UCF MAR 3023 Exam 3 Review (Ch. 9 -12 Study Guide) ||
with Error-free Solutions.
Calculating segment profitability correct answers Segment size
x segment adoption percentage
x purchase behavior (x amount of times purchased per year)
x profit margin %
- Fixed costs
Calculating market share ratios correct answers company's sales / total market share x 100
Changing product mix breadth correct answers Decrease: to address changing market conditions
or meet internal strategic priorities (ex: to focus on a different product line)
Increase: to capture new or evolving markets and increase sales (ex: adding a new line of jam
products to compliment its bread line)
Top 5 global brands in order correct answers 1. Apple
2. Google
3. Microsoft
4. Coke
5. Amazon
Changing product assortment depth correct answers Increase: changing consumer preference or
to preempt competitors while boosting sales
Decrease: realign firms resources. eliminate unprofitable and low margin items
Advantages to using the same brand name for new products correct answers -Brand is already
established; spend less on consumer awareness and brand association
-Perception can carry over
-synergy between existing products can increase sales
What firms should consider in order to prevent negative consequences of brand extensions
correct answers - evaluate the fit between the product class of the core brand and the extension
-evaluate perception of core brand attributes and apply to extension
-refrain from overally extending the brand into too many products and categories
-should consider if brand extension distances from core
What are the 5 steps of STP Analysis? correct answers 1. Establish Strategy or Objectives
2. Use Segmentation Methods
3. Evaluate Segment Attractiveness
4. Select Target Market
5. Identify and Develop Positioning Strategy
Idea generation correct answers development of viable new product ideas.
Product development correct answers development of prototypes and/or the product
Prototype correct answers A full-scale working model used to test a design concept by making
actual observations and necessary adjustments.
Market Testing correct answers Test the market for the new product with a TRIAL BATCH of
products
Premarket tests correct answers Tests that determine how many customers will TRY and then
CONTINUE to use a product.
Alpha testing correct answers testing by the firm to determine whether a product will perform
according to its design and whether it satisfies the need for which it was intended; occurs in the
(R&D) department.
Beta testing correct answers having potential consumers examine a product prototype in a real-
use setting to determine its functionality, performance, potential problems, and other issues
specific to its use
Test marketing correct answers A method of determining the success potential of a new product;
it introduces the product to a limited geographical area prior to a national launch.
Step 1: Establish Overall Strategy or Objectives correct answers (Segmentation) The first step in
the segmentation process is to articulate the vision or objectives of the company's marketing
strategy clearly. The segmentation strategy must be consistent with firm's mission and objectives
as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).
Step 2: Use Segmentation Methods correct answers (Segmentation) The second step in the
segmentation process is to use a particular method or combination of methods to segment the
market. This step also develops descriptions of the different segments, which helps firms better
understand the customer profiles in each segment.
What are the 5 segmentation methods? correct answers Geographic, Demographic,
Psychographic, Benefits, Behavioral
What is Geographic Segmentation? correct answers The grouping of consumers on the basis of
where they live.
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