Term
| What are brand associations? |
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Definition
Reflect the mental links that consumers make between a brand and its key product attributes, such as logo, slogan or famous personality.
Often result from a firm's advertising and promotional offers |
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Term
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Definition
Occurs when a consumer buy's the same brand's product or service repeatedly over time rather than buy multiple suppliers withing the same category.
Less sensitive to price |
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Term
| What role do brand associations and brand loyalty play in development of marketing strategies? |
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Definition
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Term
| What is brand repositioning(re branding) ? Why does it take place? How can marketers reposition a brand? |
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Definition
Where marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences.
It can improve the brand's fit with its target segment or boost the vitality of old brand. Change product, packaging etc. |
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Term
| How does product packaging (primary versus secondary) create value for customers? |
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Definition
Primary(toothpaste tube) and secondary (exterior carton).
By facilitating the convenience of carrying, using, and storing the product, it attracts consumers' attention |
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Term
| What is the role of product packaging? |
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Definition
| Communication tool, attract consumers attention and stand out from competitors. |
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Term
| Describe diffusion of innovation theory (includes concepts such as compatibility, relative advantage, etc.). |
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Definition
Using this process: firms can predict which type of consumers will buy their new product after introduction.
Compatibility: a diffusion process may be faster or slower depending on various consumer features, such as international cultural differences.
Relative Advantage: if a product or service is perceived to be better than substitutes, then the diffusion will be relatively quick.
Observability:When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process.
Complexity and Trialability: products that are relatively less complex are also relatively easy to try. |
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Term
| What is diffusion of innovation and what are the types of new products and their characteristics? |
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Definition
The process by which the use pf an innovation-whether a product, a service, or a process spread throughout a market group, over time and across various categories of adopters.
-Pioneers or breakthroughs: establish a completely new market.
Pioneers have the advantage of first movers:first to create the market or product category |
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Term
| What are pioneers and imitators? |
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Definition
Pioneers are the first movers, (new product to market)
Imitators copy pioneers, they spend less marketing effort creating demand for the product line.
Pioneers are first in market and are relatively high and less sophisticated design. |
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Term
What are the 5 types of purchasers who adopt innovations at different stages after product introduction?
What are their characteristics? How should marketers adjust their strategies for each group? |
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Definition
Innovators: want to be first on the block to have new product. They keep themselves well informed about product category by subscribing to magazines.
Early Adopters: second subgroup to use product, they don't like to take much risk and wait and purchase product after careful review.
Early Majority: 34% of population, few new product can be profitable until this group buys them. If members don't like to take much risk, tend to wait until bugs are worked out.
Late majority: last group, they enter when product has achieved its full market potential.
Laggards: 16%, avoid change and rely on traditional products until no longer available. |
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Term
| What are the stages of the product life cycle and their characteristics? How should marketers adjust their strategies for each stage? |
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Definition
Introduction: initiation
Growth: product gains acceptance, demand and sales increase, competition emerges.
Maturity: sales reach peak, firms try to rejuvenate products by adding features.
Decline: If efforts trying to rejuvenate products don't succeed eventually exits market. |
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Term
| What is purchasing power parity and its significance to marketers? |
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Definition
A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in other, if same currency.
Help marketers understand the relative wealth of a particular country. |
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Term
| What are GDP, Gross national income, and the big mac index? |
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Definition
Gross domestic product: market value of goods and services produced by a country in a year.
Gross National Income: GDP + Net income earned from investments abroad.
Economist's Big Mac Index: exchange rates should adjust to equalize the cost of a basket of goods, wherever it is bought. |
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Term
| What is globalization? What factors have driven the growth in global markets? |
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Definition
Globalization: the processes by which goods, services, capital, people, info, and ideas flow across national borders.
Factors: reduction or elimination of trade barriers, decreasing concerns, the standardization of laws, and globally integrated production processes. |
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Term
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Definition
| Also known as globalization of production, manufactures' procurements of goods and services around globe to take advantage of national differences in cost and quality. |
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Term
| What is the WTO and its functions? |
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Definition
| World Trade Organization: replaced GATT, represents the only international organization that deals with global rules of trade among nations. |
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Term
| What is the World Bank, its functions, and goal? |
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Definition
| a development back that provides loans, policy advice, technical assistance, and knowledge sharing services to low and middle income countries in an attempt to reduce poverty in the developing world. |
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Term
| What is a trade surplus vs. deficit and its implications for marketers? |
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Definition
Trade Deficit: country imports more goods than exports.
Trade Surplus: more export than import.
-Signals the potential for competitions |
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Term
| What are the 4 components of a country market assessment and their factors/characteristics. |
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Definition
Economic Analysis Using Metrics:
-General economic environment
-Market size and pop growth
-Real income
Infrastructure and Technology:
-Transportation
-Channels
-Communication
-Commerce
Sociocultural Analysis:
-power distance
-uncertainty avoidance
-individualism
-masculinity
-time orientation
Government Actions:
-tariff
-quota
-boycott
-Exchange control
-trade agreement |
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Term
| How do the components of a country market assessment influence marketing strategy development and implementation in foreign countries? |
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Definition
| Information about these four areas offer marketers a more complete picture of a country's potential as a market for products. |
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Term
| What are the global entry strategies, their characteristics, advantages and disadvantages? |
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Definition
Exporting
Franchising
Strategic Alliance: collaborative relationships between independent firms, though the partnering firms do not create an equity partnerships, do not invest in one another.
Joint venture: when firm enters new market pools its resources with those of a local firm to form a new company in which ownership, profits, and control are shared.
Direct Investment: requires firm to maintain 100% of its plants, operation facilities, and officers in a foreign country. |
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Term
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Definition
| the overall sacrifice a customer is willing to make to acquire a specific product. |
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Term
| What is a demand curve and how does it impact pricing? |
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Definition
Shows how many units of a product consumers will demand during a specific period of time at different price
-Any demand curve relating demand to price assumes that everything else remains unchanged. |
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Term
| What is price elasticity of demand and how does it impact consumer response to price changes? |
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Definition
| Measures how changes in a price affect the quantity of the product demanded. |
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Term
| What impacts price elasticity of demand? |
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Definition
| Consumers respond to actual changes in price |
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Term
| What are the considerations in setting prices? Value-based vs. cost-based considerations? |
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Definition
Variable costs: labor materials
Fixed costs: remain same level, rent
Total cost: sum of variable and fixed cost
Value based: customer driven
Cost-based: product driven |
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Term
| What are price skimming, prestige pricing, penetration pricing, and price bundling? |
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Definition
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Term
| The 4 commonly used price strategies and their characteristics? |
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Definition
Everyday Low Pricing (EDLP): continuity of retail prices, level between non sale and deep discount sale.
High/Low Pricing: relies on promotion sales.
Market Penetration: growth strategy that employs the existing marketing mix.
Price skimming: selling new product at high price, innovators and early adopters |
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Term
| Explain comparative price judgments and their relationship to reference prices. |
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Definition
The reference price is the price against which buyers compare the actual selling price of product and facilitates evaluation process. (original price)
When consumers view sale price and compare to reference their value increases.
If it is bona fide, it is informative.
If the reference price has been inflated it can cause harm |
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Term
| The factors for establishing a relationship with Retailers? |
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Definition
- Choosing retail partners
-Identify types of retailers
-developing a retail strategy
-managing a multichannel strategy |
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Term
| What are the considerations when choosing retail partners? |
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Definition
-Channel Structure: degree to which manufacturer has a strong brand or is desirable in market.
-Customer Expectations: what customers expect to find their products.
-Channel Member Characteristics: the larger and more sophisticated the channel member, the less likely will use supply chain intermediaries.
-Distribution Intensity:number of channel members to use at each level of marketing channel |
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Term
| What are the characteristics of each of the four P’s of retail strategy and how do they influence the development and implementation of retail marketing strategies? |
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Definition
-Product: providing right mix of merchandise and services that satisfy need of target.
-Price: helps define value of merchandise and service, and general price range defines image.
-Promotion:difference between flat sales and growing consumer base.
Place- Success is convenient locations |
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Term
| What are the benefits of stores for consumers? |
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Definition
- Browsing
-Touching and Feeling Products
-Personal Service
-Cash and Credit Payment
-Entertainment and Social Experience
-Immediate Gratification
-Risk Reduction |
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Term
| What are the Benefits of the Internet and Multichannel Retailing? |
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Definition
- Deeper and Broader Selection
-Personalization
-Gain Insights into Consumer Shopping Behavior
-Increase Customer Satisfaction and Loyalty
-Expand Market Presence |
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Term
| What are the elements of effective multichannel retailing? |
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Definition
-Integrated CRM
-Brand Image
-Pricing
-Supply Chain |
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Term
| How does IMC fit in with the marketing process? |
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Definition
| Integrated Marketing Communication programs regard each of the firm's marketing comm elements as a whole, each of which offers a different means to connect with the target audience. |
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Term
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Definition
Marketing moves consumers through series of mental stages
Awareness
Interest
Desire
Action |
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Term
| What are the elements of an Integrated Marketing Communication strategy? |
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Definition
| Passive and interactive (from the consumer's perspective) and offline and online. |
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Term
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Definition
Pull: get consumers to pull the product into supply chain by demanding.
Push: increase demand by motivating sellers to highlight the product, rather than the product of competitors. |
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Term
| Four Characteristics of Advertising |
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Definition
Informative Advertising
Persuasive Advertising
Reminder Advertising
Focus of Advertisements |
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Term
| The Steps in Planning an Ad Campaign. |
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Definition
Step 1: Identify Target Audience
Step 2: Set advertising objectives
-inform, persuade,remind, focus on advertisements
Step 3: Determine the advertising budget
Step 4: Convey the message
-the message
-the appeal (informative & emotional)
Step 5: Evaluate and select media
-Mass and Niche media
- Choose the right medium
-Advertising schedule
Step 6: Create Advertisements
Step 7: Assess Impact Using Marketing Metrics |
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Term
| What are the elements of choosing the right medium for an advertising message? |
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Definition
Medium > Advantages & Disadvantages
Television
Radio
Magazine
Newspaper
Internet
Outdoor
Direct Mail |
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Term
| What are the elements of assessing impact using marketing metrics? |
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Definition
Pre-testing: assessments performed before campaign
Tracking: monitoring key indicators
Posttesting: evaluation of campaign's impact |
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Term
| How do supply chains add value to the marketing exchange? |
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Definition
The sales department must coordinate its delivery promises with factory or distribution centers.
Advertising must be coordinated with those departments that control transportation. |
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Term
| When managing the marketing channel and supply chain, what are the 2 sources of channel conflict and their characteristics. |
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Definition
Vertical Channel: members of same marketing channel. Like manufactures and wholesalers in disagreement.
Horizontal Channel: same level of marketing channel. Like two competing retailers of two competing manufactures are in disagreement. |
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Term
| What is an administered vertical marketing system? |
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Definition
| a supply chain system in which there is no common ownership and no contractual relationships but dominant channel member controls the channel relationship |
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Term
| Contractual Vertical Marketing System |
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Definition
a system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination to reduce conflict.
-Franchising (most common type) |
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Term
| Corporate Vertical Marketing System |
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Definition
| a system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants |
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Term
| What are the five elements by which firms manage marketing channels and supply chains through strategic relationships? |
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Definition
Mutual Trust
Open Communication
Common Goals
Interdependence
Credible Comments |
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