Marketing Midterm 2

What is a product?

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers.

What are the major distinctions between consumer and business products?

one products are purchased by the ultimate consumer, while one products assist organizations in providing other products for resale.

Define nondurable goods.

goods that are consumed in one or a few uses.

Give an example of a durable good.

A laptop computer.

What are services?

Intangible activities or benefits provided by an organization to satisfy consumer needs.

How are consumer products classified based on the purchase decision process?

(a) Convenience products, (b) Shopping products, (c) Specialty products, (d) Unsought products.

What are components in business products?

items that become part of the final product, like raw materials or parts.

What are support products in business?

products that are items used to assist in producing other goods and services.

List the four unique elements of services.

Intangibility, Inconsistency, Inseparability, Inventory.

What is continuous innovation?

No new behaviors must be learned by consumers.

What characterizes dynamically continuous innovation?

Only minor behavioral changes are needed by consumers.

Define discontinuous innovation.

Consumers must learn entirely new consumption patterns.

What are significant points of difference in new products?

These are characteristics that deliver unique benefits to the user.

What can cause a failure to satisfy customer needs for a new product?

A failure to meet critical factors that customers value.

What is the new product strategy development stage?

It defines the role for a new product in terms of the firm's overall objectives.

Differentiate between a product line and a product mix.

one is a group of related products, while one includes all product lines offered by an organization.

What is a test market?

A limited sale of a product in a defined area for a specific time period.

Explain 'commercialization' in new product development.

It is the final stage involving full-scale production and sales of the new product.

What are the stages of the product life cycle?

Introduction, Growth, Maturity, Decline.

What does modifying the product involve?

Changing product attributes like quality or performance to better meet customer needs.

Describe the significance of branding.

helps organizations identify and differentiate their products.

What should a good brand name suggest?

Product benefits and be memorable, align with company image, and avoid legal restrictions.

What is multiproduct branding?

Using a single brand name for all products in a category.

What is mixed branding?

Marketing products under both a company’s brand and a reseller’s brand.

List the roles of packaging in marketing.

providing communication, functional, and perceptual benefits.

Name a challenge of contemporary packaging.

The need to connect with customers and address environmental concerns.

What does price represent in marketing?

The money or other considerations exchanged for ownership or use of a product or service.

What factors influence pricing?

Demand, cost, profit, and competition.

Describe a demand curve.

A graph relating the quantity sold and price, showing the maximum number of units sold at a given price.

What is a break-even point?

The quantity at which total revenue and total cost are equal.

What are pricing objectives?

Goals specifying the role of price in a firm’s marketing strategy.

What is penetration pricing?

A strategy of setting a low initial price to encourage market entry.

What is skimming pricing?

Setting a high initial price for a new product to maximize profits from early adopters.

What are the three stages in setting a final price?

Select an approximate price level, set the quoted price, and adjust for discounts or allowances.

What is a coupon?

A discount offered to encourage trial purchases.

Define direct marketing.

A promotional method that allows businesses to communicate directly with consumers to generate responses.

What is the key factor in a push strategy?

Directing promotional efforts to channel members to encourage stock and orders.

Define a promotional mix.

The blend of different promotional tools used to reach marketing goals.

Explain the importance of advertising in the product life cycle.

It plays a major role, particularly during the introduction and growth stages.

What is public relations?

A communication strategy to manage the public's perception of an organization.

Identify alternative advertising media.

Television, radio, magazines, newspapers, directories, internet, and outdoor advertising.

What is personal selling?

A promotional method that involves direct interaction between sales representatives and potential customers.

Describe the role of loyalty programs in marketing.

They help create customer loyalty but can be expensive to maintain.

What is the difference between aided recall and unaided recall in advertising posttests?

one prompts respondents with cues about the advertisement, while one does not.

What are the benefits of using direct marketing?

can develop customer relationships and provide measurable responses.

How does pricing reflect consumer perception of quality?

Higher prices are often associated with better quality by consumers.

What are cooperative advertising programs?

Programs that encourage local advertising by sharing costs with retailers.

What is a news release?

A tool for public relations that announces changes in a company or product line.

Explain the purpose of sales promotions.

To stimulate short-term consumer behavior and encourage purchases.

Identify the unique characteristics of services as products.

Intangibility, Inconsistency, Inseparability, and Inventory.

What role does feedback play in communications?

It helps to ensure messages are understood, and any distortions are addressed.

What factors affect advertising effectiveness?

Target audience, media selection, timing, and creativity of the campaign.

Define the term 'market positioning.'

Creating an image or identity for a product in the minds of consumers.

What is content marketing?

Creating and sharing valuable content to attract and engage a target audience.

How is online advertising unique compared to traditional methods?

It can be interactive and offers more targeted delivery options.

What is a promotional objective for the decline stage of a product?

To phase out the product.

Describe the significance of establishing a target audience in promotional planning.

It ensures that the marketing efforts address the needs and concerns of the specific group.