Positioning & Differentiation - ANSWER--understanding customer's view
-evaluating segment preferences
-positioning techniques
-differentiating the
... [Show More] marketing mix
Positioning - ANSWER-an approach that refers to how customers think about proposed and/or present brands in a market; the image your product/service has in the minds of your target customers
Positioning Statement - ANSWER-For (our target market), (our brand) of all (product type) delivers (key benefits or point of differentiation) because (our brand) is (reasons to believe)
Differentiation - ANSWER-utilizing the marketing mix in a distinct way such that customers see it as different from the competition
Examples of differentiation strategies - ANSWER--owning a product attribute in the mind of the customer
-being perceived as an innovator
-effectively maximizing user experience
-being the first to enter a market
-having the lowest price
Adoption Process - ANSWER-awareness, interest, evaluation, trial, decision, confirmation (dissonance may set in after the decision)
Routinized Response Behavior - ANSWER--Low-involvement
-Frequently Purchased
-Inexpensive
-Little Risk
-Little Information Needed
ex. toothpaste
Extensive Problem Solving - ANSWER--high involvement
-infrequently purchased
-expensive
-high risk
-much information
Economic needs - ANSWER-needs that are concerned with the consumer making the best pf his or her time and money; logical; help marketers to understand the who, what, when, and where
-economy of purchase
-convenience
-efficiency
-dependability
Psychological variables - ANSWER-things that are going on in the mind of the consumer that affect purchase behavior
-motivation
-perception
-learning
-attitude
-trust
-lifestyle
Social Influence - ANSWER-have to do with the associations that the buyer might have with other people
-family
-social class
-reference groups
-culture
-ethnic groups
Purchase Situation - ANSWER--purchase reason
-time
-surroundings
PSSP Hierarchy of Needs - ANSWER-physiological needs, safety needs, social needs, personal needs
Personal Needs - ANSWER-need for: self-esteem, accomplishment, fun, freedom, and relaxation
Social Needs - ANSWER-Need for: love, friendship, status, esteem, and acceptance by others
Safety Needs - ANSWER-Need for: protection and physical well-being (perhaps involving health, food, drugs, and exercise)
Physiological Needs - ANSWER-need for food, drink, rest, and sex
Selective Exposure - ANSWER-we notice messages that interest us
Selective Retention - ANSWER-we remember messages that are consistent with beliefs & attitudes, but do not remember those that conflict
Selective Perception - ANSWER-we let in messages that are consistent with beliefs, attitudes, etc. and filter those that conflict
Belief - ANSWER-an opinion
Attitude - ANSWER-a point of view; learned
Business & Organizational Customers - ANSWER--Producers
-Intermediaries
-Government Units
-Nonprofits
Buying Center - ANSWER-buyers, users, influencers, gatekeepers, deciders
Buyers - ANSWER-the purchasing managers who are responsible for working with suppliers and arranging for the terms of the sale
Influencers - ANSWER-people whose expertise is used to help determine which products are needed. Influencers are often technical people who help write specifications
Gatekeepers - ANSWER-people in key positions in the organization who control the flow of information
ex. receptionist, secretaries, researchers
Deciders - ANSWER-people in the organization that have the actual power to select or approve the supplier
New-Task Buying - ANSWER-occurs when a customer organization has a new need and wants a great deal of information; often involves setting product specifications, evaluating sources of supply, and establishing an order routine to follow in the future
Modified Rebuy - ANSWER-a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
Straight Rebuy - ANSWER-a routine repurchase that uses existing suppliers to fill a standard order; often use e-commerce order systems
The Government Market - ANSWER-competitive bids, "approved" supplier list, learning wants difficult, foreign governments, FCPA, size and diversity
Negotiated contract buying - ANSWER-agreeing to a contract that allows for changes in the purchase arrangements (preferred)
Operational linkages - ANSWER-direct ties between the internal operations of the buyer and seller firms
FCPA - ANSWER-Foreign Corrupt Practices Act
Elements of Product Planning for Goods & Services - ANSWER--product idea
-branding
-packaging
-warranty
-product classes
Branding - ANSWER-the use of a name, term, symbol, or design—or a combination of these—to identify a product and create an emotional response
Service Mark - ANSWER-a trademark for a service
Brand Rejection - ANSWER-potential customers won't buy a brand unless its image is changed or something is done to alter the buyer's perception of the brand
Brand Non-Recognition - ANSWER-final consumers don't recognize a brand at all
Brand Recognition - ANSWER-customers recognize the brand
Brand Preference - ANSWER-target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience
Brand Insistence - ANSWER-customers insist on a firm's branded product and are willing to search for it
Family Brand - ANSWER-the same brand name for several products
ex. sunkist
Licensed Brand - ANSWER-sellers pay a fee to use a well-known brand
Individual Brand - ANSWER-used for unrelated products that require a separate identity to avoid confusion
Generic "Brand" - ANSWER-no brand other than identification with the contents
Magnuson-Moss Act 1975 - ANSWER-producers must provide a clearly written warranty if they choose to offer any warranty
Business product classes - ANSWER--installations
-accessories
-raw materials
-components
-MRO supplies
-professional services
Convenience Products - ANSWER-purchased quickly with little effort
-staples, impulse, emergency
Shopping Products - ANSWER-compared with competing products
-homogeneous and heterogeneous
Specialty Products - ANSWER-items that the consumer makes a special effort to search out and buy
Unsought Products - ANSWER-products that potential customers don't yet want or know they can buy; require promotion to create awareness
Product Life Cycle - ANSWER-introduction, growth, maturity, decline
market introduction stage - ANSWER-sales are low as a new idea is first introduced to a market
-market research, heavy advertising (costs)
Market growth stage - ANSWER-industry sales grow fast while industry profits rise and then start falling as a result of growing competition and/or substitute products; industry profits reach peak
- Innovation attracts competition
- Monopolistic Competition develops
- Competition increases, profits peak & then decline
Market Maturity Stage - ANSWER-sales level off and competition continues to increase
-Persuasive, more costly promotion
-Brands are more similar
-Greater price competition/price
sensitivity
-Maturity may last a long time
-Must have developed competitive advantage
Market Decline Stage - ANSWER-new products replace older ones
Sales: Declining
Profits: Declining
Virtually no new customers
Dominate replacement products
New Product Development Process - ANSWER-idea generation, screening, idea evaluation, development, commercialization [Show Less]