Download Textbook: Marketing – 3rd Edition Name: Chapter 9: Developing a

Textbook: Marketing – 3rd Edition
Name:___________________________________
Chapter 9: Developing a Marketing Strategy and Marketing Plan
I. Differentiating Market Segments - A marketing _______________is the way marketing activities are planned
and coordinated to achieve an organization’s goal.
A.
B.
C.
D.
Effective marketers _______________ try to serve all potential consumers in a market.
However, many businesses will target_____________ than one segment in a market.
The most_______________ factor used to segment a market are the needs and wants of the consumer.
Other factors used to segment a market include demographics, psychographics, geographics, and
consumer buying behavior.
II. Selecting Target Markets
A. A ________ ______________ is a clearly identified segment of the market to which the company wants
to appeal.
B. The people in the target market must have _____________, important needs that are different from those
outside the target market.
C. Each target market requires a marketing mix that is ________________in important ways from other
target markets.
D. Businesses will select the ______________________ that offers the best marketing opportunity to
become the target market.
E. Each target market requires a _________marketing mix that responds to the differences of each market.
III. Fine-Tuning the Product
A. The __________________ or service as a marketing mix element includes anything offered to the
customer by the business that will be used to satisfy needs.
B. The basic _________________offered for sale is the most important factor when customer’s make a
decision to buy.
C. __________________can be added to a basic product to make one company’s product different from and
better than competitors’ products.
D. __________________give customers choices of the product features they want to purchase.
E. It is difficult for businesses to compete when their products are nearly __________________to those of
their competitors.
F. A _______________is the unique name, symbol, or design that identifies a product, service, or company.
G. _________ ____________, also called store brands, or dealer brands, are owned and sold by wholesalers
and retailers. These can create store loyalty. Example: Kenmore, Great Value, Ol’ Roy, Best Choice
H. ________________ _______________, also called producer brands or national brands are owned and
created by manufacturers. More profitable. Example: Whirlpool, Purina, Motorola
I. A _________________ __________________ is a brand mark with human form or characteristics.
J. A trade/brand character can be used to position your product in the mind of the consumer. In the Apple
Computer ads the company has ALSO used a trade character to position their competition!
K. A ________________________ strategy combines one or more brands to increase customer loyalty and
sales for each individual brand.
L. Brand _________________________is the legal authorization by a trademarked brand owner to allow
another company (the licensee) to use its brand, brand mark, or trade character for a fee. This allows for
the sale of more products
M. The __________________ is a unique, memorable quality of a brand. Some brands have an image of
quality, others of low price, and still others of innovation.
N. A ______________________is a general promise or assurance of quality.
O. A __________________ is a specific written statement of a seller’s responsibilities related to the
guarantee.
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IV. The Product Life Cycle
A. A ___________________ identifies the four stages a product goes through from the time it enters the
market until it is no longer sold.
B. The Introduction Stage – The first stage in the product life cycle. There are no direct competitors. The
price is usually high, but this is the _________________ ________________ stage.
C. The Growth Stage – Sales increase and competitors are ____________________during this stage.
Features, options, and services are added to the product.
D. The Maturity Stage – Sales will ______________and profits will begin to ______________. Many
business now offer their own brand of the product. All brands tend have the same options.
E. The Decline Stage – This stage occurs when consumers decide that a product is no longer satisfying
their needs or they discover a _______________and _________________product.
V. How Consumers Shop
A. The consumer purchase classification system is based on two factors:
a. Importance of the purchase to the consumer
b. Willingness of the consumer to shop and compare products before making the purchase
B. _________________________ Goods – Purchased with little thought given to shopping around for the
best price.
a. Staple goods – Products that are regularly, routinely purchased. Examples: bread, milk,
toothpaste, snacks
b. Impulse goods – Products purchased on the spur of the moment without advance planning.
Examples: candy, gum, magazines, soft drinks
c. Emergency goods – Products purchased as a result of an urgent need. Examples: towing
services, gas, umbrellas, plumbing and other repair services
C. ___________________Goods – These are more expensive than convenience goods and consumers will
spend time shopping around for the right product and/or price.
a. Attribute-based goods – A variety of differences exist in products and the consumer will
consider a number of factors to determine the best value. Examples: computers and cell phones
b. Price-based goods – Products are very similar but can have significant price differences.
Examples: plasma screen TV’s, college textbooks, and pharmaceutical drugs
D. _______________________ Goods – Products with strong brand loyalty among customers.
Customers will refuse to accept a substitute. These are well-known brands and are often very expensive.
Examples: Rolls Royce, Porsche, Rolex
E. ________________________ Goods – These are goods that customers do not want to buy because they
do not perceive a strong need for the product. Examples: life insurance, legal services, funeral services
VI. Developing a Marketing Plan
A. A ______________ _________________ is a clear written description of the marketing strategies of a
business and the way the business will operate to accomplish each strategy.
B. A marketing plan is a detailed document that provides guidance for the implementation of a marketing
strategy.
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C. A __________________ ___________________ identifies a business’s strengths and weaknesses and
the opportunities and threats it faces. This is known as a _____________________analysis.
D. The ____________________ or purpose of the company identifies the nature of the business or the
reasons the business exists. Example: Inspiring life-long learners is our highest priority. With our
students, their families and our community, we share an uncompromising commitment to excellence for
all. – Mission Statement For _____________________________
E. A __________________ __________________ is a specific description of the unique qualities of the
marketing mix that make it different from the competition and satisfying to the target market.
Chapter 10 - Developing Successful Products
I. Starting With a Product
A. A _______________is anything _________________offered to a market by a business to satisfy needs.
B. Consumer view a product ______________________than the business that produces it.
C. The satisfaction provided from a product’s use is more important to consumers than the physical
appearance.
D. The ___________________rate for new products is very high and very expensive.
E. To interest a consumer, a product must be _________________ and meet the consumers’____________.
F. When using a _______________ ____________, a limited quantity of the new product is developed,
and the marketing mix is implemented in a small part of the market to determine if it will be successful.
G. A __________ ____________________ is a specific city or geographic area in which marketing
experiments are conducted.
1. This is increasingly expensive.
2. Competitors are tipped off about a company’s new products and marketing strategies.
3. Competitors will take actions to influence the test market results.
II. Components of the Product Mix Element
A. The most important part of the product is the ______________________product.
B. In product design, the basic product is __________________and improved with features and options.
C. Not every product ______________________will add to customer satisfaction. Some consumers do not
want a bike with 27 different gear speeds.
D. An important way of improving customer satisfaction with products is to suggest the purchase of
_____________________ products that make the original product more ______________.
E. A ________________ _________________ is a group of similar products with slight variations in the
product mix to satisfy different needs in a market.
F. A ________________ _________________ is the complete set of all products a business offers to its
market.
III. The Product Package
A.
B.
C.
D.
A ___________________ is the physical container or wrapping for a product.
The package can aid in identifying and selling the product.
The _________________ provides protection and security for the product until the consumer can use it.
Packaging can also make the product more desirable or useful for consumers. Example: A plastic screw
on cap for orange juice.
E. Promoting and Selling the Product: Customer reaction to a package and brand name is an important
factor in determining marketplace success or failure.
F. Defining Product Identity: Packages can invoke prestige, convenience, status, or other positive
attributes.
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G. Providing Information: Packages give directions for product use, information about contents,
guarantees, nutritional information, and potential hazards.
H. Meeting Customer Needs: Various sizes meet the needs of different market segments: family packs
meet the needs of larger families; smaller packages are made for individuals.
I. Ensuring Safe Use: Plastic packaging, tamper-resistant packaging, and childproof containers protect
customers.
J. Protecting the Product: Packages protect a product during shipping, storage, and display, prevent
tampering, and sometimes help prevent shoplifting of the product.
K. Environmental Packaging: Some customers are willing to pay more for products with packages that are
reusable, recyclable, less wasteful, and safer for the environment.
L. Cause Packaging: Some companies use packages to promote social issues. Example: Ben & Jerry’s
Homemade ice cream cartons promote environmental and even political causes.
M. Tylenol Product Tampering - The incident occurred when seven people died after taking pain-relief
capsules that had been poisoned. It happened in1982 in the Chicago area. These poisonings involved
Extra-Strength Tylenol medicine _______________ which had been laced with potassium cyanide. The
incident led to reforms in the packaging of over-the-counter substances and to federal anti-tampering
laws. The case remains unsolved and no suspects have been charged. A $100,000 reward, offered by
Johnson & Johnson for the capture and conviction of the "Tylenol Killer," has never been claimed.
IV. Brand Development
A. A _____________________is the legal protection of the words or symbols for use by a company.
B. A _____________ ______________ is a well-known name or symbol established by one company
and sold for use by another company to promote its products.
V. The Consumer Market
A. _____________ _______________: Individuals or socially related groups who purchase products for
personal consumption.
B. _______________ ______________: Is the quantity of a product or service needed to meet the needs of
the consumer.
VI. The Business Market
A. _________________ _______________: Companies and organizations that purchase products for the
operation of a business for the completion of a business activity.
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B. ________________ _______________: The quantity of a product or serviced needed by a business in
order to operate at a level that will meet the demand of its customers. Example: The number of potatoes
needed by McDonalds is directly derived by the amount of consumer demand for its French Fries.
C. _____________ __________________: Includes the business’s land, buildings, and major pieces of
equipment needed to produce other goods and services. Examples include delivery trucks and office
buildings.
D. ____________ ___________________: Small machines needed in the operation of the business with a
shorter life span than capital equipment. Examples include phones, fax machines, and printers.
E. ____________________: Products and materials consumed in the operation of the business. Examples
include paper, pencils, paper clips, and cleaning supplies.
F. ____________ _________________: Unprocessed products used as basic materials for the business’s
product. Examples include a railroad car full of wheat to be used in the production of bread or city
water used in the production of Pepsi products.
G. ___________________ ______________: Have been either partially or totally processed by another
company. Examples include computer chips that will be used to build a PC or an alternator for a car.
VII. What Is a New Product?
A. Few products are really new. Most “new” products are existing products that have been changed and/or
improved.
B. A ____________ _____________ must be entirely new or changed in an important and noticeable way.
C. The Federal Trade Commission regulates the use of the term “new.”
D. There is a _________ _________________ time limit for the use of the word “new.”
VIII. The Steps in New Product Development
1.
2.
3.
4.
5.
6.
Idea development
Idea screening
Strategy development
Financial analysis
Product development and testing
Product marketing
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