Marketing 3 Flashcards

Terms Definitions
inexpensive
barato(a)
a bargain
una ganga
Marketspace
information- and communication-based electronic exchange environment occupied by digitized offerings
Rack jobbers
Full-service, specialty-line wholesalers that own and maintain display racks in stores.
Production
Actually making or performing services.
disadvantages of primary data
expensivetime consuming
synergy
increased customer value achieved through performing organizational functions more efficiently
The automatic downloading of customized information of interest to recipients' PCs, affording an attractive channel for delivering Internet advertising or other information
Webcasting
What is marketing?
Managing profitable customer relationships
promotional mix
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
Multichannel Marketing
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
Fads
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
measurable
the size, purchasing power, and profiles of the segments can be calculated
Wholesalers
Those firms engaged primarily in wholesaling activity
changing consumers' perceptions of a brand in relations to competing brands.
repositioning
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.
Competitors' Stategies
portfolio matrix
classifies each SBU by present/forecast growth
coupon
A written price reduction used to encourage consumers to buy a specific product
Catalog showroom
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
Advertising Media
The vehicle through which advertising messages are delivered to their intended audiences.
Market Share
A Company’s percentage of total sales volume generated by all companies that compete in a given market.
Choose a distribution strategy
Channel relationships Conventional Marketing System Vertical Marketing system Horizontal Marketing System Distribution Intensity
buying center
ppl in an organizational buying action
intranet
internal "internet" for use by a corporation
Marketing Mix
unique blend of product, distribution promotion, pricing strategy designed to produce mutually satisfying exchanges with a target market
Channel Organization & Management
• 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
trademark
sound, symbol, anything in a trade name, ex kleenex VS facial tissue, Kleenex became generic
Marketing segmentation
Sorting potential buyers into groups that have a common needs and will respond similarly to a marketing action
integrated marketing
requires the marketer to devise marketing activities and assemble fully integrated marketing programs that create, communicate, and deliver value for customers.

4 Ps
stakeholder responsibility
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
high-learning product
significant education of customer is required and there is an extended introductory period
price determines
whether customer will purchase the product and whether revenue will make a profit
What is globalization?
processes by which goods, services, capital, people, information, and ideas flow across national borders.
Culture
Most basic cause of a persons wants and behaviors
Maslow Hierarchy
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)
Product Concept
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.
Demand Curve
graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
Stars
Are SBU's with products that have a dominant market share in high-growth markets
Multiple Buying influences
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.
Consumer durables
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)
Domestic Marketing
Encompasses a firm's efforts in its home country.
A group of retail businesses planned, developed, owned, and managed as a unit.
shopping center
Strategic planning
The company's game plan for long-run survival and growth that makes the most sense given its specific situation, opportunities, objectives, and resources.
Repeat Purchasers
People who tried the product, were satisfied, and bought again.
Individual Branding
A branding policy in which each product is given a different name.
Form Value
-Raw materials turned into a finished product
-The physical item
-ex. Paying more for the coke bottle vs the can
what are the 5 Cs?
customers, competitors, collaborators, company, context
monopolistic competition
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
marginal cost (MC)
The extra cost incurred by producing one more unit of a product
Production Orientation
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.
Pricing with electronic commerce
Dynamic pricing strategies -price can be adjusted to meet changes in the marketplace. Auctions
Frequency
The number of times a member of a target audience is exposed to the advertising message.
Focus group interview
involves interviewing 6 to 10 people in an informal group setting, in which group interaction is encourages
When a business can pay all of its debts
Solvent
Bottom up budgeting
Total budget is approved by top ManagementCost activites are budgetedActivities to achieve objectives are plannedPromotional objectives are set
Product line
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)
Goal and Definitions of Marketing
Goal- managing profitable customer relationshipsDefinition-Producing products and services to meet the needs and wants of customers and prospects
institutional competitive ads
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)
Offer basic feature, product extensions, diversify models, phase out weak items
Product Strategies over the PLC
community shopping center
"A shopping center with one or two department stores, some specialty stores, and convenience stores"
Promotional Strategy
a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion
Market skimming pricing
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
Challenges of Agents
1. Lose control over pricing and other aspects2. Represent multiple service principles
The Wheel of Retailing (WOR)
-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
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
Business Analysis Stage
Channel and Distribution Decision for Services
Minimize wait times, manage service capacity (ability to meet peaks), Improve service delivery (right distribution channel for target market & product).
dual distribution (also multichannel distribution)
occurs when a producer uses several competing channels to reach the same target market
what are convenience goods and services?
those products or services that the consumer is not willing to spend any effort to evaluate prior to purchase.
what is the firms corporate responsibility in regard to its stakeholders
obligation to those persons who have an interest (stake ) in its success
what are the 6 main classifications of business products?
1. installations, 2. accessory equipment, 3. component parts and materials, 4. raw materials, 5. supplies, 6. business services.
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Blue
Test Marketing
Standard
 
Controlled
 
Simulated 
Supply Chain management: Partners
UpstreamDownstream
divest
get rid of dogs
Psychographic Variables
personality characteristics, motives, lifestyles
market development
new markets, exisitng products
PricePlacePromotionProduct
Facts that are newly collected
Environment trends (5)
Social, economical technological, competitive and regulatory forces
missionary salespeople
Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
self-awareness
develop a better understanding of ourselves.
greater understanding of how our behavior influences others. 
Off-Price Retailing
selling brand-name merchandise at lower than regular prices
value
equals perceived benefit - perceived cost
Psychographics
The use of psychology, sociological, and anthropological factors to construct market segments. Segments are formed based on attitudes, interests and opinions.
Downsizing
reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
demography
the study of people's vital statistics, such as thier age, race and ethnicity and location
awareness
consumer's ability to recognize and remember the product or brand name
minimize transcations and the cost of distribution for producers and customers
intermediaries
advocacy advertising
Advertising that promotes a company's position on a public issue
emergency goods
Products or services that are purchased as a result of an urgent need are ________________.
market information function
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.
Naming Strategies
 


corporate or family brand; The Gap
corporate and product line brands; Kellogg's Corn Flakes
individual lines; Mr. Clean (P&G)
Classifying Stores
By What they sell-merchandise mixLevel of ServiceBy Selection
Safety needs
Concerned with protection and physical well-being - health, security, medicine, exercise
Counter-Purchase
Seller receives full payment in cash but agrees to spend substantial amount of money in that country within a stated period of time.
business portfolio
The collection of businesses and products that make up the company.
Pioneer Promotion
Promotion that informs consumers about a new product
Family life cyle(FLC)
A segmentation variable that incorporates income and lifestyle to explain differences in spending patterns based on family role and transitions among roles
Cobranding
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)
Integrated Marketing Communications
Concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
Good fit between companies offerings and customers needs; high profit potential
True friends?
Technological Environment
create new technologies creating new product and market opportunities
pricing
most flexible bc can have sale etc
break-even analysis
fixed costs / (selling price - Variable costs)
automatic vending
The use of machines to dispense products
Augmented Services
the core service plus anything else that enhance the value.
Postponement
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.
Buy-back allowance
sum of money producer gives to reseller
 
for each unit bought
after an initial promotional deal is over
Product Concept Development
Expand ideas, describe features and benefits, evaluate chance for success-Technical- is the product feasible -Commercial-is anyone going to buy it
Consumer buyers
Consumer buyers are those who purchase items for their personal consumption
market segmentation
dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
CATEGORY KILLER
GIANT SPECIALTY STORE THAT CARRIES A VERY DEEP ASSORTMENT OF A PARTICULAR LINE
product development
a strategy for company growth by offering modified or new products to current market segments
Five components of service quality
Reliability, assurance, tangibles, empathy, responsiveness
methods
the approaches that can be used to collect data to solve all or part of a problem
Two or more people who interact to accomplish individual or mutual goals.
Group
Instituional advertisements.
1. Enhances a company's image rather than promotes particular product. 1. corporate identity 2. advocacy
what social change has had the largest impact on marketing?
women working
combination compensation plan
Paying salespeople a fixed salary plus a commission based on sales volume
Channels for business products
Producer - Organizational Buyers
Pro - Industrial dist's - Org Buyers
Pro - Agents - Org buyers
Pros - Agents - Ind Dist's - Org Buyers
Category Killer
A giant specialty store that carries a very deep assortment or a particular line and is staffed by knowledgeable employees.
Reach
the total number of people who sees an ad.
Market Testing
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
Customer Relationship Management (CRM)
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
Which of the following is a possible communication medium to use for data collection?
PhoneMailPersonal interview
What step of the market research process?:Make action recommendations, implement action recommendations, and evaluate results.
Take marketing actions.
consumer spending
-which accounts for 2/3 of the US economic activity -is affected by expectations of the future-use surveys to predict spending behaviors
odd-even pricing
sets prices a few dollars or cents under an even number ($4.99 vs. $5)
occurs when a firm sets a profit goal usually determine by its board of directors
target return
trade (functional) discount
A reduction off the list price a producer gives to an intermediary for performing certain functions
Store Image
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
product life cycle
the course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline
Level of Confidence
95% chance of doing right - alpha5% level of significance - p-value- probabilitysystem levels
marketing program
a plan that uses the marketing mix to provide a good, service, or idea to buyers
What is target marketing or targeting?
process of evaluating attractivness of various segments and deciding which to pursue. EX: soft drink manufacturers, targeting kids with fruit drinks, caffeine free, etc.
Differentiate among customers
in terms of both their needs and their values to the company
6 options for handling objections to presentation
1. acknowledge/covert the objection
2. postpone
3. agree/neutralize
4. accept objection as valid
5. denial
6. ignore objection (if trivial)
Decision to conduct test marketing
4 factors
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
ex of financial intermediaries
depend on banks to lead ppl money HELP not all
Why dont people buy directly from the wholesaler?
It would be inconvenient, each member of the supply chain adds values.
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