OSU Marketing exam 2

What are the 5 Cs of marketing?

Company, Customers, Competitors, Collaborators, and Context.

What is a SWOT analysis?

A tool identifying Strengths, Weaknesses, Opportunities, and Threats.

Which SWOT factors are internal?

Strengths and Weaknesses.

Which SWOT factors are external?

Opportunities and Threats.

What is primary research?

New data collected firsthand for a specific research question.

What is secondary research?

Existing data originally collected for another purpose.

What are examples of primary research?

Surveys, interviews, focus groups, experiments, and observation.

What are examples of secondary research?

Government statistics, company reports, databases, and published studies.

What is a consumer insight?

A meaningful understanding of a customer's needs, motivations, or behavior.

What makes a good insight?

It is specific, meaningful, actionable, and reveals an underlying customer need.

What is market segmentation?

Dividing a broad market into groups with similar needs or characteristics.

What makes a good market segment?

Measurable, substantial, accessible, differentiable, and actionable.

What is demographic segmentation?

Grouping consumers by age, income, gender, education, or family size.

What is geographic segmentation?

Grouping consumers by location, region, climate, or population density.

What is psychographic segmentation?

Grouping consumers by lifestyle, values, interests, or personality.

What is behavioral segmentation?

Grouping consumers by usage, benefits sought, loyalty, or purchase behavior.

What is benefit segmentation?

Grouping consumers by the benefits they want from a product.

What is a target market?

The specific customer group a company chooses to serve.

What is undifferentiated targeting?

Using one marketing mix for the entire market.

What is differentiated targeting?

Serving multiple segments with different marketing mixes.

What is concentrated targeting?

Focusing marketing efforts on one specific market segment.

What is micromarketing?

Tailoring marketing to individual customers or very small local segments.

What is positioning?

Creating a distinct place for a brand in target customers' minds.

What is a perceptual map?

A visual comparison of brands based on consumer perceptions of key attributes.

What is a value proposition?

The main value and benefits a brand promises its target customers.

What is a positioning statement?

A statement identifying the target, category, differentiation, and reason to believe.

What does JTBD stand for?

Jobs to Be Done: the progress customers want to achieve in a situation.

What is the core idea of JTBD?

Customers hire products to solve problems or accomplish desired outcomes.

What is a new product?

An offering new to a company, market, or customer.

What is a new-to-the-world product?

A genuinely new innovation that creates an entirely new market or category.

What is a product line extension?

A new version, flavor, size, or style within an existing product category.

What is a product modification?

Changing an existing product's features, quality, or design.

What is the stage-gate process?

A product-development process with stages separated by decision checkpoints.

What happens at a stage-gate checkpoint?

The project is evaluated to continue, revise, pause, or stop.

What are common new-product development stages?

Idea generation, screening, concept testing, business analysis, development, testing, and launch.

What is idea screening?

Evaluating ideas early to eliminate weak or unsuitable concepts.

What is concept testing?

Testing a product idea with target customers before full development.

What is test marketing?

Introducing a product in a limited market to evaluate its performance.

What is commercialization?

Launching the product into the market.

What is the core product?

The fundamental benefit or problem solution customers seek.

What is the actual product?

The tangible offering, including features, design, quality, and brand.

What is the augmented product?

Additional services and benefits such as warranties, support, and delivery.

What are the four product life-cycle stages?

Introduction, Growth, Maturity, and Decline.

What characterizes the introduction stage?

Low sales, high promotion costs, and typically low or negative profits.

What characterizes the growth stage?

Rapidly rising sales, increasing profits, and growing competition.

What characterizes the maturity stage?

Slower sales growth, intense competition, and pressure on profits.

What characterizes the decline stage?

Falling sales and profits as demand decreases or alternatives emerge.

What is brand equity?

The added value a brand name gives a product.

What builds brand equity?

Awareness, perceived quality, positive associations, and customer loyalty.

What is brand awareness?

How well consumers recognize or recall a brand.

What is brand loyalty?

A customer's commitment to repeatedly choose a particular brand.

What is masterbrand architecture?

One main brand name is used across many products.

What is endorsed brand architecture?

A sub-brand has its own identity but is supported by a parent brand.

What is individual brand architecture?

Different products have distinct brand names with limited visible parent-brand emphasis.

What is a brand extension?

Using an established brand name to launch a product in a new category.

What is a line extension?

Using an established brand for a new variation within the same category.

What are the four I's of services?

Intangibility, Inconsistency, Inseparability, and Inventory.

What is service intangibility?

Services cannot be touched or evaluated like physical goods before purchase.

What is service inconsistency?

Service quality may vary by provider, time, location, or customer.

What is service inseparability?

Services are often produced and consumed at the same time.

What is service inventory?

Unused service capacity cannot be stored for sale later.

What are the 7 Ps of services marketing?

Product, Price, Place, Promotion, People, Process, and Physical Evidence.

What are the three extra Ps beyond the traditional 4 Ps?

People, Process, and Physical Evidence.

What is physical evidence in services?

Tangible cues such as facilities, uniforms, websites, and receipts.

What is the service recovery paradox?

Sometimes a well-resolved failure increases satisfaction beyond the pre-failure level.

What is price?

The amount customers give up to obtain a product's benefits.

What is value-based pricing?

Setting price based on customers' perceived value.

What is cost-based pricing?

Setting price using product costs plus a desired markup.

What is competition-based pricing?

Setting price with reference to competitors' prices.

What is a fixed cost?

A cost that stays constant as output changes within a relevant range.

What is a variable cost?

A cost that changes with the quantity produced or sold.

How do you calculate total cost?

Total cost = Fixed costs + Total variable costs.

How do you calculate contribution per unit?

Selling price per unit − Variable cost per unit.

How do you calculate break-even quantity?

Fixed costs ÷ (Price per unit − Variable cost per unit).

What is the break-even point?

The sales level where total revenue equals total cost.

What is markup?

The amount added to cost to establish a selling price.

How do you calculate markup on cost?

(Selling price − Cost) ÷ Cost.

How do you calculate profit margin?

(Selling price − Cost) ÷ Selling price.

What is price elasticity of demand?

How responsive quantity demanded is to a change in price.

What is elastic demand?

Quantity demanded changes proportionally more than price.

What is inelastic demand?

Quantity demanded changes proportionally less than price.

What is prestige pricing?

Setting a high price to signal quality, exclusivity, or status.

What is price skimming?

Launching at a high price, then lowering it over time.

What is penetration pricing?

Launching at a low price to gain market share quickly.

When is price skimming most useful?

When early buyers will pay more and competition is initially limited.

When is penetration pricing most useful?

When price-sensitive demand and scale can help build market share.

What is a reference price?

A price consumers use as a comparison when judging an offer.

What is odd-even pricing?

Using prices like $9.99 instead of $10.00 to influence perceptions.

What is bundle pricing?

Selling multiple products together for one combined price.

What is a quantity discount?

A lower unit price for purchasing a larger quantity.

What is a seasonal discount?

A price reduction tied to a particular season or period.

What is a loss leader?

A product priced very low to attract customers to buy other items.

What is dynamic pricing?

Adjusting prices as demand, supply, timing, or customer conditions change.

What is price discrimination?

Charging different prices to different buyers for similar offerings, when permitted.

What is cannibalization?

When a company's new product takes sales away from its existing products.

What is a minimum advertised price (MAP) policy?

A supplier policy limiting the advertised price, not necessarily the final selling price.

How can price affect brand positioning?

Price can signal value, quality, exclusivity, or affordability.

What is a marketing mix?

The controllable tactics a company combines to serve its target market.

How do segmentation, targeting, and positioning connect?

Segment the market, select target customers, then establish a distinctive position.

Situation Analysis (5 Cs)

A framework analyzing Company, Customers, Competitors, Collaborators, and Context.