Marketing Chapters 9-10 Flashcards

Questions and Answers

Important sources of new product ideas are problems customers have that do not seem to be solved with current products.

True

A product is more than a tangible item for consumers.

True

Some products are sold to both consumer markets and business markets. Consumers in both markets make purchasing decisions for the same reasons.

False

Brands can be developed only by manufacturers.

False Signup and view all the answers

Information in a company's marketing information system (MkIS) is not typically used when the company develops its marketing plan.

False Signup and view all the answers

Both expensive and modestly priced items can be classified as specialty goods.

True Signup and view all the answers

Marketing strategies need to be based on a complete study of a market and the possible ways the business can serve the market.

True Signup and view all the answers

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.

True Signup and view all the answers

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.

False Signup and view all the answers

In order to develop marketing strategies that will be successful, marketers must focus exclusively on their own products and marketing efforts.

False Signup and view all the answers

When customers see few differences in competing products they often look for the lowest price.

True Signup and view all the answers

The most important factor used to segment a market is buying behavior.

False Signup and view all the answers

Marketers must represent the customer in the business as products are designed and developed.

True Signup and view all the answers

The most expensive and important products a company purchases are capital equipment.

True Signup and view all the answers

A marketing strategy begins with the company goals on which the strategy is based.

True Signup and view all the answers

When considering how to facilitate the physical exchange of products and services, which marketing mix element are you thinking about?

distribution Signup and view all the answers

All of the following are important considerations in planning the product mix except?

product assortments, packaging, and product line Signup and view all the answers

The most difficult step in product development is usually?

idea development Signup and view all the answers

The most difficult step in new product development is usually?

finding ideas for new products Signup and view all the answers

The aspect of packaging concerned with using recycled materials would be associated with?

the environment Signup and view all the answers

The most important part of the product marketing mix element is?

not the guarantee, packaging, or available options and features Signup and view all the answers

A name, symbol, word, or design that identifies a product, service, or company is called a?

brand Signup and view all the answers

Marketing plans are developed for a specific time period, often?

6 months to 1 year Signup and view all the answers

During the maturity stage of the product life cycle,?

sales peak and profits begin to decline Signup and view all the answers

Which of the following would probably be classified as operating equipment?

a copy machine Signup and view all the answers

The unique, memorable quality of a brand is called a(n)?

image Signup and view all the answers

Which of the following best defines the preference level of brand recognition?

Consumers view the brand as valuable and will choose it if it is available Signup and view all the answers

The use of test markets?

allow a company to produce a limited quantity of a product to introduce to a small part of the market Signup and view all the answers

Most of the major purchases made by consumers are?

shopping goods Signup and view all the answers

A general promise or assurance of quality is called a(n)?

guarantee Signup and view all the answers

The description of the way marketing activities are planned and coordinated to achieve an organization's goals is called?

marketing strategy Signup and view all the answers

Which of the following is typically not an element of a SWOT analysis?

time factors Signup and view all the answers

A component of a market in which people have one or more similar characteristics is called a(n)?

segment Signup and view all the answers

By law, a company can call a product 'new' for only ___ after it has been introduced.

6 months Signup and view all the answers

Product enhancements?

include features and options Signup and view all the answers

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.

attribute Signup and view all the answers

Individuals or socially related groups who purchase products for personal consumption are known as __________ markets.

consumer Signup and view all the answers

A(n) __________ is the legal protection of the words or symbols for use by a company.

trademark Signup and view all the answers

A market __________ identifies a business's strengths and weaknesses and the opportunities and threats it faces.

analysis Signup and view all the answers

A marketing __________ is the way marketing activities are planned and coordinated to achieve an organization's goals.

strategy Signup and view all the answers

A(n) __________ is a unique name, symbol, or design that identifies a product, service, or company.

brand Signup and view all the answers

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.

licensed Signup and view all the answers

The __________ or purpose of the company identifies the nature of the business or the reasons the business exists.

mission statement Signup and view all the answers

Business markets make purchase decisions on the basis of __________ demand.

customer Signup and view all the answers

A __________ market is a clearly identified segment of the market to which the company wants to appeal.

target Signup and view all the answers

Marketers have developed the purchase classification system to help plan marketing strategies. The categories are based on two important factors. Identify them.

The two factors are (1) the importance of the purchase to the consumer and (2) the willingness of the consumer to shop and compare products before making the purchase. Signup and view all the answers

Name the five categories in the business product classification system.

The categories are capital equipment, operating equipment, supplies, raw materials, and component parts. Signup and view all the answers

List some criteria businesses use for selecting the best ideas for new product development.

Is there an identified market for the product with a strong need? Is the amount of competition in the market reasonable? Do we have or can we obtain the resources to produce the product? Is the product legal and safe? Can we produce a quality product at a reasonable cost? Is the product environmentally friendly? Signup and view all the answers

Name the four factors used to segment a market.

The four factors are: needs and wants, demographics, psychographics/lifestyle, and buying behavior. Signup and view all the answers

What four criteria must a target market meet in order to be effective?

In order to be an effective target market, it must meet four criteria: (1) The people in the target market must have common, important needs and must respond in a similar way to marketing activities designed to satisfy those needs. (2) The people outside of the target market should have enough differences from those in the market that they will not find the marketing mix satisfying. (3) The company needs adequate information about the people in the target market so that they can be identified and located. (4) The important wants and needs of the target market and their buying behavior must be understood well enough that an effective marketing mix can be developed. Signup and view all the answers

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.

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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!