Podcast
Questions and Answers
Important sources of new product ideas are problems customers have that do not seem to be solved with current products.
Important sources of new product ideas are problems customers have that do not seem to be solved with current products.
True (A)
A product is more than a tangible item for consumers.
A product is more than a tangible item for consumers.
True (A)
Some products are sold to both consumer markets and business markets. Consumers in both markets make purchasing decisions for the same reasons.
Some products are sold to both consumer markets and business markets. Consumers in both markets make purchasing decisions for the same reasons.
False (B)
Brands can be developed only by manufacturers.
Brands can be developed only by manufacturers.
Information in a company's marketing information system (MkIS) is not typically used when the company develops its marketing plan.
Information in a company's marketing information system (MkIS) is not typically used when the company develops its marketing plan.
Both expensive and modestly priced items can be classified as specialty goods.
Both expensive and modestly priced items can be classified as specialty goods.
Marketing strategies need to be based on a complete study of a market and the possible ways the business can serve the market.
Marketing strategies need to be based on a complete study of a market and the possible ways the business can serve the market.
Suggesting additional products that should be purchased so that the primary product can be used more effectively is often an important method of improving customer satisfaction.
Suggesting additional products that should be purchased so that the primary product can be used more effectively is often an important method of improving customer satisfaction.
A product in the introduction stage of the product life cycle will need to be widely distributed because the company will want as many people as possible to be exposed to the new product.
A product in the introduction stage of the product life cycle will need to be widely distributed because the company will want as many people as possible to be exposed to the new product.
In order to develop marketing strategies that will be successful, marketers must focus exclusively on their own products and marketing efforts.
In order to develop marketing strategies that will be successful, marketers must focus exclusively on their own products and marketing efforts.
When customers see few differences in competing products they often look for the lowest price.
When customers see few differences in competing products they often look for the lowest price.
The most important factor used to segment a market is buying behavior.
The most important factor used to segment a market is buying behavior.
Marketers must represent the customer in the business as products are designed and developed.
Marketers must represent the customer in the business as products are designed and developed.
The most expensive and important products a company purchases are capital equipment.
The most expensive and important products a company purchases are capital equipment.
A marketing strategy begins with the company goals on which the strategy is based.
A marketing strategy begins with the company goals on which the strategy is based.
When considering how to facilitate the physical exchange of products and services, which marketing mix element are you thinking about?
When considering how to facilitate the physical exchange of products and services, which marketing mix element are you thinking about?
All of the following are important considerations in planning the product mix except?
All of the following are important considerations in planning the product mix except?
The most difficult step in product development is usually?
The most difficult step in product development is usually?
The most difficult step in new product development is usually?
The most difficult step in new product development is usually?
The aspect of packaging concerned with using recycled materials would be associated with?
The aspect of packaging concerned with using recycled materials would be associated with?
The most important part of the product marketing mix element is?
The most important part of the product marketing mix element is?
A name, symbol, word, or design that identifies a product, service, or company is called a?
A name, symbol, word, or design that identifies a product, service, or company is called a?
Marketing plans are developed for a specific time period, often?
Marketing plans are developed for a specific time period, often?
During the maturity stage of the product life cycle,?
During the maturity stage of the product life cycle,?
Which of the following would probably be classified as operating equipment?
Which of the following would probably be classified as operating equipment?
The unique, memorable quality of a brand is called a(n)?
The unique, memorable quality of a brand is called a(n)?
Which of the following best defines the preference level of brand recognition?
Which of the following best defines the preference level of brand recognition?
The use of test markets?
The use of test markets?
Most of the major purchases made by consumers are?
Most of the major purchases made by consumers are?
A general promise or assurance of quality is called a(n)?
A general promise or assurance of quality is called a(n)?
The description of the way marketing activities are planned and coordinated to achieve an organization's goals is called?
The description of the way marketing activities are planned and coordinated to achieve an organization's goals is called?
Which of the following is typically not an element of a SWOT analysis?
Which of the following is typically not an element of a SWOT analysis?
A component of a market in which people have one or more similar characteristics is called a(n)?
A component of a market in which people have one or more similar characteristics is called a(n)?
By law, a company can call a product 'new' for only ___ after it has been introduced.
By law, a company can call a product 'new' for only ___ after it has been introduced.
Product enhancements?
Product enhancements?
When a variety of differences exist and the consumer considers a number of factors to determine the best value, the product is a(n) __________-based good.
When a variety of differences exist and the consumer considers a number of factors to determine the best value, the product is a(n) __________-based good.
Individuals or socially related groups who purchase products for personal consumption are known as __________ markets.
Individuals or socially related groups who purchase products for personal consumption are known as __________ markets.
A(n) __________ is the legal protection of the words or symbols for use by a company.
A(n) __________ is the legal protection of the words or symbols for use by a company.
A market __________ identifies a business's strengths and weaknesses and the opportunities and threats it faces.
A market __________ identifies a business's strengths and weaknesses and the opportunities and threats it faces.
A marketing __________ is the way marketing activities are planned and coordinated to achieve an organization's goals.
A marketing __________ is the way marketing activities are planned and coordinated to achieve an organization's goals.
A(n) __________ is a unique name, symbol, or design that identifies a product, service, or company.
A(n) __________ is a unique name, symbol, or design that identifies a product, service, or company.
A(n) __________ brand is a well-known name or symbol established by one company and sold for use by another company to promote its products.
A(n) __________ brand is a well-known name or symbol established by one company and sold for use by another company to promote its products.
The __________ or purpose of the company identifies the nature of the business or the reasons the business exists.
The __________ or purpose of the company identifies the nature of the business or the reasons the business exists.
Business markets make purchase decisions on the basis of __________ demand.
Business markets make purchase decisions on the basis of __________ demand.
A __________ market is a clearly identified segment of the market to which the company wants to appeal.
A __________ market is a clearly identified segment of the market to which the company wants to appeal.
Marketers have developed the purchase classification system to help plan marketing strategies. The categories are based on two important factors. Identify them.
Marketers have developed the purchase classification system to help plan marketing strategies. The categories are based on two important factors. Identify them.
Name the five categories in the business product classification system.
Name the five categories in the business product classification system.
List some criteria businesses use for selecting the best ideas for new product development.
List some criteria businesses use for selecting the best ideas for new product development.
Name the four factors used to segment a market.
Name the four factors used to segment a market.
What four criteria must a target market meet in order to be effective?
What four criteria must a target market meet in order to be effective?
Study Notes
New Product Ideas
- Customers' unresolved problems often inspire innovative product concepts.
Product Definition
- Products extend beyond tangible items to include services, quality, and experiences.
Consumer vs. Business Markets
- Consumers in consumer markets and business markets make purchasing decisions differently.
Brand Development
- Brands can originate from both manufacturers and service providers.
Marketing Information System (MkIS)
- A MkIS is crucial in developing a company's marketing plan.
Specialty Goods
- Both high-end and budget-friendly items can fall under specialty goods.
Marketing Strategy
- An effective marketing strategy requires comprehensive market analysis and understanding of customer needs.
Customer Satisfaction
- Suggesting complementary products can enhance customer satisfaction and usage effectiveness.
Product Life Cycle
- During the introduction phase, extensive distribution is not always necessary.
Marketing Focus
- Successful marketing strategies require attention beyond a company's own products and efforts.
Price Competition
- Consumers often seek the lowest price when their product options present few differences.
Market Segmentation
- Buying behavior is not the sole factor used for segmenting markets effectively.
Customer Representation
- Marketing teams must represent customer interests during product development.
Capital Equipment
- Capital equipment denotes significant and essential purchases for operations.
Marketing Strategy Foundations
- Marketing strategies are anchored in a company's overarching goals.
Distribution Element
- Consideration of distribution is essential in facilitating product exchange.
Product Planning Considerations
- Product mix planning involves assortments, packaging, and product lines.
Product Development Challenges
- Idea generation is typically the most complex aspect of product development.
Eco-Friendly Packaging
- Environmental considerations influence the choice of packaging materials.
Product Marketing Mix
- The most crucial aspect isn't necessarily packaging or options, but overall marketing effectiveness.
Brand Definition
- A brand encompasses names, symbols, or designs identifying products, services, or companies.
Marketing Plan Duration
- Marketing plans are generally crafted for 6 months to 1 year.
Maturity Stage of Product Life Cycle
- Sales peak and profit margins start to erode during the maturity phase.
Operating Equipment Example
- A copy machine is classified as operating equipment.
Brand Image
- A brand's unique and memorable quality is referred to as its image.
Brand Recognition Preference
- Brand recognition indicates consumer perception of value and likelihood of purchase.
Test Markets
- Test markets enable companies to introduce limited quantities of products to selected audiences.
Major Consumer Purchases
- Consumers predominantly make major purchases classified as shopping goods.
Product Guarantee
- A guarantee signifies a general promise or assurance of product quality.
Marketing Strategy Documentation
- The term marketing strategy describes how organizations plan and coordinate their marketing activities.
SWOT Analysis
- Time factors are not typically included in a SWOT analysis.
Market Segmentation Definition
- A segment is a market component where individuals share similar characteristics.
New Product Classification Period
- A product can legally be labeled "new" for 6 months after its introduction.
Product Enhancements
- Enhancements include additional features and options to improve product appeal.
Attribute-Based Goods
- When consumers seek value across various differences, the product is considered attribute-based.
Consumer Markets
- Individuals buying products for personal use belong to consumer markets.
Trademark Definition
- A trademark legally protects the words or symbols associated with a company’s products.
Market Analysis Importance
- Market analysis identifies strengths, weaknesses, opportunities, and threats faced by a business.
Marketing Strategy Reiteration
- Marketing strategy defines how to achieve organizational goals through planned coordination of marketing activities.
Brand Licensing
- A licensed brand is a well-known name established by one company utilized by another company for promotional purposes.
Mission Statement
- The mission statement articulates a business's fundamental purpose and rationale for existence.
Business Market Decision Factors
- Business market purchases depend on customer demand dynamics.
Target Market Definition
- A target market identifies a specific segment a business aims to appeal to.
Purchase Classification System
- This system categorizes purchases based on importance and the consumer's comparative shopping behavior.
Business Product Categories
- The five business product categories include capital equipment, operating equipment, supplies, raw materials, and component parts.
New Product Development Criteria
- Businesses should evaluate market need, competition, resource availability, safety, quality, cost-efficiency, and environmental impact for new product ideas.
Market Segmentation Factors
- Market segments are created based on needs/wants, demographics, psychographics/lifestyle, and buying behavior.
Effective Target Market Criteria
- A target market must have similar needs, distinct differences from non-targets, accessible information for identification, and a deep understanding of buying behavior.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of key concepts from Marketing Chapters 9 and 10 with these flashcards. Each card will challenge your knowledge with true or false statements about product ideas and market segments. Perfect for revision and reinforcing your learning!
