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MKT FINAL
principle of marketing
272
Marketing
Undergraduate 3
12/14/2009

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Cards

Term
Marketing
Definition
  • - philosophy or a management orientation that stresses the importance of customer satisfaction, as well as the set of activities used to implement this philosophy.
  • the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”  It involves managing customer relationships in ways that benefit both the organization and its stakeholders (customers, stockholders, employees, the public, suppliers).

Term
Exchange
Definition
"Essence" of marketing
Term
Production Orientation
Definition

 

focuses on internal capabilities of the firm rather than on the desires and needs of the marketplace.  The firm is concerned with what it does best, based on its resources and experience, rather than with what consumers want.  (Field of Dreams Orientation)

         It can work on occasion – e.g., 3M’s Post-It Notes.

 

Term
Sales Orientation
Definition
assumes that more goods and services will be purchased if aggressive sales techniques are used and that high sales result in high profits.
Term
Market Orientation/ Market Concept
Definition
states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives
Term
Marketing Concept
Definition

long term philosophy of business based on three major tenets

a. customer satisfaction- focusing on customer wants and needs so the organization can differentiate its products from competitors offerings

b. achieving customer satisfaction at a profit and doing so in a legal and responsible manner.

c. Intergating all the organization's activities, including production, to satisfy customers' wants and needs. i.e. company-wide commitment to the philosophy.

Term
Market Orientation
Definition

requires:

a. top management leadership

b. a customer focus

c. competitor intelligence- knowing your competitors and their strengths and weakness.

d. interfunction coordination to meet customer wants and needs and deliver superior values

e. win-win mutually rewarding relationships

Term
Social Orientation
Definition
states that an organization exists not only to satisfy customer wants and needs and to meet organizational goals but also to preserve or enhance individual's and society's long-term best interests.  This orientation extends the marketing concept to serve three bodies rather than two:  customers, the organizational itself, and society as a whole.
Term
Customer Value
Definition
ratio of benfits to the sacrifice necessary to obtain those benefits
Term
Customer Satisfaction
Definition
feeling that a product has met or exceeded the customer's expectations. focuses on delighting the customers rather than selling the product.
Term
Relationship Marketing
Definition

strategy that entails forging long-term partnerships with customers and contributing to their success.

i.e. Wegmans Food Markets- "Employees first, customer's second."

Term
Environmental scanning
Definition
gathering, analyzing, and interpreting information about the environment.
Term

Market Strategy

(3 Basic Components)

Definition

a. target market

b. marketing objectives

c. marketing mix

Term
Target Market
Definition
the people or organizations at whom you direct your marketing
Term
Marketing Objective
Definition
state what is to be accomplished through marketing activities
Term
Marketing Mix
Definition

1. Product- the need-satisfying offering of the firm

2. Place- (channels of distribution) all activities concerned with the movement of goods from producer to consumer (storage, transporting, reselling)

3. Promotion- communication with target market

4. Price- the exchange value of the product or service.

Term
Strategic Planning
Definition
managerial process of creating and maintaing a fit between the organization's objectives and resources and the evolving market opportunities.
Term
Mission Statement
Definition
answers the question "what business are we in and where are we going?
Term
Marketing Myopia
Definition
businesses are defined in terms of goods and services rather than in terms of the benefits that customers seek.
Term
Strategic Business Units (SBU)
Definition
subgroup of a single business or collection of related businesses within the larger organizations.
Term
Marketing Objective
Definition
  1. Realistic
  2. Measureable
  3. Specific
  4. Time frame
  5. In writing
  6. Consistent with organizations priorities and objectives
Term
SWOT ANALYSIS
Definition

S- Strength (internal)

W- Weakness (internal)

O- Opportunity (external)

T-Threats (external)

Term
Market Penetration
Definition

try to increase market share among existing customers

i.e. beanie babies improve the sales of happy meals

Term
Market Development
Definition

attracting new customers to existing products

i.e. teaching new uses for old products, baking soda

Term
Product Development
Definition

creation of new products for present markets

i.e. new flavor of soup.

Term
Diversification
Definition

strategy of increasing sales by introducing new products into new markets

i.e. sony aquired columbia pictures

Term
Star
Definition
business unit that is a fast-growing market leader
Term
Cash Cow
Definition
business unit that usually generates more cash than it needs to maintain its market share.
Term
Problem Child
Definition
a business unit that shows rapid growth but poor profit margins
Term
Dog
Definition
business unit that has low growth potential and a small market share
Term
Build
Definition
appropriate for stars and problem child
Term
Hold
Definition
most appropriate for cash cows
Term
Harvest
Definition
appropriate for all except stars; basic goal to increase the short term cash return without too much concern for the long-run impact.
Term
Divest
Definition
appropriate for dogs and possible problem child; getting rid of SBUs with low shares of low growth markets.
Term
Marketing Strategy
Definition
involves the activities of selecting and describing one or more taget markets and developing and maintaining a marketing mix that will product mutually satisfying exchanges with target markets.
Term
Patents on allergy relief medications like claritin give the pharm. comp. that own the patents a --- for 17 years.
Definition
sustainable competitive advantage
Term

Ford promised its customers any color vechile as long as it was black. example of market oriented firm?

t or f

Definition
false
Term
when a manufacturer converts aluminium into paperclips, the manufacturer has created ---- utility
Definition
Form
Term
The more "profession" term for the four p's is...
Definition
marketing mix
Term
Due to customer concerns on skin cancer... while giving customers what they want indicates a ---- orientation, creating a potential problem shows a potential absense of a ----- orientation.
Definition
market, societal marketing.
Term
Clay market began as a retailer of terra cotta pots, appealed to affluent women. to further serve those women it has added rugs and fabrics, adding products is indicative of a ------ stragedy
Definition
product development
Term
Due to recent hurricanes orange growers in FL lost money and decided to raise shrimp. ---- strategy
Definition
Diversification
Term
Railroads question?
Definition
mission statement belief they are transportation companies, not just railroads.
Term
Sustainabilty
Definition
the idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time.
Term
Pyramid of corporate social responsibility
Definition
  1. Economic responsibilities- be profitable
  2. Legal responsibilities- obey the law
  3. Ethical responsibilities- do what is right, just, and fair. avoid harm.
  4. Philanthropic responsibilities- be good corporate citizen; contribute resources to the community; improve the quality of life.
Term
Preconventional Morality
Definition

basic level, childlike.

i.e. you would try to sell your product to any-and-everyone regardless of their need/ability to pay, focused on your own paycheck.

Term
Conventional Morality
Definition

moves from egocentric viewpoint toward the expectations of society. loyalty and obedience to the organization become paramount.

i.e. try to sell your product legally and as approved by your sales manager, regard for the customers long-term well-being might be secondary.

Term
Post Conventional Morality
Definition

Represents the morality of the mature adult.

i.e. you wouldnt try to sell your product to someone who doesnt really need it, you're focused on whats right for your customer and yourself in the long run.

Term
Disposable income
Definition
(after-tax income)
Term
Discretionary Income
Definition
(after-tax and after necessities are paid for)
Term
Marketing plans should have ways to ---- --- --- incorporated into the plans prior to execution of the plans.
Definition
Evaluate and Control
Term
What are four types of utility required for an exchange to take place?
Definition
  • Form
  • Time
  • Place
  • Possession
Term
Consumer Behavior
Definition
describes how consumers make purchases decisions, and how they use and dispose of the purchased good or service.
Term
Consumer Decision Making Process
Definition
  1. Need Recognition- occurs when consumers are faces with an imbalanced between actual and desired states.
  2. Information Search
  3. Evaluation of Alternatives
  4. Purchase
  5. Post Purchased Behavior
Term
Cognitive Dissonance
Definition
tension state created by uncertainity about the rightness of a purchase decision.
Term
Limited Decision Making
Definition
typically occurs when a consumer has previous product experience, but is unfamiliar with the current brands availiable; its associaited with lower levels of involvement.
Term
Extensive Decision Making
Definition
used for an unfamiliar, expensive, or infrequently bought item. aka. complex decision making/high involvement.
Term
Reference Groups
Definition
all of the formal and informal groups in socity that influence an individual's purchasing behavior.
Term
Opinion Leaders
Definition
an individual who influences the opinion of others; probably not influential across product categories; they're often the first to try a product.
Term
Perception: Selective Disortion
Definition
the process whereby a consumer changes or distorts information that conflicts with his/her own feelings and beliefs.
Term
Perception: Selective Retention
Definition
process whereby the consumer remembers only the information that supports his/her personal feelings or beliefs.
Term
Experimental Learning
Definition
learning by doing.
Term
Conceptual learning
Definition

applying previously  learned concepts to a new situation.

i.e. sears lawnmower works well, lets buy a sears dryer.

Term
Julie purchased a watch on friday at dillards, on sunday she saw the watch on sale at TJMAXX...
Definition
Cognitive Dissonance.
Term
Three levels of moral character whichh of those is exemplified by a business that chooses "do the right thing" even though no one is likely to see them cutting corners or cheating customers in a minor way...
Definition
None of the above.
Term

When the marketer is researching characteristics of consumers, income is the best single indicator of social class.

t or f

Definition
False
Term
Business to Business Marketing
Definition

Marketing of goods and services to individuals and organzations for purposes OTHER THAN personal consumption

Much bigger market than the consumer market.

Term
"Stickiness"
Definition
a measure of your website's effectiveness= frequency x duration x number of pages
Term
Strategic Alliance/ Partnership
Definition
cooperative agreement between business firms
Term
Categories of Business Customers
Definition
  • Producers
  • Resellers
  • Governments (biggest market)
  • Institutions
Term
Derived Demand
Definition
the demand for business products
Term
Inelastic Demand
Definition
an increase or decrease in the price of the product will not significally affect demand for the product.
Term
Joint Demand
Definition
demand for two or more items used together in a final product
Term
Flunctuating Demand
Definition
phenomenon in which a small increase/decrease can produce a much larger change in demand needed to make product.
Term
Raw Materials
Definition
  • Farmed
  • Natural
Term
Buying Centers
Definition
  • Initiator
  • Influencers/ Evaluators
  • Gatekeepers
  • Decider
  • Purchaser
  • Users
Term
Components of marketing Stragedy
Definition
  • Target Marketing
  • Marketing Mix
Term
Market Segmentation
Definition
the process of dividing a market into meaningful, relatively similar and identifiable segments or groups.
Term
Criteria for successful segmentation
Definition
  • Substantiality
  • Indentifiable and measureable
  • accessibility
  • Responsiveness
Term

Bases for segmenting

(consumer markets)

Definition
  • Geographic segmentation
  • Demographic segmentation
  • -age
  • -gender
  • -income
  • -ethnic background
  • -family life cycle
  • Psychograhic segmentation
  • -personality
  • -motives
  • -lifestyles
  • Benefit Segmentation
  • Usage Rate
Term
Concentrated Stragedy
Definition
used to select one segment of a marketing for targeting marketing effort.
Term
Undifferentiated Strategy
Definition
marketing approach that views the market as one big market with no individual segments and uses a single marketing mix
Term
Multisegment Strategy
Definition
Chooses two or more well-defined market segments and developes a distinct marketing mix for each.
Term
One-to-One Marketing
Definition
individualize and use customer info. build long term relationships.
Term
Positioning
Definition
place a product/brand occupies in your mind relative to competing offerings.
Term
Repositioning
Definition

Changing consumer's perceptions of a brand in relation to competing brands

i.e. hardee's hamburgers

Term
Marketing Research
Definition

process of planning, collective, and analyzing data relevant to a marketing decisions.

3 roles:

  1. descriptive
  2. diagnostic
  3. predictive
Term
Secondary Data
Definition
data previously collected for any purpose other than the one on hand. help answer the research question
Term
Marketing research aggregators
Definition
companies that acquire, catalog, reformat, segment, and resell reports already published by marketing research firms.
Term
Observation Research
Definition

method that involves recording the behavioral patterns of people obejects and occurances. relies on four types of observation:

  1. people watching people
  2. people watching an activity
  3. machines watching people
  4. machines watching an activity
Term
Experimental Research
Definition
experiment is a method which the researchers alters one or more variables (price, packaging) while observing the effects of those alterations on another variable (like sales)
Term
Sample & Population
Definition

-subset of a population

-relevant population from which a sample will be drawn

Term
Procter & Gamble manufacturs many brands of toothpaste, each targeted different segments for mint flavor, tooth decay...
Definition
Benefit
Term
The form of personal interiviewing in marketing uses open handed questions with small group of people recruited because certain desire.
Definition
Focus Group
Term

Mr. Jones was interested in how school system might better...collect data interviews students in his 5th period class, random sampling.

t or f

Definition
false
Term

Personal selling as a promotional tool is used more often in the business market than in the consumer market while advertising is used more in consumer marketing.

t or f

Definition
True
Term

MRO- Manufactor replacement Operating

t or f

Definition
False
Term

Leasing is moe common in business than ultimate consumers.

t or f

Definition
true
Term
Product
Definition

need-satisfying offering of the firm.

-the heart of the organization's marketing program

-starting point in creating a marketing mix

Term
Business Products
Definition

Purchased for:

  • use in the manufacture of other goods or services
  • use in an organization's operations
  • resale to other customers
Term
Consumer Products
Definition
purchased for personal or household use
Term
Convenience Products
Definition

inexpensive items that require little shopping effort, purchased regularly, with little planning, and require a wide distrubtion

i.e. asprin

Term
Impulse Product
Definition
unplanned purchased, just want it.
Term
Emergency Product
Definition
goods you need
Term
Shopping Products
Definition

require comparision shopping among stores on the basis of price or desired product qualities/characteristics

2 types

Homogeneous

Hetergeneous

Term
Homogeneous Products
Definition

products that consumers see as being basically the same, but the consumer regularly shops for the best price

i.e. washer/dryers

Term
Hetergeneous Products
Definition

consumers differ in quality, style, suitability, and lifestyle compatibility. unique features and different levels of quality and price

i.e. furniture

Term
Specialty Products
Definition

searched for extensively, and substitutes are not acceptable.

quite expensive, and distribution is limited

 

Term
Unsought Products
Definition

not sought out by the consumer because they are either unknown to the consumer or they are not actively sought because the desire to postpone their purchase.

i.e. life insurance, retirement

Term
Product Item
Definition

specific version of a product that can be designed as a distinct offering among an organization's products.

SKU (size/each color/each flavor)

Term
Product Line
Definition
group closely related products offered by the organization
Term
Product Mix
Definition
organization's entire collection of products it sells.
Term
Product Mix Width (Breadth)
Definition

refers to the number of product lines that an organization offers. firms increase product mi witdh to:

  • spread risk across multiple lines
  • capitalize on established reputations
Term
Product Line Depth
Definition

the number of product items in a product line. firms increase product line depth to:

  • attract buyers with widely different preferences
  • capitalize on econmies of scale
  • increase sales and profits by further segmenting the market
  • even out seasonal sales patterns
Term
Product Modifications
Definition

changes in one or more of a product's characteristics

  • Quality Modification- entails changing a product's dependability or durability
  • Functional Modification- a change in a product's versatility, effectiveness, convenience, or safety
  • Style Modification- aesthetic product change rather than a quality or functional modification.
Term
Line Extension
Definition

the practice of adding products to a product line by:

-targeting new market segments (adding kids shoes to an adult shoe line)

-offering new features (adding a sports shoe with "the pump" to our line of regular sports shoes.

Term
Product line contraction
Definition

should be undertaken if the line is overextended, symptoms include

-some products are not contributing to profit because of low sales or cannibalization

-manufacturing/marketing resources are being disproportionately allocated to slowmoving products.

-items in the line have become obsolete because of new product entries in the line.

Term
Branding/Brand/Brand Name
Definition

-major tool marketers have to distinguish their products from those of the competition

-name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitor's products.

-that part of the brand that can be spoken.

Term
Brand/Service Mark
Definition

element of the brand that cannot be spoken, such as symbols

i.e.coffee cup with a drop of coffee falling from it.

Term
Trade Characters/ Slogans
Definition

-imaginary characters used as a spokesperson.

i.e. tony the tiger.

 

-Phrases that are consistently used in promotional campaigns for products/services

Term
Brand Equity
Definition
refers to the value of company and brand names.
Term
Global Brand
Definition
brand where at least 20% of he product is sold outside its home country or region.
Term
Brand Loyalty
Definition
consistent preference for one brand over all others and is quite high in some product categories, i
Term
Master Brand
Definition
refers to a brand so dominant in consumers' minds that they think of it immediately when a product category, use situation, product attribute or customer benefit is mentioned. i.e. kleenex
Term
Manufacturer's brand strategy
Definition
used when manufacturers use their own name on their products
Term
Private brand
Definition
brand name that a wholesaler or retailer uses for the products it sells.
Term
Individual Branding
Definition
practice using a different brand name for each product.
Term
Family Branding
Definition
involves marketing several different products under the same brand name.
Term
Cobranding
Definition

use of a combination of brand names to enhancethe percieved value of a product or when it produces incremental benefits to brand owners and users.

-two organizations wish to collaborate to offer a product, or to add value to products that are generally perceived to be homogeneous shopping goods.

Term
Trademark
Definition
a legal term indicating the owner's exclusive right to use the brand or part of the brand for a product.
Term
Generic Product Name
Definition

Identifies a product by class or type and cannot be trademarked.

i.e. aspirin used to be a brand name.

Term
Counterfeiting
Definition
copying another brand
Term
Packaging
Definition
container for protecting and promoting a product. holding contents together and as a way of protecting the physical good as it moves through the distribution channel.
Term
Packaging Functions:
Definition
  • Containing and protecting products
  • promoting products
  • facilitating storage, use, and convenience
  • facilitating recycling and reducing environmental damage.
Term

Warranty

(Express/Implied)

Definition

-guarantees the quality or performance of a good or service.

 

-made in writing

-unwritten guarantee that a good or service is fit for the purpose for which it was sold.

Term
New Products
Definition
  • New to the world
  • new product line
  • additions to exsisting product lines
  • improvements or revisions of exisiting products
  • repositioned products
  • lower-priced products
Term

New Product Development Process

 

Definition
  1. New-product strategy
  2. idea generation
  3. idea screening- often involves concept tests
  4. business analysis
  5. development- build a prototype and create a marketing strategy
  6. test marketing
  7. commercialization
  8. new product
Term
Macro/Micro
Definition

-Macro- all people, diffusion of innovation process

 

-Micro- individual, adoption process

Term
Diffusion of Innovation Process
Definition
process by which the adoption of an innovation spreads across society.
Term
 5 Categories of Adopters:
Definition
  1. Innovators
  2. Early Adopters
  3. Early Majority
  4. Late Majority
  5. Laggards
Term
Adoption Process
Definition
  1. awareness
  2. inerest
  3. evaluation
  4. trial
  5. adoption
Term
Rate of Adoption Influenced by:
Definition
  • Complexity (slows it down)
  • Compatibility
  • Relative Advantage
  • Observability
  • Trialability
Term
Five factors that affect the rate of adoption of a new product, they included compatibility, observability, trialabilty, complexity, and .....
Definition
relative advantage.
Term
the total assortments of products and services marked by a firm is called its
Definition
product mix
Term
Products for which the consumers is willingto spend a considerable amount of time going from store to store gathering info about prices and various features are called...
Definition
shopping product.
Term
Many, personal computer manufacturers such as compaq and dell sell computers with the words "intel inside" written, this stragedy is called...
Definition
co-branding
Term

Sales and profits for a new product or industry begin at zero in product life cycle.

t or f

Definition
False
Term

Coca Cola is best known branch. the value of the brand name itself is called owner's equity

t or f

Definition
False
Term

Primary reason we discuss in class for difference between peaks of the sales and profits lines is repositioning.

t or f

Definition
false
Term
Services
Definition

intangible or benefits that an organization provides to consumers in exchange for money or something of value.

i.e. airline trips, financial advice, auto repair.

Term
Intangibility Service
Definition
customers cant see, touch, or smell good service. consumers look for reassuring signs before purchasing services
Term
Inconsistency Service
Definition

inevitable differences in a service provider's performance from one day to the next.

i.e. quarterback may be hot one week and ice cold the next.

Term
Inseparability Service
Definition
service encounter takes places at the time the service provider performs an act- so it is impossible to seperate the service from the service provider
Term
Disintermediation
Definition

eliminates the need for customers to interact with people

i.e. self-service gas tanks and atm machines.

Term
Perishability
Definition

service perishability means that a firm cant store its services -its a case of use it or lose it

i.e. unoccupied hotel rooms, airline seats.

Term
Capacity management
Definition
process by which organizations adjust their services in an attempt to match demand.
Term
Good-Dominated Products
Definition

tangible product accompanied by suporting services.

i.e. buy a computer and get free telephone support service for two years.

embodying is the inclusion of a service with a purchase of a physical good.

Term
Equipment or Facility Based Services
Definition

businesses rely on expensive equipment or facilities and skilled personnel to deliever a service.

i.e. hospitals, restaurants, amusement parks.

 

Term
Operational factors/ Locational factors/ Environment factors
Definition

- technologies must move customers smothly through the service. clear signs and other guidelines must show customers how to use the service.

-important for frequently purchased services such as dry cleaning or banking that are obtained at a fixed location.

-service managers who operate a storefront service requiring people to come to their location realize they much create an atractive environment to lure customers.

i.e. sky boxes at stadiums.

Term
People Based Services.
Definition

selling the individual provider of the service.

i.e. lawyers, self-improvement services, personal trainers.

Term
Mystery Shoppers
Definition
shoppers who evaluate their experience.
Term
Marketing Channel
Definition

flow of products through a pipeline from producer to consumer:

-products

-ownership of goods

-communication other than promotion

-risks associated with ownership

Term
Members of a channel
Definition
  • producer
  • intermediaries ( resellers)
  • -wholesalers
  • -brokers
  • -retailers
  • Facilitating intermediaries
  • -transportation
  • -warehouses
  • -financial institutions
  • consumers
Term
Quanity discrepancy
Definition
difference between the amount of product produced and the amount an end user wants to buy
Term
Assortment Discrepancy
Definition
the lack of all the items a customer needs to recieve full satisfaction from a product or products
Term
Temporal Discrepancies
Definition
situation that occurs when a product is produced but a customer is not ready to buy it
Term
Spatial Discrepancies
Definition
difference between the location of a producer and the location of widely scattered markets
Term
Types of Channel Intermediaries
Definition
  • retailers
  • -sell to ultimate consumers
  • merchant wholesalers
  • -sell to producers, governments, institutions, resalers, and retailers
  • agents and brokers
Term
Channel Functions
Definition
  • Transactional functions
  • -contacting and promoting
  • logistical functions
  • -physcial distribution
  • -storing/sorting
  • facilitating functions
  • -financing/research on consumer
Term
Intensive Distribution
Definition
-soft drinks, candy, gum
Term
Selective Distribution
Definition

evaluate alternative

-appliances, clothing, electronics

Term
Exclusive Distribution
Definition

through one outlet

-speciality goods, ferrari, baccarat crystal

Term
Nonstore Retailing
Definition
  • vending machines
  • direct retailing
  • -marykay
  • direct marketing
  • -catalogs, telemarketing
  • electronic retailing
  • -online shopping
Term
Franchising
Definition

-franchisor grants a franchisee the business rights to operate or to sell a product

-franchisor- orginates the trade name, product, medthods of operation

-franchisee- pays the franchisor for the right to use its name, product, or business methods

Term
When a group of foreign entrepreneurs lanch a new airline called emu in australia is it ....
Definition
message encoding
Term
ABC corporation seeks to ensure that its advertising message is coordinated and consistent with the messages of its personal selling and sales promotional efforts. this emphasis upon consistency is most consistent with the concept of...
Definition
intergrated marketing communication
Term
Over which of the following forms of promotion does the marketer have the least control
Definition
publicity
Term

catalogs, homes shopping, vending machines are part of the reail industry

t or f

Definition
true
Term

a franchisor is an individual or business that is granted the right to sell anothers product

t or f

Definition
false
Term
 a marketing channel of distribution can be described a flow of --- through a pipeline
Definition
all of the above
Term
If intermediaries are used to reach the buyer or end-user the marketer is said to employ...
Definition
indirect channel
Term

Exclusive Distribution is more appropiate for shopping goods than for specialty

t or f

Definition
false
Term

gravel is an example of a product that likely has a short channel.

t or f

Definition
true
Term
Personal selling -> advertising
Definition
always personal -> always non-personal
Term
Dual Distribution
Definition
use of two  or more channels to distribute the same product to target markets
Term
Increase of demand
Definition
shift to the right, more inelastic demand curve
Term

Nonstore retailing no longer worry about "place"

t or f

Definition
false
Term

Service companies often tie tangible or physical evidence to their service to position it

t or f

Definition
true
Term

Wholesaler takes title and physical possession

t or f

Definition
true
Term
Personal selling
Definition
involving a personal paid for communication between two people in an attepmt to influence each other
Term
Advertising
Definition
impersonal, one-way mass communication about a product or organization that is paid for by a markter. used more to consumers.
Term
Promotion Mix
Definition
  • Personal Selling
  • Advertising
  • Public Relations
  • Sales Promotion
  • -special sales
  • -temporary packaging
  • -coupons
  • -samples
  • Direct Marketing
  • -telelmarketing
  • -catalogs
  • infomercials
Term
Public Relations
Definition
marketing function that evaluates public attributes, identifies areas within the organization, the public may be interested in, and executes a program of action to earn public understanding and acceptance.
Term
Promotion Communication Types
Definition
  1. Interpersonal communication
  • Advantage- immediate feedback
  • Disadvantage- cost of personal contacts

2. Mass Communication

  • Advantage- reaching large numbers at once
  • Disadvantage- waiting to assess reaction and responses to mass communicated promotion
Term
Intergrated Marketing Communications
Definition
the message reaching the consumer should be CONSISTENT
Term
AIDA
Definition
  • Attention
  • -greeting, approach
  • Interest
  • -show knowledge of customer's needs
  • Desire
  • -explain differential advantages and benefits
  • Action
  • -request action on their part.
  • -give them a little push, coupons
Term
Stages in Product Life Cyce
Definition
  • Introduction- price skimming/penetration strategies.
  • Growth- prices stabilize, prices may decrease to meet competition or savings can be passed on to customers
  • Maturity- prices are stable, but further price decreases maye be necessary due to competition, price increases are usually cost initiated, not demand initiated.
  • Decline- further price decreases unless youre the last in the marketplace, then your product may be collectable or difficult to obtain so it becomes a specialty good with higher price
Term

Loyalty marketing programs would be considered part of public relations for a firm

t or f

Definition
false
Term
Not listed as an attribute important for a sales person
Definition
good talker
Term

CPM stands for cost per million contacts

t or f

Definition
false
Term

Exxon "evolutionary advertise" incident

t or f

Definition
false
Term
Advertising Response Function
Definition
phenomenon in which spending for advertising and sales promotion increase sales or market share up to a certain level but then produces diminishing returns
Term
Types of Advertising
Definition
  • Institutional Advertising
  • -promotion the corportation as a whole rather than a single product to establish and maintain the company's identity
  • Advocacy Advertising
  • -instititutional advertising used to promote the company's viewpoint on a topic- controversal issues
  • Product Advertising
  • -promotion of the benefits of a single good or service
Term

Pioneering Advertising

Competitive Advertising

Comparative Advertising

Definition
  • designed to stimulate primary demand for a new product or product category
  • designed to influence demand for a specific brand
  • compare two or more specifically named or shown competing brands on one or more specific attributes
Term
Advertising Campaign
Definition
series of related advertisments focusing on a common theme, slogan, and set of advertising appeals.
Term
Steps to Advertising Campaign
Definition
  1. establish advertising objectives
  2. determine advertising budget
  3. develop creative stragedy for the message
  4. make media decisions
Term
Product Benefit
Definition

sell the sizzle, not the steak

benefits rather than attributes

Term
Advertising Appeal
Definition

identifies a reason for a person to buy a product.

(fear, humor, love)

Term
Media Planning
Definition
series of decisions advertisers make regarding the selection and use of media, allowing the marketer to communicate the message
Term
Reach
Definition
the number of different target consumers who are exposed to a commerical at least once during a specific period, usually four weeks
Term
Frequency
Definition
the number of times an individual is exposed to a message during a specific period
Term
Publicity
Definition

effort to capture media attention

usually through a press release

Term
Product Placement
Definition
stragedy that involves getting one's product, service, name to appear in a movie, tv show, magazine, etc.
Term
Cross Promotion (tie ins)
Definition

collaboration of two or more firms in a sales promotion

i.e. at&t's true rewards program offers discounts at Blockbuster

Term
Advertising Specialty
Definition

items that are useful or interesting merchandise given away free of charge and typically carrying an imprinted message or name

i.e. pens, notebooks, t-shirts

Term
Trade Allowance
Definition
short-termed special allowances, discounts, deals granted to resellers as incenitive to stock, feature, participate in a cooporate promotion of a product
Term
Push Money (Spiffs)
Definition
bonuses for pushing the manufacturer's brand through the distribution channel. money paid by manufactors to retail salespeople to encourage them to promote its products
Term
Point of Purchase displays
Definition
displays used at retail level to call customer attention to a featured product
Term
Sales Promotion
Definition
marketing communication activities, motivates consumers to purchase good immediately by lowering price or adding value.
Term

Consumer Sales Promotion

Trade Sales Promotion

Internal Sales Promotion

Definition

-directed at ultimate consumers

-directed at resellers

-directed at firms employees

Term
sales people are the --- of a firm
Definition
revenue generators
Term
showing family at funneral after an incident, what appeal?
Definition
fear
Term

Trail blazing advertisement is most approriate for introduction stage.

t or f

Definition
false
Term

First step in personal selling is approach customer

t or f

Definition
false
Term

Face to Face interaction

 

Definition
none of the above, personal selling
Term
Step in personal selling process is critical to knowing which features/benefits to cover body of presentation
Definition
needs assessment
Term
Final Step in Ad Campaign
Definition
estabish means, evaluating
Term

Slotting Allowances

t or f

Definition
true
Term

Sales promotion may be directed to ultimate consumers, middleman, and own employees

t or f

Definition
true
Term
Price
Definition
exchange value of a product or service. what is given up in exhange to acquire a good/service
Term
Revenue
Definition
price charged to customers multiplied by the number of units sold
Term
Profit
Definition
revenue minus expenses
Term
Return on investment (ROI)
Definition
net profit after taxes divided by total assets
Term
Profit Maximumization
Definition
setting prices so that total revenue is as large as possible relative to total costs
Term
Satisfactory Profits
Definition
are a reasonable level of profits- rather than maximizing prfofits, many organizations strive for profits that are satiffactory to the stockholders and management
Term
Market Share
Definition
pricing so as to maximize or increase market share (a company's product sales as a percentage of total sales for that industry
Term
Sales Mazimization
Definition
pricing so as to maximize sales
Term
Status Quo Pricing Objectives
Definition
seeks to maintain existing prices or to meet the competition's prices. passice policy
Term
Image Pricing Objectives
Definition
prestige pricing based on the premise that some buyers associate price with quiality and avoid products that are priced too low.
Term
Supply
Definition
quanity of a product that wil be offered to the market by a supplier at various prices for a specific period
Term
Price Equilibrium
Definition
price at which demand and supply are equal
Term

Price Elasticity of Demand

-Elastic Demand

-Inelastic Demand

Definition

consumer's responsiveness or sensitivity to changes in price.

-situation in which consumer demand is sensitive to changes in price

-situation in which an increase or decrease in price will not significantly affect demand for the product.

Term
Factors that affect elasticity
Definition
  • Availability of substitutes  (many)
  • price relatice to purchasing power- if price is an inconsequential amount to consumers, demand will be more inelastic
  • product durability- the more durable (and easily repaired) the more likely its elastic
  • a products other uses- the greater the number of different uses for the product the more elastic demand tends to be
  • rate of inflation- when inflation rate is high demand becomes more elastic
Term
Fixed Cost
Definition
costs that remain the same regardless of changes in the volume sold/produced
Term
Variable Costs
Definition
costs that change in relation to volume sold/produced
Term
Economies of Scale
Definition
reductions in cost per unit that result when fixed costs can be spread over a larger number of units of buying the product from the producer plus amounts for profits and for expenses.
Term
Keystone Pricing
Definition

the practice of marking up prices by 100 percent or doubling the cost

i.e. the retailer pays $10 for the vase so she marks it up to $20 to sell to customers.

Term
Breakeven Analysis
Definition

method of identifying the level of sales at which total revenue will equal total cost, given a products per-uint selling price.

total fixed costs

-----------------

price- variable costs per unit

Term
Price Skimming Strategy
Definition
initially sell the product at a high price to recoup some of your investment; appropriate for high tech products or difficult to imitate products
Term
Penetration Pricing Strategy
Definition
initially sell the product at as low a price as possible to grab market share before the competition shows up; appropriate for products that are easily imitated
Term
Prestige Pricing
Definition
charging a high price to help promote a high quality image.
Term
How to set a price
Definition
  1. establish pricing goals
  2. estimate demand, costs, and profits
  3. choose a pricing strategy to help determine a base price
  4. fine tune the base with pricing tactics
Term
Price Strategy
Definition
basic, long term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.
Term
Price fixing
Definition
agreement between two or more firms on the price they will charge for a product; its illegal
Term
Price Discrimination
Definition
sellers are prohibited from selling to two or more different buyers, within a reasonable short time, commondities of like grade and quality at different prices.
Term
Predatory Pricing
Definition
charging a very low price for a product with the intent of driving competitors out of business or out of the marker.
Term
Base Price
Definition
general price level at which the company expects to sell the good or service
Term

Cumulative Quanity Discount

Noncumulative Quality Discount

Definition
  • deduction from list price that applies to the buyers total purchases made during a specific period of time
  • deduction from list price that applies to a SINGLE order rather than the total volume
Term
Cash Discounts
Definition
price reduction offered to a consumer in return for prompt payment of a bill
Term
Functional (Trade) Discounts
Definition
discount to wholesaler and retailers for performing channel functions
Term
Rebates
Definition
cash refund given for the purchase of a product during a specific period
Term

FOB (Origin) Pricing

FOB (Destination) Pricing

Definition
  • price tactic that requires the BUYER to absorb the freight costs
  • price tactic that requires the SELLER is responsible for delievering the product
Term
Uniform delieverd Pricing
Definition

i.e. postage stamps

price tactic in which the seller pays the actual freight charges and bills every purchaser an identical flat charge.

Term
Zone Pricing
Definition
modification of uniform delievered pricing that divides the u.s. into segments and charges a flat freight rate
Term
Single Price Tactic
Definition
offers all goods and services at the same price
Term
Flexiable Pricing
Definition

different customers pay different prices for essentially the same merchandise

i.e. buying cars

Term
Price Lining
Definition
practice of offering a product line with several items at specific price points
Term
Leader Pricing
Definition
product is sold near or even below cost in hope that shoppers will buy other items once the are in the story
Term
Bait Pricing (bait and switch)
Definition
tries to get customers into a store through false or misleading price advertisment then uses high pressure selling to persuade consumers to buy more expensive merchandise
Term
Odd-Even Pricing
Definition

odd numbered prices to connote bargins and even numbered prices to imply quality

$5.99 vs. $6.00

Term

Price Bundling

Unbundling

Definition

Marketing two or more products in a single package for a special price

 

Reducing the bundle of services that comes with the basic product

 

Term
Two-part Pricing
Definition
price tactic that charges two seperate amounts to consume a single good or service
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