Marketing Terms Flashcards

Terms Definitions
mnunuzi
buyer
Intermediary
a middleman.
Probability Sampling Methods (4)
Systematic
Stratified
Cluster
Simple Random
•Product

•Price

•Place

•Promotion


The
4 Ps of Marketing





Communication Objectives
Awareness, Image/perception, improving kowledge of product features
optimizers
Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one.
Market
any individual,group of individuals, or organizations willing,able and capable of purchasing a firms product
Discount Store Ware house
Sams club
Validity
extent to shich research actually measures what it is intended to measure
Social Forces
demographic characteristics of the population and its values, cultural values, women in the workplace
Advertising (Promotion Mix)
Always Paid for
Identified Sponsor
Expensive 
Time Specific 
One Way 
learning
Changes in an individual's thought processes and behavior caused by information and experience
Forward Invention
An international product planning strategy in which a company develops new products for its international markets.
discontinuous innovation
 need to learn new skills
family brand
marketing several different products under the same brand name
motivation
the energizing force that stimulates bhavior to satisfy a need.
place
how goods will get to customer
merchandise allowance
"A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display"
hypermarket
A store that combines supermarket and discount store shopping in one location
merchant wholesalers
independently owned firms that take title to the merchandise they handle
Task method
an approach to developing a budget--basing the budget on the job to be done
Exploratory Research
A research technique that marketers use to generate insights for future more rigorous studies (often experimental research follows exploratory research)
brand recognition
customers remember the product's name given by the firm.
market development
attracting new customers to existing products
competitive shakeout
lesser competitors shaken out by intensity of competition
personal presentation by the firm's sales force to make sales and build customer relationships
personal selling
segmentation bases (variables)
characteristics of individuals or groups
heterogeneity
the variablity of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
Telephone consumer protection act
(1991)provides requirements for telemarketing promotions, including fax promotions
5 types of posttests
1. aided recall (recognition-readership)
2. unaided recall
3. attitude tests
4. inquiry tests
5. sales tests
Direct marketing via television, including direct-response television advertising or infomercials and home shopping channels
Direct-response television marketing
monopolistic competition
many firms sell closely related but not homogenous products; products may be viewed as but are not perfect substitutes.
human resources management
All the activities involved in determining an organization’s human resources needs as well as acquiring, training, and compensating people to fill those needs.
Customer Equity
expected profitability of a a firm's current and prospective customers over a period of time.
Empty Nesters
People whose children have grown up and are able to spend their money in other ways.
Channel Intermediaries
Speaks to the specific roles of Marketing Channel Members who facilitate the change of product ownership and whether they take title to the product.
Integrated Marketing Communications
Coordination of promotion (& other mktg)
for maximum effect
 
(Oscars Night & M&Ms)
 
**Consistant Message** 
decision support system (DSS)
An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
 
 
Business Product Classes:
Accessories
short-lived capital items
- tools and equipment used in production or office activities
- ex: small copy machines, portable drills, and filing cabinets
- since they cost less and don't last as long as installations, multiple buying influence is less important
market
the people with both the desire and ability to buy a specific offering
Combining two or more modes of transportation.
Intermodal transportation
Target Market
Is the specific group of customers toward which a frim directs its marketing efforts
Waiting Line Strategies
1. Multiple Q Strategy: multiple registers and people lined up behind each one.2. Single Q Strategy: multiple registers, but people in one line and go to next available register. (Banks)3. Combination Approach(Target)4. Take a # approach (Joanne's)
services on the internet
banking and brokerages, software, music, travel, dating sites, career-related, medical care
place decisions...
1. are suggested by product classes2. may involve several different places/arrangements3. have long run effects, harder to change than any of other 4 Ps
How is customer satisfaction measured?
Marketers monitor customer satisfaction through various methods of marketing research.
marketing mix
ingrediants that must be planned and executed to accomplish marketing policy
Market Share
The percentage of all sales within a market that are held by one brand or company
Physical Control of Extraneous Variables
no important differences between respondents in the test and control group
Brand Loyalty
occurs when a consumer buys the same brand's product/service repeatedly over time rather than buy from multiple suppliers within the same category
Business to Consumer E-commerce
Online exchange between companies and consumers.
screened Internet sample
An Internet sample with quotas based on desired sample characteristics.
Advertising budget
The total amount of money that a marketer allocates for advertising over a period of time
Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise.
chain stores
MARKET CHALLENGER
A RUNNER-UP FIRM IN AN INDUSTRY THAT IS FIGHTING HARD TO INCREASE ITS MARKET SHARE.
Maturity stage
The stage of a products life cycle when the sales curve peaks and starts to decline, and profits continue to fall.
what are political/ legal environmental factors
public policy making process
statutory rules and judicial rulings
sales orientation
ppl wil buy more if aggressive sales are used high sales= high profits lacks understanding
Loss Leader
A product sold out or bellow costs in the hope of generating other profitable sales
Selective Distribution
Firm selects a few retail outlets in a specific geological area to carry its products
lifestyle shopping center
A type of shopping center that is typically open-air and features upscale specialitty, dining, and entertainment stores.
generic product
A no frills, no brand name, low cost product that is simply identified by its product category.
status quo-oriented objectives
for firms content with the way things are; can either be A) Meeting competition stabilizes market prices because no firm benefits from raising or lower prices; or B) nonprice competition, aggressive action is taken in the other three areas of the 4Ps, staying clear of price as a competitive “battleground”
sales oriented product, primar goal,
directed at everyone and get profitability thru colume
non durable good
item consumed in one or a few uses such as food or fuel 
racial and etnic diversity
-1 in 4 US residents are African Americans, American Indians, Asian, Pacific Islander, or another group-diversity is evident int he variety of people that make up these groups-racial groups are concentrated in geographic areas -Black-east -Hispanic-west
How can a firm reduce the knowledge gap?
They must understand customers expectations, by undertaking customer research and increase the interaction and communication between managers and employees.
structure and responsibility of a sales force
The sales manager must organize the sales force so that all necessary tasks are performed well. If different people handle different sales tasks, firms often rely on team selling—when different people work together on a specific account; –Managers often have different sales forces for different target markets who have different support or information needs
what does a marketing strategy consist of?
1. identify target markets
2. the related marketing mix
3. the foundations to build a sustainable competitive advantage
libertus
freedman
form of promotion
publicity
Generation Y
Born between 1978-1994
per + acc
through, throughout
attention, interest, desire, and action
AIDA
Diffusion Process
the spreading of innovations
4th step marketing research
collect data
promotion (5)
advertising, publicity, sales promotions, personal selling, visual presentations
Confirmatory Research
Quantitative Survey Experiments Panel Scanner (actual behavior)
Breakthrough Opportunities 
Opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time.
Store Location
Business Districts Shopping Center free Standing RetailersNon-Traditional
technographics
discovers how consumers think about, buy, and use technology in the categories of devices and media, health care, financial services, retail, and travel.
services differentiation
brands differentiated through speedy, convenient, or careful delivery.
Retailers
businesses whose sales come primarily from retailing
3 High-tech test markets
Electric, simulated, virtual
The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.
Marketing Research
Intensive, Exclusive, Selective
Types of Channel Strategies
pioneer advertising
Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product
Superstore
A giant retail outlet that carries food and nonfood products found in supermarkets, as well as most routinely purchased consumer products
logistics management
the practice of organizing the cost-effective flow of raw materials, in process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements
Distribution
• making decisions about how to get goods in the consumer’s hands. It includes deciding on the method of transportation, how and where products are stored, and tracking systems.
Independent Intermediaries
Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and customers.
Marketing Websites
Primary objective is to increase purchases by online visitors
portal
point of entry to the internetEx. yahoo or aol
Product
what we are selling, tangible or service or ideas
Social/Legal Factors: Pricing
predatory pricingprice fixing - collusionprice discriminationgougingdeceptive pricingbait & switchtransportation based pricing
Reminder Advertising
Reminding consumer that the product may be needed in the near future, reminding the consumer where to buy it, keeping it in consumer's mind during off-season, maintaining its top-of-mind awareness.
Divest
discontinue all investment in an SBU so that resources can be redirected to other SBUs
segment markets
1. need market
2. product markets
3. demographic markets
4. geographic markets
5. other
utilitarianism
which is a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior-if benefits exceed costs, than the behavior is ethical-if not, than the behavior is unethical
target pricing
manufacturers estimate price based on what they think a consumer would be willing to pay
marketing era
1930-45 in business to satisfy customer needs (3 pillars)
What are the four segmentation strategies?
Undifferentiated, differentiated, concentrated, micromarketing or one on one
Retrieval Set
Includes those brands or stores that the costumer can readily bring forth from memory
Search Engine Marketing (SEM)
promoting website by increasing visibility in search engine results
Marketing Myopia
The mistake of paying more attention to the specific producs a company offers than to the benefits and experiences produced by these products.
New-business salesperson
order getter finds new customers and presents the product
Diversification Strategies
Emphasize both new products and new markets to achieve growth
emotional close
the seller appeals to the buyers emotions to close the sale
Ansoff matrix
A model used in strategic marketing planning. The Ansoff model links marketing strategy with the general strategic direction of a business. It maps four potential product-market strategies - e.g. market penetration, product development, market development and diversification - on a matrix showing new versus existing products along one axis and new versus existing markets along the other.
MOSOP
Movement for the Survival of the Ogoni People. Started by Ken Saro-Wiwa to protest the actions of Shell in Ogoniland
A store much larger than a regular supermarket that carries a large assortment of routinely purchased food and nonfood items and offers services such as dry cleaning, post offices, photo finishing, check cashing, bill paying, lunch counters, car care, an
superstore
information search
the stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active info search
Market Modification
Strategies, a company tries to find new customers, increase
a product’s use among existing customers, or create new use situations.


Service Quality
Customers’ perception of how well a service meets or exceeds their expectations.
What is Relationship Marketing?
Relationship Marketing Exists when marketing activities are performed with the conscious intention of developing and managing long-term trusting relationships with customers.
Loyalty Marketing Program
A promotional program designed to build long term mutually beneficial relationships between a company and key customers
product development
creation of new products for present markets
General-merchandise wholesaler
A full service wholesaler with a wide product mix but limited depth within product lines
Market penetration
trying to increase sales of a current product in a current market
Skimming Price
when a company set a high intentional prices with plans to lower them in the future*fewer but more profitable sales
Lead Time
The amount of time required to place an ad
New-task buying
when a customer organization has a new need and wants a great deal of information. can include - setting prod specs,evaluating sources of supply and establishing an order routine that can be followed in the future if results are satisfactory.
Gross profit = difference between sales revenue and _____
Cost of goods sold
Pros of using humor
aids attention and awarenessMay aid retention of the messageCreates a positive mood and enhances persuasionMay aid name and simple copy registrationMay serve as a distracter, reducing counterarguing
Target Market
A specific group of consumers at which a company aims its products and services
Plot residuals against predicted values (variance should be constant over predicted y hat)
How do you test normality?
target audience in ad program
characteristics of PROSPECTIVE BUYERS are likely to influence all aspects of an ad program
-must understand lifestyles, demographics, attitudes
Cost-plus, penetration, matching, cut and slash
Pricing Strategies over the PLC
penetration pricing
A low price designed to help a product enter the market and gain market share rapidly.
Electronic Data Interchange (EDI)
IT that replaces paper documents that usually accompany business transactions, such as purchase orders & invoices with electronic transmissions of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed & accuracy of information transmission.
strategic business unit
a subgroup of a single business or collection of realted businesses with in the larger organization
Types of \"boundary spanning\" employees
- Boundary spanner= employees dealing with customer and inside the organization ( manager/boss)- drained after dealing with people all day- chuck their personal problems at the door; focus on work
What is the difference between informational and transformational advertising content?
-Informational ads present factual, relevant information that is immediately of obvious importance, and verifiable
(facts and history)
-Transformational ad builds an association between the brand and a psychological state.
(emotional, experience, feelings)
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Conventional Distribution Channel
Unit Variable Cost (UVC)
variable cost (VC) expressed on a per unit basis for a product
transportation by water (boat)
wide variety of goods and very cheap, can go international, but also very slow (can't use for perishables)
what are specialty goods and services?
products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort for the best suppliers.
2 main considerations in developing promotional mix
1. balance of elements must be determined
2. coordinating a consistent promotional effort between all departments
what is IDD? what are its drivers?
a type of gray market: international distribution diverters. due to country price and availability differences
34923
red
Above-at-below market pricing 
Above=rolex
At=Revlon
Below=General Cereal (not lucky charms)
Fishyback
water and trucks combined
MOA
market opportunity analysis- estimation of size and sales potential segments
concentrated targeting strategy
marketing segmentation strategy
 
targets single market segment
using one marketing mix 
cost leadership
lower cost, broad market
Full Warranty
No limits of non-coverage.
Consumerism
movement to increase the influence, power and rights of consumers in dealing with institutions. ex: The Consumers Association of Canada
agent
An intermediary that represents either buyers or sellers on a permanent basis
Hawthorne Studies
study effect of illumination, ventilation, and fatigue on production workers in the plant.
Group and individual productivity. 
Retailing
all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use
Geodemography
A segmentation technique that combines geography with demographics. You map demographic consumer segments to neighborhoods/regions.
nafta
lifted mqany trade barriers between canada, us ,and mexico
planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
gross rating points (GRP)
reach x frequency
Price set to low?
may signal low quality
advocacy advertising
Advertising that promotes a company's position on a public issue
warranty
A _________ is a specific written statement of the seller’s responsibilities related to the guarantee.
micro-macro dilemma
producers and consumers making free choices can cause conflicts and difficulties
Brand Licensing
a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols and/or characters in exchange for a negotiated fee
Limited Service
Provide some sale assistance. Shopping products -Lay away, store credit card, Prices are middle range compared to the other two level of services.
Wants
"needs" that are learned during a person's life
Intensive Growth
growth occurring when current products and/or current markets have the potential for increasing sales. Market penetration, market development, product development
casual research
Marketing research to test the hypotheses about cause-and-effect relationships.
Proxemic Communication
Communicating by varying the physical distance in face-to-face interactions
Discount Stores
Sells standard merchandise at lower prices by accepting lower margins and selling higher volume.
Line extension
When a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingrediants, or package sizes. (Ex: Yoplait introduced new yogurt flavors, low-carb yogurt, yogurt with cholesterol reducers)
Types of extraneous variables
History, maturation, testing, instrument, selection, mortality
Good fit between companies offerings and customers needs; highest profit potential
Strangers ?
Cultural environment
institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors.
environmental scanning
collection of info about relationships in the environment
comparative advertising
Advertising that compares two or more brands on the basis of one or more product characteristics
what are merchant wholesalers classified into?
full-service or limited-service wholesalers
Critical Incident Technique
Specific points in time where customers evaluate satisfactions
Demand Management Process
Alignment of supply and deman throughout the supply chain to anticipate customer requirements at each level & create demand related plans of action prior to actual customer purchasing behavior.
(6) Closing Sale
salesman asks person to buy product
 
Innovators
2.5% of the population, the first to accept a new idea, venturesome-willing to take risk, cosmopolites-will seek social relationships outside their local peer groups
Early majority
People who adopt products just prior to the average person
variable costs
costs that vary directly with the level of production
BROKER
A WHOLESALER WHO DOES NOT TAKE TITLE TO GOODS & WHOSE FUNCTION IS TO BRING BUYERS & SELLERS TOGETHER & ASSIST IN NEGOTIATION
market development
a strategy for company growth by identifying and developing new market segments for current products
Three general price strategies
Price skimming, penetration pricing, status quo pricing
Marketing Research
the process of defining a marketing problem and opportunity, systematically collecting and analyzing information and recommending actions
A reward that participants receive for achieving or exceeding a goal.
Incentive Travel
Competitive
Influences demand of a product in the growth phase of the PLC. Often uses emotional appeal. ex. Mini Cooper
The product life-cycle stage in which a product's sales start climbing quickly.
Growth Stage
consumer jury
A panel of a product's existing or potential buyers who pretest ads
manufacturer's branch office
a wholly owned extension of the producer that carries a producer's inventory and performs the functions of a full-service wholesaler
Off-Price Retailer
A retailer that buys at less than regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
Frequency
the number of times a memmer of the target audience is exposed to the advertising message.
Trialability
can it be used on a limited basis -reduce risk for consumer -without it you can have unsatisfied customers with unrealistic expectations
 
 
Marketing Objective
 
a statement of what is to be accomplished through marketing activities
Realistic
Measurable
Time specific
Consistent with and indicating the priorities of the organization
 
A researcher who is trying to predict a dependent variable from several independent variables should use:
multiple regression.
What stage of the new product process?: Internally and externally evaluates new product ideas to eliminate those that warrant no further effort.
Screening and evaluation
pure monopoly
-occurs when only one firm sells the product-monopolies are common for producers of goods considered essential to a community: water, electricity, and telephone service-marketing plays a small role in a monopolistic setting b/c it is regulated by the state or federal government -government control usually seeks to ensure price protection for the buyer
brand equity
added value a given brand name gives to a product beyond the functional benefits provided
give up immediate profit by developing quality products to penetrate competitive markets over the long terms
managing for long-run profits
cents-off offer
A gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise
Non-Store Retailing
Any method a firm uses to complete an exchange that doesn't require a customer visit to the store. -Direct Selling -Automatic Vending
product mix length
refers to the total number of items the company carries within its product lines
Multi-collineanity
You do not want this its will mess up your modelyou have to look at VIF to see if you have multi.VIF < 4.0 your model doesn't suffer from mult.
what is competitive advantage
is an advantage over the competition that is not easily copied and tus can be maintained over long periods of time
Give an example of the exchange underpinning of Seller-Buyer relationships.
The goods/services producers ( sellers0 give communications and delivery to the buyers, the buyers give info and money.
Analyze the competitors position
What competition is are there? How do consumer perceive them? What are the substitutes?
cost per thousand (CPM)
refers to the cost of reaching 1,000 individuals or households w/ the ad message in a given medium
When the price of a product is increased, a smaller quantity will be purchased. That statement is known as which of the following?
The law of supply
The law of demand
The law of the land
The law of economic utility
2. The law of demand
Salespeople who travel outside the company's premises to call on customers
Outside sales force (or field sales force)
when choosing retailers to whom to sell, the manufacturer should consider what?
where the end customer expects to find the product, as well as some important retailer characeristics.
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