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

MAR3023 Final Exam – Flashcards

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