify strategy goals
2. ) Target audience
3. ) Campaign: experiment & engage
4. ) Budget
5. ) Monitor & change
158
What is social reach?
How many people a person influences
159
What is influence?
The extent to which the person influences others
160
What is extended network?
The influence of the person's cumulative network
161
What are the three steps in developing social media engagement strategies?
1. ) Listen
2. ) Analyze
3. ) Do
162
How do firms examine customer sentiments?
Marketers can analyze the content found on sites like Facebook, Twitter, online blogs, and reviews to assess the favorableness or unfavorableness of the sentiments, using sentiment analysis
163
What are the steps in developing a social media campaign?
1. ) Identify Strategy Goals
2. ) Target Audience
3. ) Campaign: Experiment and Engage
4. ) Budget
5. ) Monitor & Change
164
Why might it be important to develop a personal social media presence?
Social influence can have significant effects on elements of a person's life, such as hiring success
165
What are Bonders?
Social Butterflies who use social media to enhance and expand their relationships, which they consider all-important in their lives
166
Who are Creators?
Hip, cool contributors, that sit at the cutting edge and plan to stay there. Social media give them new ways to post and share their creative, clever ideas
167
What are Hits?
Total requests for a page
168
What are Page Views?
The number of times any page gets viewed by any visitor
169
What is Bounce Rate?
The percentage of times and visitor leaves the site almost immediately
170
What are Click Paths?
How users proceed through the information
171
What are Conversion Rates?
What percentage of visitors act as the marketer hopes
172
What is Keyword Analysis?
What keywords people use to search on the internet for their products and services
173
Who are Professionals?
People who are constantly on the go and busy, want to appear efficient, with everything together, so they use social media to demonstrate just how smart they are
174
What is Sentiment Analysis?
Allows marketers to analyze data from these sources to collect consumer comments about companies and their products
175
Who are Sharers?
People who really want to help others, and the best way to do so is by being constantly well informed so that they can provide genuine insights to others
