1What is a product mix?
The complete set of all products and services offered by a firm.
2What is a product line?
Groups of associated items that consumers tend to use together or think of as part of a group of similar products.
3What is product mix breadth vs. product line depth?
Product mix breadth (horizontal) is the number of product lines in a product mix, while product line depth (vertical) is the number of categories within a product line.
4What is cannibalization?
Occurs when increasing product line depth reduces sales of existing products within the same brand.
5What is brand awareness?
Measures how familiar consumers in a market are with a brand; higher awareness increases the chance of purchase.
6brand ownership
Manufacturer brands are created and marketed by manufacturers, retailer/store brands are owned by retailers,
7brand repositioning
changes a brand’s focus to target new markets or realign with changing preferences
8What is a new-to-the-world product?
Creates an entirely new market and is also called a pioneer or breakthrough product.
9What is diffusion of innovation?
The process by which the use of an innovation spreads throughout a market over time and across different groups of adopters.
10What is the difference between innovators and early adopters?
Innovators try new products first just to be first, while early adopters are opinion leaders who spread word of the product to others.
11What separates a service from a product?
Services are intangible offerings that cannot be touched, tasted, or physically possessed.
12What is the difference between heterogeneous and homogeneous services?
Heterogeneous services vary in quality because they are provided by people, while homogeneous services lack variability in quality.
13What are perishable services?
Services that cannot be stored for use in the future.
14Which “P” generates revenue?
Price is the only element of the marketing mix that generates revenue and creates profitability.
15What is competitor orientation?
A pricing orientation in which firms base their prices primarily on competitors’ prices.
16What is competitive parity?
A competitor-oriented pricing strategy where prices are set similar to competitors’ prices.
17What is a demand curve?
Shows the relationship between price and quantity demanded; generally, as price rises, demand decreases.
18What is price elasticity of demand?
Measures how sensitive consumers are to price changes, where elastic demand is price sensitive and inelastic demand is price insensitive.
19What factors influence price elasticity of demand?
Income effect, cross-price elasticity, and substitution effect.
20What are the 5 Cs of pricing?
Company, Customers, Costs, Competition, and Channel Members.
21What is the difference between direct and indirect supply chains?
Direct supply chains sell directly to consumers, while indirect supply chains use intermediaries like wholesalers or retailers.
22What is integrated marketing communications (IMC)?
Coordinates all communication vehicles to communicate a firm’s value proposition.
23Which “P” does IMC represent?
Promotion.
24What is the basic goal of IMC?
To communicate the firm’s value proposition clearly and consistently.
25What are the key elements of an IMC strategy?
Consumer communication channels and results of the communication.
26What is the target audience (receiver)?
The intended consumer an ad or message is designed to reach.
27What is noise in communication?
Anything that interferes with or dilutes the message and creates a barrier to communication.
28What is feedback in IMC?
Allows the target audience to respond and helps evaluate message effectiveness.
29What is decoding?
The process by which the receiver interprets and understands the message.
30What is unaided brand awareness?
Brand recall without any cues.
31What is aided brand awareness (aided recall)?
Brand recall when cues are provided to help recognition.
32What is top-of-mind awareness?
The first brand that comes to mind when thinking of a product category.
33What is the IMC “right” principle?
Delivering the right message to the right audience through the right medium.
34What is the purpose of creating interest before purchase?
To build awareness and interest before closing the sale.
35What are sales promotions?
Promotional activities designed to stimulate and close the sale of a product.
36What is personal selling?
A one-to-one, two-way communication between buyer and seller.
37Where is personal selling used most?
More heavily in B2B markets.
38What is public relations (PR)?
Managing communication and controlling a narrative to generate positive public perception.
39What is the difference between public relations and publicity?
Public relations is controlled by the firm, while publicity is uncontrolled media coverage.
40What are IMC goals?
They must be specific, measurable, explicitly defined, and evaluated.
41What is frequency in IMC?
The number of times a message is communicated to the audience.
42What is reach in IMC?
The number or percentage of people exposed to a message at least once.
43What are awareness metrics?
Aided recall and top-of-mind awareness.
44What are the three purposes of advertising?
To inform, persuade, or remind.
45What are the three advertising schedules?
Continuous runs steadily, flighting runs in spurts, and pulsing combines steady advertising with heavier periods.