question

Independent retailer

answer

one of a few units under the same ownership, 10 or fewer stores Ex. A small pet store

question

Retailing

answer

where all activities directly relate to the sale of goods and services ultimately to the final sale for personal use

question

Chain Store

answer

11 or more stores under the same owner Ex. Starbucks

question

Franchise

answer

independent owner-operated licensed by a larger support organization. Ex. McDonald's

question

Product & trade franchising

answer

Contractual vertical marketing arrangement, physical product manufactured, exclusive territory to manufacture

question

Business format franchising

answer

A recognized name that has expertise, product or service, like H&R Block Ex. You'll stop at a shell before you stop at a mom and pop gas station.

question

Department Store

answer

Large stores organized into many departments with limited lines that would be a competitive line with a store in the mall. Ex. Dillards

question

Scrambled merchandising

answer

Merchandise that is a little from everywhere, allows to sell merchandise at a higher margin because it is convenient, like in a grocery store. At Walgreens they have cheap merchandise to drag in customers to buy expensive drugs. Ex. playing cards, patio furniture

question

Specialty Store

answer

Single-limited lines/High margin/High Service Ex. Foot locker, lush

question

Supermarket

answer

Large departmentalized self-serve retailer that specializes in food and some non-food items Ex. WinnDixie

question

Drug Store

answer

Pharmacy related items, very scrambled merchandising

question

Convenience Store

answer

Limited lines, high margin, high turnover, fast and convenient. Will pay more for convenience

question

Discount Store aka mass merchandiser

answer

Full-line discount store, moderate to low prices with less atmosphere and service than a department store with high volume and turnover. Ex. Walmart, Target

question

Category superstore aka specialty discount store

answer

Single to very limited line, low prices, high turnover, more-or-less self service (category killers) Ex. Toys-R-Us

question

Category Killers

answer

Destroy profit potential for all others in their category's for a better option for you. Ex. When you need something that will be cheaper at home depot but takes more time to get, so you can go to a specialty retailer and get more convience but pay more. Niche

question

Warehouse membership club

answer

Limited assortment in bulk to members only Ex. Sams, Costco

question

Off-price retailer

answer

Buy the unsold merchandise from other retailers and sell it Ex. Marshalls, big lots

question

Factory Outlet Store

answer

verticalls-integrated off -price retailer, cheaper than in a regualr store. Ex. Kate Spade, MK

question

Vending

answer

Ex. Pepsi machines

question

Direct Retailing

answer

FACE TO FACE Ex. Door to door selling

question

Direct Marketing

answer

No intermediaries, comes by a mail catalogue, shop at home, telemarketing

question

Retailing Mix

answer

The 4 P's: 1. Product 2. Promo, this gives you an opportunity to enhance partnership with co-op advertising 3. Place of Locations 4. Price personell

question

Ted Turner

answer

Ran TV when no one else did over night, 24/7 news channel

question

Profit Maximization

answer

Total revenue as large as possible relative to total costs, activities directed sales to have max profit Ex. If a hotel is 99% full, they should probably raise the prices.

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Market Share aka penetration pricing

answer

Gain trial, establish distribution and dominant position

question

Sales Maximation

answer

Need to raise cash or clear out volume, total dollars Ex. Easter merchandise that needs to be cleared out after the holiday is over

question

Status guo

answer

Maintaining existing prices aka satisfactory prices Ex. CVS will take lower prices by not selling pharmacy drugs at higher prices, so the government is not up their ass, no troubles Ex. Auto repair store not charging enough money, do better work, that way the customers are taken care of first

question

Follow the leader pricing

answer

Aka meeting competitors Ex. Auto and steel pricing, waiting for one company to release something and seeing what their prices are Ex. Tom thumb Raises prices when shell raises prices

question

Establish pricing goals

answer

Better stated, establishing marketing goals, trade offs

question

Break even analysis

answer

How much must you sell to cover fixed prices? Are you better off buying treasuries instead of selling?

question

Break Even Example on test

answer

Selling price is $225 VC is 145 Gross profit= $80 FC= $8000 Break even at $100

question

Setting the Price

answer

1. Est pricing goals 2. Est Sales and profit at different prices 3. Decide if demand is elastic or inelastic

question

Price Skimming

answer

Price maximization strategy, come in with high initial price, lowering it when and if competition occurs

question

Penetration Pricing

answer

Come in with low initial price to match or pre-empt competition

question

Unfair trade practices

answer

Floor on overall prices, generally ignored unless you practice retail, 6% retail mark-up, 2% whole sale market (a joke, not enforced)

question

Predatory Pricing

answer

Specifically attempting to drive competition out of business, not allowed to do but what you want to do Ex. 1906 Standard oil: Marketplace for oil but didn't want competition so you sell gas for 2.75 when dodges is selling for 3.25. When dodges goes out of business then you raise your prices.

question

Price Fixing

answer

2 or more firms conspire to set prices Ex. 2 Airlines run high everyday prices Ex. Medical care set a minimum fee for service CANNOT DO

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Price Discrimination

answer

Charging different prices for the same item to different customers, quantity discounts make it legal

question

FOB (Free on Board)

answer

Point at which title passes

question

FOB Origin

answer

Title passes at seller's dock

question

FOB Origin pricing

answer

Buyer pays for transportation, price will be higher the further it travels

question

Uniform delivered pricing aka Freight absorption pricing

answer

Same price for everyone everywhere, shipping is included in price

question

Zone Pricing

answer

Different prices depending on the zone you live in Ex. Charging shipping by zip code

question

Basing point pricing

answer

Select one or more points as bases and charge shipping from there, irregardless of where is shipped from Ex. Buying something from a company in Huston, charging shipping from Huston even know they have to send it from Washington.

question

Captive Pricing

answer

Give you something or ill sell it to you cheap and make the money selling component parts Ex. Giving a free paper towel holder so you buy paper towels Ex. Selling a printer cheap but charging expensive prices on cartridges

question

Leader pricing aka Loss leader pricing

answer

Product priced below cost as traffic builder Ex. Making customers happy with a coupon so they get into the store and buying more than the coupon covers

question

Bait pricing aka bait and switch

answer

Luring you in for something that they don't really have Ex. Only having a few tv's on stock for $75

question

Price bundling

answer

Package multiple items together so you have to buy them all Ex. Tv channels include Disney, nick, abc all for one price

question

Intro stage

answer

High levels of advertising to gain awareness/trial

question

Stages of advertising

answer

1. Intro stage 2. Growth stage 3. Maturity to Early Decline

question

The promo mix

answer

1. Advertising 2. Publcity/PR 3. Sales Promotion 4. Personal Selling

question

Advertising

answer

Marketer paid , impersonal mass communication

question

Competitive advertising

answer

Persuade, secondary demand

question

Pioneering advertising

answer

inform, primary demand

question

PR publicity

answer

Ex. CNN running a story on their employees volunteering

question

Growth Stage

answer

Fighting it out for market share (persuade), Early: reduce sales promo to increase profits, Later: more sales promo to defend turf

question

Maturity to Early Decline

answer

Remind if you are a master brand or have a cash cow Ex. a small commercial that shows your brand to remind there is still room for jello Divest when the cash cow becomes a dog

question

Factors influencing the Promo mix

answer

1. Type of product 2. Nature of Target Market 3. Funds available

question

Institutional advertising

answer

Promotes a company image, a product class, or advocates a position Ex. Got milk, even when you see got Jesus Ex. cigarettes company trying to defend buyers for their rights

question

Product advertising

answer

Promotes a specific product or service, Pioneering, primary demand, inform, try something new

question

Direct-action advertising

answer

Seeks immediate action Ex. an 800 # on an infomercial

question

Indirect-action advertising

answer

Builds image, position, long term awareness, loyalty Ex. 30 sec spot on tv that you arent going to run out and get the product, effect is later with encounter

question

Comparative advertising

answer

Us vs them Ex. A laundry detergent says our brand is 10x better than downy

question

Cooperative advertising

answer

Costs shared between producer and retailer Ex.

question

DAGMAR

answer

Defining advertising goals for measured advertising results Ex. you want 66% of target to be aware, survey was conducted 90 days after campaign launch

question

What is the first thing to do in developing an ad campaign?

answer

Determine campaign objectives

question

Adverting appeal aka unique selling proposition aka Commercial positioning concept (CPC)

answer

Phrase that ties directly to your propositioning/ differential advantage Ex. "Good till the last drop"-Maxwell house Ex. When you hear Just do it, you think Nike

question

To reach a wide diverse audience:

answer

Tv, magazines

question

To reach a narrow specialized audience:

answer

Specialty cable channels like Golf Network

question

Other ways to reach major advertising media

answer

1. Customers must find you doing a Google search 2. Product placement in other forms of media

question

Coupons

answer

Price reduction at the time of purchase, low redemption rates and high cost, redeemed by current shoppers

question

Sales Promotion

answer

Incentive to consumers for the short term to increase sales

question

Rebates

answer

direct from the manufacture Ex. Pepsi used to do a $10 super bowl if you bought 4 boxes of soda.

question

Premiums

answer

A free item when you buy something else. Ex. Free bread when you buy pasta

question

Self-liquidating premium

answer

Costs factored into promo deal, YOU CAN BUY THE PREMIUM ITEM SEPERATELY

question

Contests

answer

Must complete a task to win

question

Sweepstakes

answer

Random choice winner

question

Loyalty marketing programs aka frequent buyer program

answer

Have a long-term objective, long term relationships Ex. hotels give a free night with 10 hotel purchases

question

Sampling

answer

You get to try something in store in hopes they will buy in the future, can come by mail or in store

question

Point of purchase aka display equipment

answer

Something you want to sell as an impulse buy Ex. que line at Marshalls

question

Trade Allowances

answer

Price reduction, rebate, free merchandise for some type of PERFORMANCE

question

Push Money

answer

Financial incentives to inside sales people in retail outlets, Ethically questionable Ex. w/ panasonic worker going into a best buy trying to get them to sell more tvs and will give $20 for every tv sold

question

Non discretionary items

answer

Ex. toilet paper, salad dressing Running a buy one get one free, not using both items twice a day. TRAFFIC BUILDER

question

Discretionary items

answer

People don't need to product buy will use more. Ex. Coke, when you have 2 12 packs you'll drink more when you don't have just half a 12 pack.

question

Trade Shows

answer

Where business see each other ideas

question

Push Strategy

answer

Promotional money directed to channel members and you must do this if your product is undifferentiated and you are not a category leader Ex. push it in the door on a display to sell it out

question

Pull strategy

answer

Promotional money directed to the ultimate consumer and you MAY do it if you have a competitive advantage or you are a category leader Ex. Get customers coming in looking for an item

question

Marketing

answer

An organized system of activities designed to get the money out of someone else's pocket, into yours. PRODUCT, PROMOTION, PLACE, PRICE,

question

Exchange

answer

Trading something of value to someone else and gaining something of grader value to you

question

Production Orientation

answer

Focus on internal capabilities of the organization and what it can most readily produce. Primary focus: cut costs and keep prices low Ex. planting trees and in 10 years hoping there is a market for them

question

Sales Orientation

answer

Employment of sales force and aggressive sales tactics to push that which the organization can most readily produce. Ex. producing bird feeders and they stop selling a lot, having school boys go around the block and help sell them

question

Market Orientation

answer

Focus on the wants and needs of the target customers and create offerings to satisfy those wants and needs. you want the message behind the gift, walmart employee's know exactly where the item is that you are looking for

question

Societal Marketing Orientation

answer

Having the organization committed to contributing to the best interests of customers and society. Ex. making levis without chemical dyes, mercury free batteries

question

Production Orientation is from

answer

after WW2, oldest

question

Sales Orientation is from

answer

50's and 60's, 2nd oldest

question

Marketing Orientation is from

answer

Late 60's, 3rd oldest

question

Societal Marketing Orientation

answer

Early 90's, newest

question

Marketing Concept

answer

All focus is on the customer to make them happy Ex. Home Depot offering an alternative that is much cheaper

question

Preconventional Morality

answer

A child state or instant gratification, what can I get away with, not concerned about repeat business

question

Conventional Morality

answer

Do it because everyone else does it

question

Postconventional Morality

answer

Being ethically-focused and holding a personal value system

question

External marketing environment aka uncontrollable variables

answer

All the elements including social, demographic, economic, technological, political-legal, and competition, outside the organization

question

What variables are the most difficult external variable to forecast and influence?

answer

Social

question

Demographics

answer

Sex, age, race, income, location, family status. Be careful of segmenting.

question

Consumer Product safety Commission (CPSC)

answer

protects health and safety of consumers that are in and outside of your home

question

Federal trade commission (FTC)

answer

Prevents unfair trade practices including anti-trust and deceptive advertising. Ex. Advertising a free trial of internet and the only way to cancel was to call an unavailable 800 number. FTC will intervene and put it to rest.

question

Corrective Advertising

answer

Clarifying statements that could be misleading ex. "You must exercise and eat right for this pill to work"

question

Cease and desist

answer

Stop it immediately

question

Food and Drug Administration (FDA)

answer

Safety of food and drug products

question

Ethnic communities and identities

answer

Back in the old days, America was a melting pot, now it is a mix of evrything and places grow by being more diverse.

question

What is a downside to globalization?

answer

loss of jobs, outsourcing, and lower wages

question

Culture

answer

values, norms, attitudes, behaviors, and other meaningful behaviors that characterize a nation or people. The normal way to act in a specific group of people.

question

Global Marketing Standardization

answer

Selling the exact same product everywhere in the world

question

Tariff

answer

A tax levied on goods ENTERING a country

question

Quota

answer

A limit on what can be IMPORTED into the country

question

Boycott by nations:

answer

Exclusion of all products from certain nations or organizations

question

Boycott by individuals or groups:

answer

Refusal to buy products from certain nations or organizations

question

Exchange Control

answer

Having a difficult time bringing your money from another country into another, sometimes bartering instead (Pepsi and vodka)

question

Marketing grouping

answer

2 or more nations working together to form a common trade area (NAFTA)

question

What is the lowest risk and return global marketing strategy?

answer

Exporting

question

What is the highest risk and return global marketing strategy?

answer

Direct investment

question

What are the 5 components to global marketing strategy?

answer

export, licensing, contract manufacturing, joint venture, and direct investment

question

Trade agreement

answer

An agreement by 2 or more nations trying to reduce or eliminate tariffs, quotas, boycotts, and exchange control.

question

Exporting

answer

LOWEST RISK AND RETURN, selling domestically produced products to overseas

question

Licensing

answer

Allowing another firm to use your name, recipes, trademarks

question

Contract manufacturing

answer

Outsourcing your manufacturing process to a foreign or domestic firm Ex. Asia manufacturing New Balance shoes

question

Joint venture

answer

2 organizations working together using each others advantages to make one great company

question

Direct Investment

answer

HIGHEST RISK AND RETURN, buying another firm out or starting your own business.

question

Need Recognition

answer

INTERNAL STIMULI Ex. "I'm hungry, where should I go eat" Figuring out where you are at currently, and deciding what you want to be, what you want to do about it

question

Information Search

answer

Being on your way to hardies (internal stimuli, you decided where you would go before you left the house), and seeing a buffet on the way with a good deal (external stimuli, only seeing it on the way there, no internal stimuli used in the decision making.)

question

Evaluation of alternatives

answer

When the information search is completed, or at least for the time being

question

Evoked Set

answer

What is still in the pool for consideration

question

Purchase

answer

Based on the products attributes and intangibles it offers

question

Cognitive dissonance

answer

Tension or anxiety that happens after the purchase. Ex. Worrying you spent too much money

question

Routine response behavior

answer

The least complex with the lowest involvement and low cost impulse items

question

Limited Decision-making

answer

Moderately quick limited-consequence decision. Ex. you need a fridge and you'll go find one when yours brakes, you don't generally plan it

question

Extensive decision making

answer

Major decision with significant risk consequences Ex. buying a car, condo, you'll think about it a lot

question

Subculture

answer

MOST IMPORTANT groups of consumers with similar component lifestyles

question

Component lifestyle

answer

Lifestyles will vary from one person to another

question

Reference group

answer

groups that influence an individuals AIO's and purchasing behavior

question

Primary membership group

answer

direct, people who meet regularyl, family co-workers

question

Secondary membership group

answer

direct, meet with less frequently, like in clubs

question

Direct membership group

answer

You actually belong to it

question

aspirational group

answer

indirect, desire to belong and want to emulate, you aspire to belong to it

question

Nonaspirational group

answer

indirect, You want NOTHING to do with it or its members

question

Opinion leaders

answer

Persons looked up to and who influence opinions of others

question

Selective exposure

answer

Chose what you want a customer to see or not Ex. you wouldn't advertise on hip hop tv to reach bob

question

Selective perception

answer

Only noticing certain things but another person could see it differently

question

Selective Distortion

answer

Distorting what you hear or see to create consistency

question

Selective retention

answer

Only remember what matches your beliefs, lifestyle Ex. A gambler only notices his wins, not his losses

question

Decision support system

answer

In house data and info system (dss). Where you go to update info or manipulate it to see where your next step is. Also sees trends

question

Marketing Research

answer

Process of planning, collecting, analyzing data relevant to a specific marketing decision.

question

Defining the problem

answer

First thing you should do, can be the hardest.

question

Situation analysis

answer

What is happening in the external environment? Ex. Weather, financial problems

question

Tentative hypothsis

answer

Cause and effect Ex. smoking a cigarette and getting erectile dysfunction

question

Correlation

answer

numbers running together ex. shark attacks and ice cream sales. More people in the water and sharks come

question

Secondary Data

answer

Info already available in house or online. Quick and dirty, preliminary, quality and accuracy issues.

question

Plan research design

answer

Questions to be answered and how and what data should be collected and analyzed. This is information collected for the first time.

question

Collect primary data

answer

precisely relevant to the problem at hand

question

In-home interview

answer

High costs, high quality data, can demonstrate, but rapidly disappearing

question

Mall intercept

answer

Might not attract the right group, moderate cost needs to be brief, you can demonstrate. Wouldn't be able to do for a political survey but a vacuum would be okay.

question

Telephone interview

answer

highly refused, cost is rising, not many people have a land line, no demonstration, low reliability, good for political events.

question

Mail survey

answer

Low quality and cost, might not reach the right group. non-response errors

question

Executive Interview

answer

a b2b equivalent of an in interview. Might be viable because you can use a smaller sample size, high costs

question

Focus groups

answer

7-10 people, might have an unintentional bias that will pollute results. Not always reliable.

question

Watching customers

answer

traffic patterns, shopping habits, how the customers use a product. Ex. putting children in a room and giving them toys and seeing how they interact with them and how they sue them, if they do.

question

Mystery shopper

answer

Not known to employees who they are, good way to collect research to see how employees deal with customers.

question

Experiment

answer

Verify cause and effect relationships employing scientific method.

question

Universe

answer

Total population

question

Representative Sample

answer

An exact proportional representitive of the universe, in minature

question

Probability Sample

answer

Every element has known non-zero likelihood of being selected. Ex. Voters in Escambia, if you sample less men then women you need to adjust the sample when the research is complete

question

Random Sample

answer

Every element has an equal likelihood of being selected

question

Non-probability sample

answer

non representative

question

Convenience Sample

answer

Convenience

question

Measurement error

answer

Info provided not reliable Ex. If you have them look over the product and ask them if they would buy it, they normally say yes, but they probably wont buy it. Ex. If you ask a kid if they do drugs they'll probably lie and say they don't

question

Sampling error

answer

Sample is not representative of the universe

question

Non-response error

answer

Those who do not respond are different than those who do

question

Frame error

answer

When you assume the most popular car in Pensacola is a Buick but you've only looked at a retirement community.

question

Random error

answer

Any sample that will yield a + or - the actual universe Ex. Political polls

question

External validity

answer

Everything about research is done right, but results are not projectable to the real world Ex. a taste test is hard to predict, a 6 pack would be a better test.

question

Strategic Planning

answer

Managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.

question

Mission Statement

answer

Defines what the business mission is.

question

Marketing myopia

answer

Narrow such statement defining the firm in terms of present products and services rather than benefits customers seek

question

Strategic Business Unit

answer

SBU. A company within a company Ex. The bookstore and food services at school

question

SWOT

answer

strengths, weakness, opportunities, threats. Assess how you are doing and the external environment to determine your competitive advantage and your objectives. Looking at your current advantages and how to work with those and how to improve weakness.

question

Portfolio Matrix

answer

star, problem child, cash cow, dawg

question

Star

answer

high share within a high growth segment. The future for your company, all your hopes for growth

question

Problem Child, question mark

answer

low share within a high growth segment. Ex. If you are second into the market and 3 months in you don't have a big share in the company, you have a problem child on your hands. If it has 60% of the share, you have a star on your hands

question

Cash cow

answer

High share withing a low growth segment. You want to milk the cow to support your future star.

question

Dawg

answer

Low share within a low growth segment

question

Set objectives

answer

to exploit whatever differential advantage you enjoy

question

Market penetration

answer

present product and present market Ex. Campbell's sending out coupons

question

Market development

answer

Present product and a new market Ex. senior night at a resturant

question

Product development

answer

A new product and a present market Ex. Selling to the same people that normally come in but have a different product

question

Diversification

answer

New product and new market

question

The 4 P's

answer

Product, place, promotion, price

question

Implementation/evaluation/control

answer

In bottom up marketing, this is where you BEGIN. Identify competitive advantage first

question

Sacred Cows

answer

All those formulas/beliefs/practices which built success in the past, but wont take you to the future. If it isn't broke, brake it.

question

Business Marketing

answer

marketing of goods and services to individuals and organizations for purposes other than personal consumption. B2b

question

Producers aka original equipment manufactures (OEM's)

answer

Manufacture products and provide services used by business customers Ex. P&G making products sold through WinnDixie

question

Resellers

answer

Buy finished goods and sell them to the final customers or other business customers. Sometimes use brokers

question

government and institutions

answer

schools, health care, public service. Main goal in the end is to see what return on investment is when they build a new building.

question

North American Industrial Classification System (NAFTA)

answer

Numbering system to identify business by classes. Ex. 33:manufacturing 334: computer and electronic products manufacturing 334611: software reproduction If you find a business similar to you in code, it may be a good prospect for you

question

Derived demand

answer

Demand for consumer products drives demand for business products. Ex. Meat sales go up, so does poly wrap.

question

Inelastic demand

answer

Item comprises a small percentage of final product Ex. Insulin Price can go up, but sales do not get affected much.

question

Joint demand

answer

1 to 1 relationship Ex. a desk handle and a desk, comes together

question

Fluctuating Demand

answer

aka multiplier effect, accelerator principle. Drop in demand for final product has an inordinary strong effect on the marketing organization and its suppliers Ex. after 911, airline travel went down 20% and it diminished the profits for air lines. New planes were not being bought.

question

Major equipment

answer

aka installations. Expensive capital goods that will last a long time. This is the biggest of them all. Includes heavy equipment, building a new office building

question

Accessory equipment

answer

Less expensive but significant, short life span. Ex. a computer

question

Raw materials

answer

Unprocessed, agricultural Ex. fresh tomatoes

question

Component Parts

answer

Finished items that becomce part of the final product Ex. A motor in a lawn mower, outsourced

question

Processed materials

answer

Some processing Ex. High fructose corn syrup

question

Supplies

answer

Things necessary for production but do not become the final product Ex. office supplies, copy paper

question

Business services

answer

Outsourcing to specialists Ex. cleaning crews

question

new buy

answer

New need to buy certain products or service for the first time Ex. buying all new computers

question

Modified rebuy

answer

modest change in specs from current supplier, same thing but a different supplier. Ex. buying a computer from office depot instead of best buy

question

straight rebuy

answer

Low involvement buying the same things again from the same vendor Ex. rebuying copy paper, staples

question

Intangible

answer

You can't see, feel or taste the purchase. You want to tangibleize a product. ex. making sure the employees at McDonald's and the building is clean

question

Inseperable

answer

Simultaneously sold, produced, consumed. Ex. a hair cut, flight You must be there to recieve the service

question

Heterogeneous

answer

Often wide variation in performance, not something you want. Ex. At a groomer one person is really good but not another

question

Perishable

answer

Cannot be stored Ex. if a plane takes off with an empty seat, that money is lost from a fail purchase of a ticket. Fix with differential pricing: cheaper movie tickets before 6

question

Service quality

answer

Degree to which service performance matches customer expectations. Ex Always deliver more than customer expects, provide a full buffet instead of a continental breakfast

question

Core offering

answer

The most basic customer benefit, essentially a commodity

question

Supplemental offering

answer

The extras that build value and customer loyalty through the marketing of your differential advantage. Ex. Lush being all natural, handmade, cruelty free

question

Mass customization

answer

Offering a cost effective context of standardization. Ex. When you buy jeans sometimes they don't fit in all the right places, you can order some that fit you perfectly.

question

Nonprofit public service organizations

answer

1. start by defining objectives 2. Avoid over-generalized objectives (Say you want to help the homeless find jobs, not just help the homeless) 3. Possible challenge: may be dealing with apathetic or even strong opposed target markets 4. In the marketing mix, seek to promote with PSA's

question

Market segmentation

answer

Starts with a market: people and organizations who want or need your product or service and are qualified to buy. You break them into market segments and choose one or more to address.

question

Criteria for segmentation

answer

Is it Substantial?Identifiable or measurable?Accessible?Responsiveness?

question

Bases for segmentation

answer

geography, demographics, benefits sought/usage rate, *pschyographics, geodemographics

question

Geography

answer

Electric blankets will be sold more in Michigan, not Miami

question

Demographics

answer

Age, gender, family status

question

Benefits sought/ usage rate

answer

Heavy users of beer, male under 29

question

*Psychographics

answer

Persons with similar personalities and lifestyles and motives

question

Geodemographic

answer

Particular neighborhoods feature similar psychographics and similar component lifestyles

question

When segmenting markets

answer

Select a market, choose a bases and description, profile segmentation, select target markets, develop marketing mix.

question

Strategies for selecting target markets

answer

Undifferentiated, concentrated, niche, majority fallacy, multi segment, cannibalization, position, repositioning

question

Undifferentiated

answer

One market for everyone Ex. Model t ford only in black

question

Concentrated

answer

Target a single segment most receptive to your differential advantage.You want the on with the most differential advantage

question

Niche Marketing aka guerilla marketing

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Target a segment small enough to defend that the "big guys" wont mess with you

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Majority fallacy

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Go after the biggest segment, just like everyone else

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Multisegment

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More than one target market, with a seperate marketing mix for each. Beware of cannibalization.

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Cannibalization

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Sales are coming from existing lines, making them undesirable

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Positioning

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Where your product or company fits in the mind of the customer. Ex. When you think of shipping, you think of UPS.

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Repositioning

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Change where you are in the customers mind, if you can. It is easier to expand a position, rather than change it.

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Product

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All the tangibles and intangibles a customer receives in an exchange

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Convenience product

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Usually relatively inexpensive, routinely purchased with little shopping effort. Ex you need a tire right now, you'll settle for a different brand from the one you are loyal to because it is convenient and faster.

question

Shopping product

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More expensive, less intense distribution, requires some shopping effort

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Homogeneous shopping product

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All basically the same, price is the key. A washer is a washer

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heterogeneous shopping product

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Identifiable differences such as style, quality, image Ex. Clothing, Furniture

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Specialty product

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Perceived as unique, brand loyal, will accept no substitutions Ex. A rolex or Royals Royce

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Unsought product

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A plumber, cemetary plot Not out looking for it until you need it.

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Product item

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specific version of a paticular product or service Ex. V8, a specific item in a line

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Product line

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Group of closely related product items Ex. Campbell's, line of soups

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Product Mix

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Everything is included

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Product mix width

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How many lines do you have

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Product line depth

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How many items are in the line

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Product modification

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Functional improvement or change in style Ex. eliminating trans fats

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Line extension

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Adding new products to a line

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Line contraction

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Getting rid of the DAWGS, bad products

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Brand

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Use of name or term or symbol or design to identify a product.

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Brand name

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The word Cadillac

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Brand Mark

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The nike swoosh

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Logo

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A symbol or script of the name Ex. How ford writes their name

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Trademark or service mark

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Legally protected brand name, logo, phrase, mark Ex. Cadillac's name is not protected but you cant use their script or crest

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Brand equity

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reputation or loyalty for which customers are willing to pay more

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Generic Product

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No physical difference Asprin, sugar, all the same

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Generic brand

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No brand Ex. physically just says ketchup

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Generic product name

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Common name, which used to be trademarked but is no longer Ex. Cadillac never trademarked

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Manufacturer's brand

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named by its producer who distributes it Ex. Kellogg's

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Private brand

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Brands specific to specfic stores, Baer at Home Depot

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Individual brand

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Different names for different products Ex. General mills: betty crocker, biscuick

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Family Brand

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Same band name identifies different product items in product lines Ex. Craft: cheese, Philadelphia,

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Master brand

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Positioning of the brand is synonymous with the category itself Ex. bleach: Clorox, Ketchup: Hines

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Co-Branding

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Dell computers with Intel inside

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New to the world products

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New products that change the world

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Idea generation

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This is where you start, take ideas come from customers and employees

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Idea screening

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Double check that the compatibility with the organization's objectives and markets and overall new product strategy

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Concept tests

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Cheap, run as a focus group of potential customers

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Story Boards

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Sunday comic style simulation of a tv ad so you can get the point across and see it visually, much more cheaper and faster than running an ad and realizing its a dud.

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Business analysis

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What is the impact on the present line? Will it cannibalize your other products?

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Development

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Making a prototype, maybe testing in a lab with potential customers

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Test marketing

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Introduce into limited areas to monitor reactions of potential customers to the product and marketing program in an actual market situation. Be sure this is the product you want to create to insure you don't loose anymore money

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Simulated market test

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evaluates one variable comparisons vav competitive offering Ex. a retail ad, only works for comparisons of sales of coke and Pepsi

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Commercialism

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Full scale market launch, 90% of the products that have made it to commercialism fail within a year, 90% fail before reaching commercialism

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Innovators

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2%, young, better educated, higher income, more cosmopolitan, they are eager to try new things, they are the first to try it, they are different, ad they help get the product out there.

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Early adopters

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14% more oriented to social community norms. Respected by others, opinion leaders, will affect many

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early majority

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34% More deliberate, collect info from scientific evidence, will affect many, look at alternatives. a middle class citizen

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Late majority

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34% Older, below average income and education for traditional

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Laggards

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16% suspicious of new ideas and products

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Non-adopters

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Never do adopt

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Intro stage PLC

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invest $ in hope of future profits. Advertising promo, primary demand "try the category" ONLY IF YOU'RE THE FIRST

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Growth Stage PLC

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sales grow fast and profits emerge, peak and then begin to decline. Advertising and promo, secondary demand, try my brand

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Maturity Stage PLC

answer

Early part: sales increase at decreasing rate Latter part: Sales begin to decline, niche entries appear Heavy advertising and promo to fight for market share and stave off declining stage

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decline stage

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new products replace old

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Supply chain

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Everything involved in moving materials to and within the production facility

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Marketing Channels

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Everything involved in moving the final product from the production facility to the final customer

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Accumulating

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Buying in small quantities to sell in large

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Bulk breaking

answer

Buy and produce in large quantities and sell smaller

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Discrepancies of assortment

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Combine products from several to many sources to be available at one location Ex. a whole seller of healthcare products available in drug stores, b2b Ex. A drug store and grocery b2c

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Temporal discrepancy

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Difference in time produced and time needed Ex. Seasonal items are produced around the year but you can outsource a warehouse to store it all in

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Channel intermediaries

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Retailers, drop shppers, rack jobbers, agents brokers

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retailers

answer

independently owned and take title to the goods the sell. Ex. Winn-Dixie owns the product they sell

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Drop shippers

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Take orders and have producer ship directly to buyer, never have posestion

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Rack jobbers

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Handle products and sections in the store that chain management don't want to do. Ex. greeting cards

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Agents or brokers

answer

Facilitators who handle selling and negotiating functions or who bring buyers and sellers together but who do not take title of the goods

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Levels of distrubution intensity

answer

intensive, selective, inventory control, JIT manufacturing

question

Intensive LDI

answer

everywhere potential cstomers may be inclined to buy Ex. impulse items

question

Selective

answer

limited number of outlets who will give product special attention and create superior product image Ex. panasonic only wants to be in a store of a good image

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Exclusive

answer

Most restrictive, for goods customers will go out of the way for Ex. Rolex, blue dog food

question

inventory control

answer

minimize inventory levels while maintaining adequate supply to meet customer and manufacturing reuirements

question

jit manufacturing

answer

Manufacture perspective, dell computers

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Total cost apprach

answer

minimizes costs of transportation and loss, damage, security, warehousing carrying inventory at a pre determined level of customer service

question

Air

answer

time of the essense, high value to weight,high security, minimum damage

question

Truck

answer

Time somewhat important, not as high value to weight, door to door delivery

question

rail

answer

Time less important, often low value to weight, heavy and bulky to inland areas

question

Water

answer

If available and time constraints not great an alternative to rail

question

Pipelines

answer

For products such as gas and oil, slow, dependable super cheap

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