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MKT305 Exam 3 Study Guide

by: Taylor Devereux

MKT305 Exam 3 Study Guide MKT 305

Marketplace > Colorado State University > Business > MKT 305 > MKT305 Exam 3 Study Guide
Taylor Devereux

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Material on Chapters 8 and 9 full and completed study guide
Fundamentals of Marketing
James Cook
Study Guide
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This 6 page Study Guide was uploaded by Taylor Devereux on Friday March 25, 2016. The Study Guide belongs to MKT 305 at Colorado State University taught by James Cook in Summer 2015. Since its upload, it has received 56 views. For similar materials see Fundamentals of Marketing in Business at Colorado State University.


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Date Created: 03/25/16
Marketing 305 Exam #3 Study Guide Chapter 8  Market segmentation – aggregates potential buyers into groups that have common needs  and will respond similarly to a marketing action   Market segments­ take us back to the acknowledgement of sociocultural influences o The relatively homogeneous groups of prospective buyers that result from the  market segmentation process   Demographics­ height, weight, eye color, hair color   Geographic­   On the Border – the spices they use in their spice is much spicy­er  on the west coast than it is in the middle east  A grocery store would switch up what they carry depending on  where they are  Psychographic­ interest, lifestyles, hikers, campers  Segment you on if you are a “camper” or a “painter” etc.  Behavioral – product features  In residence halls there is mini fridges, in homes we have a regular  sized fridge, in mansions you have MASSIVE fridge  Cars – a younger person would want speed, sound system, older  driver would want more metal around them, safety   Product features based on size and features  Behavioral – usage rates   Can be frequency or amount   Frequency would be frequent flier miles, coffee punch card   Amount would be Costco or Sam’s Club  Product differentiation o The strategy of using different marketing mix activities to help consumers  perceive a product as being different and better than competing products  o Takes us back to the 4 Ps o Consider the differences between CSU, CU, DU, and UNC  Steps in segmenting and targeting markets o Step 1: Group potential buyers into segments  Young drivers  Parents of young children   Senior citizens  o Entry barriers: 1. High capital requirement 2. High variety of expertise (lots of people need to do a variety of things and  they need to be really good at it) 3. Competitive environment  o Step 2: Group products to be sold into categories  Small, fuel­efficient cars  Sports cars  Medium­sized sedans  Large sedans  Mini vans  SUV’s o Step 3: Develop a market­product grid and estimate size of markets  Compare segments to products  o Step 4: Select target markets  Market size  Expected growth  Competitive position  Cost of reaching the segment  Compatibility with the organizations objectives and resources  o Step 5: Take marketing actions to reach target markets  Product positioning – the place a product occupies in consumers’ minds based on  important features relative to competitive products o To reposition a product in consumer’s minds, you must change attributes,  marketing or both o The perceptual map helps producers/marketers know how best to reposition their  product  o Where the product is positioned in consumers mind and that thoughts and ideas  their head goes to when they see or think of the product o NOT where you are placing the product   Product repositioning o Changing the place a product occupies in consumers’ minds relative to  competitive products  Two approaches to product positioning o A products position is based on consumer perception of it  Head to head vs. differentiation 1. Head to head a. Competing directly with competitors on similar product attributes in the  same target market  i. Dollar rent a car competes directly with Avis and Hertz 2. Differentiation  a. Involves seeking a less­competitive, smaller market niche in which to  locate a brand i. McDonalds tried to appeal to health conscious segment with a low­ fat McLean hamburger to avoid competing directly with Wendy’s  and Burger King   Perceptual map – a means of displaying the position of products or brands in consumers’  minds  o A key to positioning a product or brand effectively is discovering the perceptions  in the minds of potential customers by taking 4 steps: 1. Identify the important attributes for a product or brand class 2. Discover how target customers rate competing products or brands with  respect to these attributes  3. Discover where the company’s product or brand is on these attributes in  the minds of potential customers 4. Reposition the company’s product or brand in the minds of potential  customers   Chapter 9  Product – a good, service, or idea consisting of tangible and intangible features that satisfies  consumers’ needs and is received in exchange for money or something else of value   Services – intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value   Consumer products – products purchased by the ultimate consumer   Business products – products organizations buy that assist directly or indirectly in providing  other products for resale   Product, Price, Place, Promotion   Figure 9.1  o First 4 rows   Convenience products – items that the consumer purchases frequently, conveniently, and  with a minimum of shopping effort o Product­ cake mix, toothpaste, hand soap o Price­ relatively inexpensive  o Place­ widespread, many outlets o Promotion­ price, availability, and awareness stressed   Shopping products – items for which the consumer compares several criteria such as price,  quality, or style o Product­ cameras, TV, airline ticket o Price­ fairly expensive o Place­ large number of selective outlets o Promotion­ differentiation from competitors stressed   Specialty products – items that the consumer makes a special effort to search out and buy o Product­ Rolex watch, heart surgery  o Price­ usually very expensive o Place­ very limited o Promotion­ uniqueness of brand and status stressed   Unsought products – items that the consumer does not know about or knows about but does  not initially want  o Product­ thesaurus, burial insurance o Price­ varies o Place­ often limited o Promotion­ awareness is essential   Derived demand – sales of a business products frequently result (or are derived) from the sale of consumer products   Types of supports products – items used to assist in producing other products or services o Installations, building and fixed equipment o Accessory equipment, tools and office equipment o Supplies, stationary, brooms, paper clips o Industrial services, repair, legal services, maintenance   Components – items that become part of the final product  o Raw materials, lumber, Ford car engine   How do our expectations change based on services provided by people/business, by non­ profit, by government agency and why o Delivery by people or equipment  People  Unskilled labor (lawn care, security guards)  Skilled labor (caterers, plumbers, appliance repair)  Professionals (lawyers, accountants, management consultants)  Equipment   Automated (ATMs, automated car wash)  Operated by relatively unskilled operators (taxis, dry cleaners)  Operated by skilled operators (airlines, computer networks) o Delivery by business firms or nonprofit organizations  Privately owned firms must make profits to survive, while nonprofit  organizations seek to satisfy clients and be efficient   Use marketing to improve communications and better serve those in need o Delivery by government agencies   Governments at federal, state, and local levels provide a broad range of  services  Use marketing  United States Postal Service “Easy come, Easy go” marketing campaign is  designed to allow it to compete better with UPS, FedEx, and DHL  The uniqueness of services: intangibility, inseparability, inconsistency, inseparability,  inventory (know what each of these are, know examples of each) o Intangibility­ services are not a physical object that can be seen   Products tend to be more or a performance rather than an object  o Inconsistency­ quality of service varies with provider  The Phillies score 10 one game and 20 the next game  Organizations try to reduce this with standardizing and training o Inseparability­ the provider and the service are inseparable   In college your quality of lectures could be great but if you have a poor  experience with the library and counseling services you will not be entirely  satisfied with your educational experience  o Inventory­ inventory pertains to whether or not service is being rendered   Idle production capacity – when the service provider is available but there is  no demand for the service   Five dimensions of services (definitions and examples) o Reliability­ do we deliver on our promises?  Ability to preform the promised service dependably and accurately  Is my flight on time? o Tangibility­ do we present a professional image/appearance?  Appearance of physical facilities, equipment, personnel, and communication  materials  Are the gate, plane, and baggage area clean?  Way your resume appears o Responsiveness­ do we respond to our customers in a high quality manner?  Willingness to help customers and provide prompt service  Are the flight attendants willing to answer my questions?  What is our attitude about the way we respond?  Show respect?  Take concerns seriously? o Assurance­ do we know and do we appear to know what we are doing?  Knowledgeable and courtesy of employees and their ability to convey trust  and confidence   Are the ticket counter attendants, flight attendants, and pilots  knowledgeable about their jobs?  Convince people that you know what you are talking about o Empathy­ do we listen, take customer needs/concerns seriously, and really care about  each customer  Caring, individualized attention provided to customers  Do the employees determine if I have special seating, meal, baggage,  transfer, or rebooking needs?  Good way to gain a customer because you understand or diffuse  something that could be bad   Being in someone’s shoes o What is it like to have a parent with cancer? You’ve felt that o Sympathy = feeling bad for someone   Product line – a group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices  o JCPenny or Ford  Product mix – all the products lines offered by a company   Reasons new products fail  1. Insufficient product protocol 2. “Blinders” caused by bias 3. Inadequate competitive analysis 4. Doesn’t meet consumer needs 5. Too small a target market  6. Insufficient differentiation 7. Poor product quality/performance  8. Poor positioning 9. Inadequate budget  a. Devise product b. Test product c. Change product d. Price the product e. Market product f. #1 reason products fail = inadequate budget  g. Product proclaim= whenever you implement it to putting it on a shelf and         selling it


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