question

Marketing

answer

The activity for creating, communicating, delivering, and exchanging offerings that benefit an organization, its stakeholders, and society at large

question

What does marketing seek to do?

answer

1. Discover needs & wants of customers 2. Satisfy them

question

What is require for marketing to occur?

answer

1. Two or more parties with unsatisfied needs 2. A desire and ability to be satisfied 3. A way for the parties to communicate 4. Something to exchange

question

Research has shown that companies are more successful when they try to _____rather than create a need/want that did not previously exist.

answer

meet an existing need

question

Relationship Marketing

answer

Linking the organization to its individual customers, employees, supplies, and other partners for their mutual long-term benefit

question

Customer Value

answer

A cluster of benefits that an organization promises customers to satisfy their needs

question

Core Values & importance of organization:

answer

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

question

Mission & importance of organization

answer

A statement of the organization's function in society, often identifying its customers, markets, products, and technologies. Often used interchangeably with vision.

question

Organizational culture & importance of organization

answer

The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

question

Business & importance of organization

answer

The clear, broad, underlying industry or market sector of an organization's offering.

question

Goals & importance of organization

answer

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.

question

Strategic marketing

answer

which means taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

question

SWOT Analysis

answer

(effective summary of a situation analysis)an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

question

How are marketing mix elements blended into a cohesive marketing program?

answer

The Four P's (price, place, promotion, and product) are all used to satisfy the "Market" of people with both the desire and the ability to buy a specific offering.

question

Describe how social forces such as demographics, population, culture and the changing family can have an impact on marketing strategy:

answer

Multicultural marketing which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preference, and lifestyles of different races all contribute to the marketing strategy. Population is expected to increase to 9.35 billion by 2050. US population is becoming larger, older, and more diverse, suggesting that niche markets based on age life stage family structure geographic location and ethnicity will become increasingly important.

question

Understand how macroeconomic conditions and consumer income affect marketing

answer

Value Consciousness has increased over the recent years. Disposable income is the money consumers have left after taxes to pay bills and buy necessities such as food, housing, clothing, and transportation. Discretionary income is the money left after paying for necessities and taxes, its fun money.

question

Explain how technological changes can affect marketing:

answer

Electric commerce, that is any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services has increased tremendously and there are 2.4 billion internet users with 1.3 billion using social media meaning that social media advertising is the way of the future. Other technological forces that will increase marketing on the internet include: cloud computing, smart phones, nano-technology, genetically altered food, wireless power, and e-readers.

question

Understand the forms of competition that exist in a market:

answer

Pure Competition: where there are many sellers and they each have similar product. Ex: Gas Monopolistic Competition: Many sellers compete with substitutable products within a price range. If the price of coffee rises too much consumers may switch to tea. Ex: Fast Food in San Marcos. Pure Monopoly: Occurs when only one firm sells the products. Monopolies are common for producers of goods considered essential to community: water, electricity, and cable service.

question

Understand the role that regulation plays in the marketing environment:

answer

Regulation consists of restrictions state and federal laws place on business with regard to the conduct of its activities. Regulation exists to protect companies as well as consumers. Much of the regulation for the federal and state levels is the result of an active political process and has been passed to ensure competition and fair business practices. For consumers, the focus of legislation is to protect them from unfair trade practices and ensure their safety.

question

Understand what is meant by multicultural marketing programs and why they are important:

answer

Multicultural marketing which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preference, and lifestyles of different races all contribute to the marketing strategy. The term "minority" will have a different meaning in a few years as most minority groups grow in numbers. Each of theses groups already represents significant spending power. Since business must now market their products to a consumer base with many racial and ethnic identities, in-depth marketing research that allows an accurate understanding of each culture is essential

question

Be able to differentiate between what is ethical and what is legal:

answer

Ethics: The moral principles and values that govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas. Laws: Societies values and standards that are enforceable in the courts. There are four ways to classify marketing decisions according to ethical and legal relationships: Ethical but illegal, Ethical and Legal, Unethical and Illegal, Unethical but legal.

question

Identify factors that influence ethical and unethical marketing decisions

answer

Business Cultures: Compromise the effective rules of the game, the boundaries between competitive and unethical behavior and the codes of conduct in business dealings. Social Responsibility: Refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public. Corporate Culture: The set of values, ideas, and attitudes that is learned and shared among the members of an organization.

question

Identify philosophies that influence ethical and unethical marketing decisions:

answer

Moral Idealism: Is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. Ex: when scotch guard ingredients had the possibility of making only a few people sick they still took it off the shelf. Utilitarianism: Is the personal moral philosophy that focuses on "the greatest good for the greatest amount of people" by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the cost then the behavior is ethical. If not the behavior is unethical. Ex: Nestle "good start" baby formula promoted hypo-allergenic not allergy free since it didn't actually make every baby sick only a few

question

Understand the various components of social responsibility:

answer

Societal Responsibility: Refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public. Today emphasis is placed on what is termed the Triple-bottom-line Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable long term growth. This includes Green Marketing, Cause Marketing, And Sustainable Development.

question

Green Marketing

answer

Marketing efforts to produce promote and reclaim environmentally sensitive products

question

Cause Marketing

answer

When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

question

Sustainable Development

answer

Involves conducting business in a way that protects the natural environment while making economic progress.

question

Purchase Decision Process Model

answer

1. Problem Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase .Decision 5. Post-purchase behavior

question

Extended Problem Solving:

answer

Exists in high-involvement purchase situations for items such as automobiles and audio systems. Ex: Big ticket items.

question

Limited Problem Solving:

answer

Consumers typically seek some information or rely on a friend to help them evaluate alternatives. Limited problem solving might be used in choosing a toaster, a restaurant for lunch, and other purchase situations in which the consumer has little time or effort to spend.

question

Routine Problem Solving:

answer

Is typically the case for low-priced, frequently purchased products such as table salt, a soft drink, or snack.

question

Organizational Buyers:

answer

Those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. There are about 7.7 million firms in the industrial or business market. These industrial firms in some way reprocess a product or service they buy before selling it again to the next buyer. There are less organizations that consumers buy they have much bigger orders. Organizations buy products and services for one main reason: to help them achieve their objectives. Profits, Efficiency, Environment, Women/ Minority owned suppliers or vendors.

question

Organizational Buying Criteria:

answer

are the objective attributes of the supplier's products and services and the capabilities of the supplier itself.

question

Commonly used criteria includes:

answer

Price, ability to meet quality specifications required for the item, ability to meet required delivery schedules, technical capability, warranties and claim polices in the event of poor performance, past performance contracts, production facilities and capacity.

question

Three types of buying situations ( New buy, Straight Re-buy, Modified Re-buy

answer

New Buy: The organization is a first time buyer of the product. This involves greater risk, so more people enter into the decision process. Straight Re-buy: A re-order of an existing product or service from the list of acceptable suppliers. Modified Re-buy: Involves a change in product specifications, price, delivery, schedule, or suppliers.

question

Values

answer

Represent personally or socially preferable modes of conduct or states of existence that tend to persist over time.

question

Customs

answer

Are what is considered normal and expected about the way people do things in a specific country

question

Cultural Symbols

answer

Things that represent ideas and concepts. Symbols and symbolism play an important role in cross cultural analysis because different cultures attach different meaning to things.

question

Semiotics:

answer

Examines the correspondence between symbols and their role in the assignment of meaning for people.

question

Global Market-entry strategies:

answer

Indirect Exporting, Direct Exporting, Joint Venture, & Direct Investment

question

Indirect Exporting

answer

Using an intermediary to assist in the exporting. The easiest way to start, least commitment and risk, but also produces the least profit because some of it has to go to the intermediary. You sell it through a partner.

question

Direct Exporting

answer

Selling products in other countries without using an intermediary. This is tougher because you don't have a cultural contact

question

Joint Venture

answer

When a foreign company and local firm invest together to create a local business

question

Direct Investment

answer

Entitles a domestic firm actually investing in and owning a foreign subsidiary (ex: Mercedes-Benz factory in Vance, Alabama.)

question

Primary Data

answer

Facts and figures that are newly collected from the project.

question

Observational:

answer

watching people mechanically, personally, or through neuromarketing methods

question

Questionnaires & types (6):

answer

(Open-ended, Close-ended, fixed alternative, dichotomous, semantic differential, likert)Open-ended questions allow respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. It captures the "voice" of the respondents. Closed-ended or Fixed Alternative questions: Requires respondents to select one or more response options from a set of predetermined choices. Dichotomous Question: The simplest form of a fixed alternative question that allows only a "yes" or a "no" response. Semantic Differential Scale: A five point scale in which the opposite ends have one or two word adjectives that have opposite meanings ex: Very Important-Very Unimportant. Likert Scale: How much do you like it? Ex: Strongly agree- Strongly disagree

question

Experiments & types (4):

answer

(sales forecast, direct forecast, Lost horse forecasting, survey of buyers, sales force forecast)Analyze the data and present the findings. Actions might include a particular promotion and advertising campaign or developing a new product. Sales forecast: refers to the total sales of a product that a firm expects to sell during a specified time period under specified conditions and its own marketing effort. Direct forecasting: Involves estimating the value to be forecast without any intervening steps. It is used more for everyday decisions. Lost Horse Forecasting: Involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast assessing whether they have a positive or negative impact, and making the final forecast. Survey of buyers: Often low, the intentions of a prospective customer to buy the product during some future time period. Sales force forecast: Involves asking the firms salespeople to estimate sales during a coming period. Also often low.

question

Secondary Data:

answer

Facts and figures that have already been recorded before a project at hand. It can be internal (such as sales figures or order request) or external such as the data available for the US census.

question

Market Segmentation:

answer

involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action. Market segments are the relatively homogeneous groups of prospective buyers that result from the market segmentation process. Each segment is made up of people who are relatively similar to each other in terms of their consumption behavior

question

Product Differentiation:

answer

which involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. The perceived differences may involve physical features, such as size or color, or non-physical ones, such as image or price.

question

One Product & Multiple Market Segments:

answer

When an organization produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra costs of developing and producing additional versions of the product. In this case, the incremental costs of taking the product into new market segments are typically those of a separate promotional campaign or a new channel of distribution. This strategy is common with books and magazines.

question

Multiple Products & Multiple Market Segments

answer

common in the automobile industry where auto makers produce different lines of cars, trucks, and SUV's...each targeted to a different market.

question

Segments of One: Mass Customization:

answer

American marketers are rediscovering today what their ancestors running the corner general store knew a century ago: Each customer has unique needs and wants, and desires special tender loving care. Economies of scale in manufacturing and marketing during the past century made mass-produced goods so affordable that most customers were willing to compromise their individual tastes and settle for standardized products. Today's Internet ordering and flexible manufacturing and marketing processes have made mass customization possible, which means tailoring goods or services to the tastes of individual customers on a high-volume scale.

question

Segmentation Trade-Off:

answer

The key to successful product differentiation and market segmentation strategies is finding the ideal balance between satisfying a customer's individual wants and achieving organizational synergy, the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.

question

BTO ( Build To Order)

answer

manufacturing a product only when there is an order from a customer. Dell uses BTO systems that trim work-in-progress inventories and shorten delivery times to customers. To do this, Dell restricts its computer manufacturing line to only a few basic models that can be assembled in four minutes. This gives customers a good choice with quick delivery.

question

Tiffany/ Wal-Mart Strategy:

answer

Many firms now offer different variations of the same basic offering to high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.

question

Geographic Segmentation:

answer

which is based on where prospective customers live or work (region, city size);

question

Demographic Segmentation:

answer

which is based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers

question

Psychographic Segmentation:

answer

What your neighborhood is like

question

Behavioral Segmentation:

answer

1. Product Features 2. Usage Rate is the quantity consumed or patronage

question

Product Features

answer

Understanding what features are important to different customers is a useful way to segment markets because it can lead directly to specific marketing actions, such as a new product, an ad campaign, or a distribution system. For example, college dorm residents frequently want to keep and prepare their own food to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, and charging station targeted to these students.

question

Usage Rate

answer

The quantity consumed or patronage - store visits -during a specific period. It varies significantly among different customer groups. Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly to create loyal customers. Usage rate is sometimes referred to in terms of the 80/20 rule: a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers. The percentages in the 80/20 rule are not really fixed at exactly 80 percent and 20 percent but suggest that a small fraction of customers provides a large fraction of a firm's sales.

question

Product Positioning:

answer

refers to the place a product occupies in consumers' minds on important attributes relative to competitive products. By understanding where consumers see a company's product or brand today, a marketing manager can seek to change its future position in their minds. This requires product repositioning, changing the place a product occupies in a consumer's mind relative to competitive products.

question

Head-to-head positioning:

answer

involves competing directly with competitors on similar product attributes in the same target market. Using this strategy, Dollar rental car competes directly with Avis and Hertz.

question

Differentiation positioning:

answer

involves seeking a less-competitive, smaller market niche in which to locate a brand. McDonald's tried to appeal to the health-conscious segment when it introduced the low-fat McLean Deluxe hamburger to avoid competing directly with Wendy's and Burger King.

question

Product Item:

answer

a specific product that has a unique brand, size, or price. For example, Ultra Downy softener for clothes comes in several different sizes. Each size is a separate stock keeping unit (SKU), which is a unique identification number that defines an item for ordering or inventory purposes

question

Product Line:

answer

a group of product or service items that are closely related because they satisfy a class of needs (a line of medications or household appliances), are used together (cosmetics), are sold to the same customer group (medical equipment), are distributed through the same outlets (plumbing supply distributor), or fall within a given price range (Dollar Stores).

question

Product Mix:

answer

consists of all of the product lines offered by an organization. For example, Cray Inc. has a small product mix of three supercomputer lines that are sold mostly to governments and large businesses. Fortune Brands, however, has a large product mix that includes product lines such as sporting equipment (Titleist golf balls) and plumbing supplies (Moen faucets).

question

Product:

answer

is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

question

Nondurable Goods

answer

an item consumed in one or a few uses, such as food products and fuel.

question

Durable Goods

answer

is one that usually lasts over many uses, such as appliances, cars, and mobile phones.

question

Consumer Products:

answer

Convenience Products, Shopping Products, specialty Products, & Unsought Products

question

Convenience Product:

answer

are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. (Soft drinks, snacks, inexpensive items)

question

Shopping Products:

answer

are items for which the consumer compares several alternatives on criteria such as price, quality, or style. (Restaurant meal, clothes, small appliances)

question

Specialty Products:

answer

are items that the consumer makes a special effort to search out and buy. (Cars, houses, jewelry, vacations).

question

Unsought Products:

answer

are items that the consumer does not know about or knows about but does not initially want. (Insurance, medical procedures, root canal)

question

Business Products (B2B/ Industrial)

answer

are products that organizations buy that assist in providing other products for resale

question

Components:

answer

are items that become part of the final product. These include raw materials such as grain or lumber, as well as assemblies or parts, such as a Ford car engine or car door hinges

question

Support Products:

answer

are items used to assist in producing other goods and services.

question

Factors contributing to a new product's/ service's failure:

answer

1. Not really listening to the voice of the consumer 2. Skipping stages in the new product process 3. Pushing a poorly conceived idea into the market to generate quick revenue (today's tablet computers to compete with i-pad) 4. Encountering 'groupthink' in task force and committee meetings 5. Not learning critical take-away lessons from past failures.

question

Factors contributing to a new product's/ service's success:

answer

1. New Product Strategy Development (having protocol for developing new ideas) 2. Idea generation (Tap sources/ using environmental scanning) 3. Screening & Evaluation (input from others) 4. Business Analysis (Can you sell it/ create prototype) 5. Development (Make a few/ safety test) 6. Marketing testing (try it out on the target market) 7. Not all products can use test marketing 8. Commercialization

question

Commercialization

answer

the stage of the new-product process that positions and launches a new product in full-scale production and sales. Because shelf space is so limited, many supermarkets require a slotting fee for new products, a payment a manufacturer makes to place a new item on a retailer's shelf. This can run to several million dollars for a single product. But there's even another potential expense. If a new grocery product does not achieve a predetermined sales target, some retailers require a failure fee, a penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make.

question

Stages of Product Life Cycle:

answer

1. Introduction 2. Growth 3. Maturity 4. Decline

question

Introduction:

answer

1. Sales grow slowly 2. Minimal profits as a result of large investment cost in development

question

Growth Characteristics:

answer

Rapid increase in sales, competition appears, profit peaks, advertising shifts to selective demand, sales grow at a increasing rate bc of new people trying the product and repeat purchasers bought again, change appear/ "new & improved"

question

Maturity:

answer

Total industry sales slow, and marginal competitors begin to leave the market. Sales increase at a decreasing rate, and most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it. Fewer new buyers enter the market. Marketing actions are focused on maintaining market share through product differentiation and finding new buyers.

question

Decline stage & types:

answer

Sales drop, often because of environmental changes 1. Deletion:dropping the product from the company's product line...the most drastic strategy. This option is not taken lightly because there is usually a residual core of customers who continue to consume or use the product even in the decline stage. Example: IBM stopped making laptop computers. 2. Harvesting: the company retains the product but reduces marketing costs. The product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent. The purpose of harvesting is to maintain the ability to meet customer requests. Coca-Cola, for instance, still sells Tab, its first diet cola, to a small group of die-hard fans

question

Diffusion of Innovation:

answer

Not all consumers rush to buy a product in the introductory stage, and the shapes of the life-cycle curves indicate that most sales occur after the product has been on the market for some time. In essence, a product diffuses, or spreads, through the population

question

Branding:

answer

A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.

question

Brand Name

answer

is any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services. Some brand names can be spoken, such as a Gatorade or Rollerblade. Other brand names cannot be spoken, such as the colored apple (the logotype or logo) that Apple puts on its machines and in its ads.

question

Trademark

answer

identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it. In the United States, trademarks are registered with the U.S. Patent and Trademark Office and protected under the Lanham Act.

question

Trade Name:

answer

is a commercial, legal name under which a company does business

question

Brand Equity:

answer

The added value a brand name gives to a product beyond the functional benefits provided.

question

Brand Licensing:

answer

A contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee.

question

Brand Personality:

answer

a set of human characteristics associated with a brand name. Research shows that consumers often assign personality traits to products—traditional, romantic, rugged, sophisticated, rebellious—and choose brands that are consistent with their own or desired self-image

question

Four I's in Service:

answer

1. Intangible (Cant be held, touched, or seen before the purchase decision) 2. Inconsistency 3. Inseparability (cant separate the deliver of the service from the service itself) 4. Inventory (ex: service provider is available but no demand)

question

Ways services can be classified:

answer

1. Delivered by people or equipment 2. Profit/ non-profit organizations 3. Government Sponsored

question

Service Continuum

answer

What companies bring to the market ranges from the tangible to the intangible or good-dominant to service-dominant offerings referred to as the service continuum.

question

Price

answer

is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service

question

Fixed Cost:

answer

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.

question

Unit Variable Cost

answer

Variable cost expressed on a per unit basis for a product.

question

Break-Even Point:

answer

The quantity at which total revenue and total cost are equal

question

Break-Even analysis:

answer

is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. Price-(fixed cost+ unit variable cost) = Break-even point ( or higher to succeed)

question

Demand Oriented Approaches (8):

answer

1. Skimming Pricing (setting highest initial price that customers really desiring will pay) 2. Penetration Pricing (Setting a low initial price on a product to appeal immediately to the mass market) 3. Prestige Pricing (setting a high price so that quality-or status conscious consumer will be attracted) 4. Price Lining (Setting the price of a line product at a number of different specific price points) 5. Odd-even Pricing: (setting prices a few dollars or cents under an even number) 6. Target Pricing: Manufacturers will sometimes estimate the price that the ultimate consumer would be willing to pay for a product. They then work backward through markups taken by retailers and wholesalers to determine what price they can charge wholesalers for the product. After estimating the consumer price, the manufacturer adjusts the composition and features of the product to achieve the target price to consumers. 7. Bundle Pricing: marketing two or more products in a single package price 8. Yield management: pricing the charging of different prices to maximize revenue for a set amount of capacity at any given time (hotel prices during a event go up)

question

Cost Oriented Approaches (4):

answer

1. Standard markup pricing (adding a fixed percentage to the cost of all items in a specific product class) 2. Cost-plus percentage-of-cost pricing:involves adding a fixed percentage to the total unit cost/often used on one-of-a-kind or few-of-a-kind items. 3. Cost-plus fixed-fee pricing: occurs when a supplier is reimbursed for all costs, regardless of what they turn out to be, but is allowed only a fixed fee as profit that is independent of the final cost of the project. 4. Experience curve pricing: the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles

question

Profit Oriented Approach:

answer

1. Target Profit Pricing: Fixed cost + (Variable Cost x units), then + Profit and divide by the # of units

question

Competition Oriented Price Approach (5):

answer

1. Customary Pricing: setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors) 2. Above-, At-, or Below- market pricing: setting a market prices for a product or a product class based on a subjective feel for the competitor's price or market price as the benchmark 3. Loss Leader Pricing: selling a product below its customary price to attract customer in hopes that they will buy other products 4. One-price policy/ Fixed Pricing 5. Flexible-price policy/ dynamic pricing: different prices for products and services depending on individual buyers and purchase situations

question

Mark up:

answer

Sale price - unit cost

question

Mark down:

answer

Price that is lower than original sales price - unit cost

question

Gross margin:

answer

How much the item sold for - unit cost

question

Marketing Channels:

answer

consist of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

question

Intermediaries

answer

make possible the flow of products from producers to ultimate consumers by performing three basic functions

question

Supply Chain & how it differs from the Market Channel

answer

refers to the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. It differs from the market channel in terms of the firms involved

question

Logistics:

answer

involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

question

Total logistic cost:

answer

includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling

question

Customer Service:

answer

is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

question

Form of ownership

answer

distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet.

question

Level of service

answer

is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, limited-, and full-service retailers.

question

Types of merchandise line

answer

describes how many different types of products a store carries and in what assortment.

question

Four types of utilities:

answer

Time: Sports authority having supplies even during the off season Place: Wells Fargo having ATM and stores world wide Form: Ralph Lauren offering buyers the Create your Own collection Possession: Car Max has 106 no haggle superstores

question

Merchant Wholesalers:

answer

are independently owned firms that take title to the merchandise they handle. ( Industrial distributors)

question

Types of wholesalers (2):

answer

1. General merchandise (full-line) wholesalers carry a broad assortment of merchandise and perform all channel functions. This type of wholesaler is most prevalent in the hardware, drug, and clothing industries( not much depth) 2. Specialty merchandise (limited-line) wholesaler offer a relatively narrow range of products but have an extensive assortment within the product lines carried

question

Four types of limited service wholesaler:

answer

1. Rack jobbers: furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold (toys, health, & beauty) 2. Cash & carry wholesalers: take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise (office supplies, hardware, groceries) 3. Drop shippers/ desk jobbers: own the merchandise they sell but do not physically handle, stock, or deliver it. 4. Truck jobbers: small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers (bakery, dairy, meat)

question

Communication:

answer

is the process of conveying a message to others and it requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding

question

Advertising

answer

any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.

question

Personal Selling:

answer

is the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision

question

Public Relations:

answer

is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

question

Sales Promotion:

answer

is a SHORT-TERM inducement of value offered to arouse interest in buying a good or service. (coupons, rebates, samples, & sweepstakes)

question

Publicity:

answer

is non-personal, indirectly paid presentation of an organization, good, or service. It can take the form of a news story, editorial, or product announcement. (Advantage: credibility Disadvantage: lack of user's control)

question

Direct Marketing:

answer

uses direct communication (no intermediaries) with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. (face-to-face, direct mail, catalogs, online telephone, etc)

question

Promotional Mix & factors that determine the tools:

answer

is the combination of one or more of the promotional tools it chooses to use. 1. Target audience (whom is direct?) 2. The product life (where is the product in its cycle?)

question

Three steps in developing the advertising program:

answer

1. Identify the target audience 2. Specify the advertising objective 3. Set the advertising budget

question

Evaluate Advertising Program (6):

answer

- Post-test - Aided Recall: determine (1)who remember seeing a specific ad, (2)who saw/ read any part of the ads product/brand, (3) who read any part of the copy, (4) who read at least half/most -Unaided Recall: What ads do you remember seeing yesterday? -Attitude Test: questions to measure changes in attitudes towards campaign -Inquiry Test: additional product information, product samples, or premiums(more inquiries, more effective) - Sales Test: studies such as using controlled experiements or consumer purchase test

question

Three main types of Product Advertising:

answer

1. Pioneering (informational) 2. Competitive (persuasive) 3. Reminder

question

Institutional Advertisements object is...

answer

to build goodwill or an image for an organization rather than promote a specific good or service.

question

Advocacy:

answer

advertisements state the position of a company on an issue

question

Pioneering institutional advertisements

answer

Ex: they are intended to inform consumers that the company produces many products in addition to aspirin

question

Reminder institutional advertisements

answer

simply bring the company's name to the attention of the target market again

question

Consumer-oriented sales promotion (consumer promotion):

answer

are sales tools used to support a company's advertising and personal selling.

question

Trade-oriented sales promotions (trade promotions):

answer

are sales tools used to support a company's advertising and personal selling directed to wholesalers, retailers, or distributors

question

Compare Social & Traditional Media:

answer

- Both large audiences but good execution is important -Traditional is expensive to produce and publish -Producing traditional typically requires skills & training & often involves teams of people, while social media requires only limited skills and anyone can post -Traditional takes time while social does not - Once traditional is read, it can not be altered unlike social media - Credibility & social authority.

question

Smart System:

answer

is a computer-based network that triggers actions by sensing changes in the real or digital world

question

Different Forms of Personal Selling::

answer

-Order takers: (routine or reorders) needs to preserve an ongoing relationship w/ existing customers 1. Outside order takers: takes orders and complete transactions w/ customers 2. Inside order takers: (order clerks/ sales clerks) answer simple questions -Order Getter: sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service

question

Sales Plan & three task:

answer

is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. 1. Setting objective 2. Organizing the sales force 3. Developing account management policies

question

Personal Selling Process:

answer

1. Prospecting 2. Pre-approach 3. Approach 4. Presentation 5. Close 6. Follow-Up

question

Market Place:

answer

Here buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and mostly tangible objects

question

Market Space:

answer

an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings

question

Online Buyers: Consumer Lifestyle Segments (6):

answer

1. Click & Mortar: 23% woman who tend to browse online but buy in traditional retail outlets 2. Hunter-Gatherers: married couples with children that use the internet to gather info and compare 3. Brand Loyalist: regularly visit their favorite sites and spend the most money online 4. Time Sensitive Materialist: use the internet as convenience tool (17%) 5. Hooked, Online, & Single: (16%) young, singles that spend more time online than any other segment 6. Equivalent newbies: Newcomers to internet that rarely spend money

question

Multichannel marketing:

answer

is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online—the cross-channel shopper.

question

Cost leadership Strategy (1)

answer

focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments

question

Differentiation Strategy (2):

answer

requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments.

question

Cost Focus Strategy (3)

answer

involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments

question

Differentiation Focus Strategy (4):

answer

requires products to have significant points of difference to target one or only a few market segments.

question

Long-Range Marketing Plans:

answer

Typically, long-range marketing plans cover marketing activities from two to five years into the future.

question

Annual Marketing Plans:

answer

Usually developed by a marketing or product manager (discussed later in the chapter) in a consumer products firm such as General Mills, annual marketing plans deal with marketing goals and strategies for a product, product line, or entire firm for a single year

question

Product/ Program Champion

answer

someone who is able and willing to cut red tape and move the program forward. Such a person often has the uncanny ability to move back and forth between big-picture strategy questions and specific details when the situation calls for it. Program champions are notoriously brash in overcoming organizational hurdles.

question

Reward Successful Program Implementation:

answer

When an individual or a team is rewarded for achieving the organization's goal, they have maximum incentive to see a program implemented successfully because they have personal ownership and a stake in that success.

question

Take Action & Avoid Paralysis by Analysis:

answer

Management experts warn against "paralysis by analysis," the tendency to excessively analyze a problem instead of taking action. To overcome this pitfall, they call for a "bias for action" and recommend a "do it, fix it, try it" approach. Don't let the pursuit of perfection stand in the way of the very good. Do something!

MKT 3343 Final Exam TXST – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards