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Habitual Decision Making
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little consciousness
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Globalization
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Flow accross national borders.
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Primary Package
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One the consumer uses.
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Psychographic Segmentation
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How consumers describe themselves.
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Percieved Value
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Relationship between a product/services's benefits and its cost.
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Wholesalers
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Buy, then sell to retailers.
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Brand
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Names, terms, designs, symbols, or anythin else that identifies one seller's goods from another.
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Product
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Anything of value to a consumer.
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Demographic
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Identifying statistics such as age, gender, income, decucation, etc...
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Total Cost
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Sum of variable and fixed.
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Standards Gap
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Difference between the firm's perceptions of customers' expectations and the service standards it sets. (Appropriate service standards and service performance can close this gap)
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Service Empathy
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The caring, individual attention provided to customers.
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Marketing
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Process of planning and executing the *CONCEPTION, PRICING, PROMOTION, AND DISTRIBUTION* of ideas, goods, and services to creat *EXCHAGES* that satisfy individual and organizational goals.
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Exporting
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Producing good in one country an selling them in another. (Requires the least financial risk but allows for a limited return)
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Product Category
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Located within a product line, assortment of items that consumers see as substitues for one another.
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Product Excellence Strategy
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Achieving high-quality products using effective branding and positioning.
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Delivery Gap
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Difference between the firm's service standards and the actual service it provides to customers. (Getting employees to meet or exceed service standard can close this gap)
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Sales Orientation
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Increasing sales will be more beneficial than increasing profits.
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Substitution Effect
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Ability for consumers to substitute products for the focal brand.
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Communication Gap
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Difference between the actual service provided and the service promised by the firm. (Being more honest about what type of service a firm provides can help close this gap)
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Service Tangibles
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The appearance of physical facilities, equipment, personnel, and communicatin materials.
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Differentiated Segmentation Strategy
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Firms target several market segments with different offereing for each. (The Gap owns Banana Republic, The Gap, and Old Navy)
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Syndicated Data
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Data available for a fee from commertial research firms.
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Brand Repositioning
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Marketers change a brand's focus to target new markets.
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Direct Investment
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Requirs a firm to maintain 100% ownership of all plants/operations in a foriegn country. (Highest level of investment and most risk)
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Four P's of Marketing
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Product (Conception of ideas), Pricing, Promotion, Place (Distribution)
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Break-even Point
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Number of units sold generates just enough to cover the total cost.
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Variable Costs
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Costs that vary with the production volume. (Primarily labor and materials)
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Inseparable (Service)
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Service are produced and consumed at the same time. (Not necesarily true with goods)
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Service Gap
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When services fail to meet customers expectations about how a service should be deivered.
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Service Assurance
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The knowledge of, and courtesy by employees and their ability to convey trust and confidence.
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Concentrated Segmentation Strategy
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Firm selects a single primary target market and fit's that one consumer's needs.
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Brand Licensing
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When one firm allows another to use its brand name/logo/etc... for a fee.
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Brand Awareness
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How many consumers in a market are familiar with the brand, what it stands for, and have an opinion about the brand.
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Price War
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Two or more firms compete by lowering their prices.
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Price Skimming
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Consumers are willing to pay more for products that are new to the market.
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Competitor-based Pricing Methods
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Compare the prices of competitors and set prices to reflect. (Close = product may be similar, Higher = may have better quality)
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Target Return Pricing
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Designed to produce a specific return on an investment. (Profit Orientation)
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Fixed Costs
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Costs that remain at about the same level, regardless of changes in volume of production. (Rent, utilities, insurance)
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Diversification Strategy
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Introduces a new product or service to a market segment that is currently not served.
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The Five Cs of Pricing
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Company Objectives, Customers, Costs, Competition, Chanel Members
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Income Effect
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The change in quantity of a product demanded by consumers due to a change in their income.
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Undifferentiated Segmentation Strategy
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When everyone might be a potetial user of a product. (Bakery)
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Global marketers often respond to differences in real income in global markets by:
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Adjusting package size or price.
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Complementary Products
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If the price of one product drops, the price of the other does aswell. (DVD players and DVDs)
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Demand Curve
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Shows how many units of a product or service consumers will demand during a specific period of time. (At different prices)
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Market Penetration Strategy
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Set the initial price low for the intro of a new product or service.
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Marketing Plan (Define and list steps)
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Written document detailing an analysis of the current marketing situation, oportunities and threats for the firm, objectives and stratagies specified in the 4 Ps. # Define the mission and or vision. # Situation analysis #Identifying and evaluating opportunities (Sementation, Targeting, and Positioning) # Implement marketing mix and resources # Evaluate performance
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The Communication Process - Encoding
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Converting the sender's ideas into a message.
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Price Elasticity of Demand
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Measures how changes in a price affect the quantity of the product demanded. (% change in quantity demanded / % change in price)
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The Communication Process - The Communication Channel
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The medium used to transmit the message. (Print, broadcast, internet)
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