Marketing Final Exam Akin TCU – Flashcards
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Business to Business Electronic Commerce
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-B2B -The use of the internet to facilitate the exchange of goods, services and information between organizations
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Stickiness
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A measure of a web site's effectiveness -Calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit
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Disintermediation
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The elimination of intermediaries such as wholesalers of distributors from a marketing channel
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Reintermediation
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The reintroduction of an intermediary between producers and users
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Strategic Alliance
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-Strategic partnership -A cooperative agreement between business firms
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Relationship Commitment
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A firms belief that an ongoing relationship with another firms is so important that the relationship warrants maximum efforts at maintaining it indefinitely
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Trust
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The condition that exists when one party has confidence in an exchange partners reliability and integrity
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Keiretsu
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A network of interlocking corporate affiliates
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Original Equipment Manufacturers
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Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
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North American Industry Classification System
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A detailed numbering system developed by the United States, Canada, and and Mexico to classify North American business establishments by their main production processes
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Derived Demand
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The demand for business products
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Joint Demand
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The demand for tow or more items used together in a final product
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Multiplier Effect
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-Accelerator Principle -Phenomenon in which a small increase or decrease in consumer demand con produce a much larger change in demand for the facilities and equipment needed to make the consumer product
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Business to Business Online Exchange
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An electron trading floor that provides companies with integrated links to their customers and suppliers
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Reciprocity
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A practice whereby business purchasers choose to buy from their own customers
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Major Equipment
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-Installations -Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes and buildings
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Accessory Equipment
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Goods such as portable tools and office equipment that are less expensive and shorter lived than major equipment
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Raw Materials
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Unprocessed extractive or agricultural products such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
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Component Parts
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Either finished items ready for assembly or products that need very little processing before becoming part of some other product
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Processed Materials
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Products used directly in manufacturing other products
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Supplies
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Consumable items that do not become party of the final product
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Business Services
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Expense items that do not become part of the final product
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Buying Center
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All those people in an organization who become involved in the purchase decision
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New Buy
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A situation requiring the purchase of a product for the first time
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Modified Rebuy
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A situation in which the purchaser wants some change in the original good or service
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Straight Rebuy
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A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
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Strategic Planning
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-The managerial proces of creating and maintaing a fit between the organizations objective s and resources and the evolving market opportunities -Goal is long-run profitability and growth
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Strategic Business Unit
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A subgroup of a single business or collection of related businesses within the larger organization
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Ansoff's Opportunity Matrix
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-Market Penetration -Market Development -Product Development -Diversification
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Market Penetration
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A marketing strategy that tries to increase market share among existing customers
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Market Development
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A marketing strategy that entail attracting new customers to existing products
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Product Development
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A marketing strategy that entails the creation of new products for present markets
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Diversification
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A strategy of increasing sales by introducing new products into new markets
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Innovation Matrix
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-Core Innovation -Adjacent Innovation -Transformational Innovation
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The Boston Consulting Group Model
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-Portfolio Matrix -Stars -Cash Cows -Problem Children -Dogs
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Portfolio Matrix
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A tool for allocating resources among products of strategic business units on the basis of relative market share and market growth rate
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Star
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A business unit that is a fast growing market leader
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Cash Cow
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A business unit that generates more cash than it needs to maintain its market share
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Problem Children
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-"Question Mark" -A business unit that shows rapid growth but poor profit margins
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Dogs
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A business unit that has low growth potential and a small market share
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Allocating Resources for SBU's
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-Build -Hold -Harvest -Divest
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The General Electric Model
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X & Y chart for: -Market attractiveness -Company strength
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Planning
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The process of anticipating future events and determining strategies to achieve organizational objectives in the future
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Marketing Planning
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Designating activities relating to marketing objectives and the changing marketing environments
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Marketing Plan
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A written document that acts as a guidebook of marketing activities for the marketing manager
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Mission Statement
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A statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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Marketing Myopia
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Defining a business in terms of goods and services rather than in terms of the benefits customers seek
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SWOT Analysis
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Identifying internal strengths and weaknesses and examining external opportunities and threats
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Environmental Scanning
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Collection and Interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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Competitive Advantage
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A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
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Cost Competitive Advantage
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Being the low cost competitor in an industry while maintaining satisfactory profit margins
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Experience Curves
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Curves that show costs declining at a predictable rate as experience with a product increases
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Product/Service Differentiation Competitive Advantage
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The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
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Niche Competitive Advantage
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The advantage achieved when a firm seeks to target and effectively serve a small segment of the market
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Marketing Objective
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A statement of what is to be accomplished through marketing activities
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Sustainable Competitive Advantage
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An advantage that cannot be copied by the competition
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Marketing Strategy
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The activities of selecting and describing one or more target markets and developing and maintaining a marking mix that will produce mutually satisfying exchanges with target markets
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Market Opportunity Analysis
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The description and estimation of the size and sales potential of market segments that are of interest tot the firm and the assessment of key competitors in these market segments
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Marketing Mix
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A unique blend of product, place, promotion, and pricing strategies designed to produces mutually satisfying exchanges with a target market
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Four Ps
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Together make up the marketing mix -Product -Place -Promotion -Price
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Marketing Plan Steps
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-Implementation -Evaluation -Control -Marketing Audit
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Implementation
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The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes that plan's objectives
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Evaluation
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Gauging the extent to which the marketing objectives have been achieved during the specified time period
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Control
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Provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
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Marketing Audit
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A through, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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Relationship Selling
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a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
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Customer-Centric
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a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
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Learning
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An informal process of collecting customer data through customer comments and feedback on product or service performance
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Knowledge Managment
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The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.
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Interaction
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The point at which a customer and a company representative exchange information and develop learning relationships
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Touch Points
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Areas of a business where customers have contact with the company and data might be gathered
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Point-of-Sale Interactions
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A touch point in stows oaf information kiosks that use software to enable customers to easily provide information about themselves without feeling violated
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Campaign Management
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developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
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Sales Process
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the set of steps a salesperson goes through in a particular organization to sell a particular product or service
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Lead Generation
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identification of those firms and people most likely to buy the seller's offerings
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Referral
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A recommendation to a salesperson from a customer or business associate
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Networking
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A process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations.
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Cold Calling
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a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status
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Lead Qualification
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determination of a sales prospect's (1) recognized need, (2) buying power, and (3) receptivity and accessibility
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Preapproach
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a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect
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Needs Assessment
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An analysis identifying the jobs, people, and departments for which training is necessary.
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Sales Proposal
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a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs
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Sales Presentation
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a formal meeting in which the salesperson presents a sales proposal to a prospective buyer
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Negotiation
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The process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement
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Follow-Up
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The final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and buyers; employees are properly trained to use the products
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Quota
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A statement of the salespersons sales goals, usually based on sales volume
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Price
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That which is given up in an exchange to acquire a good or service
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Revenue
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The price changed to customers multiplied by the number of units sold
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Profit
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Revenue minus expenses
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Return on Investment
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Net profit after taxes divided by total assets
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Market Share
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A company's product sales as a percentage of total sales for that industry
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Status Quo Pricing
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A pricing objective that maintains existing prices or meets the competition's prices.
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Demand
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The quantity of a product that will be sold in the market at various prices for a specified product
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Supply
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The quantity of product that will be offered to the market by a supplier at various prices for a specified period
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Price Equilibrium
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the price at which demand and supply are equal
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Elasticity of Demand
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Consumers' responsiveness or sensitivity to changes in price.
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Elastic Demand
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A situation in which consumer demand is sensitive to changes in price
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Inelastic Demand
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A situation in which an increase or a decrease in price will not significantly affect demand for the product
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Unitary Elasticity
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A situation in which total revenue remains the same when prices change
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Yield Management Systems
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a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
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Variable Costs
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A cost that varies with changes in the level of output
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Fixed Costs
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A cost that does not change as output is increased or decreased
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Average Variable Cost
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Total variable cost divided by the quantity of output produced
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Average Total Cost
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total cost divided by the quantity of output
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Marginal Cost
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The change in total costs associated with a one unit change in output
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Markup Pricing
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the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
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Keystoning
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the practice of marking up prices by 100 percent, or doubling the cost
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Profit Maximization
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a method of setting prices that occurs when marginal revenue equals marginal cost
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Marginal Revenue
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Extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
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Break-Even Analysis
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a method of determining what sales volume must be reached before total revenue equals total costs
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Selling Against the Brand
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stocking well-known branded items at high prices in order to sell store brands at discounted prices
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Extranet
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A private electronic network that links a company with its suppliers and customers
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Prestige Pricing
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Charging a high price to help promote a high-quality image
