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inexpensive
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barato(a)
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a bargain
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una ganga
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Marketspace
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information- and communication-based electronic exchange environment occupied by digitized offerings
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Rack jobbers
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Full-service, specialty-line wholesalers that own and maintain display racks in stores.
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Production
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Actually making or performing services.
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disadvantages of primary data
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expensivetime consuming
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synergy
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increased customer value achieved through performing organizational functions more efficiently
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The automatic downloading of customized information of interest to recipients' PCs, affording an attractive channel for delivering Internet advertising or other information
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Webcasting
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What is marketing?
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Managing profitable customer relationships
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promotional mix
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the combination of promotional tools-including advertising, public relations, personal selling, and sales promotion-used to reach the target market and fulfill the organization's overall goals
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Multichannel Marketing
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the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
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Fads
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are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularityProduct lifecycle graph looks like a triangleExamples:FerbiesBeanie BabiesPet RockGiga Pets, Tomagatchi
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measurable
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the size, purchasing power, and profiles of the segments can be calculated
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Wholesalers
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Those firms engaged primarily in wholesaling activity
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changing consumers' perceptions of a brand in relations to competing brands.
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repositioning
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When competitors use segmentation, undifferentiated marketing can be suicidal. Conversely, when competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing.
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Competitors' Stategies
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portfolio matrix
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classifies each SBU by present/forecast growth
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coupon
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A written price reduction used to encourage consumers to buy a specific product
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Catalog showroom
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A warehouse showroom in which consumers use catalogs to place orders for products, which are then filled directly in the warehouse area and picked up by buyers in the showroom
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Advertising Media
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The vehicle through which advertising messages are delivered to their intended audiences.
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Market Share
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A Company’s percentage of total sales volume generated by all companies that compete in a given market.
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Choose a distribution strategy
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Channel relationships Conventional Marketing System Vertical Marketing system Horizontal Marketing System Distribution Intensity
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buying center
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ppl in an organizational buying action
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intranet
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internal "internet" for use by a corporation
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Marketing Mix
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unique blend of product, distribution promotion, pricing strategy designed to produce mutually satisfying exchanges with a target market
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Channel Organization & Management
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• Traditionally, channel members were independent operations• Not an integrated system • Better to work together as a system; as channel partners• Vertical Marketing Systemo Cooperative; Franchise; Corporate; Administered• Horizontal systemso Joint marketing agreements
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trademark
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sound, symbol, anything in a trade name, ex kleenex VS facial tissue, Kleenex became generic
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Marketing segmentation
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Sorting potential buyers into groups that have a common needs and will respond similarly to a marketing action
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integrated marketing
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requires the marketer to devise marketing activities and assemble fully integrated marketing programs that create, communicate, and deliver value for customers.
4 Ps
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stakeholder responsibility
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focuses on the obligations an organization has to those who can affect achievement of its objectives-these constituencies include consumers, employees, suppliers, and distributors-failure to consider a company's broader constituencies can have a negative consequences-bridgestone/firestone tires
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high-learning product
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significant education of customer is required and there is an extended introductory period
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price determines
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whether customer will purchase the product and whether revenue will make a profit
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What is globalization?
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processes by which goods, services, capital, people, information, and ideas flow across national borders.
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Culture
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Most basic cause of a persons wants and behaviors
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Maslow Hierarchy
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five levels of need
person must at least partially satisfy lower level before higher needs can affect behavior
Self Actualization (top) (education, social events, luxury goods)
Esteem Needs (jewelry, makeup, clothing)
Social Needs (clothing, cars, entertainment)
Safety Needs(alarm system, insurance, smoke detector)
Physiological Needs (bottom) (vitamins, medecine, food)
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Product Concept
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The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.
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Demand Curve
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graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
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Stars
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Are SBU's with products that have a dominant market share in high-growth markets
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Multiple Buying influences
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several people perhaps even top management play a part in making a purchase decision. may include, users, those who help write the specs or supply info for evaluating alternatives, buyers, deciders., gatekeepers.
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Consumer durables
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Consumer durables have low volume but high unit value. Consumer durables are often further divided into White goods (e.g. fridgefreezers; cookers; dishwashers; microwaves) and Brown goods (e.g. DVD players; games consoles; personal computers)
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Domestic Marketing
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Encompasses a firm's efforts in its home country.
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A group of retail businesses planned, developed, owned, and managed as a unit.
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shopping center
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Strategic planning
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The company's game plan for long-run survival and growth that makes the most sense given its specific situation, opportunities, objectives, and resources.
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Repeat Purchasers
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People who tried the product, were satisfied, and bought again.
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Individual Branding
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A branding policy in which each product is given a different name.
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Form Value
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-Raw materials turned into a finished product
-The physical item
-ex. Paying more for the coke bottle vs the can
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what are the 5 Cs?
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customers, competitors, collaborators, company, context
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monopolistic competition
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large number of competitors compete by differentiating their product offering a lot more to choose from... (1 cant swallow rst up) fast food, beer several dozen
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marginal cost (MC)
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The extra cost incurred by producing one more unit of a product
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Production Orientation
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Making products that are easy and then trying to sell them. Think that customers exist to buy a firms product, not that firms exist to meet customer needs.
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Pricing with electronic commerce
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Dynamic pricing strategies -price can be adjusted to meet changes in the marketplace. Auctions
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Frequency
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The number of times a member of a target audience is exposed to the advertising message.
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Focus group interview
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involves interviewing 6 to 10 people in an informal group setting, in which group interaction is encourages
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When a business can pay all of its debts
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Solvent
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Bottom up budgeting
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Total budget is approved by top ManagementCost activites are budgetedActivities to achieve objectives are plannedPromotional objectives are set
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Product line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. (major product line decision involves product line length)
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Goal and Definitions of Marketing
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Goal- managing profitable customer relationshipsDefinition-Producing products and services to meet the needs and wants of customers and prospects
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institutional competitive ads
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promote the advantages of one product class over another
-used in markets where different product classes compete for same buyers (ex: autos, "Got Milk?" campaign)
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Offer basic feature, product extensions, diversify models, phase out weak items
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Product Strategies over the PLC
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community shopping center
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"A shopping center with one or two department stores, some specialty stores, and convenience stores"
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Promotional Strategy
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a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion
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Market skimming pricing
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is a strategy with high initial prices to “skim” revenue layers from the market• Product quality and image must support the price• Buyers must want the product at the price• Costs of producing the product in small volume should not cancel the advantage of higher prices• Competitors should not be able to enter the market easily
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Challenges of Agents
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1. Lose control over pricing and other aspects2. Represent multiple service principles
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The Wheel of Retailing (WOR)
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-describes how new retailer outlets enter the market
-describes the present merchandise and service strategies of retailers
-predict the retailers will compete in the future
1. Outlet starts with: low prices, low margins, and low status >
--(as time passes outlet adds services)
2. Outlet now has: higher prices, higher margins, higher status
--(more time passes and more services are added)
3. Out let now has: still higher prices, still higher margins, still higher status
4. New forms of outlet enters retailing environment with characteristics as step 1
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A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
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Business Analysis Stage
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Channel and Distribution Decision for Services
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Minimize wait times, manage service capacity (ability to meet peaks), Improve service delivery (right distribution channel for target market & product).
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dual distribution (also multichannel distribution)
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occurs when a producer uses several competing channels to reach the same target market
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what are convenience goods and services?
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those products or services that the consumer is not willing to spend any effort to evaluate prior to purchase.
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what is the firms corporate responsibility in regard to its stakeholders
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obligation to those persons who have an interest (stake ) in its success
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what are the 6 main classifications of business products?
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1. installations, 2. accessory equipment, 3. component parts and materials, 4. raw materials, 5. supplies, 6. business services.
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33649
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Blue
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Test Marketing
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Standard
Controlled
Simulated
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Supply Chain management: Partners
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UpstreamDownstream
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divest
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get rid of dogs
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Psychographic Variables
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personality characteristics, motives, lifestyles
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market development
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new markets, exisitng products
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PricePlacePromotionProduct
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Facts that are newly collected
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Environment trends (5)
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Social, economical technological, competitive and regulatory forces
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missionary salespeople
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Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
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self-awareness
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develop a better understanding of ourselves.
greater understanding of how our behavior influences others.
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Off-Price Retailing
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selling brand-name merchandise at lower than regular prices
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value
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equals perceived benefit - perceived cost
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Psychographics
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The use of psychology, sociological, and anthropological factors to construct market segments. Segments are formed based on attitudes, interests and opinions.
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Downsizing
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reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
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demography
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the study of people's vital statistics, such as thier age, race and ethnicity and location
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awareness
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consumer's ability to recognize and remember the product or brand name
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minimize transcations and the cost of distribution for producers and customers
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intermediaries
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advocacy advertising
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Advertising that promotes a company's position on a public issue
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emergency goods
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Products or services that are purchased as a result of an urgent need are ________________.
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market information function
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the collection, analysis. and distribution of all the information needed to plan, carry out, and control marketing activities, whether in the firm's own neighborhood or in a market overseas.
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Naming Strategies
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corporate or family brand; The Gap
corporate and product line brands; Kellogg's Corn Flakes
individual lines; Mr. Clean (P&G)
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Classifying Stores
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By What they sell-merchandise mixLevel of ServiceBy Selection
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Safety needs
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Concerned with protection and physical well-being - health, security, medicine, exercise
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Counter-Purchase
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Seller receives full payment in cash but agrees to spend substantial amount of money in that country within a stated period of time.
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business portfolio
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The collection of businesses and products that make up the company.
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Pioneer Promotion
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Promotion that informs consumers about a new product
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Family life cyle(FLC)
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A segmentation variable that incorporates income and lifestyle to explain differences in spending patterns based on family role and transitions among roles
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Cobranding
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The practice of using the established brand names of two different companies on the same product. (Ex: Bravo! Foods cobranded with MasterFoods to creat Starburst Slammers, Milky Way Slammers -- the Ford Explorer, Eddie Bauer Edition)
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Integrated Marketing Communications
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Concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
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Good fit between companies offerings and customers needs; high profit potential
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True friends?
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Technological Environment
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create new technologies creating new product and market opportunities
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pricing
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most flexible bc can have sale etc
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break-even analysis
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fixed costs / (selling price - Variable costs)
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automatic vending
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The use of machines to dispense products
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Augmented Services
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the core service plus anything else that enhance the value.
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Postponement
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The delay in final production in the Leagile SCM strategy thta enables the company to take advantage of many of the benefits of lean SCM while still providing the agility that improves customer experiences. Exple: mostly manuf in Japan and final customization done at dealer at local dealership location.
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Buy-back allowance
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sum of money producer gives to reseller
for each unit bought
after an initial promotional deal is over
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Product Concept Development
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Expand ideas, describe features and benefits, evaluate chance for success-Technical- is the product feasible -Commercial-is anyone going to buy it
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Consumer buyers
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Consumer buyers are those who purchase items for their personal consumption
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market segmentation
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dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
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CATEGORY KILLER
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GIANT SPECIALTY STORE THAT CARRIES A VERY DEEP ASSORTMENT OF A PARTICULAR LINE
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product development
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a strategy for company growth by offering modified or new products to current market segments
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Five components of service quality
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Reliability, assurance, tangibles, empathy, responsiveness
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methods
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the approaches that can be used to collect data to solve all or part of a problem
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Two or more people who interact to accomplish individual or mutual goals.
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Group
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Instituional advertisements.
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1. Enhances a company's image rather than promotes particular product. 1. corporate identity 2. advocacy
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what social change has had the largest impact on marketing?
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women working
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combination compensation plan
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Paying salespeople a fixed salary plus a commission based on sales volume
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Channels for business products
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Producer - Organizational Buyers
Pro - Industrial dist's - Org Buyers
Pro - Agents - Org buyers
Pros - Agents - Ind Dist's - Org Buyers
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Category Killer
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A giant specialty store that carries a very deep assortment or a particular line and is staffed by knowledgeable employees.
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Reach
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the total number of people who sees an ad.
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Market Testing
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try complete market plan in a smaller area -traditional test markets- in the past very expensive and give competitors a chance to see marketing mix -simulated test markets-online, cheaper,and eliminate competitors viewing your marketing mix
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Customer Relationship Management (CRM)
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the process of identifying prospective buyers, understanding them intimately and develping favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
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Which of the following is a possible communication medium to use for data collection?
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PhoneMailPersonal interview
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What step of the market research process?:Make action recommendations, implement action recommendations, and evaluate results.
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Take marketing actions.
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consumer spending
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-which accounts for 2/3 of the US economic activity -is affected by expectations of the future-use surveys to predict spending behaviors
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odd-even pricing
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sets prices a few dollars or cents under an even number ($4.99 vs. $5)
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occurs when a firm sets a profit goal usually determine by its board of directors
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target return
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trade (functional) discount
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A reduction off the list price a producer gives to an intermediary for performing certain functions
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Store Image
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The way a retailer is perceived in the market place-Atmospherics-Store designs -color, lighting,scents,furnishing,sounds,and any other design element all come together to create a desired setting. Store personnel Pricing Policy
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product life cycle
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the course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline
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Level of Confidence
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95% chance of doing right - alpha5% level of significance - p-value- probabilitysystem levels
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marketing program
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a plan that uses the marketing mix to provide a good, service, or idea to buyers
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What is target marketing or targeting?
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process of evaluating attractivness of various segments and deciding which to pursue. EX: soft drink manufacturers, targeting kids with fruit drinks, caffeine free, etc.
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Differentiate among customers
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in terms of both their needs and their values to the company
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6 options for handling objections to presentation
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1. acknowledge/covert the objection
2. postpone
3. agree/neutralize
4. accept objection as valid
5. denial
6. ignore objection (if trivial)
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Decision to conduct test marketing
4 factors
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cost and risk of failure vs probability of success
likelihood +speed competitors can steal
investment needed to produce product
damage unsuccessful product could do to the firm
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ex of financial intermediaries
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depend on banks to lead ppl money HELP not all
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Why dont people buy directly from the wholesaler?
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It would be inconvenient, each member of the supply chain adds values.
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