MARK quiz 2

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MARK quiz 2
2014-04-04 05:52:39
MARK quiz

MARK quiz 2
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  1. Types of Buying Decision Behavior
    • High Involved, large brand differences: Complex
    • High Involved, low brand differences: Dissonance-reducing
    • Low Involved, large brand differences: Variety-seeking
    • Low Involved, low brand differences: Habitual
  2. Characteristics of Business Markets
    • have fewer but larger customers
    • are usually more geographically concentrated
    • Demand is derived
    • Demand is price inelastic
    • Involve more buyers in the decision Process
    • More professional purchasing effort
    • More complex buying decisions
    • The buying process is more formalized
    • Buyers and sellers work more closely together and build long-term relationships
  3. market segments must be
    • Measurable
    • Accessible
    • Substantial
    • Differentiable
    • Actionable
  4. Segmenting Business Markets, by…
    • Demographic segmentation: Industry, company size, location
    • Operating variables: Technology, usage status, customer capabilities
    • Purchasing approaches
    • Situational factors: Urgency, specific application, size of order
    • Personal characteristics: Buyer-seller similarity, attitudes toward risk, loyalty
  5. How Far Should the Segmentation Go?
    Cluster analysis, elbow rule(Kink), clusters may merge/increase in numbers
  6. Target Marketing is XXX; the 3 evaluation criteria are XXX
    • Evaluating market segments;
    • Size and Growth: Market size Growth rate Market potential
    • Structural Attractiveness: Number of companies Ease of entry substitutes Competitive position Cost of reaching the segment
    • Company Objectives and Resources: Company fit(image and values) Capabilities and competencies
  7. Target marketing strategies includes XXX(4)
    Mass/combined undifferentiated, differentiated/segmented; concentrated/niche; micromarketing
  8. Mass marketing is adopted when XXX(K)
    • Segments are aggregating
    • 2 or more submarket with one marketing mix
    • Segments are not differentiable
  9. Segmented marketing is adopted when XXX(K)
    Multiple TM approach aimed at 2 or more submarket with diff. marketing mix
  10. Niche marketing is adopted when XXX(K)
    • after a large share of one submarket
    • aim at one submarket with one marketing mix
  11. Micromarketing is XXX; local marketing is adopted when XXX; Individual marketing aka XXX; it involves XXX
    • the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations;
    • One-to-one marketing, Mass customization, Markets-of-one marketing;
    • tailoring brands and promotion to the needs and wants of local customer groups
  12. Dell can achieve low cost customization because
    • Direct marketing
    • Control over supply chain
    • Little inventory
  13. Choosing a Target Market Depends on:
    • Company resources
    • Product variability
    • Product life-cycle stage
    • Market variability
    • Competitor’s marketing strategies
  14. Product position is XXX
    the way the product is defined by consumers on important attributes relative to competing products
  15. a Positioning Statement contains XXX
    To (target segment and need) our (brand) is (concept/frame of reference) that (point of difference) because (reason to believe)
  16. Product in a marketing mix includes XXX
    Product attributes, Branding, Package, labelling, Product support services, eg. Warranty
  17. Convenience goods includes XXX; features are XXX(shopping)
    • Necessities, impulse and emergencies
    • frequently purchased(Frequently Moved Consumer Goods)
    • bought with minimum effort
    • low price
    • widespread/intensive distribution(selective dist with fewer outlets)(exclusive dist)
    • mass promotion by producer;(advertising and personal selling)
  18. specialty features are XXX
    • Strong brand preference and loyalty,
    • requires special purchase effort,
    • little brand comparisons,
    • low price sensitivity & High price
    • Exclusive distribution
    • Carefully targeted promotions
  19. Unsought features are XXX, eg. XXX; unsought good can be reclassified into shopping goods when XXX
    • Little product awareness and knowledge
    • Pricing varies
    • Distribution varies
    • Aggressive advertising and personal selling by producers and resellers
    • Pre-need plans
    • interest in the good rises due to environmental factors
  20. XXX makes use of corporate image advertising; XXX applies to political candidates, entertainment sports figures, and professionals; XXX relates to tourism; XXX promotes ideas
    Organizational marketing; Person marketing; Place marketing; Social marketing
  21. Onion skin model of product definition
    • Core product: basic benefits: transportation, image enhancement
    • Actual product: features, package, appearance, color, interior & exterior design, brand, quality(tough to differentiate at this level of the product
    • Augmented product: add-ons: warranty, maintenance, delivery, credit/financing, free lubrication & oil change
  22. Purposes of product attributes includes XXX; Product features are assessed based on XXX
    • For offering features that TM desires and for differentiation
    • the value to the customer versus the cost to the company
  23. why a company might consider repositioning it’s product
    • New competitor entering market (and positioning close to firm’s brand)
    • Shift in consumer preferences/tastes
    • Mistake in original positioning
    • Multiple brands owned by company cannibalizing one another
    • Change in target segment
    • Change old stereotypes about brand in mind of consumers
  24. Whats product line?: A group of products that are closely related because they may XXX
    • function in a similar manner
    • be sold to the same customer groups,
    • be marketed through the same types of outlets
    • fall within the same range
  25. Product mix, aka XXX, Consists of all the product lines and items that a particular seller offers for sale; its evaluated based on XXX; the problems with low consistency is that it XXX
    • product assortment; Product mix width: Product mix depth; Product mix consistency
    • takes away focus in terms of strategy, takes away resources from the focus
  26. Line extensions: along the Product line length, there can be XXX
    • Line stretching: adding products that are higher or lower priced than the existing line
    • Line filling: adding more items within the present price range
  27. Brand equity is the differential effect that the brand name has XXX; One measure of equity is the extent to XXX, eg. more for more; pros of strong brand equity includes XXX
    • on customer response to the product and its marketing; which customers are willing to pay more for the brand
    • High consumer awareness
    • Strong brand loyalty
    • Helps when introducing new products
    • Less susceptible to price competition
  28. intangibility of service
    Few search qualities; Consumers look for service quality signals, More experience quality, Credence quality
  29. Inseparability of service
    • Production and consumption activities are inseparable
    • Services cannot normally be produced in a centralized location and consumed in decentralized locations
    • Service quality is largely dependent upon the quality of employees
  30. Problem with umbrella branding
    when there is a hole in the umbrella, everyone under the umbrella suffers
  31. Manufacturer (national) brands
    • created and owned by the producer
    • high price points
  32. multibrand means XXX: XXX represent a form of multibrands; same product rational: XXX
    • new brand name in existing product category;
    • acquisitions
    • risk diversification(opposition to umbrella brand), target marketing(segmentation), reduce competition
  33. Perishability of service
    • Cannot be stored
    • Results in discount pricing at any price lower than variable cost
  34. Heterogeneity of service
    • dependence upon the performance of individual employees/individuals
    • Training & employee empowerment, standard operating procedures, mechanization, database management
  35. Generic brand: features are XXX; They exist because the manufacturer wants to XXX(extend market coverage) and manufacturers Manufacturer wants to conceal the fact that they produce generics because XXX
    • Cheaper(lower cost, little national promotion, relies on POS promotion); Lower grade
    • target more customers and may want to use excess capacity
    • they don’t want sales diluted
  36. store/private brand
    • created and owned by the reseller
    • Costly to establish and promote
    • Higher profit margins
  37. Briefly explain the notion of “oversegmentation”
    • Creating segments that don’t make any sense.
    • In principle, different market segments should correspond to differences in consumers’ behavior.
    • When companies create meaningless segments (e.g., differentiating between male and female pets for pet food), they risk confusing their customers.(2 marks)
  38. Categories Of New Products:
    • New to the world; involves a lot of risk, eg. How to measure market size; discontinuous innovation
    • New product lines-brand extension
    • Additions to existing product lines-line extension
    • Improvements or revisions of existing products
    • Repositioned products, eg. Baking soda
    • Lower priced products
  39. Perceptual Map/ Positioning Map is a Strategic tool for XXX studies; Emphasis on XXX rather than physical characteristics more is not always better because XXX; suppose Lifebuoy and Dial are own by same company, they may be cannibalizing each other; but it may be XXXfor potential competitors(dogs can be guard dogs)
    • segmentation and positioning;
    • perceptions;
    • the segments are scattered around;
    • a barrier of entry
  40. Causes of new product failures
    • Overestimation of market size
    • Wrong timing
    • Over priced
    • Poor design
    • Ineffective promotion
    • Competition
    • Incorrect positioning
    • High development costs
    • Management influence
  41. Stages of new product development
    • Idea generation
    • Idea screening: most are eliminated; RWW-realistic, competitive advantage, bottom line; Product development costs increase substantially in later stages so poor ideas must be dropped
    • Concept development and testing: detailed version of the idea stated in meaningful consumer terms and asks target consumers to evaluate product concepts.
    • Marketing strategy development
    • Business analysis
    • Product development: Prototype; Requires an increase in investment
    • Test marketing: marketing in a limited scope; cons: exposed to competitors
    • Commercialization
  42. When firms test market and firm does not
    • Uncertainty; new product with large investment
    • Low cost, management confidence, simple line extension, copy of competitor