Principles of Marketing – Chapters 11-15 – Flashcards
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New Product
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a product new to the world, the market, the producer, the seller, or some combination of these
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New-product strategy
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a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
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Product Development
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A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products.
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brainstorming
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the process of getting a group to think of unlimited ways to vary a product or solve a problem
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Screening
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the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason
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Concept Test
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a test to evaluate a new-product idea, usually before any prototype has been created
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buasiness analysis
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The second stage of the screening process where preliminary figures for demand, cost, and sales, and profitability are calculated
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Development
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the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
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Simultaneous Product Development
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a team-oriented approach to new-product development
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Test Marketing
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the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
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Gap Model
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A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
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Core Service
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the most basic benefit the consumer is buying
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Supplementary Service
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a group of services that support or enhance the core service
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Mass customization
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a strategy that uses technology to deliver customized services on a mass basis
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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
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an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
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Nonprofit organization marketing
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the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets
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Public Service Advertisement (PSA)
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an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization
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Commercialization
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the decision to market a product
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Innovation
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a product perceived as new by a potential adopter
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Product Life Cycle
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a concept that provides a way to trace the stages of a product's acceptance, from its introduction to its decline
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Product Category
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all brands that satisfy a particular type of need
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Introductory Stage
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the full-scale launch of a new product into the marketplace
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Growth Stage
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the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
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Maturity Stage
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a period during which sales increase at a decreasing rate
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Decline Stage
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a long-run drop in sales
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Service
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the result of applying human or mechanical efforts to people or objects
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intangibility
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the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
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Search quality
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a characteristic that can be easily assessed before purchase
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experience quality
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a characteristic that can be assessed only after use
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Credence Quality
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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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inseparability
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the inability of the production and consumption of a service to be separated; consumers must be present during the production
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heterogeneity
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The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
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perishability
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the inability of services to be stored, warehoused, or inventoried
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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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Tangibles
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the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
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Marketing channel (chanel of distribution)
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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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Channel Members
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all parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
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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 or products
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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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Retailer
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A channel intermediary that sells mainly to consumers
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Merchant Wholesaler
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an institution that buys goods from manufacturers and resells them to businesses, government 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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Agents and Brokers
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wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
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Logistics
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the efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies
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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 agreement between business firms to use the other's already established distribution channel
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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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Arm's - length relationship
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a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
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Cooperative Relationship
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a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals
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integrated Relationship
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a relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
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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 Leader (captain)
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a member of a marketing channel that exercises authority and power over the activities of other channel members
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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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Channel Partnering
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the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
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Supply Chain
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The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
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Supply Chain Management
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a management system 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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Supply Chain integration
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when multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer
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Business Processes
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Bundles of interconnected activities that stretch across firms in the supply chain
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Customer Relationship Management Process
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Allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain
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Customer Service Management
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presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
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Demand Management Process
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seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior.
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Manufacturing flow Management process
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Concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
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Supplier relationship management process
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Closely related to the manufacturing flow management process and contains several characteristics that parallel the customer relationship management process
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Product Development and commercialization process
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includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
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Logistics
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the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
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Logistics information system
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the link that connects all of the logistics functions of the supply chain
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Supply Chain Team
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an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer
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Mass customization
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a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
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Just-in-time production
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Process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line
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Order Processing System
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a system whereby orders are entered into the supply chain and filled
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Electronic Data Interchange
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A computer to computer transfer of standard business documents that allows companies to handle the purchasing process electronically, avoiding the cost and delays resulting from paper-based systems
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Inventory control system
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a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand
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Distribution Resource planning
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An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.
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Automatic replenishment Program
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a real-time inventory system that triggers shipments only when a good is sold to the end user
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Material handling system
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A method of moving inventory into, within, and out of the warehouse
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Outsourcing
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the delegation of specified work to a third party for a specified length of time, at a specified cost, and at a specified level of service
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Electronic Distribution
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a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
