CSUF MKTG 351 EXAM 2 |138 QUESTIONS AND ANSWERS|GUARANTEED SUCCESS

target market the segment a company chooses to serve true segments can be categorized as: age, gender, location, purchasing powers, etc. substantiality each segment should be large enough that a meaningful marketing strategy cab be devised to be profitable measurability the importance of assessing the size of segments that marketers want to target as it is the starting point for developing a marketing strategy accessibility segments should be reachable demographic segmentation easy to measure and widely used, based on age, income, gender, and ethnicity psychographic segmentation difficult to measure as demand patterns are based on personalities and lifestyles (doesn't give complete picture) geographic segmentation based on geographic areas such as national boundaries and regions benefit segmentation the process of grouping customers into market segments according to the benefits they seek from the product usage rate segmentation a segmentation strategy based on the differences among heavy, medium, and light users of a given product true heavy users may be a small fraction of the market but account for a large portion of consumption, making them an attractive segment to pursue true some companies might go after light users as they could be easier to attract or may have specific needs that haven't been met from dominant players segmentation of business markets segmented on the basis of company characteristics like company size, type of company, nature of industry, geographical location, etc. buying process a segmentation focused on what companies value in their purchases like price, service, quality, etc. undifferentiated targeting when a company decides to ignore all segments and goes after the entire market concentrated targeting when a company channels all their efforts in a very focused manner niche targeting when a company may focus on a very small segment not catered to by other companies multi segment targeting when companies offer different brands in individual segments so they aren't competing with their own brands product differentation how companies distinguish their products from competitors product positioning how consumers perceive a product or brand decision support system a computer-based information system that provides a flexible tool for analysis and helps managers focus on the future marketing research project driven and seeks to gather and analyze a specific, well-defined set of data (follows a systematic process in a series of sequential steps) marketing intelligence aka competitive intelligence, gathering of data that may be useful such as scanning the environment for latest trends or competitor moves marketing research steps identify the problem, develop the research plan, collect relevant data, develop findings, prepare and present data exploratory research sometimes used as a first step to other types of research as it gives a feel for situations. involves small samples, open-ended questions, secondary research, interviews, and focus groups descriptive research describes the characteristics of the market in a conclusive manner and is based upon large samples (typically involves surveys) performance monitoring research tracks a company's brand performance over time through sales, market share, and customer satisfaction casual research aims for establishing causality amongst variables (A caused B), uses experiments secondary research typically the first step in data collection as it is readily accessible, already accumulated information that is gathered inexpensively syndicated data a form of external data that are supplied from a common database or other companies to subscribers for a fee mail surveys useful for short, structured questions but has a low response rate and is the slowest of all methods. usually the cheapest telephone surveys can be completed within a short amount of time, interviewer has control over sequencing of questions and can ask open-ended ones. is more expensive but provides faster response personal interviews gives the most amount of flexibility in terms of information collecting and have the highest response rate. often the most expensive internet surveys can be developed and hosted very quickly, responses can be monitored on a real time basis. cost is quite low stratified sampling a variation of random sampling; the population is divided into subgroups and weighted based on demographic characteristics of the national population systematic sampling the selected sampling units are spaced regularly throughout the population, every n'th person is selected convenience sampling choosing individuals who are easiest to reach judgement sampling the researcher uses his/her own judgement in choosing the subjects quota sampling nonrandom subgroups snowball sampling recruitment of participants based on word of mouth or referrals from other participants frame error an error that occurs when a sample drawn from a population differs from the target population nonresponse error a systematic bias that occurs when the final sample differs from the planned sample (when people do not respond) response error when respondents have impaired memory or do not respond accurately (socially desirable answers) random error an error that occurs when the selected sample is an imperfect representation of the overall population (too small) true the task of actual data collection is typically given to field service firms as companies rarely have their own data collection teams product a tangible offering or satisfaction of need/want, most important of the four p's (can be item or service) convenience goods frequently purchased and relatively inexpensive items that are bought on impulse or doesn't involve planning. brands must remain on the consumers mind (extensive distribution for easy availability) shopping goods infrequently purchased, big ticket items that consumers learn about prior to purchasing (selective distribution through outlets) specialty goods infrequently purchased, very expensive items where buyers have a clear preference for brands (only select retailers marry carry these brands) unsought goods products that customers don't necessarily want or hesitate to buy (sometimes require aggressive selling approach) product line width the different types of products carried by a company (helps diversify their risks by not relying on one thing) product line depth the variations within the product type (helps companies appeal to consumers with different preferences) product line contraction eliminating non-performing product items secondary packaging carries a marketing role through messages with legal and labeling information brand equity the value associated with a brand brand loyalty consistent preference for one brand over all others brand identity includes brand name, logo, and a tagline or slogan brand extension the use of the same brand name for new products being introduced to the same or new markets (familiarity is leveraged) co branding when two or more brands come together to leverage their strength for the benefit of the brands involved