MAR3023 HESI EXAM COMPLETE ACTUAL EXAM WITH ALL 175 QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST VERSION . Generation Y - ANSWER- marketing mix includes - ANSWER-product, pricing, promotion and distribution(place) a group of peo

MAR3023 HESI EXAM COMPLETE ACTUAL EXAM WITH ALL 175 QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST VERSION . Generation Y - ANSWER- marketing mix includes - ANSWER-product, pricing, promotion and distribution(place) a group of people who, as individuals, or as organizations, have needs for products in a product class and have the ability, willingness, and authority to purchase such products - ANSWER-market a group of people who, as individuals, or as organizations, have needs for products in a product class and have the ability, willingness, and authority to purchase such products - ANSWER-market individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in daily operations. - ANSWER-business market group of people or organizations for which a business creates and maintains a marketing mix specifically designed to satisfy the needs of group members - ANSWER-target market a strategy in which an organization designs a single marketing mix and directs it at an entire market for a particular product a) This mix consists of one type of product with little or no variation, one price, one promotional program aimed at everybody, and one distribution system. b) Often include commodities and some food items such as sugar and salt c) Must have homogenous market - ANSWER-undifferentiated target strategy - a market in which a large proportion of customers have similar needs for a product - ANSWER-homogenous market a market made up of individuals or organizations with diverse needs for products in a specific product class - ANSWER-heterogenous market - the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs - ANSWER-market segmentation - consist of individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively similar product needs - ANSWER-market segmentation a market segmentation strategy, in which an organization targets a single market segment using one marketing mix - ANSWER-concentrated targeting strategy a strategy in which an organization targets 2 or more segments by developing a marketing mix for each segment - ANSWER-differentiated targeting strategy characteristics of individuals, groups, or organizations used to divide a market into segments - ANSWER-segmentation variables income (most used) age, gender, ethnicity, social class, occupation etc - ANSWER-demographic variables region, city size, market density, climate, terrain etc - ANSWER-geographic variables personality attributes, lifestyle, motives - ANSWER-psychological variables volume usage, benefit expectations, brand loyalty etc - ANSWER-behavioristic variables the idea that marital status and the age and presence of children influence household income and product needs - ANSWER-family life cycle the number of potential customers within a unit of land area - ANSWER-market density segmentation method that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information - ANSWER-geodemographic segmentation an approach to market segmentation where organizations focus precise marketing efforts on very small geographic markets - ANSWER-micromarketing the division of a market according to benefits that consumers want from the product • the benefits consumers seek ARE their product needs • ex: Tylenol cold and flu provides the benefit of ridding cold and flu to consumers (segment is for consumers who have a cold or flu) - ANSWER-benefit segmentation total amount of a product that customers will purchase within a specified period at a specific level of industrywide marketing activity a) Expressed in dollars or units - ANSWER-market potential the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product - ANSWER-company sales potential measuring company sales potential based on general economic forecast for a specific period and the market potential derived from it - ANSWER-breakdown approach measuring company sales potential by estimating how much of a product a potential buyer in a geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered - ANSWER-buildup approach are theyre already competitors in the segment? What are their prices, can I compete in this segment? Is it worth to enter this segment? - ANSWER-competitive assessment creating and maintaining a certain concept of a product in customers minds - ANSWER-product positioning changing a products target market and altering the perception of the product and who it is for - ANSWER-repositioning the amount of a product a company expects to sell during a specific period at a specified level of marketing activity - ANSWER-sales forecast 5 steps of target market selection process - ANSWER-• Identity targeting strategy, pick which segmentation variables to use, develop market segment profiles, evaluate relevant profiles, select specific target markets • 5 categories of sales forecasting: - ANSWER-executive judgment, surveys, forecasting surveys, regression analysis, and market tests a sales forecasting method based on the intuition of one or more executives (fastest and cheapest) - ANSWER-executive judgements a survey of customers regarding the types and quantities of products they intend to buy during a specific period - ANSWER-customer forecasting survey a survey of a firms sales force regarding anticipated sales in their territories for a specific period a) Sales team is closest to a company's actual customers - ANSWER-sales force forecasting survey sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors - ANSWER-expert forecasting survey experts make forecasts and submit them to the company, the company then compares them with their own and sends them back to the experts for final analysis (most accurate) - ANSWER-delphi technique a forecasting method that uses historical sales data to discover patterns in the firms sales over time and generally involves trend, cycle, seasonal, and random factor analysis (assumes previous sales patterns will keep occurring) - ANSWER-time series analysis Trend analysis - ANSWER-analysis that focuses on aggregate sales data over a period of many yeas to determine general trends in annual sales Cycle analysis - ANSWER-an analysis of sales figures for a 3-5 year period to ascertain whether sales fluctuate in consistent & periodic manner Seasonal analysis - ANSWER-analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales Random factor analysis - ANSWER-an analysis attempting to attribute erratic sales variations to random, nonrecurring events Regression analysis - ANSWER-a method of predicting sales based on finding a relationship between past sales and one or more independent variables such as population or income Market test - ANSWER-making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts Buying behavior - ANSWER-the decision processes and actions of people involved in buying and using the products Consumer buying behavior - ANSWER-the decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes consumer buying decision process - ANSWER-a 5 stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation Problem recognition - ANSWER-Occurs when a buyer becomes aware of a difference between a desired state and an actual condition. (ex: new iphone comes out and you want it) Internal search - ANSWER-an information search in which buyers search their memories for information about products that might solve their problem Ex: memory and past experiences External search - ANSWER-information search in which buyers seek information from sources other than their memories Ex: friends, internet, consumer reports, magazines, etc... Consideration set (evoked set) - ANSWER-a group of brands within a product category that a buyer views as alternatives for possible purchase Evaluation criteria - ANSWER-objective and subjective product characteristics that are important to a buyer Framing - ANSWER-companies use this method to stress certain characteristics about their produce (such as safety of car, or pixels on camera)t to influence buyers Cognitive dissonance - ANSWER-a buyers doubts shortly after a purchase about whether the decision was the right one Situational influences - ANSWER-influences that result from circumstances, time, and location that affect the consumer buying decision process Psychological influences - ANSWER-factors that in part determine peoples general behavior, thus influencing their behavior as consumers Perception - ANSWER-the process of 1)selecting, 2)organizing, and 3)interpreting, information inputs to produce meaning information inputs - ANSWER-sensations received through sight, taste, hearing, smell, & touch Selective exposure - ANSWER-the process by which some inputs are selected to reach awareness and others are not Selective distortion - ANSWER-an individual's changing or twisting of information that is inconsistent with personal feelings or beliefs Ex: Consumer may stay loyal to coke even if statistics were to prove pepsi is better, cheaper, healthier, taste 100% the same etc Selective retention - ANSWER-remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not closure - ANSWER-organization method where one mentally fills in the missing elements of a pattern or statement Motives - ANSWER-an internal force that directs a personals behavior towards satisfying needs or achieving goals Patronage motives - ANSWER-motives that influence where a person purchases products on a regular basis Maslows hierarchy of needs - ANSWER-the 5 levels of needs that humans seek to satisfy, from most to least important Physiological needs (least) - ANSWER-survival such as food, water, shelter etc Safety needs - ANSWER-life insurance, freedom from physical or emotional harm, air bag Social needs - ANSWER-love, affection, and a sense of belonging Esteem needs - ANSWER-require respect and recognition from others, flying first class Self actualization needs - ANSWER-the need to become all you are capable of & develop Learning - ANSWER-changes in an individual's thought processes and behavior caused by information and experience Attitudes - ANSWER-an individuals enduring evaluation of feelings about and behavioral tendencies toward an object or idea Three major components of attitude: - ANSWER-cognitive, affecting and behavioral Attitude scale - ANSWER-a means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object personality - ANSWER-a set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations Types of personalities - ANSWER-compulsive, ambition, gregariousness, dogmatism, authoritarian, introvert, extrovert Self concept (self image) - ANSWER-a perception or view of ones self Lifestyles - ANSWER-an individual's pattern of living expressed through activates, interests, and opinions level of involvement - ANSWER-an individuals degree of interest in a product and the importance of the product for that person High involvement products - ANSWER-tend to be visible to others and expensive Ex: Cars, clothing, furniture, health care, housing, lawyers Low involvement products - ANSWER-less expensive and less social risk Ex: Toilet paper, groceries, Enduring involvement - ANSWER-when a persons interest in a product has been ongoing and long term Situational involvement - ANSWER-temporary and dynamic interest in a product Ex: Need to buy a car after getting into a car accident Routinized response behavior - ANSWER-a consumer problem solving process used when buying frequently purchased, low cost items that require very little search and decision effort Limited problem solving - ANSWER-a consumer problem solving process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category Ex: New laundry detergent by tide Extended problem solving - ANSWER-a consumer problem solving process used when purchasing unfamiliar, expensive, or infrequently bought products Ex: car, home, or college education Impulse buying (not a problem solving method) - ANSWER-an unplanned buying behavior resulting from a powerful urge to buy something immediately social influences - ANSWER-the forces other people exert on ones buying behavior 5 major areas: - ANSWER-roles, family, reference groups, and opinion leaders Roles - ANSWER-actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons Consumer socialization - ANSWER-the process through which a person acquires the knowledge and set of skills to function as a consumer Family making decisions grouped into 4 categories: - ANSWER-autonomic(both equally likely to make decision), husband dominant, wife dominant, syncretic (make decision together);75% of women make the consumer buying decisions Reference group - ANSWER-a group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members. 3 types of reference groups: - ANSWER-membership, aspirational, disassociative Membership: - ANSWER-individual actually belongs, individual identifies with group members enough to adopt group values and attitudes Aspirational - ANSWER-group where individual aspires to belong to and wants to be in Disassociated - ANSWER-negative group and individual does not want to identify with this group or adopt values Opinion leaders - ANSWER-a member of an informal group who provides information about a specific topic to other group members;Most influential when consumers have high product involvement but little knowledge Ex: opinion leaders could be: sorority president, "movie buff friend", priest Social classes - ANSWER-an open group of individuals with similar social rank; "open" because people can move into and out of each class Social stratification - ANSWER-action of ranking people/groups into classes 3 major classes: - ANSWER-upper, middle, lower class Culture - ANSWER-the accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society used to cope with its environment and passes onto future generations; Example of objects: food, furniture, clothing;Example of concepts: education, welfare, laws, core values Subculture - ANSWER-a group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in surrounding culture; Example of subcultures: college students, teenage, Asians, west coast 3 fastest growing subcultures: - ANSWER-African americans, Hispanics, Asians African American subculture: - ANSWER-12.3% of population Spending habits - ANSWER-depreciable products such as food, clothing, entertainment etc Hispanic subculture: - ANSWER-15.1% of population Spending habits - ANSWER-housing, groceries, telephone services, baby cloths and shoes etc Asian American subculture - ANSWER-4.4% of population consumer misbehavior - ANSWER-behavior that violated generally accepted norms of society Ex: shoplifting, buying drugs, consumer fraud, pirating music and software; Abusive consumers who threatens or does not comply with workers international marketing - ANSWER-developing and performing marketing activities across national boundaries CIBER - ANSWER-centers for international business education & research Forces that affect the marketing environment include - ANSWER-sociocultural; economic; political, legal, and regulatory; social and ethical, competitive, and technological Some cultures influence buying behavior due to different ____ - ANSWER-beliefs, values etc Import tariff - ANSWER-a duty levied by a nation on goods bought outside its borders and brought into the country; Used to raise revenue or protect domestic products Quota - ANSWER-a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time Embargo - ANSWER-a governments suspension of trade in a particular product or specific country Exchange controls - ANSWER-government restrictions on the amount of a particular currency that can be bought or sold Balance on trade - ANSWER-the difference in value between a nations imports and exports; Favorable balance = exports imports Self reference criterion (SRC) - ANSWER-idea that "we" differ from "them; Relates to how people think of other people/business in other countries Cultural relativism - ANSWER-the concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures Business for social responsibility (BSR) - ANSWER-tracks emerging issues and trends, provides information on corporate leadership and best practices, and helps businesses develop practical social and ethical practices Switzerland - ANSWER-______ ranked #1 most competitive country in the world 2nd - ANSWER-USA ranked ___ most competitive country in the world The north American free trade agreement (NAFTA) - ANSWER-an alliance that merges Canada, Mexico, and the united states into a single market; Virtually no trade tariffs is trading amongst each other European union (EU) - ANSWER-an alliance that promotes trade among its member countries in Europe;Often called the "European community" or "open market" The common market of the southern cone (MERCOSUR) - ANSWER-an alliance that promotes the open trade and production in its member nations in South America The asia pacific economic cooperation (APEC) - ANSWER-An alliance that promotes open trade and cooperation among member nations throughout the world World trade organization (WTO) - ANSWER-an entity that promotes free trade among member nations by eliminating trade barriers and education individuals, companies, and governments about trade rules around the world;Successor to GATT General agreement on tariffs and trade (GATT) - ANSWER-an agreement among nations to reduce worldwide tariffs and increase national trade; Prevents dumping; Dumping- selling products at an unfairly low price successive stages of entering international markets - ANSWER-1) no regular export activities 2) export via independent representatives (agents) 3) establishment of one or more sales subsidiaries internationally 4) establishment of international production/manufacturing alliances importing - ANSWER-purchasing products from a foreign source exporting - ANSWER-the sale of products to foreign markets trading company - ANSWER-a company that links buyers and sellers in different countries; Does not help in manufacturing the goods Licensing - ANSWER-an alternative to direct investment that requires a license to pay commissions or royalties on sales or supplies used in manufacturing Licensee - ANSWER-the owner of the foreign operation Ex: The Olympic committee gives licenses to certain organizations that make shirts for the Olympics and sells them for a profit. The committee makes money from this by charging for the license and making money on royalties franchising - ANSWER-a form of licensing in which a franchiser, in exchange for a financial commitment, grants a franchisee the right to market its product in accordance with the franchisers standards contract manufacturing - ANSWER-the practice of hiring a foreign firm to produces a designated volume of the domestic firms product or a component of it to specification, the final product carries in the domestic firms name Outsourcing - ANSWER-the practice of contracting noncore operations with an organization that specializes in this operation Ex: Google uses a 3rd party accounting firm to do its income statements offshoring - ANSWER-the practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company or third party. offshore outsourcing - ANSWER-the practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold joint ventures - ANSWER-a partnership between a domestic firm and a foreign firm or government Strategic alliance - ANSWER-a partnership that is formed to create a competitive advantage on a worldwide basis Direct ownership - ANSWER-a situation in which a company owns subsidiaries or other facilities over seas Multinational enterprise - ANSWER-a firm that has operations or subsidiaries in many countries Ex: BP is a multi national enterprise as it has stations in USA & Europe 3 basic structures of international organization exists: - ANSWER-export departments, international divisions, and internationally integrated structures International divisions - ANSWER-centralizes all of the responsibility for international operations Product division structure - ANSWER-most used; works well with diversified firms with many different products. Ex: proctor and gamble Geographic area structure - ANSWER-works well with non diversified firms, world is divided into logical geographic areas Global matrix structure - ANSWER-implements both product and geographic structure at the same time ex: used by a firm called Asea Brown Boveri (ABB) globalization - ANSWER-the development of marketing strategies that treat the entire world (or its major regions) as a single entity Ex: MacDonalds and Nike are globalized and produce same products world wide Digital media - ANSWER-electronic media that function using digital codes; media available via smartphone, computers, or any other electronic device Digital marketing - ANSWER-uses all digital media, including the internet and mobile interactive channels to develop communication and exchanges with customers electronic marketing ( E marketing) - ANSWER-the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing Characteristics of E-Marketing: - ANSWER-include addressability, interactivity, accessibility, connectivity, and control addressability - ANSWER-the ability of a marketer to identify customers before they make a purchase; marketer knows who the customer is and can specifically address that customer social network - ANSWER-web based meeting place for friends, family, coworkers, and peers that allow them to communicate for their respective purposes interactivity - ANSWER-allows the customers to express their needs and wants directly to the firm in response to its marketing communications ex: online chats, blogs, forums accessibility - ANSWER-the ability to obtain digital informaiton connectivity - ANSWER-use of digital networks to provide linkages between information providers and users ex: many firms use Facebook or twitter to communicate messages/advertisements control - ANSWER-customers' abilities to regulate the information they view and the rate and sequence of their exposure to that information; pull medium - ANSWER-internet is refered to a _____ because users choose what websites that go to and the marketer loses control of which content the user is exposed to and in what sequence "enterprise 2.0" - ANSWER-term used to desrcribe a firms' efforts to use cutting edge technology associated with social networks and blogs to assist in workplace connections-social networks Blogs (weblogs) - ANSWER-web based journals in which writers editorialize and interact with other internet users Wiki - ANSWER-type of software that creates an interface that enables users to add or edit the content of some types of websites Ex: W allows users to change the content podcast - ANSWER-audio or video file that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers; podcast offer the benefit of convenience, giving customers power to listen or view content wherever they choose. CBC radio, NPR,PBS virtual realities - ANSWER-include role playing games such as SimCity and world of warcraft Creators, critics, collectors, joiners, spectators, inactive - ANSWER-Social technographics profile groups people into 6 categories according to how they interact with digital media: Creators - ANSWER-create their own media outlet such as blogs, podcasts, wikis etc Critics - ANSWER-comment on blogs and post ratings and reviews Collectors - ANSWER-organize and gather information created by creators and critics Joiners - ANSWER-anybody joining myspace or twitter, or FB etc Spectators - ANSWER-read what others produce but do not produce anything of their own Inactives - ANSWER-don't participate in any of these activities Push and pull - ANSWER-Distribution is a ____ and ____ dynamic Content - ANSWER-Marketers push to get the _____ in front of the consumer crowdsourcing - ANSWER-refers to the way digital media can be used to outsource tasks to a large group of people Ex: allows users to post projects they need done and how much they are willing to pay for them and then people are allowed to choose whether to do the work or not Ethical and legal issues - ANSWER-... online fraud - ANSWER-any attempt to conduct fraudulent activities online, including deceiving consumers into releasing personal information Known as "cyber criminals" product - ANSWER-a good, service, or idea received in an exchange good - ANSWER-a tangible physical entity ex: book, magazine, video game service - ANSWER-an intangible result of the application of human and mechanical efforts to people or objects ex: hotels trying to accommodate you, manicure/pedicure etc idea - ANSWER-a concept, philosophy, image, or issue ex: Mothers against drunk driving supplemental features - ANSWER-these can include installation, delivery, financing, etc symbolic and experimental benefits - ANSWER-some products provide symbolic meaning ex you can buy a teddy bear anywhere but at "build a bear" you can choose any kind of teddy bear, size, and stuff it yourself ex: a rolex is not simply just to tell time, it provides symbolic meaning of success consumer and business products - ANSWER-2 general categories of products: Consumer products - ANSWER-products purchased to satisfy personal and family needs Business products - ANSWER-products bought to use in a firms operations, to resell, or to make other products Convenience products - ANSWER-relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort; usually found at retail stores Ex: chewing gum, bread, soft drinks, newspapers, gas etc Shopping products- items for which buyers are willing to expend considerable effort in planning and making purchases; buyers spend time comparing brands and prices; last a relatively long time Ex: Furniture, appliances, cameras, shoes etc - ANSWER-... Specialty products - ANSWER-items with unique characteristics that buyers are willing to expend considerable effort to obtain Unsought products - ANSWER-products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think of buying Ex: a new radiator if yours breaks on the highway, medicine if you get the flu Installations - ANSWER-facilities and non-portable major equipment; decisions made by top level management because these products are expensive and intended for long use Ex: buildings, factories, and very large machines Accessory equipment - ANSWER-equipment that does not become part of the final physical product but is used in production or office activities Ex: calculators, tools, file cabinets etc Raw materials - ANSWER-basic natural materials that become part of a physical product Ex: Minerals, chemicals, agricultural products and materials from forest & oceans Component parts - ANSWER-items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly Ex: brakes, spark plugs, tires are all component parts of an automobile Process materials - ANSWER-materials that are used directly in the production of other products but not readily identifiable Ex: Caesar salad dressing has a little bit of vinegar in it; but the vinegar is not identifiable MRO supplies - ANSWER-maintenance, repair and operating items that facilitate production and operations but do not become part of the finished product Ex: paper, pencils, cleaning agents and paint all fall into this category Ex: febreeze is an MRO supply to hotels but is a consumer good to us Business services - ANSWER-intangible products that many organizations use in their operations Ex: Janitorial services, financial services, law services etc product item - ANSWER-a specific version of a product that can be designated as a distinct offering among a firms products Product line - ANSWER-a group of closely related product items viewed as a unit because of marketing, technical, or end- use considerations Ex: Colgate tooth whitening, Colgate cavity control, Colgate sensitive gums, etc Ex: proctor and gamble detergent line includes: tide, bold, cheer, gain, and era product mix - ANSWER-the composite, or total, group of products that an organization makes available to customers Width of product mix - ANSWER-the number of product lines a company offers Ex: GE has different types of products including houseware, healthcare, commercial depth of product mix- the average number of different products offered in each product line - ANSWER-... Product life cycle - ANSWER-the progression of a product through 4 stages: introduction, growth, maturity, and decline introduction stage - ANSWER-the initial stage of a products life cycle; its first appearance in the marketplace when sales start at zero and profits are negative growth stage - ANSWER-the product life cycle stage when sales rise rapidly, profits reach a peak and then they start to decline; Profits start to decline at end of this stage when other competitors enter the market maturity stage - ANSWER-the stage of a products life cycle when the sales and curve peaks and starts to decline, and profits continue to fall • Characterized by intense competition - ANSWER-... • Companies begin using promotional or globalizing - ANSWER-... a)Generate cash flow b) Maintain share of market c) Increase share of customer - ANSWER-3 objectives of companies in maturity stage decline stage - ANSWER-the stage of a product life cycle when sales fall rapidly product adoption process - ANSWER-5 stage process of buyer acceptance of a product: awareness, interest, evaluation, trial, adoption Awareness - ANSWER-buyer becomes aware of a new product Interest - ANSWER-buyer seeks information about new product Evaluation - ANSWER-buyer decides to use new product or not Trial - ANSWER-buyer tries new product to see if it meets his/her needs Adoption - ANSWER-buyer tries product, likes it, and is expected to buy it again Innovators - ANSWER-first adopters of new technology Early adopters - ANSWER-people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters early majority - ANSWER-individuals who adopt a new product just prior to the average person late majority - ANSWER-skeptics who adopt new products when they feel it is necessary laggards - ANSWER-the last adopters who distrust new products Line extension - ANSWER-development of a product that is closely related to other products in the line but is design specifically to meet different customer needs For example the Porsche cayenne S Hybrid V-1 can drive short distance - ANSWER-... Product modification - ANSWER-changes in one or more characteristics of a product. Example: Ford 2011, Ford 2012 Quality - ANSWER-changes to a product's dependability and durability Functional - ANSWER-changes affecting a product's versatility, effectiveness, convenience, or safety Aesthetic - ANSWER-changes relating to the sensory appeal of a product New product - ANSWER-an innovative product that has never been sold by an organization, such as the digital camera was when introduced for the first time. A product that a given firm has not marketed previously, although similar products have been available from other companies, such as Crayola School Glue New-product development process - ANSWER-a seven phase process for introducing products: Idea generation - ANSWER-seeking product ides to reach organizational objectives May come from - ANSWER-Internal sources, franchisees in the restaurant business,competitors,advertising agencies,etc... Screening - ANSWER-selecting the ideas with the greatest potential for further review Concept testing - ANSWER-seeking a sample of potential buyers' responses to a product idea Business Analysis - ANSWER-evaluating the potential impact of a product idea on the firm's sales, costs, and profits Product development - ANSWER-determining if producing a product is technically feasible and cost effective Test marketing - ANSWER-a limited introduction of a product in geographic areas chosen to represent the intended market Commercialization - ANSWER-refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product Roll-out - ANSWER-a product is introduced in stages, starting in one set of geographic areas and gradually expanding into adjacent areas. Product differentiation - ANSWER-creating and designing products so that customers perceive them as different from competing products Product Quality - ANSWER-the overall characteristics of a product that allow it to perform as expected in satisfying customer needs Level of quality - ANSWER-the amount of quality a product possesses Consistency of Quality - ANSWER-the degree to which a product has the same level of quality over time Product design - ANSWER-how a product is conceived, planned, and produced Styling - ANSWER-the physical appearance of the product Product features - ANSWER-specific design characteristics that allow a product to perform certain tasks Customer services - ANSWER-any human or mechanical efforts or activities a company provides that add value to a product. Product deletion - ANSWER-eliminating a product from the product mix when it no longer satisfies a sufficient number of customers Phase out, run it out or immediate drop - ANSWER-A product can be deleted in 3 ways: Phase-out - ANSWER-allows product to decline without change in the marketing strategy, no attempt to give product new life. Run it out - ANSWER-exploits any strengths left in the product Product manager - ANSWER-the person within an organization who is responsible for a product, a product line, or several distinct products that make up a group Brand manager - ANSWER-person responsible for a single brand Market Manager - ANSWER-the person responsible for managing the marketing activities that serve a particular group of customers Venture team - ANSWER-a cross functional group that creates entirely new products that may be aimed at new markets;Responsible for all aspects of developing a product Service - ANSWER-an intangible product that involves a deed, a performance, or an effort that can't be physically possessed. a service is dominated by the intangible portion of the total product - ANSWER-The primary difference between a service and a good is that: Customer service - ANSWER-involves any human, mechanical, or electronic activity that adds value to the product.. Sevice economy - ANSWER-U.S. is called the world's first _____. Long term economic growth - ANSWER-One major catalyst in the growth of consumer services has been ______ Business services - ANSWER-include support and maintenance, consulting, installation, equipment leasing, marketing research, advertising, temporary office personnel, and janitorial services. Risen even farther - ANSWER-Expenditure for business services have ______ than expenditures for consumer services. Business environment - ANSWER-The growth in business services has been attributed to the increasingly complex, specialized, and competitive _________. Distribution - ANSWER-the decisions and activities that make products available to customers when and where they want to purchase them. Intangiabiltity - ANSWER-means a service that is not physical and therefore can't be perceived by the senses. Inseparability of production and consumption - ANSWER-the production of a service cannot be separated from its consumption by customers. Perishability - ANSWER-the unused service capacity of one time period cannot be stored for future use. For instance, empty seats on an airline flight today cannot be stored and sold to passengers at a later date. Heterogenity - ANSWER-variation in quality. For instance, today you get a great haircut, but next month you go to get a haircut from the same hairstylist and this time around it is terrible. increases, increases - ANSWER-Heterogenity usually _____ as the degree of labor intensiveness ______. Client-Based relationships - ANSWER-interactions that result in satisfied customers who use a service repeatedly over time. For instance, you use a lawyer and receive great service. From now on you decide to keep using him as your lawyer and recommend him to other family members and friends. Customer contact - ANSWER-refers to the level of interaction between service providers and the customer necessary to deliver the service. Employee satisfaction is the single most important factor in providing high-service quality. - ANSWER-... Core service - ANSWER-the basic service experience or commodity that a customer expects to receive. Supplementary service - ANSWER-a supportive one related to the core service and is used to differentiate the service bundle from competitors. For example, when a student attends a tutoring session for a class, the core services is the tutoring. Bundled with the core service might be access to outlines with additional info, handouts with practice questions, or online service. no face-to-face contact between the customer and the service provider - ANSWER-Some services are provided at an "arm's length" meaning _______ degree of personalization - ANSWER-When designing service delivery, marketers must pay attention to the ______ customers desire. Promotion of services - ANSWER-typically includes tangible cues that symbolize the service. Pricing of services - ANSWER-should be priced with consumer price sensitivity, the nature of the transaction, and its costs in mind. Demand-based pricing - ANSWER-when demand is high price is high and vice versa. Peak demand - ANSWER-time period when customers tend to desire a service the most Service quality - ANSWER-is defined as customers' perceptions of how well a service meets or exceeds their expectations. Search qualities - ANSWER-tangible attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase. Experience qualities - ANSWER-are attributes, such as taste, satisfaction, or pleasure, that can be assessed only during the purchase and consumption of a service. For instance restaurants and vacations. Credence qualities - ANSWER-attributes that customers may be unable to evaluate even after the purchase and consumption of the service. For instance, surgical operations, automobile repairs, and legal representation. Tangibles, reliability, responsiveness, assurance, empathy - ANSWER-Five dimensions consumer use when evaluating service quality: Tangiables - ANSWER-physical evidence of the service Reliability - ANSWER-(most important) consistency and dependability in performing the service Responsiveness - ANSWER-willingness or readiness of employees to provide service Assurance - ANSWER-ability to convey trust and confidence Empathy - ANSWER-caring and ind. Attention provided by employee Analysis of customer expectations - ANSWER-desired and acceptable expectations. Diff between the two is called the customer's zone of tolerance. Nonprofit marketing - ANSWER-refers to marketing activities that are conducted by ind. And organizations to achieve some goal other than ordinary business goals such as profit, market share, or return on investment. Non profit- organization marketing: is the use of marketing concepts and techniques by organizations whose goals do not include making profits. - ANSWER-... Social marketing - ANSWER-promotes social causes, such as AIDS research and recycling. is to obtain a desired response from a target market - ANSWER-The basic aim of nonprofit organization: Target public - ANSWER-a collective of ind. who have an interest in or a concern about an organization, a product, or a social cause. client publc, general publics - ANSWER-In nonprofit marketing, direct consumers of the product are called ______and indirect consumers are called _______. Student body - ANSWER-The client public for a university is its: , and its general public includes parents, alumni, and trustees. Variable pricing - ANSWER-when a donation-seeking organization will accept a contribution of any size and not their usual fixed donation. Opportunity cost - ANSWER-the value of the benefit given up by selecting one alternative over another. Brand - ANSWER-is a name. term, design, symbol, or any other feature that identifies one marketer's product as distinct from those of other marketers. It may identify a single item, family of items, or all of a seller's items. Brand name - ANSWER-is the part of a brand that can be spoken-including letters,numbers, and words-such as 7Up.Often a product's only distinguishing characteristic. Brand mark - ANSWER-the element of a brand that is not made up of words-often a symbol or design. Examples are: McDonald's golden arches, Nike's "swoosh", and the stylized silhouette of Apple's iPod. Trademark - ANSWER-a legal designation indicating that the owner has exclusive use of a brand or part of a brand, and others are prohibited by law from using it. Trade name - ANSWER-is the full legal name of an organization, such as Ford Motor Company. Cultural branding - ANSWER-explains how a brand conveys a powerful myth that consumers find useful in cementing their identities. Branding loyalty - ANSWER-is a costumer's favorable attitude towards a specific brand. Brand recognition, brand preference, brand insistence - ANSWER-Three degrees of brand loyalty exist: Brand recognition - ANSWER-occurs when the customer is aware that the brand exist and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar. Brand preference - ANSWER-stronger degree of brand loyalty. Customer has definite preference of one brand over all others and will buy it if available. However if not available will buy a substitute. Brand insistence - ANSWER-costumer strongly prefers one brand, will buy no substitute, and will spend the time and effort necessary to acquire it. Brand equity - ANSWER-is the marketing and financial value associated with a brand's strength in a market. 1.Brand-name awareness 2.Brand loyalty 3.Perceived brand quality 4. Brand associations - ANSWER-Four major elements underlie brand equity: Maufacturer, private, generic, individual - ANSWER-Types of Brands: Manufacturer brands - ANSWER-are initiated by producers and ensure that producers are identified with their products at the point of purchase-For example, Green Giant, Compaq Computer, and Levi's jeans. Private distributor brands - ANSWER-( store brands, dealer brands) are initiated and owned by resellers- that is, wholesalers or retailers. manufacturers - ANSWER-The major characteristic of private brands is that the _______ are not identified on the products. Generic Brands - ANSWER-indicate only the product category(such as aluminum foil) and do not include the company name or other identifying terms. Trademark Law Revision Act - ANSWER-add value to federal registration system and to better protect the public from counterfeiting, confusion, and deception. - ANSWER-... Individual Branding - ANSWER-is a strategy in which each product is given a different name. For instance, Sara Lee uses individual branding among its many divisions, which include Hanes underwear, L'eggs pantyhose, Champion sportswear, Jimmy Dean, Bali, Ball Park, and other vastly diverse brands. Family Branding - ANSWER-all of a firm's products are branded with the same name or part of the name such as Kellogg's Frosted Flakes, Kellogg's Rice Krispies, and Kellogg's Corn Flakes. Brand extension - ANSWER-occurs when a firm uses one of its existing brands to brand a new product in a different product category. For example, Bic, the maker of disposable pens, employed a brand extension when it introduced Bic disposable razors and lighters. Line extension - ANSWER-same brand on a new product in the same product category. For example the new Extra strength Tylenol P.M. Co-Branding - ANSWER-the use of two or more brands on one product. Brand liscensing - ANSWER-an agreement in which a company permits another company to use its brand on other products for a licensing fee. Examples are: The NFL, NBA, NCAA Packaging - ANSWER-involves the development of a container and a graphic design for a product. protecting the product and maintaining its functional form; To offer convenience to consumers ;To promote a product by communicating its features, uses, benefits, and image - ANSWER-Three main packaging functions: Family packaging - ANSWER-using similar packaging for all of a firm's products or packaging that has one common desing element. For instance, Campbell's soups, Weight Watcher's foods, and Planter's nuts. Secondary - ANSWER-use packaging: can be re used for purposes other than its initial function. For example,margarine container can be used to store leftovers, and a jelly container can serve as a drinking glass. Category - ANSWER-consistent packaging: the product is packaged in line with the packaging practices associated with a particular product category. For example, ketchup, mustard, and mayonnaise. Innovative packaging - ANSWER-a marketer employs a unique cap, design, applicator, or other feature to make a product distinctive. Handling-improved packaging - ANSWER-a product's packaging may be changed to make it easier to handle in the distribution channel- for example, by changing the outer carton or using special bundling, shrink-wrapping, or pallets. Labeling - ANSWER-is very closely interrelated with packaging and is used for identification, promotional, informational, and legal purposes. Universal product code - ANSWER-a series of electronically readable lines identifying the product and providing inventory and pricing information. Supply chain - ANSWER-all the activities associated with the flow and transformation of products from raw materials through to the end customer. Operations management - ANSWER-the total set of managerial activities used by an organization to transform resource inputs into products. Logistics management - ANSWER-planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants. Supply management - ANSWER-in the broadest terms, refers to the process that enables the progress of value from raw material to final customer and back to redesign and final disposition. Supply-chain management - ANSWER-a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time. Upstream firms - ANSWER-provide direct or indirect input to make the product. Downstream firms - ANSWER-responsible for delivery of product and after-market services to the end customer. Marketing channel - ANSWER-(channel of distribution or distribution channel) a group of individuals and organizations that direct the flow of products from producers to customers within the chain supply. Marketing channels - ANSWER-Major role of ________ is to make products available at the right time at the right place in the right quantities. Direct - ANSWER-Some marketing channels are _____, meaning that the product goes directly from the producer to the consumer. Marketing intermediaries - ANSWER-middlemen that link producer to other intermediaries or ultimate consumer through contractual arrangements or through the purchase and resale of products. Time, Place, possession, form - ANSWER-Marketing channels create four types of utility: Time - ANSWER-available when costumers want them Place - ANSWER-where customers want the products Possession - ANSWER-customer has access to product to use or store for future use Form - ANSWER-assembling, preparing, or otherwise refining the products to suit individual customer needs. Industrial Distributor - ANSWER-an independent business organization that takes title to industrial products and carries inventory. They usually sell standardized products such as maintenance supplies, production tools, and small operating equipment. Manufacturers agent - ANSWER-an independent businessperson who sell complementary products of several producers is assigned territories and is compensated through commissions. Dual distribution - ANSWER-the use of two or more marketing channels to distribute the same products to the same target market. For instance, Kelloggs sells it cereal directly to large retail grocery chains and to wholesalers that, in turn sell the cereals to retailers. Strategic channel alliance - ANSWER-an agreement whereby the products of one organization are distributed through the marketing channels of another. Intensity of market coverage - ANSWER-is the number and kinds of outlets in which a product will be sold. Intensive distribution - ANSWER-using all available outlets to distribute a product. Used a lot for convenience products Selective distribution - ANSWER-using only some available outlets in an are to distribute a product. Appropriate for shopping products(T.V., stereo, etc..) Exclusive Distribution - ANSWER-using a single outlet in a fairly large geographic area to distribute a product. Channel captain - ANSWER-the dominant leader of a marketing channel or a supply channel (Producer, wholesaler, retailer) Channel power - ANSWER-the ability of one channel member to influence another member's goal achievement Vertical channel integration combining two or more stages of the marketing channel under one management. Eliminating the need for that particular intermediary. - ANSWER-... Vertical marketing systems - ANSWER-a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers. Corporate, administered and contractural - ANSWER-Most vertical marketing systems take one of the 3 forms: Corporate - ANSWER-combines all stages of the marketing channel, from producers to consumers, under a single owner. Administered - ANSWER-channel members are independent , but a high level of interorganizational management is achieved through informal coordination. Contractual - ANSWER-most popular, channel members are linked by legal agreements spelling out each member's rights and obligations. Horizontal channel integration - ANSWER-combining organizations at the same level of operation under one management. For instance, owner of a dry-cleaning firm buys other existing dry-cleaning firms. Physical distribution - ANSWER-(Logistics) activities used to move products from producers to consumers and other end users. Outsourcing - ANSWER-the contracting of physical distribution tasks to third parties. transportation - ANSWER-_______ is the most costly part of the physical distribution cycle time. Cycle time - ANSWER-the time needed to complete a process Order processing - ANSWER-the receipt and transmission of sales order information. order entry, order handling, and order delivery - ANSWER-Order processing entails three main task Electronic data interchange(EDI) - ANSWER-a computerized means of integrating order processing with production, inventory, accounting, and transportation. Inventory management - ANSWER-developing and maintaining adequate assortments of products to meet customers' needs. Stockouts - ANSWER-shortages of products that, in turn, can result in brand switching, lower sales, and loss of customers. Reorder point - ANSWER-the inventory level that signals the need to place a new order Order lead time - ANSWER-refers to the average time lapse between placing the order and receiving it. Usage rate - ANSWER-the rate at which a product's inventory is used or sold during a specific time. Safety stock - ANSWER-the amount of extra inventory a firm keeps to guard against stockouts. Reorder point - ANSWER-(order lead time*usage rate) + safety stock Just-in-time - ANSWER-an inventory-management approach in which supplies arrive just when needed for production or resale. Materials handling - ANSWER-physical handling of tangible goods, supplies, and resources. Unit loading - ANSWER-one or more boxes are placed on a pallet or skid, and later transported. Containerization - ANSWER-the consolidation of many items into a single, large container that is sealed at its origin point and opened at its destination. -Warehousing -the design and operation of facilities for storing and moving goods. - ANSWER-... Private warehouses - ANSWER-company-operated facilities for storing and shipping products. Public warehouses - ANSWER-storage space and related physical distribution facilities that can be leased by companies. Bonded storage - ANSWER-a warehousing arrangement in which imported or taxable products are not released until the products' owners pay U.S. customs, duties, taxes, or other fees. Distribution centers - ANSWER-arge, centralized warehouses that focus on moving rather than storing goods. Transportation - ANSWER-the movement of products from where they are made to intermediaries and end users. Intermodal transportation - ANSWER-2 or more transportation modes used in combination Piggyback - ANSWER-shipping that uses truck trailers and railway flatcars Fishyback - ANSWER-trucktrailers and water carriers Birdyback - ANSWER-truck trailers and air carriers Freight forwarders - ANSWER-organizations that consolidate shipments from several firms into efficient lot sizes. Megacarriers - ANSWER-freight transportation firms that provide several modes of shipment Tying agreement - ANSWER-an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. Full-line forcing - ANSWER-a supplier requires that channel members purchase the suppliers' entire line to obtain any of the suppliers' products. Exclusive dealing - ANSWER-a situation in which a manufacturer forbids an intermediary to carry products of competing manufacturers. Retailing - ANSWER-All transactions in which the buyer intends to consume the product through personal, family, or household use ultimate consumers - ANSWER-Buyers in retail transactions are the __________ Retailer - ANSWER-an organization that purchases products for the purpose of reselling them to ultimate consumers. Ex: Pac-Sun, Wal-Mart General-Merchandise retailers - ANSWER-a retail establishment that offers a variety of product lines that are stocked in considerable depth Department stores - ANSWER-(distinctly service-oriented) large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management. Ex: Macy's, Sears, Dillards. Discount stores - ANSWER-self-service, general-merchandise stores that offer brand names and private brand products at low prices. Ex: Wal-Mart, Target, Kmart Convenience store - ANSWER-small self-service store offering narrow product assortment in convenient locations. Ex: 7-Eleven Supermarket - ANSWER-self-service store offering complete line of food products and some nonfood products. Ex: Publix, Kroger Superstore - ANSWER-giant outlet offering all food and nonfood products found in supermarkets, as well as most routinely purchased products.Ex: Walmart Supercenters Hypermarket - ANSWER-combination supermarket and discount store; larger than a superstore. Ex: Carrefour Warehouse club(buying club) - ANSWER-large-scale, members-only establishment combining cash-and-carry wholesaling with discount retailing.Ex: Costco Warehouse showroom - ANSWER-facility in a large, low-cost building with large on-premises inventories and minimal service. Ex: Ikea Specialty retailers - ANSWER-offer substantial assortments in a few product lines. Traditional specialty retailers (limited-line retailers) - ANSWER-stores that carry a narrow product mix with deep product lines. Ex: Foot Locker, The Gap Can be called single-line retailers if they carry unusual depth in one main product category. Category killers - ANSWER-a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability.Ex: Home Depot Off-price retailers - ANSWER-stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts. Ex: Marshalls, Ross, T.J. Maxx Neighborhood - ANSWER-shopping centers usually consisting of several small convenience and specialty stores Community - ANSWER-shopping centers with one or two department stores, some specialty stores, and convenience stores Regional - ANSWER-a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers Superregional - ANSWER-a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away Lifestyle - ANSWER-a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores. Power - ANSWER-a type of shopping center that combines off-price stores with category killers Retail positioning - ANSWER-identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment Atmospherics - ANSWER-the physical elements in a store's design that appeal to consumers' emotions and encourage buying Category management - ANSWER-a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers Direct marketing - ANSWER-the use of telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet. Nonstore retailing - ANSWER-the selling of products outside the confines of a retail facility Catalog marketing - ANSWER-type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, phone, or the internet Direct-response marketing - ANSWER-a type of marketing in which a retailer advertises a product and makes it available through mail or phone orders For instance, T.V. commercial offering exercise machines Telemarketing -the performance of marketing-related activities by phone - ANSWER-... Television home shopping - ANSWER-a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with credit card. Ex: Home Shopping Network Online retailing - ANSWER-retailing that makes products available to buyers through computer connections. Ex: Office Max Direct selling (door-to-door selling) - ANSWER-marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace Party plan - ANSWER-consumer acts as host and invite friends and associates to view merchandise in a group setting where a sales person demonstrates products Automatic vending - ANSWER-the use of machines to dispense products. Ex: Redbox Franchising - ANSWER-an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration Wholesaling - ANSWER-transactions in which products are bought for resale, for making other products, or for general business operations Wholesaler - ANSWER-an individual or organization that sells products that are bought for resale, for making other products, or for general business operations Merchant - ANSWER-Independently owned businesses that take title to goods, assume ownership risk, and buy and resell products to other wholesalers, business customers, or retailers Full-service wholesalers - ANSWER-merchant wholesalers that perform the widest range of wholesaling functions. Ex. Universal Corporation General-merchandise wholesalers - ANSWER-full-service wholesalers with a wide product mix but limited depth within product lines. Limited-line wholesalers - ANSWER-full-service wholesaler that carry only a few product lines but many products within those lines. Specialty-line wholesaler - ANSWER-full-service wholesaler that carry only a single product line or a few items within a product line Rack jobbers - ANSWER-full-service, specialty-line wholesalers that own and maintain display racks in stores Limited-service wholesalers - ANSWER-merchant wholesalers that provide some services and specialize in a few function Cash-and-carry wholesalers - ANSWER-customers pay cash and furnish transportation Truck wholesalers (jobbers) - ANSWER-transport products directly to customers for inspection and selection Drop shippers ( desk jobbers) - ANSWER-take title to goods and negotiate sales but never actually take possession of products Mail-order wholesalers - ANSWER-sell products through catalogs Agents - ANSWER-intermediaries that represent either buyers or sellers on a permanent basis Ex: Selling agents, Commission merchants Broker - ANSWER-intermediaries that bring buyers and sellers together temporarily Manufacturers' agents - ANSWER-independent intermediaries that represent two or more sellers and usually offers customers complete product lines Selling agents - ANSWER-intermediaries that market a whole product line or a manufacturers' entire output Commission merchants (factor merchants) - ANSWER-agents that receive goods on consignment from local sellers and negotiate sales in large, central markets Sales branches (manufacturers' wholesalers) - ANSWER-manufacturer-owned intermediaries that sell products and provide support services to the manufacturer's sales force Sale offices - ANSWER-manufacturer-owned operations that provide services normally associated with agents Integrated marketing communications - ANSWER-coordination of promotion and other marketing efforts for maximum informational and persuasive impact Communicat