Marketing Final Flashcards

Terms Definitions
responsive supply chain
Senior Citizems
People over 65.
in + abl
in, on
Scenario Analysis
Developing plausible representations of a firm's possible future that make different aassumptions about forces driving the market and include different uncertainties
little change-modification to an existing product, doesn't require a lot of new learning EX: Knock offs
exploratory research
generally provides qualitative data
ex: focus groups
Computerized collections of information available from online commercial sources or via the Internet
Online databases
Social Trends
trends that shape consumer values
Personal Selling
Direct spoken communication between sellers and potential customers.
Store Layout
Arrangement of merchandise that determine traffic flow-Grid Layout-free flow layout
Rapid market acceptance and increasing profits
channel differentiation
gaining competitive advantage through the way a company designs their channel's coverage, expertise, and performance
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
substitution method
involves recommending a different product that would satisfy the customers needs
Organizational demand that ultimately comes from (derives from) the demand for consumer goods.
Derived Demand
Dollar Markup
the markup amount in dollars
A store that combines supermarket and discount store shopping in one location
dealer listings
An advertisement that promotes a product and identifies the names of participating retailers that sell the product
Public Relations
Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Customer Profile
lists information about the target market, such as age, income level, ethnic background, occupation, attitudes, lifestyle, and geographic residence.
carry heavier and bulkier items longer distant
vendor analysis
assesment of supplier performance in areas such as, price back orders, timely delivery and attention to spacial requests.
manufacturers agent
represent more than one sellerEX. Travelocity
Marketing Concept
A management philosophy stating that an organization should strive to satisfy customers' meeds through a coordinated set of activities that also allow the organization to achieve its ovjectives
promotion-mix strategies
1. push strategy: "pushing" the product through marketing channels to final consumers 2. Pull Strategy: the producer directs its marketing activities twoard final consumers to induce them to buy the product
derived demand
need for industrial products is derived from the demand of the ultimate consumer
conglomerate diversification
acquiring company that is totally unrelated to existing business
a person's comparative judgment of a products perceived performance (or outcome) in relation to expectation.
-are the moral principles and values that govern the actions and decisions of an individual or group-serve as guidelines on how to act rightly and justly when faced with moral dilemmas
pairing two brand names of two different manufacturers with one product (ex = Post Oreo O's Cereal)
customer wants
cant always get bc limitied knowledge
What is micromarketing?
extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs.
Universal Set
includes all possible choices for a product category
Cause Marketing
making select market aware of a certain cuase or social issue
Consumer Generated Marketing
Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and univited.
Direct response Marketing
a direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or to order the product -Direct Response TV (DRTV)QVC, HSN
Product Development Strategy
Growth strategies that focus on selling new products in currently served markets
Resident buyers
independent buying agents who work in central markets for several retailer of wholesaler customers based in outlying areas or other countries.
Own-label brand
Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as “distributors”. Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands
Donor Fatigue
People are growing tired of giving. Americans have become more concerned with continued aid than with threat of nuclear war
Setting prices based on the prices that competitors charge for similar products.
Competition-based pricing
variety seeking buying behavior
consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
Mixed Branding
Where a firm markets products under its own name(s) and that
of a reseller because the segment attracted to the reseller is different from
its own market.

Horizontal Channel Integration
Combining organizations at the same level of operation under one management.
-An agreement between a firm in one country and a firm in another country in the case of international marketing, to use the product, processes, and brand name.

-Ex. Coca Cola licensing its products to bottlers in Chile and Australia

Advantages: easy, fast, protect brand
Disadvantages: little control, brand issues if poor execution
An extra item offered to the customer usually in exchange for some proof of purchase
all but star.. increase short term w/o thought of long term bc of cash flow
mail order wholesaler
A wholesaler who uses catalogs instead of a sales force to sell products to retail and business buyers
Channel of Distribution
any system of firms or individuals that participate in the flow of goods from production to consumer. Manager must choose the best channel for the product.
Penetration Pricing
Sets a low price at the beginning penetrate the market quickly and deeply, a lot of customers, large market share*more sales but less profitable
Creative Strategy
How a company positions it's brand or product in it's advertising.
competitive bid
the terms of sale offered by the supplier in response to the purchase specification posted by a buyer.
A temporary offer of goods at a lower price than what the retailer typically charges
Seeking the major idea
uses a unique selling positioncreate a brand imagepositioningfind the inherent drama
Planning Process
the series of steps businesses take to determine how they will achieve their goals.
The “stages” and concepts of marketing history
Production Concept (engineering focus)Product Concept(inventor focus)Selling Concept(salesperson focus)Marketing Concept(Consumer centered)Societal Marketing Concept*Companies go down through the process*know where your competitors are at
6 steps in advertising program
1. target audience
2. specify objectives
3. set budget
4. design message
5. select right media
6. scheduling/timing
Create awareness and trial, maximize market share, maximize profit and defend share, maximize short-run profits while reducing expenditures
Objectives Over the PLC
wage/salary survey
A study that tells a company how much compensation comparable firms are paying for specific jobs that the firms have in common.
Supply Chain Integration
When multiple firms in a supply chain coordinate their activities and processes so they are seemlessly linked to each other in an effort to satisfy the customer.
A nation's _____ is the measurement of the amount it's goods and services
Standard of Living
Risks of relying on words to describe services
1. oversimplification2. incompleteness3. subjectivity
Ethics and Marketing
-a marketing action can be legal and unethical and can also be illegal and ethical
The stage in the product life cycle in which sales growth slows or levels off.
Maturity Stage
Fixed Cost (FC)
the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold
direct distribution most common for...
in B2B markets (larger orders, fewer transactions, e-commerce can handle replenishment), most service firms (ex. accounting firm), very few consumer products (ex. vacuum cleaners, or through online direct orders)
to reduce post purchase dissonance, what can a consumer do?
cancel their order, pay attention to positive info about the product, get positive feedback from friends, seek negative info about products not selected.
sales response function of revenue... label axis and shape of graph
x & y:

annual mktg efforts vs. annual sales revenue

shape = S-shaped
Respondent Error (Possible Errors in Field Data Collection)
Errors committed on the part of the respondent
universal product code
person's attitude about something
sender's interpretation of the response and indicates whether the message was decoded and understood as intended
Internal R&D

high product development costs
often the source of technological products
often the source of breakthrough products
warehouse club
A large-scale, members-only establishment that combines features of cash-and-carry wholesaling with discount retailing

Dividing the market by cities, counties, states, or regions.

experience rapid sales on introduction and than an equally rapid decline
This marketing mix element facilitates the physical exchange of products and services between businesses and their customers.
Technological Advances
changing in technological provides opportunities for growth and innovations in global service industries such as telecommunications, health care, banking, and Internet Services also provide opportunities for unknown services
external customers
Individuals who patronize a business
Qualitative Research
seeks in-depth, open-ended responses, not yes or no answers
- try to get people to share their thoughts on a topic - without giving them many directions or guidelines about what to say
ability to perform the promised service dependably and accurately
Marketing orientation
An organizationwide commitment to researching and responding to customer needs
credence qualities
product characteristics that are difficult to evaluate even after they have been experienced such as a doctors diagnosis
multi-product branding
manufacturer's branding strategy that uses one name for all products (other names include: family or corporate branding)
an organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and organizations
open innovation
________________ is the amount of satisfaction a consumer receives from the consumption of a particular product or service.
Economic utility
target market
a fairly honogeneous (smiliar) group of customers to whom a company wishes to appeal
The economy
trimming the fat-during the recession when companies lower prices Increasing Prices- during inflation the price increase
Quantitative Research
Research that involves gathering data that can be put into meaningful categories.
segmentation bases (variables)
Characteristics of individuals, groups or organizations.
Promotional Pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
A geographical pricing strategy in which the seller absorbs all or port of the freight charges in order to get the desired business.
Freight-absorption pricing
Marketing mix
The set of controllable tactical marketing tools-product, price, place, and promotion-that the firm blends to produce the respones it wants in the target market. (four Ps)
Express Warranty
Which are written statements of liabilities.
physical distribution/logistics
transporting, storing, and handling of goods in ways that match target customers’ needs with a firm’s marketing mix
Recommending solutions
Researchers come up with potential solutions to the problem and present them in a report
A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership.
Corporate VMS
Income Elasticity
Measure the way in which demands change when customer real income changes 
Intermodal Transportation
Two or more transportation modes used in combination
when is just-in-time used?
when demand forecasting is reliable
Product Category
an assortment of products that the consumer sees as substitutes for one another
Supply Chain
involves the activity that turns raw materials into a product and put it in the hands of the consumer
Brand Competition
When firms offering similiar goods or services compete on the basis of their brands reputation or perceived benefits.
On average, how much faster does a person hear than they are able to talk?
optional-product pricing
the pricing of optional or accessory products along with the main product
What is learning?
A relatively permanent change in behavior caused by acquired information or experience
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.
Fuxed alternative questions
anything being measure on a scale
Observation: Discovers behavior NOT motivations. (ex) mystery shoppers, traffic counters, web site cookiesFocus Groups: 8-12 people. Need a moderator. Looks for ideas, concepts, thoughtsExperimental: control for extraneous behaviorsSurvey: mail, phone, pe
Six Roles of CI
national economic condition
measures of countries income and wealth
1. market segment
a group of individuals or organizations within a larger market that share one or more important characteristics
a company prices low to help build unit volume
penetration pricing
A move to another job within a company at essentially the same level and wage.
Personal Characteristics
Intrinsic factors that are unique to a particular persona and directly affect that persons regular capacity to purse any substanial gain (age, occupation, lefstyle personality, economic situation
Intense Distribution
Firm places its product or service in as many outlets as possible
SBU's with a small market share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly. CEO's sell off dogs to other companies that may bundle them into a product line and breath new life into the dog.
Brand Equity
the overall value of the brand, the effect the brand has over a generic version *Coke has the highest brand equity in the world
customer relationship management (CRM)
the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offering so that buyers will choose them in the marketplace
offer of a trial amount of a product to consumers
acts that regulate competitive environments
sherman actclayton act FTC act
social responsibility
means that organizations are part of a larger society and are accountable to that society for their actions
promotion strategy that calls for using sales force and trade promotion to push the product through channels
advertising and consumer promotion to induce final consumer demand to buy a product
push and pull strategy
formula selling presentation
based on the view that a presentation consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
The Data Analysis Procedure
(5 Steps)
1. Validation and Editing (quality Control)
2. Coding
3. Data Entry
4. Machine Cleaning of Data
5. Tabulation of Statistical Analysis
SWOT analysis
A tool that marketers use to assess an organizations's strengths, weaknesses, oppportunities, and threats
rate of diffusion: risk
safety, financial risk of buying a product, don't want to pay a lot of money for it and it not work
direct close
a method in which you ask for the sale
push money (trade-oriented sales)
extra money to employees based on volume
What is a knowledge gap?
Type of service gap; reflects the difference between customers' expectations and firm's perception of those expectations.
A network that runs internally in an organization but uses Internet standards and browsers isknown as _____.a. an Intranetb. an Extranetc. an Internetd. the Web
a. An Intranetpage 4
List the 3 Approaches to Product-Related Segmentation
Benefits Sought, Segmenting by Usage Rates, and Segmenting by Brand Loyalty.
desribe communication and give an example of improved communication
two way link between buyers and sellers that helps in monitoring service and anticipating future needs; ex: status reports
what is the strategic business unit?
division of the firm that can be managed and operated independantly, may have a different mission than other divisions.
How do customers benefit from intermediaries?
they recieve value in the form of the main utilities


Aggregate consumer
information on all
bar-coded products

coordination of marketing communication efforts to influence attitude ad behavior effort by organization to inform and persuade the customer
Semantic Differential

series of seven-point rating scales with bipolar adjectives, such as “good” and
“bad”, anchoring the ends (or poles) of the scale. 

weight is assigned to each position on the scale. Traditionally, scores are 7,
6, 5, 4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.

Creativity 3 P's
Person, Place, Process
Legal documentation granting an individual or firm exclusive rights to produce and sell a particular invention.
gain prospect's attention, stimulate interest, and make transition to the presentation (build foundation)
-first impression is critical
-use common acquaintances, a referral, or product demonstration
Employment changes that occur when employees quit or are fired and must be replaced by new employees.
any paid form of nonpersonal presentation of ideas, goods, or services by an indentified sponsor
Primary data
information specifically collected to solve a current problem
political environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
marketing research to gather preliminary information that will help to better define problems and suggest hypotheses
exploratory research

Dividing the market by group values, interests, and opinions
– target their lifestyles.

Marketing offer
Some combination of products, services, information or experiences offered to a market to satisfy a need or want.
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
customer database
Brand Loyalty
Exists when customer repreat purchase of your products on a regular bases
A news story type of communication about an organization and/or its products transmitted through a mass medium at no charge
Full-Service Research Suppliers
organizations that contract with clients to complete marketing research projects
Noncorporate blogs
Independent blogs that are not associated with the marketing efforts of any particular company or brand
Specific rules dictating what is right or wrong, acceptable or unacceptable.
Brands advantages:Seller
1.Tells a story-helps people to remember and makes a connection 2.Offers Legal Protection 3.Help to segment markets
corporate social responibility
businesses concern for social welfare
Fear Appeals
effective when not too threatening. anxiety level is moderate
individual branding
using different brand names for different products
direct contacts
include the customer's contacts with the seller through buying, using, and obtaining service.
increase in consumer's desire to learn about some of the product features
A person's pattern of living as expressed in his or her activities, interests, and opinions
more work for consumer b/c fill out form & mail back
materials handling
The physical handling and movement of products in warehousing and transportation.
An Experiment
changing one thing to observe its effect on something else
Competitive Rivals
Firms that will be the closest compeitors.
Channel Level
A layer of intermediates that performs some work in bringing the product and its ownership closer to the final buyer
Form of Ownership
distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet
business market
Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
societal marketing concept
questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare
dissonance-reducing buying behavior
Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.
unit volume
to increase unit sales, a product's price may be lowered...or prices of a product in the line may be increased
sales effectiveness evaluations
most stringent tests of advertising efficiency, they assess whether the advertising resulted in increased sales.
Interactive marketing
Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction.
Pie chart
a circle divided into several slices whose areas are proportionate to the quantities to be represented on the chart
Because company's can't serve everyone well; it chooses the only the customers they can serve well
What is demarketing
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Marketing myopia
Induce trial, stock up, reward loyalty, gain shelf space, blunt competitor's strategies, short term sales volume, etc
Objectives of Promotions
specialty goods
items that a consumer makes a special effort to search out and buy
product advertising
a form of advertising that touts the benefits of a specific good or service
New Dominant logic for marketing
a re-conceptualization of traditional marketing to redefine service as the central (core) deliverable and the actual physical products purveyed as comparatively incidental to the value proposition
The importance of distribution: indirect Channel
involves one or more intermediaries-Firms and individuals that help move product to consumer or business user
Selective retention
we remember only what we want to remember.
Price elasticity of demand
Price elasticity of demand measures the responsiveness of a change in demand for a product following a change in its own price
marginal revenue
is the change in total revenue that results from producing and marketing one additonal unit
New Product development Processm (7 steps)
1.New Product Strategy2.Idea Generation3.Idea Screening4.Business Analysis5.Development6.Test Marketing7.Commercialization
trial pricing
pricing a new product low for a limited period of time in order to lower the risk for a customer
competitive advantage
set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
An idea, service or product that is perceived by the potential customer as new
New Product
1st decision to make in a new ad campaign?
the objective
Type of Marketing Strategy for a Multinational Firm
Customized multidomestic marketing strategy
Marketing's social responsibilties:3) obey the law
political and legal forces impact the marketing environment to which the marketer must adapt
full-line pricing: firm-oriented
the firm makes a line of products where each product serves an entirely different target market, so there doesn’t have to be any relation between the various prices
It is a single business or collection of related operations that can be thought of as a single business. It has a distinct mission. It has a distinct market segment or segments to serve. It has a distinct set of competitors. It has a responsible manager.
characteristics of SBU
Great leaders of the golden circle
Apple, Steve Jobs, MLK, wright brothers, google
what does evaluating the pricing environment involve?
looking for a competitive advantage, taking into account economic conditions, how competition will respond, consumer trends
What is the contribution per unit?
price less variable cost per unit. used to determine the break even point in units.
Three ways to growExpand with expanding marketExpand by taking market share away from competitorsCreate new markets
Existing New
Four possible reasons the state of perceived ethical business conduct is at its present level
-first, there is an increased pressure on businesspeople to make decisions in a scoiety characterized by diverse value systems-second, there is a growing tendency for business decisions to be judged publicly by groups with different values and interests-third, the public's expectations of ethical business behavior has increased-finally, and most disturbing, ethical business conduct may have declined
what does a person do if they want to be a franchisee and what are some benefits?
the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location. it is a mutual benefit. franchisee wants to work hard and avoids a lot of start up costs, franchisor get royalties.
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