question

Exchange

answer

the trade of things of value between buyer and seller so that each is better off after the trade

question

Marketing

answer

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

question

Market

answer

consists of people with both the desire and the ability to buy a specific offering

question

Target Market

answer

consists of one or more specific groups of potential consumers toward which an organization directs its marketing program.

question

Marketing Mix

answer

consists of the marketing manager's controllable factors-product, price, promotion, and place-that can be used to solve a marketing problem.

question

Mission Statement

answer

a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision.

question

Profit

answer

he money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.

question

Code of Ethics

answer

he moral principles and values that govern the actions and decisions of an individual or group.

question

Laws

answer

society's values and standards that are enforceable in the courts.

question

Caveat Emptor

answer

the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s.

question

Market Share

answer

the ratio of sales of revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

question

Consumer Behavior

answer

consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

question

Evaluative Criteria

answer

the factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.

question

Cognitive Dissonance

answer

the feeling of post purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

question

Brand Loyalty

answer

a favorable attitude toward and consistent purchase of a single brand over time.

question

Marketing Research

answer

is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending action.

question

Protectionism

answer

the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.

question

Tarrifs

answer

government taxes on goods or services entering a country that primarily serve to raise prices on imports.

question

Quota

answer

a restriction placed on the amount of a product allowed to enter (import quota) or leave a country (export quota).

question

Product

answer

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

Derived Demand

answer

the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.

question

Product Modification

answer

a strategy that alters one or more of a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.

question

Market Modification

answer

a strategy in which a company tries to find new customers, increase a product's use among existing customers, or create new use situations.

question

Brand Equity

answer

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

question

Value

answer

the ratio of perceived benefits to price; or V= (Perceived benefits divided by Price).

question

Logistics

answer

consists of 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

Gray Market

answer

a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.

question

Fixed Cost

answer

cost that remains unchanged in total for a given time period, despite wide changes in the related level of total activity or volume of output produced.

question

4 P's of Marketing

answer

Product (or Service) Place Price Promotion

question

Environmental Forces

answer

consist of the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

question

Customer Value

answer

the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

question

Marketing Plan

answer

a road map for the marketing activities (STP, 4P's, etc.) for a specified future time period such as 1 year or 5 years.

question

Environmental Scanning

answer

the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

question

Generation X and Y

answer

Baby Boomers - Born 1946 - 1964 (50-68 years old) Gen X - Born 1965 - 1976 (38-49 years old) Gen Y - Born 1977 - 1994 (20-37 years old) Millennials - Born 1995 - Current

question

Gross Income

answer

Total Income

question

Disposable Income

answer

the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

question

Discretionary Income

answer

the money that remains after paying for taxes and necessities.

question

Perfect Competition

answer

here are many sellers and they each have an interchangeable product and they do not control the price of their product, the market does. Like agricultural products

question

Monopolistic Competition

answer

many sellers with substitutes but not the same interchangeable products. They sell differentiated products—products that differ somewhat, or are perceived to differ, even though they serve a similar purpose

question

Monopoly

answer

One seller in the market Natural: PG&E Legal: Patent Holders

question

Oligopoly

answer

occurs when a few companies control the majority of industry sales.

question

Moral Idealism

answer

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

question

Utilitarianism

answer

a personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.

question

Triple-Bottom Line

answer

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.

question

Green Marketing

answer

marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms.

question

Cause Marketing

answer

Occurs when the charitable contributions (i.e., Special Olympics) of a firm (i.e., 3M) are tied directly to the customer revenues produced through the promotion of one of its products.

question

5 Step Marketing Research Approach

answer

Define the Problem Develop Your Research Plan Collect Relevant Data and Information Analyze Data and Report Findings Take Action

question

Primary Data

answer

the facts and figures that are newly collected for the project. -Expensive and time consuming -Perfectly targeted towards your experiment at hand -Questionnaires, observations, data mining, etc.

question

Secondary Data

answer

the facts and figures that have already been recorded before the project at hand. -Cheaper and easier to access -Less targeted towards your experiment at hand -Internal Data from the Firm -Data from reputable sources like US Census which is ~80% accurate

question

New Product Process

answer

1. New-product strategy development 2. Idea generation 3. Screening and evaluation 4. Business analysis 5. Development 6. Market testing 7. Commercialization

question

Marketing Reasons for New Product Failure

answer

-Insignificant points of difference (most common reason for product failure) -No economic access to buyers -Not satisfying needs on critical factors -Bad timing (market intro) -Poor product quality -Too little market attractiveness -Poor execution of the marketing mix

question

Perceptual Map

answer

a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as the firm's own product or brand.

question

Exporting

answer

a global market-entry strategy in which a company produces goods in one country and sells them in another country.

question

Licensing

answer

A company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.

question

Joint Venture

answer

a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.

question

Direct Investment

answer

a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.

question

Dumping

answer

occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.

question

Product Positioning

answer

the place a product occupies in a consumer's mind on important attributes relative to competitive products.

question

Product Repositioning

answer

involves changing the place an offering occupies in a consumer's mind relative to competitive products.

question

Product Line

answer

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

question

Product Mix

answer

consists of all of the product lines offered by an organization.

question

Product Branding

answer

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

question

Total Revenue Equation

answer

= Price x Quantity

question

Profit Equation

answer

= Total Revenue - Total Cost or (Unit price x Quantity sold) - (Fixed cost + Variable cost)

question

Break Even Analysis

answer

a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.

question

Skim Pricing (Skimming)

answer

involves setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.

question

Penetration Pricing

answer

involves setting a low initial price on a new product to appeal immediately to the mass market.

question

Prestige Pricing

answer

involves setting a high price so that quality- or status conscious consumers will be attracted to the product and buy it.

question

Price Lining

answer

The process used by retailers of separating goods into cost categories in order to create various quality levels in the minds of consumers. Effective price lining by a business will usually involve putting sufficient price gaps between categories to inform prospective buyers of quality differentials.

question

Odd-even

answer

Involves setting prices a few dollars or cents under an even number

question

Target

answer

Manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers

question

Bundle

answer

The marketing of two or more products in a single package price

question

Yield Management

answer

The charging of different prices to maximize revenue for a set amount of capacity at any given time.

question

Types of Discounts

answer

-Quality -Seasonal -Trade -Cash

question

Quality Discount

answer

To encourage customers to buy larger quantities of a product, firms at all levels in the marketing channel offer quantity discounts, which are reductions in unit costs for a larger order.

question

Seasonal Discount

answer

To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use seasonal discounts.

question

Trade/ Functional Discounts

answer

These reductions off the list or base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future.

question

Cash Discounts

answer

To encourage retailers to pay their bills quickly, manufacturers offer them **** discounts.

question

Exclusive Distribution

answer

A level of distribution density whereby only one retailer in a specific geographical area carries the firm's products.

question

Intensive Distribution

answer

A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.

question

Selective Distribution

answer

lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products.

question

Direct Channel

answer

Producer directly deals with ultimate consumer

question

Indirect Channel

answer

Intermediaries between producer and ultimate consumer

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 traditional intermediaries and online Seeks to integrate electronic marketing and delivery channels

question

Dual Distribution

answer

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 1. Selling to business users and ultimate consumers 2. Sometimes is paired with multibrand strategy to minimize cannibalization Example: Hallmark cards has a premium brand (company stores) and a value brand (Rite Aide, CVS, Walgreens)

question

Vertical Marketing

answer

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

question

Intensive Distritubion

answer

As many outlets as possible (Soft drinks, food, newspaper)

question

Channel Conflict

answer

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.

question

Channel Disintermediation

answer

Channel conflict that arises when a channel member bypasses another member and sells or buys products direct

question

Horizontal Conflict

answer

occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers (Target and Kmart) or two or more wholesalers that handle the same manufacturer's brands.

question

Vertical Integration

answer

Although not illegal, this practice is sometimes subject to legal action under the Clayton Act if it has the potential to lessen competition or foster monopoly.

question

Trade-oriented Sales Promotion

answer

directed at the dealer network of the company to motivate them to the sell more of the company's brand than other brands. It is also known as a push strategy

question

The 4 I's of Service

answer

Intangibility Inconsistency Inseparability Inventory

question

Elastic Demand

answer

exists when a 1 percent decrease in price produces more than a 1 percent increase in quantity demanded, thereby actually increasing total revenue. This results in a price elasticity that is greater than 1 with elastic demand.

question

Inelastic Demand

answer

exists when a 1 percent decrease in price produces less than a 1 percent increase in quantity demanded, thereby actually decreasing total revenue. This results in a price elasticity that is less than 1 with inelastic demand.

question

Product Life Cycle

answer

(Stages of life cycle and Innovators, Early Adopters, Early Majority, Late Majority, Laggards)

question

Market Penetration

answer

selling more of an existing product to existing markets.

question

Product Development

answer

selling a new product to existing markets.

question

Market Development

answer

selling an existing product to new markets.

question

Diversification

answer

Selling new products to new markets.

question

Personal selling

answer

The second major promotional alternative is personal selling, which is the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision.

question

Observational Data

answer

the facts and figures obtained by watching, either mechanically or in person, how people actually behave (like Nielsen TV ratings done by metering).

question

Strategic Alliances

answer

agreements among two or more independent firms to cooperate for the purpose of achieving common goals.

question

Multi-product Branding Strategy

answer

A company uses one name for all its products in a product class.

question

Multibranding Strategy

answer

Involves giving each product a distinct name. (Useful when each brand is intended for a different market segment)

question

Private Branding Strategy

answer

When a company manufactures products but sells them under the brand name of a wholesaler or retailer

question

Mixed Branding Strategy

answer

When a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market.

question

6 Steps in Setting Price

answer

1. Identify pricing objectives and constraints 2. Estimate demand and revenue 3. Determine cost, volume, and profit relationships 4. Select and approximate price level 5. Set list or quoted price 6. Make special adjustments to list or quoted price.

question

Price

answer

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

question

Cooperative Advertising

answer

consists of advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products.

question

Integrated Marketing Communications (IMC)

answer

Includes using all types of promotional activities that deliver a consistent message.

question

Pretests

answer

tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.

question

Vertical Marketing Systems

answer

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

question

Contribution Margin

answer

=Sales - Variable Costs

question

CM Ratio

answer

= Contribution Margin/Sales

question

Break-even Sales in Units

answer

= Fixed Costs/CM per unit

question

Break-even in Sales

answer

=Total Fixed Costs/CM Ratio

Marketing 305 Final Exam Review – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards