Midterm 2

QUESTION ANSWER What are the benefits of segmenting and target markets ? · it can help you to enlarge your customer base as it allows you to adjust your marketing mix (how you service and promote · helps to avoid head-on competition it) · expand product line · Identify early adapters, focus on most profitable customers * you must figure on example: who is who A Google pixel phone making ⊥ gathering data their ad segmented to people

QUESTION ANSWER What is segmenation bias ? a criteria to classing buyers, to get a fuller picture of its customers and create real value for them

QUESTION ANSWER how to Identify B2B Markets ? -> helps to separate business customers with common buissness needs ⊥ B2B sellers often Identify their customers by .... geographic area's behaviors product usuage rates -> They also will provide customers that order many goods Promotions and special deals -> Direct mail compaigns and trade shows are a way to reach B2B markets

QUESTION ANSWER What is concentrated marketing ? targeting a very select group of customers -> can be risky

QUESTION ANSWER a position statement Once you figure out which marketing segment you plan to target you develop a logon statement ⊥ Communicating within or outside your company how you want costomers to perceive your product ↑ od (point of differentiation) # key elements the unique aspect of your offering that cannot -> target market characteristics be found in a competitive offering -> customer needs -> customer benefits -> clear points of differentation * example of what it should sound like for (target audience), (brandname), is the Frame of reference category that delivers (benefit Pod) because only (brand name) is the Creason to belive

QUESTION ANSWER what is an offering ? products and services designed to deliver value to customers G either fulfilling needs, to satisfy their wants or both -> offering's consist of a product or an tangible good ppl can buy or sell or own reatures or offering's mater differently to each customer

QUESTION ANSWER what is the service dominant approach to marketing ? I integrates the product, price and services of an offering. -helps marketers think like customers, helping to add value to their products

QUESTION ANSWER what are the critics of the service-dominant approache <diagrams the product dominant approach also integrates services (not prices -> the core of an offering is the product but it may be argumented by various accessories or services known as the argumented product argumented -> the accessories (wariety, finance, traded value product core > an ipad

QUESTION ANSWER how do customer's help with the creation or benefits ? Customers are alot more Involved in the creation or benefits example: if you buy campbell's soup, a consumer may prepare that can as a bowel of soup, for the consumer they are at receiving the benefits until the soup is eaton. Thus, the consumer plays a part in the creation of the final produce. If someone consumed a service. were to serve you the soul then you ate the produce and

QUESTION ANSWER What is a products technology platform ? T he core tech that a product is built from e xample: Ipad and ipadios, knowledge

QUESTION ANSWER what is a product line ? and line depth ? a group of relating offerings, they make marketing strategies more efficient example: apples macbook product line The amount of offerings there are in a single product line which tells you if a product line is broad or narrow is the line depth -> line extension if apple introduces a new ipad to the ipad family

QUESTION ANSWER What are product levels ? There are 4 offering levels (macbook air 4 product 1) Basic offering category The device it selv 3 2) the offering's tech platform the macOS or storage system used by the mac product line 3) the product line 2 where the mac belongs ↑ ech Capples macbook line of laptop 5) I 4) the product category prod. where the offering belongs Claptops as opposed to desktops)

QUESTION ANSWER What are the 4 general category's of consumer offerings ? They are how a consumer wants to purchase things 1) convience offerings 2) shopping offerings 3) Specialty offerings 4) unsought orderings

QUESTION ANSWER what is an convience offering ? products or services consumers generally don't put much effort into shopping for, they see little difference in competing brands example: bread, a consumer might chose the store where the bread but be willing to buy whatever brand of bread the stone has avalible

QUESTION ANSWER What is a shopping offering ? where a consumer will make an effort to compare and select a brand they believe there are differences between offerings and want to find the right one or the best price. They may go to many different locations or take time reading reviews care about brand names example, the store you usually go to is sold out of the toothpaste you want, you are

QUESTION ANSWER what is a specialty offering ? highly differentiated offering's, the brands under which they are marked are very different across companies -> They are avalible through limited channels -> profit margin tends to be greater example: a ducati motorcycle is likely to be far different feature-wise than a suzuki

QUESTION ANSWER the difference between market offerings ? The consumer's decision is the difference as one consumer may see one thing as a convience offering where as another might see the same of facing in

QUESTION ANSWER What is an unsought offering ? A buyer does not generally want to have to shop for until they need them example: Funeral or towing Service

QUESTION ANSWER What are the bib offerings ? -> They are categorized by how they use them 1) Capital equipment 2) raw manufactoring offerings 3) original equipment manufacturer (OEM) 4) maitence, repair, and operations (MR0) 5) facilitating offerings

QUESTION ANSWER what are capital equipment offerings ? -> any equipment purchased and used for more than 1 year and depreciated over its useful life. example: machinery used in man factoring facility

QUESTION ANSWER what are raw material offerings ? -> material firms offer other firms so they can make a product provide a service. They are processed only to the point required to economically distribute them -> when selling it is usually based on price and avalibity example: lumber, iron, nikel, copper I if turned into sheets of * teal, it is considered a manufactored material be its been processed into a finished good and not a 5 tand-alone product

QUESTION ANSWER What are maitence, repair and operation offerings ? (MRO) -> referred to as products and services used to keep a company functioning, often sold by distributors -> buyer would rather purchase from a vendor is buying multiple products -> they usually sell thousands of products, sometimes online example: Janitorial supplies, hardware equipment, nuts, bolts

QUESTION ANSWER what are facilitating offerings ? products or services that support a company's operations but not part of the Pinal product it sells They can be important to marketing managers who are Selecting a vendor for marketing research -> many companies that supply facilitating offering's try to build strong relationships with their clients example: banking, transporation services, copiers' computers

QUESTION ANSWER What's branding ? Branding is the set of activities designed to create a brand and position in the minds of consumers -> I companies with the same name can create confusion among consumers -> a branding strategy is one that creates consumer recognition of what the brand means a brand is a name, pic, design, or symbol, or combination of those items a brand mark is the symbol (like swoosh)

QUESTION ANSWER What is brand extension ? -> involves utilizing an exsiting brand name or mark for a new product category -> usually this is done because they want to extend there product line and already have a good repulation example: Black decker make power tools consumers under its black and decker brand. Whereas, there more do it yourself tools are under there dewalt brand

QUESTION ANSWER what is cannibalization ? something that firms need to consider when branding a new ordering -occurs when a firm's new ordering eats into the sales or one of its older offerings Busually occurs with a line extension not a completely new offering

QUESTION ANSWER what are packing decisions ? The package can be apart of the brand it need to fulfill these functions .... · communicating the brand and its benefits · protecting the product from damage and contamination · preventing leakage · government-required warning and information labels

QUESTION ANSWER What are the different packaging options ? primary packaging -> holds a single retail unit of product -> they can be bundled together example: a bottle of coke in a 6 pack Secondary packaging -> holds a single wholesale unit of product -> they are more for retailers then consumers -> they don't need to have labels - Protects individual products during sniping part of instore display's tetiary package 3 -> for shipping and expiciently handling large quantities example: shipping cases to a grocery store requires them to be stacked on pallets (wooded Platforms) then wapped in Plastic and moved by a forklift truck

QUESTION ANSWER whats the product mix ? a product mix is a complete set of products offered by a company -> made up or various product lines of each of the product lines will contain a number of product categories

QUESTION ANSWER What is a product line ? a group closely related products with Similar functions -> the number of product lines is consider width -> the number of categorys within a product line is the depth - the combination of product widen or depth form the overall produce mix example product lines <product width) L 3 Campbells product mix & 5 oup sauces beverages cookies' Snack s Categories broths bis to v8 crackers pretze <product Crisps deptn) condensed pace -goldfish I -ready to serve Farm cookies late july healthy request

QUESTION ANSWER what is line stretching ? a strategy where a company chose to expand its current product range -> can be done by going down a market or up a market or both ways example: gap deciding to launch a new clothing product range which is a more premium produces like banana republic, they also stretch down by introducing the value brand old many

QUESTION ANSWER what is line willing ? a strategy of adding more products to an exsisting product line, in order to fill any potential product gaps Lanew product) example: new varitions of liquid laundry detergent (tide hygienic clean or water tide plus)

QUESTION ANSWER What is line moderization ? a strategy where you look to improve existing products in the market by adding new features or improving quality issues prolonging the life of a product it inclueds line featuring: a strategy where a product is featured through a particular retailer often at a discounted price line pruning: a strategy of remitting or elimination underperforming products

QUESTION ANSWER What are the different manager positions ? Brand manager -the person who is responsible for all business decisions regarding offerings with one brands buying decisions -decisions based on profit and loss, brands market, pricing product manager -> some who is responsible for a particular product or product line -> advertising, which offers to include category manager I responsible for business decisions with a broad group of offerings -> a retail level category manager is responsible for more than one manufactor market manager -> responsible for business decisions with a market products I regional marketing managers vertical market -hospitals, heath care professions or doctor officies are apart of the vertical marketing called vertical marketing ⊥ the managers of these are called vertical marketing managers

QUESTION ANSWER What is the "new offering development process" 1) idea generalization the basic idea is created and described 2) idea screening the cost, profits and potential sales of an offering are calculated at disp price levels, they also consider how well the offering bits in with its competitive strategy 3) feature specification detailed specifications for the product are developed -> reatures, pricing 4) development the actual offering is designed 5) testing the offering is tested, in the lab and with real customers 6) launch (comercilization) it is made avalible to customers x) evaluation it is evaluated as to weather it is delivering the appropriate value to customers, meeting the Firms business goals

QUESTION ANSWER ~ ho are lead users ? customers who are good at generating new product ideas or application of products, they are often courted by manufacturing for this purpose

QUESTION ANSWER what is the product life cycle ? The stages the product goes through after development 1st stage introduction stage -marketing costs are higher, profits are lower they try to get potential customers to try a product or service they must have enough distribution outlets to get their product or service to customers and quanties must meet demand -they want consumers to want their new oppering over exsisting ones -> they use a strategy's Expenetration pricing using a low initial price to encourage many customers ⊥ ⊥ skimming setting a high initial price for a product, to quickly recoup investment for development and marketing the growth stage (and stage) -increasing sales, more competitors and higher profits atraces competitors who enter the market very quickly -promotions happen during this that focus more on specific benefits maturity stage (3rd stage The number of new customers potential customers declines, sales begin to level off, they usually decrease there last the longest prices -to remain competitive, they modify the target market, entering a different geographic market, modify product the decline stage (4th stage) -Sales decrease and continue to drop This occurs be or changes in consumer preferences, tech advances and alternatives that satisfy the need better This leads to harvesting reducing all costs spent on it, may result in profit from the product until inventory runs out divesting dropping product from its offspring or selling the brand

QUESTION ANSWER maturity stage stand adap

QUESTION ANSWER What is the production adoption curve ? can be called diffusion of innovation, understanding the different types of consumers and now they react to new products Inovators typically the first to buy new product when they hit the markets, even when there may be bugs, they are not price sensitive and are highly knowledgeable Early adopters take fewer risks and tend to wait for favourable feedback from the innovators. They usually influence the early majority adopters Early majority adopters aviod more risks by waiting for problems in the product to be fixed Late majority adopters They are more risk adverse, as they wait for a product to reachine in Leggard adoptive avoid change stick to previous tech until they can t innovators early ema uma Leggards

QUESTION ANSWER what is a continuum of evaluation ? LeFt -products that do not have a service component high qualities easily evaluated before after purchase ex:clothing, Jewlery, Furnature, houses, cars middle include both physical and intangiable high experince qualities ex.resturant meal, vacation, haircut, chidcare the right -do not include physical product elements -purly services difficult to evaluate ex: auto repair shop. To repair, legal Service, root canal, medical dignosis

QUESTION ANSWER what are the distinctive characteristics or a service ? Intangibility -products that you cannot experience before purchase ⊥ it is important to tangibilize the intangible aspects or a service (where, who produces the service, equipment used, quality [price]) ex. lawyer, Flight, tattoo nseparability service must be produced and consumed at the same time ⊥ implications, hours operated (if not avaliable loss of profit) ex:hairdresser, stylist is cutting and you are receiving haircut at the same time. variability the services provided by people can vary as different people can Perform it address these problems by a good training hiring -standarizing the service performed I keep an eye on consumer satisfication x high levels of varibilty be we arent perfect * Perishability services become perishable because they only operate for a certain amount of time Cresturant seating maximized ( -> customer service demands plucuate, if a service is not avalible when a customer needs it they lose profit what can be done to improve C offer differential pricing during off peak times ( $ 2 tuesdays movies I hire part time workers during non peak times high level of perishability plane leaving with empty seats

QUESTION ANSWER how do customers evaluate services ? Reliability they expect that a service will be provided dependably, accurately and consistently Responsiveness -They expect responsibility for service dilivery canswering phones intimal Assurnace -ability to convey knowledge and courtesy, allowing customers to feel to feel trusted Empathy showing customers attention, learning names tangibles the tangible aspects avalible in service delivery process, consider the facilities, tools, equip and delivery

QUESTION ANSWER What is the service quality gap model ? -> failures that may occurs during service delivery process 1) Knowledge gap disconnect between what a customer wants or expects in service quality AND what the management team of the service provider thinks that a customers wants or expects clack of understanding by service provided 2) standards gap differences between what the management team wants be actual service delivery specification that the management develops for employees to follow in delivering the service. Cmanagiments inability to translate customer expectations into delivery systems that can meet those needs) 3) Delivery gap dissoconnect between service standards and service delivered employees are unable to do what should be done 4) Communications gap when customers expect one thing but it is not delivered (not being honest) 5) expectations gap difference in what customers expect from the service (prior to purchase) and what the customers persive of the service after purchase (posorada)

QUESTION ANSWER whats the importance of price ? Companies must understand the correlation between what a customer is willing to pay and what is economically sustainable with their requirements of their shareholders -> price can sometime reflect quality

QUESTION ANSWER what is autodynamic pricing ? T he price varies according to demand or target group example: seeing prices on different websites at different times or day

QUESTION ANSWER What are price reduction methods ? -> lowering price promotions -> Loyalty programs

QUESTION ANSWER how do companies set price objectives ? profit oriented focus on earning a targeted to Set price objective objective max profits B estimate demand Sales oriented max market share costs' profits objective max sales ⑬ determine pricing strategy status ano maintaing the status quo ⑬ objective a meeting or equaling the Select pricing competitors prices or keeping tactics its current prices

QUESTION ANSWER how do you estimate demand ? you look at ..... Buyers ⊥ how buyers will respond their price elaticity (now sensitives elastic when they are highly sensitive competitors >how competitors price and sell products determine a companys pricing decisions The economy government laws and regulations ⊥ if the economy is weak, people are unemployed, companies may lower their pricing Currency by exchange rates have an expect

QUESTION ANSWER how do companies determine costs ? you look at product development, testing, packing promotion i distribution costs and base if off there

QUESTION ANSWER how do you establish profit level ? when total cost = total revenue you get the breakeven point -> for a company to be profitable, the her must be greater than its total cost, it is exceeds total costs company suffers a loss CM: MSp-VC BEP = T Fc = cm# Bep = 200,000: (15-1) = 200,000 = 8=28,000 units to breakeven

QUESTION ANSWER how to companies chose a pricing * trategy ? They select a strategy based on -> stage of development of a new market -> stage of the products life cycle -> relaunch of an existing product

QUESTION ANSWER what's different in the Introductory stage with price strategy's ? they can vary depending on type or product, competing products, the extra value the product provides be cost of developing. strategies used in this stage are Penetration pricing low price, get as many customers as possible, lots of advertising to increase awarness skimming or giving the produce free-setting a high price, attracting highend customers I basic free app encourging customers to sign up

QUESTION ANSWER What are way's companies set their prices for existing products or services ? cost-plus pricing taking the cost of the produce then adding profit to determine price chelps ensure provit) I can be marked down or up odd-even pricing when a company prices a product a few cents or below the next amount (5.99) prestige pricinge a higher price is utilized to give an offering a high quality image

QUESTION ANSWER what are price tactics ? Pricelining / price level used when there is little ways to differeniate the products in terms of functions (iphone in versions Demand backward longing creating products based on pricing, knowing customers o offerings Loss leader pricing everyday low pricing, lowering one or more items to get people instores often are in front page of adds, "lead" the promotion Price bundling different offerings are sold together at a lower price the reg.total price captive pricing a strategy companies use when customers buy a product at a certain event, no substitutes (water at a festival) Product mix pricing setting a base product price low but the needed accessories high <printer Bink) I part pricing different charges, phone mins (you have 300 pays every extramin) Payment pricing breaking up payments in small amounts promotion pricing short-term to get people into the store Dynamic pricing the price of an offer varys by their browser or search behaviour subscription pricing applied to software (netaix, amazon prime via, frank oak style plan) sealed bid pricing buying or selling a product in sealed bids, ebay stockx, negotiating w/sellers going rate pricing buyers all pay the same price regardless of where or who they buy from

QUESTION ANSWER What are price adjustments ? quality or seasonal discounts For orgin meaning the title changes at the orgin who product is purchased and the buyer pays shipping uniform delivered pricing buyers pay the same Charges shiping no matter where they live trade allowance a manupactor pays a stove FOR destination, title changes after product is transported to advertise and seller pays shipping charges recipical agreements merchants agree to promote & acnother a bounce back sellers give customers discount cards or coupons after purchasing a product

QUESTION ANSWER What are channel partners ? Companies who work with other companies in order to promote or sell their products -> aproduct travels through a marketing channel to reach the finial user Call channel partners are responsible for a products success)

QUESTION ANSWER What are intermediaries ? products or services that pass through multiple companies before they get to you. -> help sell products more efficiently -> they have certain capabilities producers need

QUESTION ANSWER what effects channels ? -mainly the marketing environment -changes in tech -changes in consumer needs

QUESTION ANSWER What is supply chain be managements Supply chain-producers of raw materials that go into a product 1 -- management-monitoring improving efficiency of their Supply chain

QUESTION ANSWER what are types or channel partners ? wholesalers obtain large quantities of products from producers Breaking getting an assortment of brands bulk merchant wholesalers also known as distributors, take tital to the goods limited service offer little service to companies at a low price whosaiers ⊥ Rack Jobs Cremain title, sell magazines ⊥ dropshippers (take title but don't have legal possession) Find sellers pass orders to producers Brokers-real estate agent, don't purchase or take titles Retailers buy then distribute products (nike, apple) ⊥ grocery stores, convience stores, departament stores

QUESTION ANSWER explain a B2C market channel ? producers sell to channel markets who sell to consumers

QUESTION ANSWER explain B2B channel markets ? producers sell to market channels who sell to Buissness or government user

QUESTION ANSWER What is disintermediation ? if an intermediary isnt adding value to your process, you cut them out

QUESTION ANSWER What is a strategic channel alliance ? a way for companies to increase their sales

QUESTION ANSWER The act of directly purchasing or creating a company in a foreign country is referred to as making a direct foreign investment. what are the dire International marketing Channels ? Joint venture a company that operates where you want to expand (share profits/losses) Export your products a company sells their products directly to other companies abroad Francing-grants an independent operator the right to use a companys name moonl Licensing a company buys the right to use another companies manufactoring process direct foreign investment

QUESTION ANSWER what are channel functions I disseminate marketing communications promena brands (push/pull sorting a regrouping I storing a managing inventory -> distributing products -> assume ownership risk extend credit -> share marketing other infor

QUESTION ANSWER what is a push strategy ?

QUESTION ANSWER what are marketing channel strategies ? channel selection selecting best channel -> types or customers now customers want to buy corit your selling to a business) -> tpes of product your produce affects your channel clonger marketing channel longer -> channel partner capabilities Sheir lives) your ability vs. The ability of other types of companies -> the business environment tech economic factors, tech changes -> competing products marketing channel how competitors sell products

QUESTION ANSWER what factors arrest product intensity of distribution ? #of intermediares to little limits brand exposse to many can impact brand image intensive distribution offering their products in as many different outlets as possible selective distribution selling as select outlets for dirt pricing exclusive distribution selling products through or few outlets gray market a market where a product hast authorized there produces to be SOIQ.

QUESTION ANSWER What is channel power strong channel power are channel leaders millions or customers (

QUESTION ANSWER What is channel compilict ? dispute amoung channel members

QUESTION ANSWER what is vertical horizontal confict ? Vertical I different types of members (manufracter (agent) norienal I same whaesalers

QUESTION ANSWER what is channel Integration ? vertical marketing system: Channel members formally agree to closely cooperate with one another but have no affiliation with one another ⊥ vertical integration, aknannel member takes over the function of another member horizonal marketing system I companies at the same channel level (2 seiers) agree to cooperate with one another (also horiental integration)

QUESTION ANSWER