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MKTG 350
exam 2
46
Marketing
Undergraduate 4
10/28/2012

Additional Marketing Flashcards

 


 

Cards

Term
Strategic Alternative for growth
Definition
market penetration and market development
Term
strategic alternative for profit
Definition
decreasing inputs(cutting costs) or increasing outputs(sales revenue)
Term
What is market penetration?
Definition
Is the activity or fact of increasing market share of existing products or promoting a new product, through strategies such as bunding, advertising, lower prices or volume discounts
Term
What is Market Development?
Definition
Expansion for total market for a product by entering new segements of market, converting non users, and/or increasing usage per user.
Term
What is Diversification?
Definition
Selling new products to new markets
Term
What is Product development?
Definition
selling new products to existing customers
Term
How can a product manager increase outputs?
Definition
Improve pricing by increasing the list price, reducing discounts, reducing allowances and so on. Other way is to improve the sales mix. Think the 80/20 rule. 20% of product variants produce 80% of the profits. In this instance you could sell more of the profitable items, or if rule is applied to customers the company could de-emphasize unprofitable customers and focus on more on those producing 80% of the profits.
Term
How can a product manager decrease inputs?
Definition
One way is cost reduction, candidates for reduction are costs of marketing such as advertising, promotion, selling expenses, and marketing research. Another way to decrease inputs is to improve the utlization of assets. Including keeping down accounts receiveable, cost of inventories, and running production equipment more efficiently.
Term
What is positioning?
Definition
It's how the product differs from compeition in the mind of the consumers. Two basic ways to position a product is through a profit route or a growth route.
Term
What are five areas for differentiation discussed in the text?
Definition
Quality,status and image, branding, convenience and service, and distribution
Term
What is a Brand
Definition
A unique design, symbol, words or combination of these employed in creating an image that identifies a product and differentiates it from its competitors.
Term
What is Brand Equity?
Definition
Added value of a brand. It is the brands power dervied from goodwill and name recognition that it has earned over time, that translates into higher sales margin and profit margins.
Term
What are the benefits of a strong brand?
Definition
Increases confidence/reduces risk, creates brand awareness and loyalty, can set prices/margins, gives more bargaining power with buyers, it may deter entry of competitors into the industry, provides some defense against price competition, creates brand resiliency, and can lead to line and category brand extensions
Term
What is line extension?
Definition
taking an exisiting brand names and extending those into new forms, sizes, flavors, etc of an existing product category. 
Term
What is category extension?
Definition
When exisiting brand names are extended into new product categories
Term
what is multi-brand?
Definition
when new brand names are introduced into same product category
Term
What is New brand
Definition
placing new brand names into new product categories
Term
Advantages of brand extensions
Definition

-facilitate new product acceptance

-reduce percieved risk by customers

-increase probability of gaining distribution&trial

-increase efficiency of promotional expenditures

-reduce cost of introductory marketing programs

-allow for packaging and label efficiences

-provide feedback benefits to parent brand

-enhance parent brands image

-bring new customers into brand franchise

-revitalize the brand

Term
Disadvantages of brand extensions
Definition

-confuse/frustrate customers

-can encounter retailer resistance

-can fail and hurt parent brands image

-can cannibalize sales of parent brand

-can diminish I.D. w/any one category

-can dilute brand meaning

Term
What is brand line?
Definition

all the products under a particular brand name

decisions related too: how products lines should be offered? How man variants should be offered in each product line? how effectively does extension, in turn, contribute to parents brand equity.

Term
What is a brand portfolio?
Definition

set of brands that a firm offer in a particular product category.

decisions related too: Are different brands may be designed and what is the marketing appeal to different market segments? will any one brand in the portfolio harm or decrease the equity of other brands in portfolio? Are brands clearly differentiated and appealing to sizable enough market to justify it's marketing and production costs?

Term
What are Blue Oceans?
Definition
represent all industries not in existence today. Defined by untapped market space, demand creation and the opportunity for highly profitable growth
Term
What are Red Oceans?
Definition
represent all industries that are in existence today. Lots of competition. Industry boundaries are well-defined and accepted. Try to outperform rivals through low cost or differentation. Try to get greater share of existing demand. As market space gets crowded, profit and growth potential are reduced
Term
How are blue oceans created?
Definition
most are created by expanding industry boundaries
Term
How do you reconstruct boundaries? How do you reach beyond existing demand?
Definition
Reconstruct market boundaries by overcoming beliefs. Reach beyond exisiting demand for uncontested space.
Term
What is value innovaiton?
Definition
Break the value-cost trade off
Term
What are the four actions framework?
Definition
Raise, eliminate, create, and reduce. These actions push companies toward value innovation. Simultaneiously pursuing differentation and low-cost. It immediately falgs companies that are foucsed only on raising and creating. This leads to an increasing cost structure and often over-engineering products and services.
Term
What is a new product?
Definition
Different people will interpret it differently. It can be new to the world, new to the firm, additions to exisiting product lines, improvements and revisions to an existing products, repositioning(products that replace existing products in a line)
Term
What are the steps in new product development process?
Definition
Stage-gate process= idea generation, idea screening, concept devlopment, concept testing, product development, product use testing, market testing and a go no go decision
Term
What is idea generation?
Definition
systematic search for new product ideas
Term
What is idea screening?
Definition
screening new products in order to spot good ideas and drop poor ideas
Term
What is concept development?
Definition
statement of how the anticipated product features will yield selected benefits relative to other products already available
Term
What is concept testing?
Definition
testing new product concepts w/groups of target consumers
Term
What is prodcut development?
Definition
developing concept into a physical product. It determines whether a product concept can be turned into a workable idea
Term
What is product use testing?
Definition
examination of product use under normal operating conditions. It is used to uncover potential problems.
Term
What is test marketing?
Definition
stage in which product and marketing program are tested in a more realistic market setting.
Term
What is rate diffusion?
Definition
process by which innovation spreads.
Term
What factors influence rate of diffusion?
Definition
relative advantage, compatibility, percieved risk, complexity, observability and trialability
Term
What is feature fatigue?
Definition
when to many features can make products too overwhelming for consumers
Term
What is global marketing standardization?
Definition
production of uniform that can be sold the same way around the world
Term
Global market customization?
Definition
production of products marketed differently to markets around the world
Term
What are advantages of standardization?
Definition
economies of scale, lower marketing costs, uniformity in marketing practices and consistency in brand image
Term
What are the advantages of customization?
Definition
recognizes differences in consumers' needs and wants, product life cycles, competitive environment, legal environment and marketing institutions
Term
What is fundamental issue that product managers face when going global?
Definition
Is determining extent to which marketing program should be standardized across countries
Term
Obstacles of standardization in product design and pricing
Definition
physical environment, stage of economic and industrial development in a country and cultural factors.
Term
What are country of orgin effects
Definition
Country of origin effect is “the effect that the country of origin of the product has
on the buyer’s quality perceptions of the product.”
o Many countries require a country of origin label
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