Marketing Essentials

• Positioning statement articulates how a company wants to be perceived by consumers.
• Perceptual maps diagram how customers perceive a product or brand.
• Direct investment involves selling domestically produced products to foreign markets.
• Market entry strategies include exporting, licensing, contracting manufacturing, joint ventures, and direct investment, ranging from low risk/return to high risk/return.
• Primary data is more expensive, answers specific questions, and has a known source.
• Secondary data includes facts and figures recorded before a project, like records and financial statements.
• The 5 Vs of big data are volume, variety, velocity, veracity, and value.
• Breadth of product mix is the number of lines.
• Depth of product mix is the number of products in line.
• Brand extension is a new line, such as Kayali fragrances.
• Line extension is a new product in line, such as Kayali fragrances travel size.
• Brand equity is influenced by brand awareness, perceived quality, and brand associations.
• Private label brands exist.
• Brand-centric paradigm prioritizes consumer engagement and emotional connections over traditional transactional approaches, considering branding as a core business competency.
• Sources of new product launches include introduction, growth, maturity, and decline.
• Firms create new products due to changing customer needs, market saturation, managing risk through diversity, fashion cycles, and improving business relationships.

Services Characteristics

• Services are intangible and lack a physical object, making it hard to communicate benefits.
• Services are inseparable, with production and consumption occurring simultaneously, involving the consumer in production.
• Services are heterogeneous because their quality depends on employees, making consistency hard to achieve.
• Services are perishable and cannot be saved, which poses a challenge to synchronize supply and demand.
• The 7 Ps of marketing include product, price, place, promotion, presentation, personnel, and processes, to get the good or service to customer.
• Zone of tolerance represents the area between customer's expectations regarding service and the minimum level of acceptable service.
• Family branding involves multiple products of the same brand name to leverage reputation.
• The product development process includes idea generation, concept testing, product development, market testing, product launch, and evaluation.

Chapter Quiz Answers

• In a scenario analyzing Progressive customers switching to Geico products when deep discounts are offered, secondary panel data would likely show this information.
• When Florence is considering expanding her chain of emergency medical care centers, it can be stated that information not relevant to data needs is a disadvantage of secondary research, while high cost is a disadvantage of primary research.
• When selected customers of Crystal Clear Water Systems Inc. are asked to try out a new water filter that has not yet been released on the market, this is beta testing.
• During the introductory stage of a new heart monitor for runners by Chloe, an athletic trainer, sales would be low and profits nonexistent, but she would attract running equipment innovators.
• In the first-ever STP analysis of a midsize party supply rental company, after defining the mission and objectives and selecting a segmentation method, the next step for Laura is to evaluate the attractiveness of the various segments identified.
• PepsiCo markets Pepsi, Mountain Dew, and Gatorade, and uses its different brands to pursue a differentiated targeting strategy.
• The United States importing more goods from China than it exports to China is trade deficit.
• Direct investment global entry strategy involves a firm maintaining total ownership of its plants, operation facilities, and offices in a foreign country.
• The augmented product component of a product offer includes associated services such as warranties, financing, support, and after-sale service.
• For universities, undergraduate studies, graduate studies, and professional programs are product lines within the university's product mix.
• When No Sweat, a successful sweatshirt maker, starts selling its best-selling hoodie with cords and zippers in contrasting colors and adding 10 different sweatshirts to its line, the company is increasing depth.