Exam Two Study Guide Questions

Principles of Marketing

What is marketing research?

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

What is exploratory research used for?

used to gather preliminary information to help define problems and suggest hypotheses

What is descriptive research used for?

used to better describe problems,situations, or markets such as the market potential,demographics, or attitudes

What is casual research used for?

used to test hypotheses and cause-and-
effect relationships

What is segmentation and why is it important?

When you divide the market into smaller segments. It can increase profitability and better product innovation to better meet the customers needs.

What are the types of segmentation?

• Geographic

• Demographic

• Psychographic (personality/lifestyle)

• Behavioral (Usage rate)

What is a target market?

a specific group of potential customers with shared characteristics. 

What is mass customization?

producing products to meet the specific needs of individual customers.

What is cannibalization?

refers to losing sales to one of your own offerings as a result of introducing a new offering

Go read why new products fail! Chapter 10

The organizational reason is group think

What is an example of a convenance product?

toothpaste (fairly cheap)

What is an example of a shopping product?

Plane tickets and cameras (fairly expensive)

What is an example of a specialty product?

Rolex watches and heart surgery (very expensive)

What is an example of an unsought product?

Burial insurance and thesauruses ( price varies)

What is a product line?

group of items that are closely related
(e.g. shoes and clothing, household care, electronics)

What is a product mix?

All of the product lines of an organization

What is brand extension?

introducing a new product into an unfamiliar market

Read the product life cycle graph!! Chapter 11

:)

What is penetration pricing?

charging a low price relative to the industryy

What is skimming pricing?

charging initially a high price

What is brand equity?

the added value a brand name gives to a product beyond functional benefits

What is multiproduct branding strategy?

Many products, one brand name

What is multibranding strategy?

Different brands within a category

What is private label branding strategy?

business sells products manufactured by a third party under its own brand name (example kroger)

What is mixed branding strategy?

Co-branding (ex taco bell and Doritos)

Services

Intangible activities or benefits that an organization provides to satisfy consumer needs in exchange for money or something else of value.

What are the four I’s of service?

• Intangibility- Airlines advertising seat space

• Inseparability- Consumers cannot separate the deliverer of the service from the service itself

• Inconsistency- Sometimes a restaurant you love fails to deliver the usual experience

• Inventory- peak pricing (e.g. hotels – lower pricing during off seasons)