question

Promotion

answer

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

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Promotional Strategy

answer

A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion.

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Advertising

answer

impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

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Public Relations

answer

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance.

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Publicity

answer

public information about a company, product, service, or issue appearing in the mass media as a news item

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Sales Promotion

answer

marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness

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Personal Selling

answer

A purchase situation involving a personal paid for communication between two people in an attempt to influence each other.

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Communication process

answer

Encodes message, sends message through a channel of communication. Noise in the transmission channel distorts the source's intended message. Reception occurs if the message falls within the receiver's frame of reference. The receiver decodes the message and usually provides feedback to the source. Normally, feedback is direct for interpersonal communication and indirect for mass communication.

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AIDA

answer

an acronym identifying four persuasive steps or desired effects that a brand message might have on customers and prospects: attention, interest, desire, action. Advertising increases awareness/knowledge, sales promotion is good when customers are in purchase stage, personal selling develops interest and desire.

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Push strategy

answer

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise.

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Pull strategy

answer

a marketing strategy that stimulates consumer demand to obtain product distribution.

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Integrated Marketing Communications (IMC)

answer

the careful coordination of all promotion messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer.

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Institutional advertising

answer

a form of advertising designed to enhance a company's image rather than promote a particular product

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Product advertising

answer

a form of advertising that touts the benefits of a specific good or service

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Advocacy advertising

answer

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

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Pioneering advertising

answer

a form of advertising designed to stimulate primary demand for a new product or product category

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Competitive advertising

answer

a form of advertising designed to influence demand for a specific brand

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Comparative advertising

answer

A form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

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Advertising campaign

answer

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

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Advertising Objective

answer

a specific communication task that a campaign should accomplish for a specified target audience during a specified period

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Advertising Appeal

answer

a reason for a person to buy a product

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Unique Selling Approach

answer

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

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Medium

answer

the channel used to convey a message to a target market.

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Media planning

answer

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-efficiently communicate the message to the target audience.

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Cooperative Advertising

answer

An arrangement in which the manufacturer and the retailer split the cost of advertising the manufacturer's brand

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Media Mix

answer

the combination of media to be used for a promotional campaign.

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Cost per contact

answer

the cost of reaching one member of the target market

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Reach

answer

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

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Frequency

answer

the number of times an individual is exposed to a given message during a specific period.

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Media schedule

answer

designation of the media, the specific publications or programs, and the insertion dates of advertising

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Continuous Media schedule

answer

A media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle.

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Flighted Media Schedule

answer

a media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times

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Pulsing Media Schedule

answer

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods

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Seasonal Media Schedule

answer

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

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Product Placement

answer

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events

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Sponsorship

answer

a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image.

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Cause-related marketing

answer

a type of sponsorship involving the association of a for-profit company and a nonprofit organization; through the sponsorship, the company's product or service is promoted, and money is raised for the nonprofit.

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Crisis Management

answer

a coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event.

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Consumer Sales Promotion

answer

sales promotion activities targeting the ultimate consumer.

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Trade sales promotion

answer

sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer.

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Coupon

answer

a certificate that entitles consumers to an immediate price reduction when they buy the product

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Rebate

answer

a cash refund given for the purchase of a product during a specific period.

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Premium

answer

an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product.

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Loyalty Marketing Program

answer

a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers

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Sampling

answer

a promotional program that allows the consumer the opportunity to try a product or service for free.

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Point of purchase display

answer

a promotional display set up at the retailers location to build traffic, advertise the product, or induce impulse buying

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Trade allowance

answer

a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers

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Push money

answer

Money offered to channel intermediaries to encourage them to "push" products that is to encourage other members of the channel to sell the products

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Relationship Selling (consultative selling)

answer

a sales practice that involves building, maintaining and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

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Sales process

answer

the set of steps a salesperson goes through in a particular organization to sell a particular product or service.

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Conditions that favor personal selling vs. other promotional tools

answer

Relationships, more than one-time sales, non transaction focused, target prospective buyers, efficient, managerial control over promotion costs

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Lead generation (prospecting)

answer

Identification of those firms and people most likely to buy the seller's offerings

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Referral

answer

a recommendation to a salesperson from a customer or business associate.

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Networking

answer

a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations

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Cold calling

answer

A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status

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Negotiation

answer

the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement.

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Price

answer

that which is given up in an exchange to acquire a good or service.

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Revenue

answer

the price charged to customers multiplied by the number of units sold.

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Profit

answer

revenue minus expenses

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Return on Investment (ROI)

answer

net profit after taxes divided by total assets.

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Market Share

answer

a company's product sales as a percentage of total sales for that industry

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Status Quo Pricing

answer

a pricing objective that maintains existing prices or meets the competition's prices.

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Profit Maximization

answer

Profit oriented pricing, designed to generate a much revenue as possible in relation to cost.

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Market Share Pricing Strategy

answer

Sales-oriented, focuses on maintaining a percentage share of the market

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Sales Maximization Pricing Strategy

answer

Sales-oriented, focuses on maximizing dollar or unit sales.

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Markup pricing

answer

the cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for

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Demand

answer

the quantity of a product that will be sold in the market at various prices for a specified period. (LEARN GRAPH)

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Supply

answer

the quantity of a product that will be offered to the market by a supplier at various prices for a specified period. (LEARN MY GRAPH)

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Price Equilibrium

answer

the price at which demand and supply are equal.

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Elasticity of Demand

answer

consumers' responsiveness or sensitivity to changes in price.

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Inelastic demand

answer

a situation in which an increase or a decrease in price will not significantly affect demand for the product.

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Elastic Demand

answer

a situation in which consumer demand is sensitive to changes in price.

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Variable Cost

answer

a cost that varies with changes in the level of output

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Fixed Cost

answer

a cost that doesn't change as output is increased or decreased.

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Marginal cost (MC)

answer

the change in total costs associated with a one-unit change in output.

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Marginal Revenue (MR)

answer

the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output.

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Break-even analysis

answer

a method of determining what sales volume must be reached before total revenue equals total costs.

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Prestige pricing

answer

charging a high price to help promote a high quality image.

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Price strategy

answer

a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle.

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Price skimming

answer

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.

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Penetration pricing

answer

a pricing policy whereby a firm charges a relatively low price for a product initially as a way to meet the mass market.

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Base price

answer

the general price level at which the company expects to sell the good or service

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Quantity discount

answer

a price reduction offered to buyers buying in multiple units or above a specified dollar amount

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Cash discount

answer

a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill

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Functional discount (trade discount)

answer

a discount to wholesalers and retailers for performing channel functions

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Seasonal discount

answer

a price reduction for buying merchandise out of season

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Promotional allowance (trade allowance)

answer

a payment to a dealer for promoting the manufacturer's product

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Value-based pricing

answer

setting the price at a level that seems to the customer to be a good price compared to the price of other options.

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Flexible pricing (variable pricing)

answer

a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

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Leader pricing (loss-leader pricing)

answer

a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.

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Odd-even pricing (psychological pricing)

answer

a price tactic that uses odd numbered prices to connote bargains and even numbered prices to imply quality.

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Price bundling

answer

marketing two or more products in a single package for a special price.

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Consumer penalty

answer

an extra fee paid by the consumer for violating the terms of the purchase agreement.

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Product line pricing

answer

setting prices for an entire line of products.

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Customer relationship management (CRM)

answer

a company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

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Customer-centric

answer

a philosophy under which the company customizes its products and service offering based on data generated through interactions between the customer and company.

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Knowledge management

answer

the process by which learned information from customers is centralized shared in order to enhance the relationship between customers and the organization.

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Interaction

answer

the point at which a customer and a company representative exchange information and develop learning relationships

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Touch points

answer

all possible areas of a business where customers communicate with that business.

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Point-of-sale interactions

answer

communications between customers and organizations that occur at the point of sale, normally in a store.

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Data warehouse

answer

a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that the information can be shared across all functional departments of the business

question

Data mining

answer

data processing using sophisticated data search capabilities and statistical algorithms to discover patterns and correlations in large preexisting databases

question

Ways to use CRM

answer

Campaign management, retaining loyal customers, cross-selling other products and services, designing targeting marketing communications, reinforcing customer purchase decisions, inducing product trail by new customers, increasing effectiveness of distribution channel marketing, improving customer service.

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Lifetime value analysis (LTV)

answer

a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first time buyers.

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Exchange

answer

people giving up something to receive something they would rather have.

question

Conditions of exchange

answer

1. There must be at least 2 parties 2. Each party must have something that might be of value to the other. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party.

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Customer value

answer

the relationship between benefits and the sacrifice necessary to obtain those benefits

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Customer satisfaction

answer

Customers' evaluation of a good or service in terms of whether it has met their needs and expectations.

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Production Orientation

answer

a philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace.

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Sales Orientation

answer

based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.

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Market Orientation

answer

assume a sale doesn't depend on aggressive sales force, rather the customer's decision to purchase product.

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Societal Marketing Orientation

answer

acknowledges that some products that customers want may not be in their best interests or in the best interest of society. Means that they preserve long term best interests.

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Marketing Concept

answer

states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organization objectives.

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Relationship Marketing

answer

a strategy that focuses on keeping and improving relationships with current customers.

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Marketing Strategy

answer

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

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Marketing Plan

answer

written document that acts as a guidebook of marketing activities for the marketing manager.

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SWOT

answer

strengths, weaknesses, opportunities, threats.

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Competitive advantage

answer

three types: cost, product/service differentiation, and niche strategies. Sources of cost competitive advantages include experience curves, efficient labor, no frills goods and services, gov't subsidies, product design, reengineering, product innovations, and new methods of service delivery. A product/service differentiation competitive advantage exists when a firm provides something inquire that is valuable to buyers beyond just low prices. Niche competitive advantages come from targeting unique segments with specific needs and wants. The goal of all three is to be sustainable.

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Strategic alternatives, types

answer

The strategic opportunity matrix can be used to help management develop strategic alternatives. The four options are market penetration, product development, market development, and diversification. In selecting a strategic alternative, managers may use a portfolio matrix, which classifies strategic business units as stars, cash cows, problem children, and dogs, depending on their present or projected growth and market share.

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Target Market Strategy

answer

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

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Implementation, evaluation and control

answer

gauging the extent to which the marketing objectives have been achieved during the specified time period.

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Corporate social responsibility

answer

business' concern for society's welfare.

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Sustainability

answer

the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.

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Pyramid of social responsibility

answer

a model that suggests corporate social responsibility is composed on economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure.

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Ethics, morals

answer

ethics: a guideline to help marketing managers and other employees make better decisions. Morals: the rules people devlop as a result of cultural values and norms.

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Morality of business ethics, three levels

answer

examines the consequences of decisions. Relies on rules and laws to guide decision making. Moral development theory that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality.

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Social factors

answer

Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, changing gender roles are bringing more women into the workforce and increasing the number of men who shop. Third, a greater number of dual career families has created demand for time saving goods.

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Demographic factors

answer

Tweens and Gen Y are increasingly experienced consumers, and because the population is growing older, marketers are offering more products that appeal to middle aged and elderly consumers.

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Generations

answer

Tweens: preteens Generation Y: 1979-1994 Gen X: 1965-1978 Baby boomers: 1946-1964

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Ethnic markets

answer

Multiculturalism occurs when all major ethnic groups in an area are equally represented. Hispanics fastest growing, then African Americans. Most companies are creating departments to target multicultural market segments. Not homogeneous however.

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Economic factors

answer

2007-2009 recession has reduced spending power. During inflation, marketers try to maintain level pricing to avoid losing customer brand loyalty. During times of recession, they try and maintain or reduce prices to counter the effects of decreased demand. They focus on product efficiency and improving customer service.

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Technological factors

answer

Essential to monitor new technology to keep up with competitors. US excels in basic research and in recent years has improved track record in applied research. Innovation is increasingly becoming a global process.

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Political and Legal Factors

answer

Subject to federal and state laws. Responsible for remaining aware of and abiding regulations. Key federal laws are Sherman Act (limits cartels and monopolies), Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea amendment to the FTC act. Manu laws including privacy laws have been passed to protect the consumer. Consumer Product Safety Commission, Federal Trade Commission, and the Food and Drug Administration most involved.

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Competitive factors

answer

The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry.

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Global marketing, benefits/rewards

answer

Marketing that targets markets throughout the world. Businesses that do this are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets.

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Global market standardization/adaptation

answer

production of uniform products that can be sold the same way all over the world.

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Culture

answer

societal values, attitudes and beliefs, language and customary business practices.

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Economic/Technological

answer

for a country, depends on its stage of industrial development, which, in turn, affects average family income.

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Political structure

answer

Shaped by political ideaology and such policies as tariffs, quotas, boycotts, exchange controls, trade agreements, and market groupings.

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Major agreements (NAFTA, EU, etc.)

answer

NAFTA: North American Free Trade Agreement, world's largest free trade agreement. EU: a free trade zone encompassing 27 European countries. CAFTA: central American free trade agreement

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Entry strategies

answer

firms use the following strategies, in descending order of risk and profit: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.

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Consumer decision making process, steps

answer

1. need recognition 2. info search 3. evaluation of alternatives 4. purchase 5. post purchase behavior

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Internal/external search

answer

internal is the process of recalling past info stored in the memory. External is the process of seeking information in the outside environment.

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Evoked set

answer

a group of brands, resulting from an information search, from which a buyer can choose.

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Cognitive dissonance

answer

inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

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Involvement, factors determining

answer

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

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Routine decisions

answer

low involvement, little time of search and decision

question

Limited decision making

answer

moderate amount of time for gathering info and debating about an unfamiliar brand in a familiar product category

question

Extensive decision making

answer

most complex, unfamiliar, expensive product.

question

Categories of Influence

answer

Cultural: values, language, myths, customers, rituals, laws, and the artifacts or products transmitted from one gen. to the next. Can be divided into subcultures. Social: External influences like reference groups, opinion leaders, and family. May use products or brands to identify with a reference group, or to follow an opinion leader. Family members also influence purchase decisions. Individual: gender, age, family life cycle stage, personality, self concept, lifestyle. Men and women differ. Marketers often use life cycle stage. Psychological: perception, motivation, learning, values, beliefs, and attitudes.

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Business marketing

answer

the marketing of goods and services to individuals and organizations for purposes other than personal consumption.

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Relationship marketing

answer

Relationship marketing entails seeking and establishing long term alliances or partnerships with customers. A strategic alliance is a cooperative agreement between business firms. Firms form alliances to leverage what they do well by partnering with others that have complementary skills.

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Categories of business customers

answer

For profit, reseller markets, government markets, institutional markers (very diverse nonbusiness institutions whose main goals do not include profits)

question

Business versus consumer markets

answer

in business markets, demand is derived, price inelastic, joint and fluctuating. Purchase volume is much larger, customers are fewer in number and more geographically concentrated, and distribution channels are more direct. Buying is approached more formally using professional purchasing agents, more people are involved in the buying process, negotiation is more complex, and reciprocity and leasing are more common.

question

Business buying behavior

answer

5 characteristics. First, buying is normally undertaken by a buying center, secondly, typically evaluate alternative products and suppliers based on quality, service and price. Third, business buying falls into 3 general categories: new buys, modified rebuys, and straight rebuys. Fourth, the ethics of business buyers and sellers are often scrutinized. Fifth, customer service before, during, and after the sale plays a big role in business purchase decisions.

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Buying center

answer

all those people in an organization who become involved in the purchase decision.

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Buying situations

answer

categorised according to the prior experience of the buyer with the product and supplier; buy classes can be classified as straight rebuys, modified rebuys and new tasks.

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Market segment

answer

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

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Market segmentation

answer

the process of dividing a market into meaningful, relatively similar and identifiable segments.

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Criteria for segments

answer

1. market segment must be substantial and have enough potential customers to be viable. 2. Must be identifiable and measureable 3. Members of market segment must be accessible to marketing 4. Marker segment must responds to particular marketing efforts in a way that distinguishes it from other segments.

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Bases for segmenting business markets

answer

two general bases: first, based on company characteristics, second by buying processes the customers use.

question

Steps for segmenting

answer

1. selecting a market for study 2. choosing a basis or bases for segmenting 3. selecting segmentation descriptions 4. profiling and evaluating segments 5. selecting target markets 6. designating, implementing and maintaining appropriate marketing mixes.

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80/20 principle

answer

holds that 20 percent of all customers generate 80 percent of the demand.

question

Segmentation bases

answer

characteristics or individuals, groups, or organizations, to divide a total market into segments,

question

Major segmentation categories

answer

Geographic, demographic, psychographic, benefit

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Target Market

answer

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of the group, resulting in mutually satisfying exchanges.

question

Strategies for selecting target markets

answer

undifferentiated targeting (all customers with one marketing mix), concentrated targeting (all marketing efforts on a single segment), multisegmented targeting (two of more marketing mixes to target two or more segments)

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One-to-one marketing

answer

an individualized marketing method that utilizes customer information to build long term, personalized and profitable relationships with each customer.

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Positioning

answer

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

question

Perceptual mapping

answer

means of displaying or graphing two or more dimensions the location of products, brands, or groups of products in customers minds

question

Marketing research, 3 roles

answer

Researchers can examine why particular strategies failed and analyze characteristics of specific market segments. Managers can use research findings to help keep current customers. Moreover, marketing research allows management to behave proactively, rather than reactively, by identifying newly emerging patterns in society and the economy.

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Marketing information

answer

everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.

question

Data types

answer

Secondary data is data previously collected for any purpose other than the one at hand. Primary data is information that is collected for the first time.

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Decision support system (DSS)

answer

an interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

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Database marketing

answer

the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns.

question

Research design

answer

Researcher creates an overall research design to specify how primary data will be gathered and analyzed. Before collecting data, the researcher decides whether the group to be interviewed will be a probability or nonprobability sample. Once data has been collected, the researcher analyzes them using statistical analysis. The researcher then prepares and presents oral and written reports, with conclusions and recs for management; Finally, the researcher determines whether the recommendations were implemented and what could have been done to make the project more successful.

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Mall intercept intercept

answer

a survey research method that involves interviewing people in the common areas of shopping malls

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Computer assisted personal interviewing

answer

an interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent's data directly into the computer.

question

Central location telephone facility—

answer

a specially designed phone room used to conduct telephone interviewing

question

Executive Interview

answer

involves interviewing businesspeople at their offices concerning industrial products or services.

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Focus Group

answer

seven to 10 people who participate in a group discussion led by a moderator.

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Openended question

answer

encourages an answer phrased in the respondent's own words

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Closed ended question

answer

asks the respondent to make a selection from a limited list of responses.

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Scaled response question

answer

a closed-ended question designed to measure the intensity of a respondent's answer.

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Observation research

answer

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity.

question

Ethnographic research

answer

the study of human behavior in its natural context, involves observation of behavior and physical setting.

question

Experiment research

answer

a method a researcher uses to gather primary data.

question

Scanner-based research

answer

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

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Consumer product

answer

everything, both favorable and unfavorable, that a person receives in an exchange.

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Business product

answer

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers.

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Consumer product

answer

a product brought to satisfy an individual's personal wants.

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Shopping product

answer

a product that requires comparison shopping because its usually more expensive than a convenience product and is found in fewer stores.

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Specialty product

answer

a particular item that consumers search extensively for and are very reluctant to accept substitutes.

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Unsought product

answer

a product unknown to the potential buyer or a known product that the buyer does not actively seek.

question

Convenience product

answer

a relatively inexpensive item that merits little shopping effort.

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Product item

answer

a specific version of a product that can be designed as a distinct offering among an organization's products.

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Product line

answer

a group of closely related product items.

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Product mix

answer

all products that an organization sells

question

Product mix width

answer

the number of product lines an organization offers.

question

Product mix depth

answer

the number of product items in a product line.

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Brand

answer

a name, term, symbol, design, or combo that identifies a seller's products and differentiates them from competitors' products.

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Brand name

answer

that part of a brand that can be spoken, including letters, words and symbols.

question

Brand mark

answer

that part of a brand that cannot be spoken.

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Brand equity

answer

the value of company and brand name.

question

Generic product

answer

a no-frills, no-brand-name, low-cost product that is simply identified by its product category.

question

Manufacturer's brand

answer

the brand name of a manufacturer.

question

Private brand

answer

a brand name owned by a wholesale or a retailer.

question

Captive brand

answer

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation.

question

Individual branding

answer

using different brand names for different products.

question

Family brand

answer

marketing several different products under the same brand name.

question

Cobranding

answer

placing two or more brand names on a product or its package.

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Trademark

answer

the exclusive right to use a brand or part of a brand.

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Service mark

answer

a trademark for a service.

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Generic product name

answer

identifies a product by class or type and cannot be trademarked.

question

Warranty

answer

a confirmation of the quality or performance of a good or service.

question

Express warranty

answer

a written guarantee

question

Implied warranty

answer

an unwritten guarantee that the good or service is fit for the purpose for which it was sold.

question

New product

answer

a product new to the world, the market, the producer, the seller or some combo thereof.

question

NPD Process

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First, a firm forms a new product strategy by outlining the characteristics and roles of future products. Then new-product ideas are generated by customers, employees, distributors, competitors, vendors, and internal R&D personnel. New product strategy Idea generation Idea Screening Business analysis Development Test marketing Commercialization New product

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Diffusion of innovations

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The diffusion process is the spread of a new product from its producer to ultimate adopters. The diffusion process is facilitated by word of mouth communication and communication from marketers to consumers.

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5 categories of adopters

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Adopters in the diffusion process belong to five product categories: innovators, early adopters, the early majority, the late majority, and laggards.

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Product life cycle

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All brands and product categories undergo a life cycle with four stages: introduction, growth, maturity, and decline. The rate at which products move through these stages, varies dramatically. Marketing managers use the product life-cycle concept as an analytical tool to forecast a product's future and devise effective marketing strategies.

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Trialability

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the degree to which a product can be tried on a limited basis.

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Complexity

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the degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion.

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Compatibility

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the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs. Incompatible products diffuse more slowly than compatible products.

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Relative advantage

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the degree to which a product is perceived as superior to existing substitutes.

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Observability

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the degree to which the benefits or other results of using the product can be observed by others and communicated to target customers.

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Services, 4 characteristics that make distinct from goods

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Services are intangible, inseparable, heterogenerous, and perishable.

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Search

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a characteristic that can be easily assessed before purchase.

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Experience

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a characteristic that can be assessed only after use

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Credence

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a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.

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Reliability

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the ability to perform a service dependably, accurately, and consistently.

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Responsiveness

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the ability to provide prompt service.

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Assurance

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the knowledge and courtesy of employees and their ability to convey trust.

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Empathy

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caring, individualized attention to customers.

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Gap model of Service quality

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Five gaps that can cause problems in service delivery and influence customer evaluations of service quality. Gap 1: the gap b/w what the customers want and what management thinks customers want. Gap 2: the gap b/w what management thinks customers want and the quality specifications that management develops to provide the service. Gap 3: the gap b/w the service quality specifications and the service that is actually provided. Gap 4: the gap b/w what the company provides and what the customer is told it provides. Gap 5: the gap b/w the service that customers receive and the service they want.

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Core service

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the most basic benefit the consumer is buying.

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Supplementary services

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a group of services that support or enhance the core service.

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Promotion strategies for services

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Stressing tangible cues: a tangible cue is a concrete symbol of the service offering. Using personal informational sources: someone consumers are familiar with Creating a strong organizational image: manage the evidence, including the physical environment of the service facility.

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Internal marketing

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treating employees as customers and developing systems and benefits that satisfy their needs.

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Nonprofit organization, marketing

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pursue goals other than profit, market share and return on investment. Nonprofit organization marketing facilities mutually satisfying exchanges between nonprofit organizations and their target markets. Distinguishes nonbusiness marketing strategy, including a concern with services and social behaviors rather than manufactured goods and profit.

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Relationship marketing

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involves attracting, developing and retaining customer relationships. There are three levels of relationship marketing: level 1 focuses on pricing incentives; level 2 uses pricing incentives and social bonds with customers; and level 3 uses pricing, social bonds and structural bonds to build long-term relationships.

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Supply chain

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the connected chain of all the business entities both internal and external to the company, that perform or support the marketing channel functions.

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Supply chain management

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a management style that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

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Marketing channels

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a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.

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Marketing wholesalers

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an institution that buys goods from manufacturers and resells them to businesses, gov't agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them.

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Intensive distribution

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a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.

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Selective distribution

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a form of distribution achieved by screening dealers to eliminate all but a few in any single area.

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Exclusive distribution

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a form of distribution that establishes one or a few dealers within a given area.

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Direct channel

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a distribution channel in which producers sell directly to consumers

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Dual distribution

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the use of two or more channels to distribute the same product to target markets.

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Strategic channel alliance

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a cooperative alliance between business firms to use the other's already established distribution channel.

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Alternate channel arrangements

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Multiple channels, nontraditional channels, strategic channel alliances

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Factors affecting channel choice

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Market factors—who are the customers? What do they buy? Where and when do they buy? Product factors—Products that are more complex, customized and expensive tend to benefit from shorter and more direct marketing channels. Producer factors—producers with larger financial, managerial, and marketing resources are better able to use more direct channels.

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Discrepancies

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marketing channels aid in overcoming discrepancies of quantity, assortment, time and space created by economies of scale in production.

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Discrepancy of quantity

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the difference between the amount of product produced and the amount an end user wants to buy.

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Discrepancy of assortment

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the lack of all the items a customer needs to receive full satisfaction from a product

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Temporal discrepancy

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a situation that occurs when a product is produced but a customer is not ready to buy it.

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Spatial discrepancy

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the difference between the location of a producer and the location of widely scattered markets.

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Channel power

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the capacity of a particular marketing channel member to control or influence the behavior of other channel members.

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Channel control

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a situation that occurs when one marketing channel member intentionally affects another member's behavior.

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Channel conflict

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a clash of goals and methods between distribution channel members

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Horizontal conflict

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a channel conflict that occurs among channel members on the same level

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Vertical conflict

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a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.

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Just in Time (JIT)

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a process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line.

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Outsourcing

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a manufacturer's or supplier's use of a third party to manage an entire function of the logistics system, such as the transportation, warehousing or order processing.

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Global logistics and supply chain management

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shippers must be aware of cultural permits, licenses, registrations needed in all of the different countries. Multinational companies are committed to working through the World Trade Org.

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Classifying retail operations

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Can be classified by ownership, level of service, product assortment and price. Retailers can be broadly differentiated as independent retailers, chain stores or franchise outfits. Level of service can be high or low. Breadth and depth of product assortment. General price levels.

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Major types of retail

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department stores—wide assortment of specialty and shopping goods, customer service. specialty retailers—narrower but deeper assortment of merchandise emphasizing distinctive products and high customer service. Supermarkets—large self service retailers that offer wide variety of food products. Drugstores—retail formats that sell mostly prescription and over counter medication, health and beauty aids, cosmetics. convenience stores—limited line of high turnover convenience goods. discount stores—low price merchandise restaurants.

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Non-store retailing

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shopping outside a store setting, has 3 major categories: Automatic vending machines, direct retailing, and direct marketing (which refers to the technique used to get consumers to buy from their homes or places of business.

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Direct retailing

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the sellings of products by representatives who work door to door, office to office or at home sales parties.

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Franchising types

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franchising is a continuing relationship in which a franchiser grants to a franchisee the business rights to operate or to sell a product. Modern franchising takes two basic forms. In product and trade name franchising, a dealer agrees to buy or sell certain products or product lines from a particular manufacturer or wholesaler. Business format franchising is an ongoing business relationship in which a franchisee uses a franchiser's name, format, or method of business in return for several types of fees.

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Retail strategy, steps

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Product—width and product depth Place—location and hours Promotion—advertising, publicity, PR Price Presentation—layout and atmosphere Personnel—customer service and personal selling TARGET!!!

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Key retail strategies

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define target market, develop six variables of the retailing mix: product, place, promotion, price, presentation, personnel.

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New developments in retailing

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adding interactivity to the retail environment is one of the most popular strategies in retailing in recent years. Second, m-commerce (mobile e-commerce) is gaining in popularity.

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