MAR3023 Final Exam

question

profit
answer

reward to firm for the risk it undertakes in offering product for sale
question

strategy
answer

long term course of action to deliver unique customer experience
question

corporate level
answer

level in organziation at which top management directs overall strategy for entire organization
question

strategic business unit
answer

subsidiary, division, or unit that markets a set of related offerings to a clearly defined target group of customers
question

functional level
answer

level where groups of specialists actually create value for an organization (marketing, sales, operations, etc.)
question

cross-functional team
answer

small number of people from different departments in an organization who are mutually accountable for common set of performance goals
question

core values
answer

fundamental principles that guide an organization over time
question

mission
answer

statement of organizations scope, identifies customers, market, products, technology, and values
question

organizational culture
answer

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

market share
answer

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

marketing plan
answer

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

marketing dashboard
answer

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

competencies
answer

organization’s special capabilities, anything that distinguishes it from other organizations, together form competitive advantage
question

benchmarking
answer

way to improve quality by discovering how other companies do something so they can imitate or leapfrog competition
question

business portfolio analysis
answer

BCG’s strategy to evaluate business unites as separate investments of an organization, using market share and market growth rate (BCG matrix)
question

cash cows
answer

dominant share in slow-growth market, generate a lot of cash
question

stars
answer

dominant share in high growth market
question

question marks
answer

small share of high growth market, management must decide whether to phase these SBUs out or invest in them to make them stars
question

dogs
answer

small share of low growth market, usually get phased out
question

diversification analysis
answer

search for growth opportunities in current and new markets as well as current and new products (through marketing penetration, market development, product development, diversification)
question

strategic marketing process
answer

approach where an organization allocates its marketing mix resources to reach its target markets (3 phases: planning, implementation, evaluation)
question

situation analysis
answer

determines where a product has been recently, where it is now, and where it is headed
question

SWOT analysis
answer

appraisal of internal strengths, weaknesses, opportunities, and threats
question

market segmentation
answer

involves aggregating prospective buyers into groups/segments that have common needs and will respond similarly to a marketing action
question

implementation
answer

4 parts: obtain resources, design marketing organization, developing schedules, executing marketing plan from planning phase
question

action item lists
answer

tools that organize task, person responsible for completing task, date to finish, what is to be delivered
question

marketing tactics
answer

detailed, day to day operational decisions essential to overall success of marketing strategies
question

countertrade
answer

practice of using barter rather than money for global sales (oil as payment for a shipment of cars)
question

GDP
answer

monetary value of all goods and services produced in a country during a year
question

national competitive advantage
answer

4 key elements: factor conditions (natural resources), demand conditions (size/sophistication of market and media exposure), related/supporting industries (supplier clusters that can accelerate innovation), company strategy/structure/rivalry (intensity of domestic competition, number companies in industry)
question

protectionism
answer

practice of shielding one or more industries in country’s economy from foreign competition through use of tariffs or quotas (keeps domestic)
question

tariffs
answer

government tax on goods or services, to raise prices of imports
question

quotas
answer

restrictions placed on amount of product allowed to enter or leave a country, ensure high priced market for domestic suppliers
question

global competition
answer

when firms originate, produce, and market products/services worldwide
question

strategic alliances
answer

agreements among two or more independent firms to cooperate for the purpose of achieving common goals (competitive advantage, customer value)
question

multidomestic marketing strategy
answer

have as many product variations/brand names/advertising programs as countries in which they did business
question

international firms
answer

use same approach in foreign countries as domestic approach
question

multinational firms
answer

treat every country with different approach
question

transnational firms
answer

see world as one marketing, emphasize cultural similarities when appropriate, and adapt when cultures differ
question

global consumers
answer

consumer groups living in many countries or regions of world with similar needs or who seek similar features of products
question

cross-cultural analysis
answer

involves study of similarities and differences among consumers in two or more nations and societies
question

Foreign Corrupt Practices Act
answer

makes it a crime for US corporation to bribe an official of a foreign government or political party to obtain or retain business in that country
question

semiotics
answer

field dedicated to understanding correspondence between symbols and their assigned meanings
question

back translation
answer

translated word or phrase is retranslated back into the original language by a different interpreter to identify any errors
question

cultural ethnocentricity
answer

belief that your culture is superior to any other culture
question

consumer ethnocentrism
answer

tendency to believe that it is inappropriate to purchase foreign made products
question

microfinance
answer

practice of offering small, collateral free loans to individuals who wouldn’t have capital necessary to begin small businesses
question

global market-entry strategies
answer

exporting, licensing, joint venture, direct investment
question

licensing
answer

offering rights to trademark, patent, trade secret, or other similarly valued item of intellectual property for fee or royalty (contract manufacturing, contract assembly, franchising)
question

joint venture
answer

when foreign company and local firm invest together to create a local business, sharing ownership, control and profits
question

direct investment
answer

involves a domestic firm investing in and owning a foreign subsidiary or division
question

product/promotion strategy
answer

product extension strategy (same form as home market) product adaptation strategy (selling product with some adaptations to make it more culture appropriate), product invention strategy (all new product)
question

dumping
answer

when firm sells product in foreign country below its domestic price or actual cost to build company’s market share
question

gray market (parallel importing)
answer

products are sold through unauthorized channels of distribution, legal in US illegal in Europe
question

price transparency
answer

refers to consumer’s near instantaneous access to competitors prices for same offering
question

value-pricing
answer

practice of simultaneously increasing product and service benefits while maintaining or decreasing price
question

pricing objectives
answer

specifying role of price in an organization’s marketing and strategic plans
question

demand curve
answer

relates quantity sold to price; price change = move along curve, factor other than price change = shift of whole curve
question

marginal revenue
answer

change in total revenue that results from producing and marketing one additional unit
question

price elasticity of demand
answer

responsiveness of quantity demanded to changes in price (elastic if 1% change in price causes > 1% change in quantity demanded, inelastic if <)
question

fixed costs
answer

sum of expenses of firm that are stable and do not change with quantity of product that is produced and sold
question

variable costs
answer

sum of expenses of firm that vary directly with the quantity of product that is produced and sold
question

total cost
answer

fixed + variable costs
question

marginal cost
answer

change in total cost/1 unit increase in Q
question

marginal analysis
answer

continuous, concise trade off of incremental costs against incremental revenue
question

skimming pricing
answer

high initial price, then gradually lowers price
question

penetration pricing
answer

setting low initial price on new product to appeal immediately to mass market
question

price lining
answer

setting price of a line of products at a number of different pricing points
question

odd-even pricing
answer

11.99 vs 12
question

target pricing
answer

estimating price that the ultimate consumer would be willing to pay for a product, working backward through markups to achieve target price
question

bundle pricing
answer

marketing of two or more products in single package
question

yield management pricing
answer

charging different pricing to maximize profits (airlines)
question

standard markup pricing
answer

adding fixed percentage to cost of all items in a specific product class
question

cost-plus pricing
answer

summing total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
question

experience curve pricing
answer

pricing based on learning effect which holds that unit cost of many products and services declining by 10 to 30 percent each time a firm’s experience at producing and selling them doubles (basically results in lower)
question

target profit pricing
answer

setting annual target of specific dollar volume on profit
question

target return-on-sales pricing
answer

setting price to achieve profit that is specific percentage of sales volume
question

target return on investment pricing
answer

setting price to achieve an annual return on investment
question

customary pricing
answer

setting price dictated by tradition, standardized channel of distribution, or other competitive factors
question

above, at or below market pricing
answer

setting market price for product or product class based on subjective feel for competitors price or market price as benchmark
question

price premium
answer

(dollar sales market share for brand/unit volume market share for brand) – 1; used to determine whether a company’s products are above, at, or below market
question

loss-leader pricing
answer

deliberately selling a product below its customary price to attract consumers’ attention so they will buy other products (Target CD’s)
question

fixed-price policy (one price policy)
answer

setting one price for all buyers
question

dynamic pricing policy (flexible price)
answer

setting different prices for different situations (yield management, airlines)
question

Robinson-Patman Act
answer

flexible price policy cannot be carried out to the extreme of price discrimination
question

price war
answer

successive price cutting by competitors to increase or maintain their unit sales/market share
question

promotional allowances
answer

cash payments or extra amounts of free goods awarded to sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product
question

FOB origin pricing
answer

price the seller quotes that includes cost of loading the product onto vehicle (doesn’t include transport fees)
question

uniform delivered pricing
answer

price seller quotes includes all transportation costs
question

basing point pricing
answer

involves selecting one or more geographical locations (basing point) from which list price for products plus freight expenses are charged to buyer
question

price fixing
answer

conspiracy among firms to set prices for a product; horizontal or vertical, called resale price maintenance and is illegal under Consumer Goods Pricing Act (only illegal if enforced through coercion)
question

direct channels
answer

when producer and ultimate consumer deal directly with each other (no intermediaries)
question

indirect channels
answer

intermediaries perform some of the channel functions between the producer and ultimate consumer
question

agent
answer

sales force for the producer type of intermediary
question

industrial distributor
answer

performs variety of marketing channel functions type of intermediary
question

direct marketing channels
answer

allow consumer to buy products via direct advertising (mail orders, telemarketing, catalogs) without interacting in person with sales person
question

multichannel marketing
answer

blending of different communication and delivery channels
question

dual distribution
answer

firm reaches different buyers by employing 2 or more different types of channels for the same basic product
question

strategic channel alliances
answer

uses one firm’s marketing channel to sell another firm’s products
question

vertical marketing systems
answer

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximize marketing impact
question

types of vertical marketing systems
answer

corporate (single ownership), contractual (integrate efforts of independent production), administered vertical marketing (influential; Walmart)
question

types of contractual vertical marketing systems
answer

wholesaler-sponsored voluntary chains, retailer sponsored cooperatives, franchising
question

kinds of franchise arrangements
answer

manufacture sponsored retail franchise (car dealerships) manufacture sponsored wholesale (soft drinks) service sponsored retail franchise (McDonalds) service sponsored franchise (H&R Block)
question

disintermediation
answer

a channel member bypasses another member and sells or buys products directly
question

channel captain
answer

channel member who coordinates directs and supports other channel members (most influential)
question

supply chain
answer

sequence of firms that perform activities to create and deliver goods or services to consumers but include suppliers (marketing channel only cares about finished product)
question

total logistics cost
answer

expenses associated with transportation, materials handling, inventory, order processing, etc.
question

vendor-managed inventory
answer

tool suppliers use to determine the product amount customer needs to reduce effort buyer needs to do business with seller
question

reverse logistics
answer

process of reclaiming recyclable and reusable materials; reduces operating costs and landfill waste
question

retailing
answer

includes all activities involved in selling, renting, and providing goods/service to ultimate customers for their use; portion of distribution channel where customer and product come together
question

form of ownership
answer

distinguishes retail outlets based on whether individuals (small stores), corporate chains (Walmart) or contractual systems (franchise) own outlet
question

level of service
answer

self-service, limited service (Kmart), full-service (Nordstrom)
question

merchandise line
answer

how many types and varieties of products store carries depth: large assortment of each item, small # lines breadth: variety of items, limited depth
question

scrambled merchandising
answer

offering several unrelated product lines in a single store
question

hypermarkets
answer

larger stores that offer everything in single outlet
question

intertype competition
answer

competition between dissimilar types of retail outlets, makes retailer’s job more difficult
question

shopper marketing
answer

use of brand communications like coupons and samples to influence a customer’s behavior in a store
question

category management
answer

approach to managing the assortment of merchandise to limit substitution from multiple items in one category, maximizes sales
question

retail life cycle
answer

process of growth and decline by retail outlets and products early growth (high market share, low profit) accelerated development (market share/profits grow, competition starts) maturity (retailers price discount) decline stage (market share and profits fall)
question

multichannel retailers
answer

integrate combination of traditional store and non-store formats
question

merchant wholesalers
answer

independently owned firms that retain title to the merchandise they handle (full service and limited service)
question

full service merchant wholesalers
answer

general merchandise (full line) perform all functions of channel broad range of merch specialty merchandise (limited line) perform all functions of channel narrow range of merch
question

limited service merchant wholesalers
answer

rack jobbers: retain title to products they put on shelves and only bill retailers for what is sold cash and carry: take title to limited product assortment and sell only to those who pay cash and have own transportation (grocery) drop shippers/desk jobbers: own merch but never physically touch it (coal) truck jobbers: small warehouses to stock trucks with perishable or fast-moving goods (dairy)
question

manufacturer’s agents
answer

work for several producers and carry noncompetitive, complementary merchandise in exclusive territory
question

selling agents
answer

represent single producer, usually used by small producers
question

brokers
answer

independent firms or individuals whose principal function is to bring buyers and sellers together to make sales; no ongoing relationship with buyers and sellers
question

choiceboard
answer

interactive internet enabled system that allows customers to design their own products and services by answering questions
question

collaborative filtering
answer

process that automatically groups people with similar buying intentions to predict future purchases (customers who bought this also bought)
question

consumer lifestyles
answer

click and mortar: women who buy in traditional retail outlets but browse online often hunter gatherers: married couples w children who get info and compare prices online brand loyalists: people who regularly visit fav websites time sensitive materialists: people who use the internet for convenient purchases like books, music etc. hooked, online single: young single affluent who spend a lot of time online ebivalent newbies: new to internet, seek info online but rarely buy
question

showrooming
answer

occurs when shopper visits retail store to inspect product but purchases it online
question

cross channel shopper
answer

online customer who researches products online and purchases them at a retail store (high salaries, high education)
question

sales response function
answer

relates expense of marketing effort to marketing results obtained (S shaped because sales are slow in beginning then flatten)
question

cost leadership strategy
answer

focuses on reducing expenses and in turn lowering product prices while targeting broad array of market segments
question

differentiation
answer

requires products to have significant points of difference to warrant charging higher price for broad market
question

cost focus strategy
answer

controlling expenses and lowering prices to target narrow range of market segments
question

differentiation focus
answer

significant points of difference to target narrow segments (Chobani yogurt)
question

synergy analysis
answer

seeks opportunities for growth by finding optimum balance between marketing efficiencies and R&D manufacturing synergy
question

line positions
answer

have authority and responsibility to issue orders to people who report to them
question

staff positions
answer

have authority to advise but cannot issue direct orders
question

product line groupings
answer

organizational groupings in which unit responsible for specific product offerings
question

functional groupings
answer

groupings that represent different departments within a firm
question

geographical groupings
answer

sales territories divided based on location
question

market based groupings
answer

utilize specific customer segments
question

marketing return on investment
answer

tool for controlling marketing programs using application of modern measurement technologies
question

RFID tag
answer

radio frequency identification tag, contains more info than a bar code, important tool in just in time inventory
question

drop shipping
answer

shipping product to retailer after agent coordinates transaction

Get instant access to
all materials

Become a Member