Exam #4 Flashcards

Terms Definitions
An organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships beneficial for the organization and its stakeholders is called ________.
Marketing.
The ability of a good or service to satisfy the wants and needs of customers is called _________.
Utility.
________ utility is created by making a good or service available when customers want to purchase it.
Time utility.
_______ utility is created by making a product available in a location convenient for customers.
Place utility.
_______ utility refers to an orderly transfer of goods and services from buyer to seller.
Ownership utility.
What are the four eras that marketing activities evolved from?
Production, Sales, Marketing, (and now) Relationship Eras.
The term _________ ________ refers to a company-wide customer orientation with the objective of achieving long-run success.
Marketing concept.
A seller's market has a(n) _______ of goods and services while a buyer's market has a(n) _______ of goods and services.
Seller's market = shortage, Buyer's market = abundance.
Repeat purchases are concrete evidence of ______ _______. Two components of this are _______ & ________. When a company exceeds value expectations it provides a _____ ______ good of service.
Customer satisfaction; quality & value; value-added.
Why are marketing strategies just as important for not-for-profit organizations as they are for profit organizations?
Not-for-profit organizations are competing for money from individuals, foundations, and corporations so they are able to function.
Efforts designed to attract the attention, interest, and preference of a target market toward a person are called ________ marketing.
Person marketing.
Attempts to attract people to a particular area is ______ marketing.
Place marketing.
Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances is known as _______ marketing.
Event marketing.
Person, Place, Event, Cause, & Organization Marketing are all examples of _________ marketing.
Nontraditional marketing.
Marketing that promotes a cause/social issue (preventing child abuse, antilittering, antismoking) is _______ marketing.
Cause marketing.
Marketing that influences consumers to accept the goals, receive services, or contribute in some way to an organization is _______ marketing.
Organizational marketing.
What are the two steps in developing a marketing strategy?
1. Study and analyze potential TARGET MARKETS (find the need) and choose among them. 2. Create a MARKETING MIX to satisfy the chosen market (fill the need).
_______ _______ (___) are goods and services (DVDs, shampoo, dental care) that are purchased by end users.
Consumer products (B2C).
A _________ ____ blends the four strategies of product, distribution, promotion, and pricing to fit the needs and preferences of a specific target market.
Marketing mix.
The marketing strategy that includes decisions about package design, brand names, trademarks, warranties, and product image is ________ strategy.
Product strategy.
Making sure customers receive their purchases in the proper quantities at the right times and locations is ________ strategy.
Distribution strategy.
__________ strategy effectively blends advertising, personal selling, sales promotion, and public relations to a inform, persuade, and influence purchase decisions.
Promotional strategy.
________ strategy simply aims to set profitable and justifiable prices.
Pricing strategy.
Financial records are an example of _______ data.
Internal data.
Previously published, low cost & easily obtainable data is _________ data. Ex) Census data.
Secondary data.
_________ data helps firms evaluate consumers' buying behavior, anticipate possible changes in the marketplace, and identify new markets.
Secondary data.
Data collected first-hand through observational studies and surveys is _________ data.
Primary data.
What is a focus group?
A group of eight to twelve people gathered to discuss a particular topic, generate new ideas, address consumers' needs, and even point out flaws in existing products.
The process of dividing the market into several groups is _______ ___________.
Market segmentation.
The four Consumer (B2C) market segments are:
Geographical, Demographic, Psychographic, Product-Related.
The 3 types of Business (B2B) Market segments are:
Geographical, Demographic, and End-use
Segmentation dividing a market into homogeneous groups on the basis of their locations is _______.
Geographical segmentation.
Most common method of segmentation, __________, distinguishes markets on the basis of various characteristics such as gender, income, age, occupation, household size, etc.
Demographic segmentation.
Dividing consumer markets into groups with similar values and lifestyles is _______ segmentation.
Psychographic segmentation.
_________ segmentation divides consumer market into groups based on buyers' relationships to the good or service.
Product-related segmentation.
Product-related segmentation has three approaches based on benefits sought, usage rates, and brand loyalty levels. When marketers attempt to tie loyal customers to a good or service by giving away premiums they are using ________.
Brand loyalty.
Product-related segmentation has three approaches based on benefits sought, usage rates, and brand loyalty levels. When Johnson & Johnson displayed the ad for BAND-AID Tough-Strips as waterproof they were using __________.
Benefits sought.
Product-related segmentation has three approaches based on benefits sought, usage rates, and brand loyalty levels. When companies pinpoint which of their customers are the heaviest/most profitable users, and direct their marketing efforts to those custom
Usage rates.
______ __________ focuses on the precise way a B2B purchaser will use a product.
End-use segmentation.
What determines consumer behavior?
Cultural, social, and family influences.
In order to maintain long-term success, businesses need to find new ways of relating to customers by developing and maintaining long-term, cost-effective exchange relationships with partners. This is called ________ _______.
Relationship marketing.
The lifetime value of a customer can be defined by:
Simply keeping an existing customer because attracting a new customer can cost five times as much as keeping an existing one.
What programs reward purchasers with cash, rebates, merchandise, and other premiums in order to build and protect customer relationships?
Frequency marketing programs.
Common in the credit card industry, _______ programs are a type of marketing effort that solicits involvement by individuals who share common interests/activities.
Affinity programs.
_________: two businesses jointly market each other's products. _________: two+ businesses link their names to a single product.
Comarketing; cobranding.
________ products are items the consumer seeks to purchase frequently, immediately, and with little effort.
Convenience products. (Milk, bread, shampoo, etc.)
________ products are purchased only after the buyer has compared competing products in competing stores.
Shopping products. (sofa, television)
________ products are those that a purchaser makes a special effort to obtain.
Specialty products. (car, wedding ring)
The five basic categories of B2B products are installations, accessory equipment, component parts & materials, raw materials, and supplies. Of these, which are major capital items. Examples: heavy equipment, machinery.
Installations.
The five basic categories of B2B products are installations, accessory equipment, component parts & materials, raw materials, and supplies. Of these, which are capital items (less expensive then installations). Examples: fax machines, hand tools.
Accessory equipment.
The five basic categories of B2B products are installations, accessory equipment, component parts & materials, raw materials, and supplies. Of these, which includes automotive batteries, disk drives for computers, and are otherwise products that are boug
Component parts & materials.
The five basic categories of B2B products are installations, accessory equipment, component parts & materials, raw materials, and supplies. Of these, which are farm and natural products used to produce final products.
Raw materials.
The five basic categories of B2B products are installations, accessory equipment, component parts & materials, raw materials, and supplies. Of these, which do not become part of the final product and include things like paper clips, light-bulbs, and copy
Supplies.
The assortment of product lines (group of related products marked by physical similarities) that a firm offers to consumers and business users is a _______ ____.
Product mix.
The stages of new-product development from top to bottom are:
New-Product Ideas --> Screening --> Concept Development/ Business Analysis --> Product Development --> (possible) Test Marketing --> Commercialization
During the ___________ stage of new-product development, assessment of the new product's potential sales, profits, growth rate, and competitive strengths and whether it fits with the company is assessed.
Concept Development/Business Analysis
During the _________ stage of new-product development, a complete marketing campaign is used in a selected city or TV coverage area.
Test marketing.
A ______ ______ is a single brand name used for several related products.
Family brand.
_________ strategy deals with the marketing activites and institutions involved in getting the right good or service to the firm's customers.
Distribution.
________ ______ are the paths that products follow from producer to consumer.
Distribution channels.
_______ _______ is the actual movement of products from producer to the user.
Physical distribution.
A _________ _______ (middleman) is a business firm that moves good between producers and consumers, commonly: wholesalers, retailers.
Marketing intermediary.
How do marketing intermediaries lower consumer prices?
By creating utility, providing additional services, reducing costs.
_____ _______ stock the products they distribute and fill orders from their inventories.
Sales branches.
The independent wholesaling intermediaries, ______ and ________ may not take possession of the goods they handle, never take title, merely working to bring buyers and sellers together.
Agents and brokers.
The _______ _________ is a process where new retailers enter the market by offering lower prices made possible through reductions in service.
Wheel of retailing.
______ ________ aim to influence consumers' perceptions of the shopping experience by creating attractive physical characteristics of a store and it's amenities.
Store atmospherics.
The two major decisions when choosing how to distribute goods or services are:
1. Deciding on the level of distribution intensity and 2. Selecting a specific distribution channel.
Three types of distribution intensity (number of intermediaries or outlets through which a manufacturer distributes its goods), what are they from great #, to least #?
1. Intensive, 2. Selective, 3. Exclusive
A ______ _____ is the complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers. The process of coordinating the flow of these goods and services is called _______.
Supply chain; Logistics.
Radio-frequency identification (RFID) is used to:
Identify packaged/crate items without unloading them for efficient inventory management, stock level maintenance, tracking stolen goods and a product's progress through a distribution channel, and cutting costs.
The promotional mix consists of two components:
Personal and Nonpersonal selling.
_________ selling is the most basic form of promotion. It consists of what?
(Personal selling) consists of a direct person-to-person promotional presentation to a potential buyer.
________ selling consists of advertising, sales promotion, direct marketing and public relations.
Nonpersonal selling.
The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. A warranty program is an example of which?
Accentuate Product Value.
The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. Television ad comparing performance of two leading laundry detergents is an example of which?
Differentiating products.
The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. Printing ads describing features and availability of a new breakfast cereal is an example of which?
Providing information.
The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. Evening out sales patterns by promoting low weekend rates for hotels is an example of which?
Stabilizing sales.
The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. End-of-aisle grocery displays encourage impulse purchases is an example of which?
Increasing sales.
Innovative, low cost marketing efforts designed to get consumers' attention in unusual ways is:
Guerrilla marketing.
What produces the most advertising revenue?
Network TV.
What does institutional advertising involve?
Message that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.
When does reminder-oriented advertising occur in the product life cycle and why?
Late maturity or decline stages to maintain awareness of the importance/usefulness of a product.
What stage of the product-life cycle does informative advertising occur?
Introductory phase.
What stage of the product-life cycle does persuasive advertising occur?
Growth and maturity stages.
What type of advertising runs as a 30 minute program designed to sell goods or services.
Infomercials.
Coupons, product samples, and rebates that support advertising and person selling are all examples of:
Sales promotion.
Receiving a free pen and T-shirt from a business with their logo on it is an example of:
Specialty advertising.
When a sales promotion is geared to a marketing intermediary (wholesaler/retailer) it is called:
Trade promotion.
Displays or demonstrations promoting products when and where consumers buy them is:
Point-of-purchase advertising.
The sales process includes 7 steps: put them in order (Closing, Demonstration, Approach, Presentation, Follow-Up, Prospecting and Qualifying, Handling Objections)
1. Prospecting and Qualifying, 2. Approach, 3. Presentation, 4. Demonstration, 5. Handling Objections, 6. Closing, 7. Follow-Up
An organizations communications and relationships with various audiences is:
Public relations.
When marketers rely on personal selling to market an item to wholesalers and retailers in a company's distribution channels they are using a _______ strategy.
Pushing strategy.
When marketers attempt to promote a product by generating consumer demand for it, primarily through advertising and sales promotion appeals, they are using a ________ strategy.
Pulling strategy.
When something is claimed to be "bigger", "best", "most advanced", and "number one" ______ is being used which is exaggeration about the benefits of superiority of a product.
puffery
The Uniform Commercial Code says that a company must _______ ______ its claim.
stand behind
What are the most common objectives included in the strategic plans of most firms?
Profitability objectives.
"To woo young consumers, advertisers often make ads as unadlike as possible--designing messages that resemble entertainment". This statement reflects the fact that children are exposed to many promotional messages a day but:
Are not sophisticated at analyzing them, therefore making them a vulnerable market.
A strategy to maintain a steady price while reducing the size or amount of the product in the package is an example of how companies can:
Maintain prices and increase profitability by operating more efficiently or by modifying the product to make it less costly to produce.
Companies may not legally work together to agree on prices or force retailers to sell at a set price; therefore, as more manufacturers of a product entire the market prices will _____.
Drop.
Price is a highly visible component of a firm's marketing mix and because of this some businesses may be tempted to use it to obtain an advantage over competitors; however, this may result in a _______ _____.
price war
Businesses calculate total costs per unit and then add markups to cover overhead costs and generate profits is called:
cost-based pricing.
A _______ _____ is used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
breakeven analysis
Alternative pricing strategies include skimming, penetration, discount, and competitive pricing. Which strategy sets an intentionally high price relative to the prices of competing products to help distinguish a firm's high-end product.
Skimming.
Alternative pricing strategies include skimming, penetration, discount, and competitive pricing. Which strategy sets a low price as a major marketing weapon?
Penetration pricing.
Alternative pricing strategies include skimming, penetration, discount, and competitive pricing. Which strategy gives a special deal for a specified period of time?
Discount.
Alternative pricing strategies include skimming, penetration, discount, and competitive pricing. Which strategy reduces emphasis on price competition by matching other firm's prices and concentrates marketing efforts on the product, distribution, and pro
Competitive pricing.
Why are amounts set at $1.99 instead of $2, or $9.99 instead of $10? (odd pricing)
Because many retailers believe that consumers favor amounts that sound less than they really are.
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