Marketing Concepts Final Exam Study Guide – Flashcards
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Exchange Process
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simply when an individual or an organisation decides to satisfy a need or want by offering some money or goods or services in exchange.
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Marketing Concepts
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using the needs of customers as the primary focus during planning, production, pricing, and distribution
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Target Market
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is a group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy.
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Exchange Relationships
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Relationships governed by the need for equity (i.e., for an equal ratio of rewards and costs)
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What are the 4P's, and what are they called?
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1. Product (type, look) 2. Place (access to consumer) 3. Price (what is given up in order to get product) 4. Promotion (information about product)
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Monopoly
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A market in which there are many buyers but only one seller.
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What is the difference between line extension and product modification?
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Product modification is altering a company's existing product. Line extension is also called brand extension, when a company extends their brand such as creating other products under their brand like a creator of a perfume who then extends their brand and makes a soap.
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What is a SWOT analysis?
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A tool that marketers use to assess an organizations strengths, weaknesses, opportunities, and threats.
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Service characteristics
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intangibility (cannot be seen or felt), inseparability (cannot be separated from their providers), variability (quality depends on who provides them, where,when and how), perishability (cannot be stored for later sale or use)
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Marketing Strategy
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strategy that is a long-term course of action designed to deliver a unique customer experience while achieving its goal
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Marketing Plan
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A formal written document communicating the goals, objectives, and strategies of a company.
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Mission
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A statement or vision of an organization's function in society.
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Environmental scanning
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process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
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Environmental analysis
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The process of assessing and interpreting the information gathered through environmental scanning
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Ethics
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Codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.
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Social Responsibility
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A firm's obligation to improve its positive effects on society and reduce its negative effects
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Environmental Forces
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-social -economic -technological -competitive -regulatory
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Targeting Strategies
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undifferentiated mass marketing, differentiated segmented marketing, concentrated niche marketing, mircomarketing (local or individual marketing)
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differentiated target strategies
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a strategy through which a firm targets several market segments with a different offering for each
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undifferentiated target strategies
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strategy of a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
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concentrated target strategies
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organization targets a single market segment using one marketing mix; only go after one group
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What are marketing strategies?
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product, price, place, promotion (first and foremost) others include economic, technological, political, cultural
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segmentation variables
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characteristics of individuals, groups, or organizations used to divide a market into segments
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cognitive dissonance
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Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
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consideration/evoked set
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The subset of top-of-mind brands evaluated when making a choice
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consumer problem solving processes
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How someone comes to a conclusion about a situation. This is determined by what kind of a decision a consumer is facing
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Routine problem solving process
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for products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives.
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Limited problem solving process
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A purchase decision process that falls in the middle of the nominal decision making continuum; occurs during a purchase decision that calls for, at most, a moderate amount of effort and time
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Extended problem solving process
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A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk
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Stages of the consumer buying process
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Problem recognition, search for alternative solutions, evaluation of alternatives, purchase, postpurchase use and reevaluation of chosen alternative
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What are some influences that affect the consumer buying decision process?
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Emanational needs, friends and family, cultural and ethnic backgrounds, connivence and cost, advertising
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Business product
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Products that assist directly or indirectly in providing products for resale.
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Types of consumer products
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Convenience Products, Shopping Products, Speciality Products, Unsought Products
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Product mix
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The particular assortment of goods and services that a business offers to meet the needs of its market(s) and its company goals.
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Product line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
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Product item
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Specific model, brand, or size of a product within a line
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Adoption Process
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The mental process through which an individual passes from the first hearing about an innovation to final adoption
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Product life cycle
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Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
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Categories of adopters
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innovators, early adopters, early majority, late majority, laggards
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New product
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a product new to the world, the market, the producer, the seller, or some combination of these
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New product development process
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Idea Generation, Screening, Idea Evaluation, Development, Commercialization
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Communication process
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Consists of a sender who encodes a message and transmits it through a channel to a receiver who decodes it and may give feedback
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Dual distribution
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The use of two or more marketing channels to distribute the same product to the same target market
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Intensity of market coverage
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Marketers must determine the intensity of coverage a product should get- the number and kinds of outlets in which it will be sold. The decision depends on the product and the target market.
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Push strategy
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A promotion strategy in which the sales force and trade promotions are used to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers
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intangibility
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Services cannot be sensed before they are bought
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inseperability
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Services are produced and consumed at the same time & cant be separated from their products
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Reach
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percentage of people that are exposed to an ad per month
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Branding
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A marketing function that identifies products and their source and differentiates them from all other products
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Packaging/labeling
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Manufacturer, Name, Ingredients (active and inactive), RX only statement, ingredient info, ID, quantity, dose, route of administration, Lot #, storage, expiration date.
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Brand loyalty
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A favorable attitude toward and consistent purchase of a single brand over time.
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Promotion
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coordination of all seller initiated efforts to establish channels of information and persuasion to influence and encourage buyers to accept or adopt an idea, good, or service
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Promotion Strategies
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includes advertising, public relations, sales promotion, and personal selling
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CRM
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Customer Relationship Management
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Supply chain management
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Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
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Promotion mix elements
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consists of communication tools, advertising, selling, sales promotions, public relations, direct markets
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Pricing policies
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are the ways in which firms set prices or aim to influence the prices of goods and services. Governments and other agencies may sometimes set pricing policies as well.
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Types of channels
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direct, indirect, industrial, and electronic marketing
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Types of intermediaries
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retailers, wholesalers, franchises, distributors, agents
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Price Elasticity of demand
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A measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
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Demand Curve
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A graph of the relationship between the price of a good and the quantity demanded
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CPM
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way of measuring the cost of displaying an advertisement of a web page.
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Distribution
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Determining the best ways for customers to locate,obtain,and use the products and services of an organization. Involves moving the product each step from the deign idea to the consumer.
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Demand
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Consumer willingness and ability to buy products
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Derived Demand
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Demand dependent off of something else, or another aspect (i.e. natural disaster and the demand for homes and shelter increase)
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Types of Advertising
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Brand Advertising (long term brand identity), Retail or Local Advertising, Political Advertising , Directory Advertising, Direct-Response Advertising, Business-to-Business Advertising, Institutional Advertising, Public Service Advertising.
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Logistics
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the management of the details of an operation
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4I's
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-intangibility -inconsistency -inventory -inseparability
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Underlying themes of service quality
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-customer quality is more difficult to evaluate that product quality -customer satisfaction is based on the comparison of their expectations to their actual experience -customer evaluates service process as well as service outcome
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Pull Strategy
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A promotion strategy in which a company spends lots of money on consumer advertising and promotion to induce final customers to buy the product, creating a demand vacuum that pulls the product through the channel
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Goals
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Statements of an accomplishment of task to be achieved, often by a specific time
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Objectives
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Concrete attainments that can be achieved by following a certain number of steps.
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Types of distribution channels
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direct and indirect
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Direct distribution channel
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goes from producer straight to the buyer
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Indirect distribution channel
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goes through intermediaries (middlemen)
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Oligopoly
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A market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors. A market structure in which a few large firms dominate a market.
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What are ethical issues?
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environmental issues that deal with people's perception of right and wrong. (note that some people may consider certain actions to be unethical even though they are not illegal)
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Demographic segmentation
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Dividing the market by age, income, and education level.
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Geographic segmentation
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is a common strategy when you serve customers in a particular area, or when your broad target audience has different preferences based on where they are located.
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Behavioral segmentation
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Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
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psychographic segmention
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Dividing a market into different segments based on social class, lifestyle, or personality characteristics
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Consumer product
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In economics, any tangible commodity which is produced and subsequently consumed by the consumer, to satisfy its current wants or needs, is a consumer good or final good. Consumer goods are goods that are ultimately consumed rather than used in the production of another good.
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price skimming
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charging the highest possible price that buyers who most desire the product will pay
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penetration pricing
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prices set below competing brands to penetrate market and gain market share quickly
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These are all product line pricing strategies
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captive, premium, bait, price lining
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Captive
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basic product in a product line low while related items higher
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Premium
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pricing highest-quality product higher than other models
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Bait
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low pricing on one item in line with intention of selling higher-priced item in the line
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Price Lining
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limited number of prices for selected lines of merchandise
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Reference pricing
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moderate pricing positioned next to a more expensive brand
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Bundles pricing
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packaging multiple products to be sold at a single price
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Multiple Unit Pricing
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packaging together two or more identical products to be sold at a single price
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Everyday Low Prices (EDLP)
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pricing products low on a consistent basis
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Odd-Even Pricing
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ending the price with a certain number to influences buyers' perceptions
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Customary pricing
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on the basis of tradition
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Prestige pricing
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setting prices at a high level to convey prestige
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Price Leader
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firm prices a few products below the usual markup, near cost, or below cost
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Special event pricing
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advertised sales or price-cutting linked to a holiday, a season, or an event
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Comparison discounting
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price is set at a specific level and simultaneously compares it with a high price
