Marketing 310 – Exam 3 – Flashcards

Unlock all answers in this set

Unlock answers
question
Market Share
answer
Company sales divided by Market sales
question
Value-Based Pricing
answer
Setting the price of a product based on buyer's perceptions of value rather than on the seller's cost. The marketer CANNOT design a product and marketing program and then set the price.
question
Good-Value Pricing
answer
Offering just the right combination of quality and good service at a fair price Ex - Dollar General
question
Value-Added Pricing
answer
Attaching value-added features and services to differentiate a company's offers and charging higher prices Ex - AMC Theaters improving their theaters by adding new luxury seats and dine / wine services so they can charge higher prices
question
Cost-Based Pricing
answer
Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
question
Fixed Costs (Overhead)
answer
Costs that do not change with production or sales level
question
Variable Costs
answer
Costs that vary directly with the level of production
question
Total Costs
answer
The sum of fixed and variable costs for any given level of production
question
Cost-Plus Pricing
answer
Adding a standard markup to the cost of a product Aka - Markup Pricing
question
Break-Even Pricing
answer
Setting price to break even on the costs of making and marketing a product or setting price to make a target return
question
Competition-Based Pricing
answer
Setting prices based on competitors strategies, prices, costs, and market offerings
question
Price Elasticity
answer
A measure of the sensitivity of demand to changes in price
question
Target Costing
answer
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met Reverses usual process of designing first and then setting a price last
question
Captive-Product Pricing
answer
Type of product mix pricing strategy that requires setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console Pricing products that must be used with the main product.
question
Optional-Product Pricing
answer
Type of product mix pricing strategy that requires the pricing of optional or accessory products along with the main product
question
Product Line Pricing
answer
Type of product mix pricing strategy that requires setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices. Setting prices across an entire product line Ex - Toyota, Lexus
question
By-Product Pricing
answer
Type of product mix pricing strategy that requires setting a price for by-products in order to make the main product's price more competitive
question
Bundle Pricing
answer
Type of product mix pricing strategy that requires combining several products and offering the bundle at a reduced price
question
Market-Skimming Pricing
answer
Type of new product pricing strategy that requires setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price The company makes fewer but more profitable sales
question
Market-Penetration Pricing
answer
Type of new product pricing strategy that requires setting a low price for a new product in order to attract a large number of buyers and a large market share
question
Discount and Allowance Pricing
answer
Type of price adjustment strategy that involves reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product.
question
Seasonal Discount
answer
A straight reduction in price on purchases during a stated period of time or of larger quantities.
question
Allowance
answer
Promotional money paid by manufacturers to retailers in return for an agreement to feature their products in some way
question
Segmented Pricing
answer
Type of price adjustment strategy that involves adjusting prices to allow for differences in customers, products, or locations Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
question
Promotional Pricing
answer
Type of price adjustment strategy that involves temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
question
Dynamic Pricing
answer
Type of price adjustment strategy that involves adjusting prices continually to meet the characteristics and needs of individual customers and situations Ex - Supply and Demand
question
Net Marketing Contribution
answer
Net Sales - Cost of Goods Sold - Marketing Expense
question
Marketing Return on Sales (ROS)
answer
Net Marketing Contribution / Net Revenue
question
Marketing Return On Investment (ROI)
answer
Net Marketing Contribution / Marketing Expenses
question
Gross Margin
answer
Revenue - Cost of Goods Sold
question
Gross Margin Percentage Calculation
answer
Gross Margin / Revenue
question
Marketing Channel
answer
A set of interdependent organizations (intermediaries) that help make a product or service available for use or consumption by the consumer or business user. Ex - Apple selling their music via the Internet on iTunes Rental Car services like Enterprise having offices by the airport
question
Channel Level
answer
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
question
Direct Marketing Channel
answer
A marketing channel that has no intermediary levels Ex - Producer --> Consumer
question
Indirect Marketing Channel
answer
A marketing channel containing one or more intermediary levels Ex - Producer --> Wholesaler --> Retailer --> Consumer
question
Vertical Marketing System (VMS)
answer
A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. Ex - Producer, wholesaler, retailer --> Consumer
question
Horizontal Marketing System (HMS)
answer
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity Ex- Fox and Disney ABC joining together to own and market Hulu
question
Value Delivery Network
answer
The network made up of the company, suppliers, distributors, and ultimately consumers who "partner" with each other to improve the performance of the entire system in delivery customer value
question
Marketing Logistics (Physical Distribution)
answer
Planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit
question
Supply Chain Management
answer
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
question
Upstream Supply Chain Partners
answer
Firms that supply the raw materials, components, parts, and other elements required to create a good
question
Downstream Supply Chain Partners
answer
Marketing channel partners that link the firm to the customers
question
Promotion Mix (Marketing Communication Mix)
answer
The specific blend of promotion tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships
question
Advertising
answer
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
question
Personal Selling
answer
Personal customer interactions by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships.
question
Public Relations (PR)
answer
Building good relationships with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, or events
question
Direct Marketing
answer
Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build long lasting customer relationships
question
Content Marketing
answer
Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels (advertising) Engages customers, builds relationships with them, and moves them to action.
question
Integrated Marketing Communications
answer
Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.
question
Push Strategy
answer
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final customers.
question
Pull Strategy
answer
A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel
question
Reach
answer
A measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time.
question
Frequency
answer
A measure of how many times the average person in the target market is exposed to a message.
question
Gross Rating Points
answer
Reach x Frequency
question
Steps to Creating an Advertising Program
answer
1. Setting your advertising objectives 2. Setting your advertising budget 3. Developing your advertising strategy 4. Evaluating advertising effectiveness
question
Advertising Objective
answer
A specific communication task to be accomplished with a specific target audience during a specific period of time. To help engage customers and build customer relationships by communicating customer value. To inform, persuade, and remind.
question
Percentage-of-Sales Method
answer
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
question
Advertising Strategy
answer
The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media
question
Creative Concept
answer
The compelling "big idea" that will bring an advertising message strategy to life in a distinctive and memorable way.
question
Advertising Media
answer
The ways through which advertising messages are delivered to their intended audience.
question
TV - Pro and Con
answer
Pro - good mass-marketing coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses Con - High absolute costs; high clutter; fleeting exposure; less audience selectivity
question
Magazine - Pro and Con
answer
Pro - high geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readership Con - Long ad purchase lead time; high cost; no guarantee of promotion
question
Radio - Pro and Con
answer
Pro - good local acceptance; high geographic and demographic selectivity; low cost Con - Audio only; fleeting exposure; low attention (the half heard medium); fragmented audiences
question
Outdoor - Pro and Con
answer
Pro - Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity Con - Little audience selectivity; creative limitations
question
Sales Force Compensation
answer
Needed to attract good salespeople; Motivates salespeople and directs their activities
question
What are the 4 elements that make up Compensation?
answer
1. A fixed amount - salary, gives stable income 2. A variable amount - commissions or bonuses based on sales performance 3. Expenses - repays for job-related expenditures 4. Fringe Benefits - vacations, sick leave, pensions
question
Sales Person
answer
An individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building Can either be an ORDER TAKER (store or department clerk) or an ORDER GETTER (demands creative selling and relationship building)
question
Sales Force Management
answer
Analyzing, planning, implementing , and controlling sales force activities
question
Territorial Sales Force Structure
answer
A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line
question
Product Sales Force Structure
answer
A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines
question
Customer Sales Force Structure
answer
A sales force organization in which salespeople specialize in selling only to certain customers or industries
question
Team Selling
answer
Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
question
Sales Quota
answer
A standard that states the amount a salesperson should sell and how sales should be divided among the company's product
question
Social Selling
answer
Using online, mobile, and social media to engage customers, build stronger relationships, and improve sales performance
question
Salespeople Process
answer
Designing sales force strategy and structure --> Recruiting and selecting salespeople --> training salespeople --> compensating salespeople --> supervising salespeople --> evaluating salespeople
question
Selling Process
answer
The steps that salespeople follow when selling, which includes prospecting and qualifying, preapproach, approach, presentation and demonstration, heading objectives, closing, and follow-up
question
Prospecting
answer
The sales step in which a salesperson or company identifies qualified potential customers
question
Preapproach
answer
The sales step in which a salesperson learns as much possible about a prospective customer before making a sales call
question
Approach
answer
The sales step in which a salesperson meets the customer for the first time
question
Presentation
answer
The sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems
question
Heading Objectives
answer
The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying
question
Closing
answer
The sales step in which a salesperson asks the customer for an order
question
Follow-Up
answer
The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business
question
Sales Promotions
answer
Short-term incentives to encourage the purchase or sale of a product or a service
question
Business Promotions
answer
Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
question
Trade Promotions
answer
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and PUSH it to customers.
question
Consumer Promotions
answer
Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships. PULL the customers
question
Good Salesperson Qualities
answer
Well-educated and well-trained professionals who add value for customers and maintain long-term customer relationships. Listen to their customers, assess customer needs, and organize the company's efforts to solve customer problems
question
Mass Marketing
answer
Targeting broad markets with standardized messages and offers and distributing them through intermediaries
question
Digital and Social Media Marketing
answer
Using digital marketing tools such as Web sites, social media, mobile apps and ads, online video, email, and blogs to engage consumers everywhere, anytime via their digital devices
question
Online Marketing
answer
Marketing via the Internet using company web sites, online advertisements and promotions, email, online video, and blogs
question
Social Media
answer
Independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content
question
Mobile Marketing
answer
Marketing messages, promotions, and other marketing content delivered to on-the-go consumers, through mobile phones, smartphones, tablets, and other mobile devices
question
Direct-Mail Marketing
answer
Marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at particular address
question
Catalog Marketing
answer
Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online
question
Telemarketing
answer
Using the telephone to sell directly to customers
question
Direct-Response Television (DRTV) Marketing
answer
Direct marketing via television, including direct-response television advertising (or informercials) and interactive television (iTV) advertising
question
Viral Marketing
answer
The digital version of word-to-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends
question
Online Advertising
answer
Advertising that appears while consumers are browsing online, including display ads and search related ads
question
Loss Leader
answer
A pricing strategy where a product is sold at a price below it's market cost to stimulate other sales of more profitable goods or services.
question
Wholesaling
answer
All the activities involved in selling goods and services to those buying for resale or business use
question
Broker
answer
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation
question
Agent
answer
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to the goods
question
Standardized Global Marketing
answer
A global marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets
question
Adapted Global Marketing
answer
A global marketing approach that adjusts to the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return
question
Global Firms
answer
A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors
question
What are the 3 ways to enter a foreign market?
answer
1. Exporting 2. Joint Venturing 3. Direct Investment
question
Exporting
answer
Entering foreign markets by selling goods produced in the company's home country and sending them to the foreign country, often with little modification
question
Joint Venturing
answer
Entering foreign markets by joining with foreign companies to produce or market products or services
question
Licensing
answer
Type of joint venturing that involves entering foreign markets through developing an agreement with a licensee in that foreign market
question
Contract Manufacturing
answer
A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service
question
Management Contracting
answer
A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products
question
Joint Ownership
answer
A joint (cooperative) venture in which a company creates a local business with investors in a foreign market who share ownership and control
question
Direct Investment
answer
Entering a foreign market by developing foreign-based assembly or manufacturing facilities
question
What is the biggest grocery store in the US?
answer
The Kroger Co
question
What is the biggest industry in the US?
answer
1. Insurance and finance 2. Health Care 3. Manufacturers
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New