MKTG 380 EXAM 2-4 STUDY GUIDE
Market Segmentation - Answers -dividing the total market into smaller segments to
select customers to serve
Different ways to segment a market - Answers -geographic- nations, states, counties,
cities, neighborhoods; population density, climate, changes in customer preferences
demographic- consumer needs, wants, and usage rates often vary closely with
demographic variables
psychographic- social classes, lifestyle, or personality traits
behavioral- knowledge, attitudes, uses, or responses to a product
multiple segmentation - Answers -segmenting based on many variables is used to
identify smaller, better-defined target groups
criteria for successful segmentation - Answers -measurable-size purchasing power
accessible- reach
differentiable-distinguishable and respond differently
actionable- effective programming can be created
target market - Answers -choosing one or more segments for which to design your
marketing operations
targeting strategies - Answers -undifferentiated- mass marketing, single marketing mix
reaches target market
differentiated- multiple marketing mix reaches multiple target markets, targets several
segments with different message, more expensive
concentrated (niche)- single marketing mix reaches part of target market, small share of
large market
differentiation - Answers -competitive advantages to build a position
positioning - Answers -way a product is defined by consumers on important attributes,
the place the product occupies in a consumer's minds relative to competing products
based on perceptions, impressions, feelings
positioning statement - Answers -"to (target segment and need) our (brand) is (concept)
that (point of difference)"
product - Answers -anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want
,service - Answers -product that consists of activities, benefits, or satisfaction that is
essentially intangible and does not result in the ownership of anything
3 levels of products - Answers -augmented- delivery, credit, product support, warranty,
after sale service
actual product- brand name, quality level, packaging, design, features
core customer value-What is the Buyer actually buying?
Ex: iPad- connectedness, self-expression, entertainment
why "manage" the customer experience? - Answers -send consistent message of
company at all points of contact
decisions regarding individual products/services, product lines, and product mixes -
Answers -Product attributes
branding
packaging
labeling
product support services
Goal of all these decisions is to create value for customer.
Service Profit Chain - Answers -Service Profit Chain- links service firm profits with
employee and customer satisfaction. Internal service quality and satisfied, product
employees lead to greater service value, satisfied/loyal customers, and healthy service
profits and growth.
internal marketing - Answers -the service firm must orient and motivate its customer
contact employees and supporting service people to work as a team to provide
customer satisfaction. Internal marketing must precede external marketing- building
brand ambassadors.
Chick-Fil-A move
4 major brand strategy decisions required in managing a brand - Answers -Brand
positioning
Brand Name
Brand Sponsorship (manufacturer's brand, private brand, licensing, co-branding)
Brand Development
brand development - Answers -line extension-apple, cheerios; existing product and
brand name
brand extension- special K, new product, existing brand
multibrand- soft drinks, existing product, new brand
new brand- new product, new brand
, new-product development process - Answers -1. idea generation- internal or external
(crowdsourcing) systematic search for new product ideas
2. Idea Screening- ask about value proposition, size of target market, potential growth,
competitive landscape, competitive advantages, profitability, growth strategy
3. Concept Development and Testing- product idea, concept, image, white card testing
4. marketing strategy/development- initial marketing strategy for introducing the product
to the market; includes description of the target market, value proposition, sales/profit
goals
5. Business Analysis- assess sales, costs, and profit projections to determine if satisfy
the company's objectives
6. Product Development- determine if the concept can be turned into a workable market
offering
7. Test Marketing-introduced into realistic markets, provides experience
8. Commercialization- introduction to the new product, when/where to launch
crowdsourcing - Answers -Inviting broad communities of people into the new-product
innovation process: customers, employees, independent scientists, and researchers
and even the public at large
when to test market - Answers -- New product with a large investment
-Uncertainty about product or marketing program
3 aspects of managing new product development that helps lead to success - Answers
-1. Customer-Centered: involves new ways to solve customer problems and create
more customer satisfying experiences
2. Team-based: including all aspects of business- marketing, financial, design, etc-
saves time and increase effectiveness
3. Systematic: innovative development approach that collects, reviews, evaluates, and
manages new-product ideas
product life cycle - Answers -product development
introduction
growth
maturity
decline
pricing strategies - Answers -value-based
good-value
value-added
cost-based
cost-plus
competition-based
target costing
Market Segmentation - Answers -dividing the total market into smaller segments to
select customers to serve
Different ways to segment a market - Answers -geographic- nations, states, counties,
cities, neighborhoods; population density, climate, changes in customer preferences
demographic- consumer needs, wants, and usage rates often vary closely with
demographic variables
psychographic- social classes, lifestyle, or personality traits
behavioral- knowledge, attitudes, uses, or responses to a product
multiple segmentation - Answers -segmenting based on many variables is used to
identify smaller, better-defined target groups
criteria for successful segmentation - Answers -measurable-size purchasing power
accessible- reach
differentiable-distinguishable and respond differently
actionable- effective programming can be created
target market - Answers -choosing one or more segments for which to design your
marketing operations
targeting strategies - Answers -undifferentiated- mass marketing, single marketing mix
reaches target market
differentiated- multiple marketing mix reaches multiple target markets, targets several
segments with different message, more expensive
concentrated (niche)- single marketing mix reaches part of target market, small share of
large market
differentiation - Answers -competitive advantages to build a position
positioning - Answers -way a product is defined by consumers on important attributes,
the place the product occupies in a consumer's minds relative to competing products
based on perceptions, impressions, feelings
positioning statement - Answers -"to (target segment and need) our (brand) is (concept)
that (point of difference)"
product - Answers -anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want
,service - Answers -product that consists of activities, benefits, or satisfaction that is
essentially intangible and does not result in the ownership of anything
3 levels of products - Answers -augmented- delivery, credit, product support, warranty,
after sale service
actual product- brand name, quality level, packaging, design, features
core customer value-What is the Buyer actually buying?
Ex: iPad- connectedness, self-expression, entertainment
why "manage" the customer experience? - Answers -send consistent message of
company at all points of contact
decisions regarding individual products/services, product lines, and product mixes -
Answers -Product attributes
branding
packaging
labeling
product support services
Goal of all these decisions is to create value for customer.
Service Profit Chain - Answers -Service Profit Chain- links service firm profits with
employee and customer satisfaction. Internal service quality and satisfied, product
employees lead to greater service value, satisfied/loyal customers, and healthy service
profits and growth.
internal marketing - Answers -the service firm must orient and motivate its customer
contact employees and supporting service people to work as a team to provide
customer satisfaction. Internal marketing must precede external marketing- building
brand ambassadors.
Chick-Fil-A move
4 major brand strategy decisions required in managing a brand - Answers -Brand
positioning
Brand Name
Brand Sponsorship (manufacturer's brand, private brand, licensing, co-branding)
Brand Development
brand development - Answers -line extension-apple, cheerios; existing product and
brand name
brand extension- special K, new product, existing brand
multibrand- soft drinks, existing product, new brand
new brand- new product, new brand
, new-product development process - Answers -1. idea generation- internal or external
(crowdsourcing) systematic search for new product ideas
2. Idea Screening- ask about value proposition, size of target market, potential growth,
competitive landscape, competitive advantages, profitability, growth strategy
3. Concept Development and Testing- product idea, concept, image, white card testing
4. marketing strategy/development- initial marketing strategy for introducing the product
to the market; includes description of the target market, value proposition, sales/profit
goals
5. Business Analysis- assess sales, costs, and profit projections to determine if satisfy
the company's objectives
6. Product Development- determine if the concept can be turned into a workable market
offering
7. Test Marketing-introduced into realistic markets, provides experience
8. Commercialization- introduction to the new product, when/where to launch
crowdsourcing - Answers -Inviting broad communities of people into the new-product
innovation process: customers, employees, independent scientists, and researchers
and even the public at large
when to test market - Answers -- New product with a large investment
-Uncertainty about product or marketing program
3 aspects of managing new product development that helps lead to success - Answers
-1. Customer-Centered: involves new ways to solve customer problems and create
more customer satisfying experiences
2. Team-based: including all aspects of business- marketing, financial, design, etc-
saves time and increase effectiveness
3. Systematic: innovative development approach that collects, reviews, evaluates, and
manages new-product ideas
product life cycle - Answers -product development
introduction
growth
maturity
decline
pricing strategies - Answers -value-based
good-value
value-added
cost-based
cost-plus
competition-based
target costing
