Term
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Definition
| refers to the buying of a whole company, a patent, or a license to produce someone else’s product |
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Term
| New Product Development Process |
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Definition
| identify product opportunities, define the product opportunity, and develop the product opportunity |
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Term
| New Product Development (Internal Development) |
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Definition
| refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development |
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Term
| Newness compared with existing products |
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Definition
| new can refer to a product being functionally different than existing products |
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Term
| Newness from the consumers perspective |
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Definition
| This approach classifies new products according to the degree of learning |
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Term
| Marketing reasons for new product failure |
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Definition
• Insignificant pt of difference
• Incomplete market and product definition
• Too little market attractiveness
• Poor product quality
• Not satisfying customer needs on critical factors
• Bad timing
• No economical access to buyers |
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Term
| Organizational problems in new product failure |
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Definition
• Not listening to the voice of the consumer
• Skipping steps in the new product process
• Marketing a poorly conceived product too quickly
• “groupthink” in task force & committee meetings
• not learning lessons from the past failures |
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Term
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Definition
o Generate new ideas
o Screen and evaluate ideas |
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Term
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Definition
o Define and test prod concept
o Create mark strategy
o Conduct biz case analysis |
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Definition
o Develop the product
o Test the market
o Product launch |
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Term
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Definition
| stage that develops a pool of concepts as candidates for new products |
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Definition
| employees submit ideas, ppl who work with custom service |
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Definition
| competition, distributors, suppliers |
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Term
| Screen and evaluate ideas |
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Definition
| Idea screening helps spot good ideas and drop poor ones as soon as possible |
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Term
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Definition
A service cannot be experienced through the physical senses
A customer still cant really experience it until it is actually consumed |
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Term
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Definition
| Because it cant be separated from the provider, a services quality can only be as good as that of the provider him/herself |
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Term
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Definition
The fact that a service cant be stored or saved up for future use
major potential problem for service providers
Fluctuating demand is related to this services |
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Term
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Definition
| It is produced and consumed at the same time and cannot be separated from its provider |
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Term
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Definition
| percentage of total category sales accounted for by a firm |
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Term
| Objective: (pricing for maximum marketing share) gain as much market share as possible |
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Definition
| strategy: penetration pricing |
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Term
| objective: market entry at the highest possible initial price |
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Definition
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Term
| objective: profit maximization |
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Definition
| strategy: Target Return On Investment |
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Term
| objective: benchmark the competition |
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Definition
| strategy: competitor-based pricing |
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Term
| objective: communicate positioning through price |
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Definition
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Term
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Definition
| who take title to the product during the exchange process |
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Term
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Definition
| who do not take title; business entity that negotiates purchases, sales, or both |
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Term
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Definition
| has no intermediaries and operates strictly from producer to end-user consumer or business user |
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Term
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Definition
| logistics; process of moving input materials to the producer, in process inventory through the firm, and finished goods out of the firm through the channel of distribution |
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Term
| Functions of Channel Intermediaries |
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Definition
• Physical distribution functions
• Transaction and communication functions
• Facilitating functions |
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Term
| Functions of channel intermediaries: physical distribution functions |
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Definition
• Breaking bulk
• Accumulating bulk and sorting
• Creating assortments
• Reducing transactions
• Transportation and storage |
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Term
| Functions : transactions & communication functions |
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Definition
• Selling (sales force represent product line)
• Buying (simplifying purchase decisions)
• Marketing communications (helping promote products) |
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Term
| Functions facilitating functions |
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Definition
• Financing
• Market research
• Risk taking
• Other services |
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Term
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Definition
| the number of intermediaries involved in distributing the product |
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Term
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Definition
| distribution strategy designed to saturate every possible intermediary, especially retailers |
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Term
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Definition
| strategy in which goods are distributed only to a limited number of intermediaries |
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Definition
| built on prestige, scarcity, and premium pricing in which a producer only distributes its products to one or very few vendors |
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Term
| Marketing managers must take into account |
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Definition
• Type of products
• Cost issues
• Accuracy of the sales forecast
• Likelihood of major changes |
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Term
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Definition
| much of the intensive promotional activities take place from the manufacturer downward through the channel of distribution |
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Term
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Definition
| forces much of its promotional investment on the end user consumer |
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Term
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Definition
| any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption and is an essential component of the supply chain |
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Definition
• Offer variety for consumers
• Similar to creating assortments
• Separate large product volume into consumer purchase quantities
• Maintain inventory levels
• Make Additional services available to consumers |
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Term
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Definition
| Distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet |
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Definition
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Definition
| multiple outlets under common ownership where centralized in decision making and purchasing occurs |
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Definition
| allows them to buy in large quantities at lower prices and gain promotional economies |
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Term
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Definition
| involve independently owned stores that band together to act like a chain |
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Term
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Definition
| small independent retailers set up a central buying organization |
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Term
| Wholesaler-sponsored voluntary chains |
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Definition
| involve a wholesaler that develops a contractual relationship with small, independent retailers |
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Term
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Definition
| an individual or firm (the franchise) contracts with a parent company (the franchisor) to set up a business or retail outlet |
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Definition
| number of diff product categories offered by a retailer, breadth of merchandise |
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Definition
| number of diff product items within a prod category, depth of merchandise |
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Definition
| carry a narrow product line with a deep assortment |
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Term
| Depth: specialty discount outlets |
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Definition
| focus on one type of product at competitive process |
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Term
| Breadth general merchandise stores |
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Definition
| carry a broad product line with limited depth |
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Term
| Breadth scrambled merchandising |
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Definition
| offers several unrelated product lines in a single store |
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Term
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Definition
| The outlet requires the customer to perform most functions; all nonessential services are eliminated |
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Term
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Definition
| • Outlet provides some services, such as credit and merchandise return |
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Term
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Definition
| • Requires customers to be responsible for most shopping activities |
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Term
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Definition
• Retailer that offers merchandise in the form of a printed or online catalog
• One of the oldest forms of retailing |
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Term
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Definition
• Retailer that offers merchandise in the form of a printed or online catalog
• One of the oldest forms of retailing |
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Term
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Definition
| • A form of non-store retailing that involves independent businesspeople contacting consumers directly to demonstrate and sell products or services in convenient locations |
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Term
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Definition
| • A form of non-store retailing that involves showcasing products on a television network that can be ordered by consumers |
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Term
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Definition
| • Involves using the telephone to interact with and sell directly to consumers |
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Term
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Definition
| • Selling of merchandise or services that are stored in a machine then dispersed to the consumer when the payment has been made |
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Term
| Advantages of non store retailing |
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Definition
| ease of use, safe shopping environment, quality of visual presentation |
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Term
| Online-electronic commerce |
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Definition
o Communicate with customers
o Facilitate the inventory, exchange, and distribution of goods and services
o Facilitate payment |
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Term
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Definition
| communication and sale of products or services to consumers over the internet and the fastest growing retail format |
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Term
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Definition
| desired or expected result associated with a pricing strategy that has to be consistent with other marketing related objectives |
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Term
| price elasticity of demand |
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Definition
| measure of customers' price sensitivity estimated by dividing relative changes in quantity sold by relative changes in price (e= %change in quantity demanded/ %change in price) |
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Term
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Definition
| affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items |
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Term
| captive pricing (complementary pricing) |
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Definition
| entails gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate |
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Term
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Definition
| when customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately |
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Term
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Definition
| total price of the components of the bundle if purchased separately versus the bundled price |
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Definition
| lending prestige to a product or brand by virtue of a price relatively higher than the competition |
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Definition
| price is not expressed in whole dollars |
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Definition
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Definition
| creating a perception about price merely from the image the numbers provide the customer |
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Definition
| the price marked sell on a good is what it typically sells for |
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Definition
| customers are allowed to haggle about prices |
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Definition
| reduce investment in promotion and transfer part of the savings to lower price |
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Term
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Definition
| firms rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion |
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Term
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Definition
| competitively bid against each other and the purchase goes to the high bidder |
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Term
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Definition
| sellers bid prices to capture a buyer's business |
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Term
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Definition
| companies that collude to set prices at a mutually beneficial high level |
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Definition
| forbids horizontal which could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits |
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Term
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Definition
| illegal under the Consumer Goods Pricing Act; assures everybody in the channel is satisfied with their cut of the profits, but the profit boost is achieved by increased prices to consumers |
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Term
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Definition
| seller offers different prices to different customers without a substantive basis, such that competition is reduced |
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Term
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Definition
| prohibits giving, inducing, or receiving discriminatory prices |
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Term
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Definition
| knowingly stating prices in a manner that gives a false impression to customers |
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Definition
| seller had no true intent to actually make the lower priced item available for sale |
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Definition
| sell below cost to push a competitor out of a market then raise prices to new highs |
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Definition
| establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices |
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Term
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Definition
| require a certain percentage markup be applied to products |
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Term
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Definition
| items sacrificed at prices below cost to attract shoppers to the store |
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Term
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Definition
| play a role in the exchange process between producer and consumer (middleman) |
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Term
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Definition
| agent that usually operates on an extended contract often sells within an exclusive territory, handles noncompeting but treated lines of goods, and has limited authority to price and create terms of sale |
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Term
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Definition
| wholesale middleman, found especially when selective or exclusive distribution is common and strong promotional support is needed |
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Term
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Definition
| entity primarily engaged in buying, taking title to, storing (usually), and physically handling goods in large quantities; resell goods to retailers |
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Term
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Definition
| middleman that buys from manufacturers and sells to retailers ; rack jobber to connote the service of stocking racks or shelves with merchandise |
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Term
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Definition
| entity that assists in the performance of distribution tasks other than buying, selling, and transferring title (warehouses) |
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Definition
| entity primarily engaged in selling to end-user consumers |
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Definition
| one or more intermediary levels |
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Term
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Definition
| occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements |
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Term
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Definition
| take in product from multiple sources and transform it, often through sorting it into different classifications for sales through the channel |
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Term
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Definition
| accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers |
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Term
| transportation and storage |
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Definition
| most commonly provided channel intermediary |
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Term
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Definition
| shortening or collapsing of marketing channels due to the elimination of one or more intermediaries; common in the electronic channel |
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Term
| vertical marketing system |
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Definition
| vertically aligned networks behaving and performing as a unified system |
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Term
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Definition
corporate systems
contractual systems
administered systems |
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Term
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Definition
| channel member has invested in backward or forward vertical integration by buying a controlling interest in other intermediaries |
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Definition
| otherwise independent entities that are bound together legally through contractual agreement; ie. franchise org, retailer cooperative, wholesale cooperative |
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Definition
| sheer size and power of one of the channel members places it in a position of channel control |
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Definition
| when a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products |
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Term
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Definition
| protects an intermediary from having to compete with others selling a producer's goods |
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Definition
| if a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy |
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Term
| advantages of electronic retailing |
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Definition
extensive selection
considerable information available for product research and evaluation
build product communities
individualized customer experience |
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Term
| disadvantages of electronic retailing |
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Definition
easier for customers to walk away
reduced ability to sell features and benefits
security of personal data |
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Term
| integrated marketing communications |
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Definition
| strategic approach to communicating, the brand and company message to targeted customers in ways that are clear, concise, and consistent and yet are customizable as needed to maximize the impact on a particular audience |
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Term
| The Marketing Manager's Role in Promotional strategy |
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Definition
1. identify targets for promotion
2. establish goals for promotion: inform, persuade, to remind
3. select the promotion mix
4. develop the message: rational appeals, emotional appeals, moral appeals
5. select media for use in promotion
6. prepare promotion budget
7. establish measures or results |
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Term
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Definition
| paid form of relatively less personal marketing communications often through a mass medium to one or more target markets |
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Term
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Definition
institutional advertising
product advertising |
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Term
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Definition
| used to reinforce previous knowledge of a product |
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Term
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Definition
| percentage of individuals in a defined target market that are exposed to an ad during a specific time period |
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Definition
| average number of times a person in the target market is exposed to the message |
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Term
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Definition
| systematic approach to influencing attitudes, opinions, and behaviors of customers and others; often executed through publicity |
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Term
| institutional advertising |
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Definition
promotes an industry, company, family of brands or some other issues broader than a specific company
advocacy: states the position of a company on an issue
pioneering: used for announcements about what a company is, what it can do, or where it is located
competitive: promotes the advantages of one product class over another
reminder: brings the company's name to the attention of the target market again |
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Term
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Definition
advertising designed to increase purchase of a specific offering
pioneering (informative): intended to stimulate primary demand, typically during the introductory or early growth stages of an offering -- seeks to gain awareness and initial interest
competition: intended to build sales of a specific brand through emotional appeal, persuasion, and providing information
comparative: advertising in which two or more brands are directly compared against each other on certain attributes |
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