question

For-profit organization

answer

Privately owned Work to make a profit

question

Profit

answer

total revenues - total expenses of firm's

question

Non-profit organization

answer

nongovernmental don't aim to make a profit

question

Strategy

answer

Long-term course of action - unique customer experience while achieving its goals

question

Corporate level

answer

top management directs overall strategy for entire organization CEO CMO

question

Strategic business unit level

answer

unit managers set the direction for their products and markets to exploit value-creating opportunities

question

Strategic Business Unit (SBU)

answer

unit of organization that markets a set of related offerings to a clearly defined target group of customers

question

Functional level

answer

groups of specialists actually create value for org

question

Cross-functional team

answer

small number of people from diff departments work together toard a common set of goals

question

Core values

answer

fundamental principles that guide an organization over time - don't change due to short term pressure

question

Mission

answer

statement identifying customers, markets, products, tech and values

question

Organizational culture

answer

set of values, ideas, and attitudes that is learned and shared among members of organization

question

Elements of organization's direction

answer

1) Business firm is in 2) Firm's specific goals

question

Organizational strategies

answer

1) By level 2) By product

question

Marketing plan

answer

road map for marketing actions of an organization or specified future time period

question

Marketing dashboard

answer

visual display on a single computer screen of the essential info related to achieving a marketing objective

question

Marketing metrics

answer

measure of quantitative values or trends of a marketing activity or result

question

Assessing organization

answer

Competencies Customers Competitors

question

Competencies

answer

organization's special capabilities => competitive advantage

question

Customers

answer

focused on them

question

Competitors

answer

look at them

question

Business portfolio analysis

answer

evaluates business units as separate investments of an organization - look at market share and market growth Cash cows, stars, question marks, dogs

question

Cash cows

answer

Dominant share in a slow-growth market

question

Stars

answer

dominant share in a high-growth market

question

Question marks

answer

small share in high-growth market

question

Dogs

answer

SBUs with small share of low-growth market

question

Diversification analysis

answer

search for growth oppurtunities market penetration, market development, product development, diversification

question

Market penetration

answer

selling more of an item at same price or selling same amount, higher price

question

Market development

answer

selling existing products to existing markets

question

Diversification

answer

selling new products to new markets

question

Strategic marketing process

answer

organization allocates its marketing mix resources to target new markets Planning, implementation, evaluation

question

Planning phase

answer

1. SWOT analysis 2. Market-product focus and goal setting 3. Marketing program

question

SWOT analysis

answer

Internal: Strengths, Weaknesses External: Opportunities, and Threats

question

Market-product focus and goal setting

answer

Market segmentation: putting prospective buyers into groups Find points of difference: what gives the product competitive advantage

question

Marketing program

answer

develop the marketing mix and budget

question

Implementation phase

answer

1. Obtain resources 2. Designing the marketing organization 3. Developing schedules 4. Actually executing the marketing program designed in the planning phase

question

Action item list

answer

Include task, person responsible for completing that task, date to finish task, what is to be delivered

question

Marketing strategy

answer

means by which a marketing goal is achieved - target market, marketing program

question

Marketing tactics

answer

detailed, day-to-day operations

question

Gross Domestic Product (GDP)

answer

monetary values of all goods and services produced in a country during one year

question

Balance of trade

answer

difference in imports and exports

question

Surplus

answer

exports > imports

question

Deficit

answer

imports > exports

question

NAFTA

answer

Canada, Mexica, USA

question

CAFTA-DR

answer

DR, US, Central America

question

European Union

answer

Same currency

question

Global competition

answer

firms do everything worldwide

question

Strategic alliance

answer

part of global competition - 2+ firms agree to cooperate to achieve common goal

question

International firms

answer

start domestic go global

question

Multinational firms

answer

market to each part of the world differently - use multidomestic marketing strategy

question

Multidomestic marketing strategy

answer

market differently to each country - different name, product variations, etc

question

Transnational firms

answer

world = one market - use global marketing strategy and global brands

question

Global marketing strategy

answer

standardizing marketing activities for cultural similarities and adapting when cultures differ

question

Global brands

answer

brands marketed under same name in multiple countries. Ex. McDonalds - same arch everywhere but slightly different marketing to connect better

question

Global consumers

answer

consumers living in many countries with similar needs

question

Cross-cultural analysis

answer

study of similarities and differences among consumers in 2+ nations or societies Study values, customs, symbols, and language

question

Values

answer

socially preferable modes of conduct or state of existance over time

question

Customs

answer

practices of a specific country that are normal and expected

question

Foreign Corrupt Practices Act

answer

US corporation can't bribe an official of a foreign government or political party to obtain or retain business in that country

question

Cultural symbols

answer

concrete representations of abstract ideas and concepts

question

Semiotics

answer

seek to understand the correspondence between symbols and their assigned meanings

question

Back translation

answer

translate phrase, then translate back and see if it still makes sense

question

Consumer ethnocentrism

answer

believe its inappropriate/immoral to purchase foreign-made products

question

Developed countries

answer

dominated by enterprise and mixed economies

question

Developing countries

answer

moving from agr -> industrial or preindustrial still

question

Bottom of the pyramid

answer

poorest and largest socioeconomic group in the world

question

Microfinance

answer

offer small, collateral-free loans to individuals to start their small businesses

question

Exporting

answer

Producing goods in one country and selling them in another

question

Indirect exporting

answer

selling domestically produced goods in a foreign country through an intermediary

question

Direct exporting

answer

no intermediary, more risk, more profit potential

question

Licensing

answer

offering the rights to to a trade for a fee or royalty contract manufacturing contract assembly franchising

question

Contract manufacturing

answer

Domestic company gets foreign firm to make a product

question

Contract assembly

answer

domestic firm sends parts to foreign firm to assemble

question

Franchising

answer

McDonalds

question

Joint Venture

answer

foreign company + local firm pair up to create a local business

question

Direct investment

answer

domestic firm investing/owning a foreign subsidiary or division

question

Product extension strategy

answer

selling product in same form to new market in the world

question

Product adaptation strategy

answer

some adaptations to suit customer preferences, culture, etc

question

Product invention strategy

answer

totally new product to satisfy needs across a country

question

Communication adaptation strategy

answer

advertising same product to diff places in diff ways

question

Dual adaptation strategy

answer

Both the products and promotion messages are changed from country to country

question

Dumping

answer

firms sells a product in a foreign country below its domestic price or actual cost

question

Gray market

answer

(parallel importing) products are sold through unauthorized channels of distribution

question

Price

answer

money/consideration in exchange for ownership and use of good/service

question

Barter

answer

exchange good or service for another good or service

question

Price Equation

answer

price = list price - incentives/allowances + extra fees

question

Value ratio

answer

Perceived benefits / price

question

Value-pricing

answer

Increase benefit while decreasing/maintaining price

question

Profit equation

answer

profit = total revenue - total cost profit = (unit price x Q sold) - total cost

question

Steps to set prices

answer

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

question

Pricing objective

answer

Specifying role of price in organization's plans

question

Target return

answer

setting a profit goal

question

Pricing constraints

answer

limit the range of prices a firm may set

question

Pure competition

answer

Price set my marketplace - many firms sell same product and advertise differently

question

Monopolistic competition

answer

Many producers make a different product

question

Oligopoly

answer

few firms, avoid competing on price

question

Pure monopoly

answer

one firm - set own price and subject to legal limits

question

Consumer-driven pricing actions

answer

consumers compare prices online to make a good buying decision

question

Seller/retailer-driven pricing actions

answer

Sellers change price in response to competitors

question

Dynamic pricing

answer

quickly change prices based on competitor pricing and inventory

question

Demand curve

answer

quantity sold v price Price increase = Qd decrease

question

Demand Factors

answer

customer taste, price and availability of similar products, consumer income, price

question

Price change

answer

move along curve

question

Customer taste, price and availability of similar products, consumer income

answer

Curve shifts

question

Elasticity of demand

answer

% change in Qd / % change in price

question

Elastic demand

answer

>1, 1% change in price causes greater than a 1% change in Qd

question

Inelastic demand

answer

<1, 1% change in price causes less than 1% change in Qd

question

More substitutes

answer

greater elasticity

question

Necessities

answer

inelastic af

question

Share of budget

answer

more money, more elasticity

question

Total revenue

answer

Price x Quantity

question

Total profit

answer

Total Revenue - Total Cost

question

Fixed cost (FC)

answer

expenses that don't change

question

Variable cost (VC)

answer

expenses that depend on amount of products bought/sold

question

Total cost

answer

FC + VC

question

Unit Variable Cost (UVC)

answer

variable cost / quantity

question

Marginal Cost (MC)

answer

Change in total cost / 1 unit increase in Q = slope of TC curve

question

Marginal analysis

answer

trade-off of incremental costs against incremental revenues MR > MC = happy life

question

Break-even analysis

answer

Relationship between total revenue and total cost

question

Break even point (BEP)

answer

TR = TC

question

Skimming pricing

answer

demand-oriented approach start high price, go lower

question

Penetration pricing

answer

demand-oriented approach start low price, go higher

question

Prestige pricing

answer

demand-oriented approach high price = good quality so if its lower people will buy less - backward bending demand curve

question

Price lining

answer

demand-oriented approach different set prices for each product on a line

question

Odd-even pricing

answer

demand-oriented approach 11.99 price instead of 12

question

Target pricing

answer

demand-oriented approach estimate price customer is willing to pay

question

Bundle pricing

answer

demand-oriented approach market a few products for a single price

question

Yield management pricing

answer

demand-oriented approach price differently on season to maximize revenue

question

Standard markup pricing

answer

cost-oriented approach add fixed percentage to cost of all items in specific product class

question

Cost-plus pricing

answer

cost-oriented approach total unit cost of providing service then add a price on that

question

Cost plus percentage-of-cost pricing

answer

add fixed percent to total cost

question

Cost plus fixed-fee pricing

answer

Add fixed fee to total cost

question

Experience curve pricing

answer

With experience, price of product gets cheaper

question

Target profit pricing

answer

profit-oriented approaches Set annual target of a specific dollar volume on profit

question

Target return-on-sales pricing

answer

profit-oriented approaches set price to achieve a profit that is a specific percentage of the sales volume

question

Target return-on-investment pricing

answer

profit-oriented approaches set price to achieve an annual target ROI

question

Customary pricing

answer

competition-oriented approaches set price dictated by tradition

question

Above-, at-, or below-market pricing

answer

Set market price for a market based on subjective feel for competitor's price or market price at the benchmark

question

Price premium

answer

determine whether product is above, at, or below market % = dollar sales market share for a brand/unit volume market share for a brand - 1 (+) above (-) below 0 at market price

question

Loss-leader pricing

answer

sell price below price on purpose so they come to store and buy other things

question

Fixed-price policy

answer

one price, no haggling

question

Dynamic pricing policy

answer

prices set depending on individual buyers and purchase situations

question

Product-line pricing

answer

set price for all items in a product line low price attract buyers first time and higher price has more premium shit

question

Price war

answer

successive price cutting by competitors to maintain market share

question

Quantity discounts

answer

refer to reductions in unit costs for a large order

question

Noncumulative quantity discounts

answer

based on size of one individual order

question

Cumulative quantity discounts

answer

based on accumulation of purchases

question

Seasonal discounts

answer

encourage retailers to stock up during off season/non peak times

question

Trade (functional) discounts

answer

discounts if they buyer does some of the marketing

question

Trade-in allowances

answer

trade in used product for a new product

question

Promotional allowances

answer

awarding seller for promoting a product

question

Everyday low pricing

answer

replace promotional allowances

question

FOB (free-on-board) origin pricing

answer

price includes cost of loading product onto vehicle - don't transport

question

Uniform delivered pricing

answer

includes all transportation fees based on distance

question

Single-zone pricing

answer

same price no matter the distance

question

Multiple-zone pricing

answer

different prices per zone

question

FOB with freight allowed pricing

answer

buyer pays transportation costs

question

Basing-point pricing

answer

Base points + payment for extra freight expenses

question

Price fixing

answer

illegal per se - firms set prices together

question

Horizontal price fixing

answer

between 2+ competitors

question

Vertical price fixing

answer

sellers can't sell products below a minimum retail price

question

Price discrimination

answer

charging different prices to different people Only legal when: based on quantity, market conditions, good faith

question

Deceptive pricing

answer

Give consumer false impression of price

question

Bait and switch

answer

deceptive pricing - attracted to store for deal but they say it's not there or downgraded or won't take orders

question

Bargains conditional on other purchases

answer

BOGO legal only if first at regular (not inflated) price

question

Comparable value comparisons

answer

value comparisons are false

question

Comparisons with suggested prices

answer

when barely any sales sel at suggested retail price

question

Former price comparison

answer

Can't set a high price and then quickly reduce for the sake of saying price was reduced

question

Geographical pricing

answer

conspiracy to set prices or lessen competition

question

Predatory pricing

answer

charging hella low prices to drive competitors out

question

Marketing channel

answer

everyone involved in making a product or service available for use by consumers or users

question

Intermediaries

answer

Transact, logistics, facilitate

question

Direct Channels

answer

producer -> consumer

question

Indirect channels

answer

Producer -> agent -> wholesaler -> retailer -> consumer (can have some or all)

question

Agent

answer

sales force for the producer

question

Industrial distributor

answer

selling, stocking, delivering full product assortment, as well as financing

question

Internet marketing channels

answer

employ internet to make goods/services available to users

question

Direct marketing channels

answer

buy products by interacting with various advertising media without face-to-face meeting with a salesperson

question

Multichannel (omnichannel) marketing

answer

use diff channels to build/reinforce relationships

question

Dual distribution

answer

Use 2+ channels for buyers to buy same product - ex. retail stores/direct sales

question

Strategic channel alliances

answer

use one firm's marketing channel to sell another firm's products ex. Cereal Partners Worldwide is an alliance between US-based general mills and swiss-made nestle

question

Corporate vertical marketing systems

answer

Production and distribution under single owner

question

Contractual vertical marketing system

answer

independent firms together

question

***?? Wholesaler-sponsored voluntary chains

answer

small independent retailers and a wholesaler

question

Retailer-sponsored cooperatives

answer

small, independent retailers cooperatively operate a wholesale facility

question

Manufacturer-sponsored retail franchise system

answer

car manufacturer and car dealerships

question

Manufacturer-sponsored wholesale systems

answer

soft drink producers + soft drink bottlers

question

Service-sponsored retail franchise system

answer

Holiday Inn

question

Service-sponsored franchise system

answer

H&R Block tax services

question

Intensive distribution

answer

EVERYWHERE MAN

question

Exclusive distribution

answer

one retail outlet in geographic area sells

question

Selective distriubtion

answer

only a select few retail outlets cary product

question

Channel Conflict

answer

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

question

Horizontal conflict

answer

same level

question

Vertical conflict

answer

different levels

question

Disintermediation

answer

vertical conflict wherein channel member bypasses another member and sells or buys product directly

question

Channel captain

answer

channel member who directs, coordinates, and supports other channel members

question

Dual distribution

answer

Manufacturer distributes through its own channel + other people to sell its products

question

Tying arrangement

answer

intermediary needs to buy other goods to purchase products

question

Logistics

answer

right amount of the right product to the right place at the right time at the lowest possible cost

question

Supply chain

answer

sequence of firms that perform activities to create and deliver goods or services to consumers or industrial users

question

Supply chain management

answer

integration and organization of info and logistics across firms to provide value for customers

question

Vendor-managed inventory

answer

tool to determine the product amount and assortment a customer needs and automatically delivers the appropriate item to ensure buyer satisfaction

question

Reverse logistics

answer

recycling materials - reduces operating costs

question

Independent retailer

answer

individually owned by a single person ex. bakery

question

Corporate chain

answer

number of outlets that are commonly owned ex. walmart

question

Contractual systems

answer

friencheses

question

Depth of product line

answer

large assortment of each item

question

Breadth of product line

answer

variety of different items - general merch stores

question

Scrambled merchandising

answer

several unrelated products in a single store

question

Hypermarkets

answer

Large stores that offer consumers everything in a single outlet - supercenters

question

Intertype competition

answer

competition between dissimilar types of retail ourlets

question

Retail positioning matrix

answer

breadth + value added

question

Retailing mix

answer

retail pricing, store location, retail communication, merchandise

question

Off-price retailing

answer

brand-name merch for lower-than-regular prices - ex. outlet, single-price retailers, warehouse club

question

Central business district

answer

downtown area, oldest

question

Regional shopping centers

answer

50-150 stores that attract 5-10 mile radius people

question

COmmunity shopping centers

answer

20-40 smaller outlets 10-20 min drive away

question

Strip malls

answer

cluster of stores for 5-10 min away

question

Power centers

answer

huge shopping strips with multiple national stores

question

Shopper marekting

answer

use of brand communications such as coupons and samples to influence in-store behavior

question

Category management

answer

categorize shit to maximize sales and profits. Manager groups items by their substitutes

question

Early growth

answer

Retail life cycle - high market share, low profits

question

Accelerated development

answer

Retail life cycle - market share and profits grow, competitors enter, retailers expand

question

Maturity stage

answer

price discounts

question

Decline stage

answer

market share and profits fall rapidly

question

Multichannel retailers

answer

sell through different formats

question

Merchant wholesalers

answer

retain title to merchandise they handle

question

Rack jobbers

answer

limited-service merchant - retain title to the products on their shelves and bill retailers only for what is sold

question

Cash and carry wholesalers

answer

title to limited product assortment and sell only to those who pay cash and provide transportation

question

Drop shippers

answer

own merch but never physically touch

question

Manufacturer's agents

answer

work for several producers and carry noncompetitive merch

question

Selling agents

answer

represent single producer

question

Brokers

answer

bring buyers and sellers together

question

Interactivity

answer

listening to customers and responding to her needs

question

Individuality

answer

treating customers as individuals

question

Interactive marketing

answer

two-way communication through electronic

question

Choiceboards

answer

customers can design their own products/services

question

collaborative filtering

answer

Customers who bought this item also bought...

question

Personalization

answer

generating content tailored to your preferences - display certain things

question

Permission marketing

answer

opt-in for emails

question

Context

answer

visual design and layout of website

question

Content

answer

Sound, video, pictures, text on the site

question

Customization

answer

degree can tailor site to customer

question

Connection

answer

connection with other sites

question

Communication

answer

degree site facilitates communication

question

Community

answer

degree to which user-to-use communication is facilitated

question

Commerce

answer

Ability to facilitate commercial transactions

question

Stickiness

answer

Amount of time spent on website avg time spent per unique user

question

Online consumers

answer

use web to research and buy products and services

question

bot

answer

electronic shopping agent that sweeps for lowest price

question

8 second rule

answer

give up after 8 seconds of site loading

question

Customerization

answer

personalize marketing and shopping interaction for each marketing on top of customizing product/service

question

Web communities

answer

websites that allow people to congregate online and exchange views

question

Blogs

answer

public web pages with accessible journal

question

Viral marketing

answer

internet promotes what you share - encouraged to forward to others

question

Cookies

answer

track user's visit, other sites, and info for future

question

Behavioral targeting

answer

using info from cookies to direct online ads

question

Showrooming

answer

look in store, by online

question

Webrooming

answer

examines product online, buy in store

question

Sales response function

answer

expense of marketing effort to results obtained

question

Strategic marketing process

answer

Planning -> implementation -> evaluation

question

Output metrics

answer

measure of results

question

Input metrics

answer

measure of resource put into the process

question

Cost leadership strategy

answer

reduce expenses, lower prices

question

Differentiation strategy

answer

significant points of difference

question

Cost focus strategy

answer

controlling expenses, lowering product prices narrow target

question

Differentiation focus strategy

answer

significant points of difference, narrow target segment

question

Synergy analysis

answer

seeks opportunities for growth by balancing marketing efficiencies and R&D-manufacturing strategy

question

Action item list

answer

Task, person responsible for completing the task, date to finish task, what's gonna be delivered

question

Gantt chart

answer

graphical representation of a program schedule

question

LIne positions

answer

can issue orders

question

Staff positions

answer

can advise people but cant order

question

Product line groupins

answer

unit is responsible for specific group offerings

question

Functional groupings

answer

represent the diff departments within a firm

question

Geographical groupings

answer

sales territories divided by location

question

Market-based groupings

answer

utilize specific customer segments

question

Reverse auction

answer

companies bid against eachother to be the service provider

question

Promotional website

answer

just gives info to promote product

question

Transactional website

answer

convert viewer to buyer

question

Sharing economy

answer

Own brand but not actual product to make it happen. Example: uber doesn't own any cars and Facebook doesn't generate its content, AirBNB doesn't own properties

question

Bandwidth

answer

speed of internet, better than dialup

question

Phishing

answer

email request personal info spearphishing = specific people

question

Evil twin

answer

wireless network pretends to offer trustworthy wifi but just trynna steal your info

question

Pharming

answer

imposter commercial website to take your info

question

Mobile marketing

answer

e-commerce on smartphones

question

US Balance of trade

answer

imports > exports

question

BRIC nations

answer

Brazil, Russia, India, China - rapid economic growth in 2000s but it slowed

question

Demographic sector

answer

population size, age, income major growth from asia/africa

question

Social/Cultural sector

answer

customs/languages

question

International vs Transnational

answer

International is one size fits all, transnational looks at the globe as one market

question

Pure standardization

answer

same business model everywhere it operates

question

Mixed approach (glocalization)

answer

determines in each market what should be standard and what should be adjusted

question

Pure non-standardization

answer

company does everything differently in every market

question

Marketing channels create utility for customers, specifically:

answer

time, place

question

Percentage of sales approach

answer

market to sales ratio altered

question

Cost focus

answer

Control expenses, lower prices Narrow market segments

question

Cost leadership

answer

Reduce expenses, lower prices broad market segments

question

Differentiation focus

answer

Products need significant points of difference to target one or only a few segments

question

Differentiation

answer

Products need points of difference Broad segments

question

Power retailers

answer

Specialty stores on steroids Large selection of narrow products

question

Anchor stores

answer

Well-known national or regional stores

question

Mass merchandisers

answer

Sell large quantities of goods quickly

question

Department stores

answer

Alot of variety, little assortment

question

The Seven Habits

answer

Be proactive, begin with the end in mind, put things first, think win/win, seek first to understand-then understood, synergize, sharpen the saw

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