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MKTG - Test #3
MKTG 3001
164
Marketing
Undergraduate 2
04/23/2012

Additional Marketing Flashcards


 

 


 

Cards

Term
retailing
Definition
all activities involved in selling, renting and providing products and services to ultimate consumers for personal, family or household use
Term
posession utility
Definition
making the product easy to possess- different financing options
Term
form of ownership
Definition
distinguishes retail firms based on whether individuals, corporate chains or contractual systems own the outlet
Term
level of service
Definition
used to describe the level of service provided to the customer: self-serve, limited-service and full-service
Term
type of merchandise line
Definition
describes how many different types of products a store carries and in what assortment
Term
independent retailer
Definition
most common type, advantage is that the owner can be their own boss, offers convenience, personal service and life style compatibility to customer
Term
corporate chain
Definition
multiple outlets under one ownership - allows for consistency for customers, advantage in dealing with suppliers
Term
contractual systems
Definition
independently owned stores that band together and act like a chain: retail-sponsored cooperatives, wholesaler-sponsored voluntary chains and franchise. ex: IGA
Term
business-format franchise
Definition
type of franchise ex: McDonalds
Term
production-distribution franchise
Definition
type of franchise, ex: Ford dealership
Term
two types of merchandise line
Definition
depth of product line and breadth of product line
Term
depth of product line
Definition
large assortment of each item ex: Sports Authority, Victorias Secret AKA: specialty outlets
Term
breadth of product line
Definition
large variety in items carried ex: Macy's, Sears AKA: general merchandise stores
Term
category killers
Definition
specialty discount outlets that focus on one type of product, dominate the market
Term
scrambled merchandising
Definition
offering several unrelated product lines at a single retail store
Term
Automatic vending
Definition
type on non-store retailing - vending machines
Term
direct mail/catalogs
Definition
type of non-store retailing - mail sent directly to consumer - eliminates costs of store/clerk but is affected by the green movement
Term
television home shopping
Definition
ex: QVC - call in and buy, infomercials
Term
online retailing
Definition
store websites - allows 24/7 shopping
Term
telemarketing
Definition
using the telephone to interact with and sell directly to customers
Term
direct selling
Definition
door-to-door retailing - involves direct direct sale of products and services to consumers through personal interactions and demonstrations
Term
retailing mix
Definition
the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication and merchandise
Term
markup
Definition
how much should me added to the cost the retailer paid for the product to reach the final selling price
Term
original markup
Definition
difference between retailer cost and initial selling price
Term
maintained markup
Definition
AKA gross margin - difference between retailer cost and final selling price
Term
markdown
Definition
discounting a product - when it does not sell at original price and adjustment is necessary
Term
everyday low pricing
Definition
when retailers emphasize consistently low prices and eliminate most markdowns
Term
everyday fair pricing
Definition
when retailers opt out of the lowest price but try to create value through service and total buying experience
Term
benchmark/signpost item
Definition
item that consumers use to form an overall impression of a stores' prices
Term
off-price retailing
Definition
selling brand-name merchandise at a lower than regular price
Term
central business district
Definition
oldest retail setting - a community's downtown area
Term
regional shopping centers
Definition
consist of 50 to 150 stores that typically attract customers who live or work within a 5-10mile range
Term
anchor store
Definition
well known national or regional store ex: Sears, Saks, Macys
Term
strip mall
Definition
clusters of stores that serve people usually within a 5-10 minute drive ex: gas station, grocery store, pharmacy
Term
power center
Definition
variation of strip mall that is a huge shopping strip with multiple anchor stores such as Home Depot, Best Buy
Term
multichannel retailers
Definition
retailers that use a combination of traditional store formats and non-store formats such as catalogs, television and online retailing
Term
category management
Definition
an approach to managing the assortment of merchandise that maximizes sales and profits
Term
consumer marketing at retail (CMAR)
Definition
conducting research, analyzing data to identify shopper problems, translating data into retailing mix actions, executing in-store programs and monitoring performance of merchandise
Term
two most popular measures of retailer success
Definition
sales per square foot and same store sales growth
Term
wheel of retailing
Definition
a concept that describes how new forms of retail outlets enter the market
Term
steps in wheel of retailing
Definition
1. low prices, low margins, low status
2. higher prices, higher margins, higher status
3. still higher prices, still higher margins, still higher status
4. new form of outlet enters environment with characteristics of outlet in box 1
Term
retail life cycle
Definition
the process of growth and decline that retail outlets experience over time
Term
merchant wholesalers
Definition
independently owned firms that take title to the merchandise they handle
Term
general merchandise (full-line) wholesalers
Definition
carry a broad assortment of items and perform all channel functions - not much depth within specific product lines
Term
specialty merchandise (limited-line) wholesalers
Definition
offer a relatively narrow range of products but have an extensive assortment within product lines - perform all channel functions
Term
Rack-jobbers
Definition
type of limited wholesaler: furnish the racks or shelves that display merchandise in retail stores, perform all channel functions and sell on consignment to retailers
Term
Cash and carry wholesalers
Definition
type of limited-line, take title to merchandise but sell only to buyers who call on them, pay for merchandise and furnish their own transportation
Term
drop shippers/desk-jobbers
Definition
type or limited-line, own the merchandise they sell but do not physically handle, stock or deliver it - solicit orderes
Term
truck jobbers
Definition
type of limited service - small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers - handle limited assortments of fast-moving or perishable items sold for cash directly from trucks - ex: farmers market
Term
manufacturers agents
Definition
agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
Term
selling agents
Definition
represent a single producer and are responsible for the entire marketing function of that producer
Term
brokers
Definition
independent firms or individuals whose main function is to bring buyers and sellers together to make sales
Term
promotional mix
Definition
the combo of one or more of the communication tools used to inform, persuade or remind prospective buyers
Term
integrated marketing communications
Definition
the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences
Term
communication
Definition
the process of conveying a message to others; it requires six elements: a source, a message, a channel of communication, a receiver and the process of encoding and decoding
Term
encoding
Definition
the process of having the sender transform an idea into a set of symbols
Term
decoding
Definition
the process of having the receiver take a set of symbols, the message and transform the symbols back into an idea
Term
field of experience
Definition
a similar understanding and knowledge that can be applied to a message
Term
feedback loop
Definition
response and feedback
Term
feedback
Definition
the sender's interpretation of the response and indicates whether the message was decoded and understood as intended
Term
noise
Definition
extraneous factors that can work against effective communication by distorting a message or the feedback received
Term
advertising
Definition
any paid form of nonpersonal communication about an org, product, service or idea by an identified sponsor
Term
personal selling
Definition
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision - immediate feedback, very persuasive, can select audience, can give complex info - weaknesses: expensive, inconsistent messages
Term
public relations
Definition
a form of communication management that seeks to influence the feelings, opinions or beliefs held by customers, potential customers, stockholders, suppliers, employees and others about a company, its products or services.

strengths: often most credible source in consumers mind
weaknesses: difficult to get media cooperation
Term
publicity
Definition
a nonpersonal, indirectly paid presentation of an organization, product or service
Term
sales promotion
Definition
a short-term offer designed to arouse interest in buying a product or service

strengths:effective in short run, flexible
weaknesses: easily abused, can lead to promo wars, easily duplicated
Term
direct marketing
Definition
promo element that uses direct communication with consumers to generate a response in the form of an order, a request for further info or a visit to a retail outlet

strengths: messages prepared quickly, facilitates relationship with customer
weaknesses: declining customer response, database management is expensive

ex: catalogs, mail
Term
push strategy
Definition
directing the promo mix to channel members to encourage them to order and stock a product
Term
pull strategy
Definition
directing the promo mix at ultimate consumers to encourage them to ask the retailer for the product
Term
target audience
Definition
the group of prospective buyers toward which a promo program is directed
Term
hierarchy of effects
Definition
the sequence of stages a prospective buyer goes through: awareness, interest, evaluation, trial and adoption
Term
awareness
Definition
the consumer's ability to recognize and remember the product or brand name
Term
interest
Definition
an increase in the consumer's desire to learn about some of the features of the product or brand
Term
evaluation
Definition
the consumer's appraisal of the product or brand on important attributes
Term
trial
Definition
the consumer's actual first purchase and use of the product or brand
Term
adoption
Definition
through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand
Term
promo objectives should be...
Definition
1. designed for a well-defined target audience
2. measurable
3. cover a specified time period
Term
percentage of sales
Definition
promo budget

the amount of money spent on promo is a percentage of past or anticipated sales
Term
competitive parity
Definition
promo budget

matches the competitor's absolute level or spending or the proportion per point of market share
Term
all you can afford
Definition
promo budget

spend money on promo only after all other budget items have been paid for
Term
objective and task
Definition
promo budget

best approach, the company determines promo objectives, outlines the tasks to accomplish these objectives and determines the promo cost of doing so
Term
direct orders
Definition
the result 0f direct marketing offers that contain all the info necessary for a potential buyer to make a decision to purchase and complete the transaction
Term
lead generation
Definition
the result of a direct marketing offering designed to generate interest in a product of service and request additional info
Term
traffic generation
Definition
the outcome of direct marking offer designed to motive people to visit a business
Term
advertising
Definition
any paid form of nonpersonal communication about an org, product, service or idea by an identified sponsor
Term
product advertisements
Definition
advertisements that focus on selling a product or service forms include pioneering (informational, competitive (persuasive) and reminder
Term
pioneering advertisement
Definition
tell people what a product is, what it can do and where it can be found - objective is to inform target market
Term
competitive advertising
Definition
promotes a specific brand's features and benefits - objective is to persuade taregt market to select firm's brand rather than a competitor
Term
comparative advertising
Definition
type of competitive advertising - shows one brand's strengths relative to those of competitors
Term
reminder advertising
Definition
used to reinforce previous knowledge of a product
Term
reinforcement
Definition
used to assure customers that they made the right choice
Term
institutional advertisements
Definition
designed to build goodwill or an image for an organization, rather than promote a specific product or service
Term
advocacy advertisements
Definition
institutional type - state position of the company on an issue
Term
pioneering institutional advertisements
Definition
used for announcements about what a company is, what it can do or where it is located
Term
competitive institutional ads
Definition
promote advantages of one product class over another and are used in markets where different product classes compete for the same buyers
Term
reminder institutional
Definition
bring company's name to attention of the target market again
Term
fear appeals
Definition
suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product, service, change in behavior or reduction in the use of a product
Term
sex appeals
Definition
suggests to the audience that the product will increase the attractiveness of the user
Term
humor appeals
Definition
imply either directly or subtly that the product is more fun or exciting than competitors offereings
Term
advertising media
Definition
the means by which the message is communicated to the target audience
Term
reach
Definition
the number of different people or households exposed to an ad
Term
rating
Definition
percent of households in a market that are tuned into a particular TV show or radio station
Term
frequency
Definition
average number of times a person in the target audience is exposed to the message
Term
cost per thousand (CPM)
Definition
cost of reaching 1000 individuals
Term
wasted coverage
Definition
having people outside the market for the product see the ad
Term
infomercials
Definition
program-length (30 min) ads that take and educational approach to communication with potential customers
Term
mediums for ads
Definition
TV, radio, magazines, newpapers, yellow pages, internet, outdoor, direct mail
Term
outdoor ads
Definition
billboards, transit ads
Term
buyer turnover
Definition
how often new buyers enter the market to buy a product
Term
forgetting rate
Definition
the speed with which buyers forget the brand if ads arent seen
Term
continuous (steady) schedule
Definition
type of advertising schedule - used when seasonal factors are unimportant, ads are run continuously throughout the year
Term
flighting (intermittent) schedule
Definition
type of advertising schedule - periods of advertising are scheduled between periods of no advertising to reflect seasonal demand
Term
pulse (burst) schedule
Definition
type of advertising schedule - flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion or introduction of a new product
Term
pretests
Definition
tests conducted before an ad is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the ad
Term
posttests
Definition
tests conducted after an ad has been shown to the target audience to determine whether it has accomplished its purpose
Term
consumer-oriented sales promotions
Definition
sales tools, such as coupons, sweepstakes and samples used to support a company's ads and personal selling efforts directed to ultimate consumers
Term
types of consumer-oriented sales promos
Definition
coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point-of-purchase displays, rebates, product-placements
Term
product placement
Definition
a consumer sales promo that uses a brand-name product in a movie, television show, video, or commercial for another product
Term
trade-oriented sales promos
Definition
sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors or retailers
Term
merchandise allowance
Definition
reimbursing a retailer for extra in-store support of special featuring of the brand
Term
case allowance
Definition
a discount on each case ordered during a specific time period
Term
finance allowance
Definition
involves paying retailers for financing costs or financial losses associated with consumer sales promos
Term
cooperative advertising
Definition
advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products
Term
publicity tools
Definition
methods of obtaining nonpersonal presentation of an org, product or service without direct cost - news release, news conference, public service announcement
Term
personal selling
Definition
the two-way flow of communication between a buyer and a seller, often in face-to-face encounters, designed to influence a person's or group's purchase decision
Term
sales management
Definition
planning the selling program and implementing and evaluating the personal selling effort of the firm
Term
relationship selling
Definition
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
Term
order taker
Definition
a salesperson who processes routine orders or reorders for products that were already sold by the company. Two kinds - outside: visit customers inside: answer questions and complete transactions
Term
order getter
Definition
a salesperson who sells in a conventional sense and identifies prospective customers, provides customers with info, persuades customers to buy, closes sales, and follows up on customer's use of a product or service
Term
personal selling process
Definition
sales activites occuring beofre and after the sale itself, consisting of six stages:
1. prospecting
2. preapproach
3. approach
4. presentation
5. close
6. follow-up
Term
adaptive selling
Definition
a needs-satisfaction sales presentation style that involves adjusting the presentation to fit the selling situation
Term
consultative selling
Definition
a need-satisfaction sales presentation style that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
Term
techniques to deal with objections
Definition
PAGE 390
1. acknowledgement and convert the objection
2. postpone
3. agree and neutralize
4. accept the objection
5. denial
6. ignore the objection
Term
three functions of sales management
Definition
1.sales plan formulation
2. sales plan implementation
3. salesforce eval
Term
sales plan
Definition
a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed

three tasks:
1. setting objectives
2. organizing salesforce
3. developing account management policies
Term
major account management
Definition
the practice of using team selling focus on important customers so as to build mutually beneficial, long-term, cooperative relationships; AKA account management
Term
account management policies
Definition
policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Term
three tasks in implementing a sales plan
Definition
1. salesforce recruitment and selection
2. salesforce training
3. salesforce motivation and compensation
Term
sales quota
Definition
specific goals assigned to a salesperson, sales team, branch sales office or sales district for a stated time period
Term
salesforce automation (SFA)
Definition
the use of technology to make the sales function more effective and efficient
Term
marketplace
Definition
buyers and sellers engage in face-to-face exchange relationships in a material environment
Term
marketspace
Definition
an internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings
Term
interactive marketing
Definition
two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of info received from the seller
Term
choiceboard
Definition
an interactive, internet-enabled system that allows individual customers to design their own products and services
Term
collaborative filtering
Definition
a process that automatically groups people with similar buying intentions, and predicts future purchases
Term
personalization
Definition
the consumer-initiated practice of generating content on a marketer's web site that is custom tailored to an individual's specific needs and preferences
Term
permission marketing
Definition
asking for a consumer's consent (called opt-in) to receive email and advertising based on personal data supplied by the consumer
Term
customer experience (interactive marketing)
Definition
the sum total of the interactions that customer has with a company's website, from initial look at a home page through the entire purchase decision
Term
context
Definition
site layout and visual design
Term
commerce
Definition
site's abilities to enable commercial transactions
Term
connection
Definition
degree that the site is linked to other sites
Term
communication
Definition
the ways the site enables site-to-user, user-to-site or two-way communication
Term
customization
Definition
site's ability to tailor itself to different users or to allow users to personalize site
Term
community
Definition
the ways that they site enables user-to-user communication
Term
content
Definition
text, pictures, sound, and video that the site contains
Term
bots
Definition
electronic shopping agents or robots that comb web sites to compare prices and product or service features
Term
C's of why consumers shop online
Definition
convenience, choice, customization, communication, cost, control
Term
web communities
Definition
web sites that allow people to meet online and exchange views on topics of common interest
Term
blog
Definition
a web page that serves as a publicly accessible personal journal for an individual or org
Term
spam
Definition
electronic junk email
Term
viral marketing
Definition
an internet enabled promo strategy that encourages users to forward marketer-initiated message to others via email
Term
dynamic pricing
Definition
the practice of changing prices for products/services in real time in response to supply and demand
Term
cookies
Definition
computer files that a marketer can download onto a compute of an online shopper who visits the marketers website
Term
cross-channel shopper
Definition
an online consumer who researches products online and then purchases them at a retail store
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