Marketing Fundamentals – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing
answer
An organized system of activities designed to get the money out of someone else's pockets and into yours
question
Exchange
answer
Trading something of value to receive something perceived to be of greater value
question
Production Orientation
answer
Focus on internal capabilities of the organization and what it can most readily produce
question
Sales Orientation
answer
Employment of a sales force and aggressive sales tactics to push that which the organization can most readily produce
question
Marketing Orientation
answer
Focus on the wants and needs of the target customers, and create offerings to satisfy those wants and needs
question
Societal Marketing Orientation
answer
Extend the Marketing Orientation to have the organization committed to contributing to the best interests of customers and society
question
Marketing Concept
answer
The foundation of a Societal Marketing Orientation: Satisfy the wants and needs of target customers and contribute to the best interests of customers and society, while simultaneously achieving the organization's objectives
question
Preconventional Morality
answer
Child state/Instant gratification
question
Conventional Morality
answer
Do It because everyone else does
question
Postconventional morality
answer
Enlightened self-interest consistent with your own ethically-focused personal value system
question
External Marketing Environment
answer
All elements (Social, demographic, economic, technological, political-legal, competition) outside the organization, aka Uncontrollable variables
question
Environmental management
answer
Actions taken by the organization to shape and influence the "Uncontrollable" variables
question
Consumer Product Safety Commission (CPSC)
answer
Protects the health and safety of consumers using products in and around the home
question
Federal Trade Commission (FTC)
answer
Prevents unfair trade practices including anti-trust and deceptive advertising
question
Corrective Advertising
answer
Clarify Statements believed misleading
question
Food and Drug Administration (FDA)
answer
Safety of Food and Drug products
question
Culture
answer
Values, norms, attitudes, behaviors, and other meaningful behaviors and symbols that characterize a nation or people
question
Global Marketing Standarization
answer
Selling the exact same product everywhere in the world
question
Tariff
answer
Tax levied on goods entering a country
question
Quota
answer
Limit on amount of a specific product that can enter a country
question
Boycott
answer
By nations: Exclusion of all products from certain nations or organizations. By individuals or groups: Refusal to buy products from certain nations or organizations
question
Exchange Control
answer
Impediments or outright inability to convert a nation's currency into convertible currencies such as dollars or euros.
question
Market Grouping
answer
Two or more nations working together to form a common trade area
question
Trade Agreement
answer
An agreement by two or more nations to stimulate international trade by minimizing or eliminating tariffs, quotas, boycotts, and exchange control
question
Licensing
answer
Legal process permitting another firm to use an organization's manufacturing processes, trademarks, patents, and other proprietary knowledge
question
Contract Manufacturing
answer
Outsourcing your manufacturing function to a foreign (or domestic) firm
question
Joint Venture
answer
Two organizations working together to create a new business entity
question
Direct Investment
answer
Buying out another firm or starting your own from the ground up, with your organization having total ownership
question
Need Recognition
answer
Difference between where you're at and where you'd like to be
question
Information Search
answer
May be conscious or unconscious
question
Evaluation of Alternatives
answer
When information search is completed (at least for the time being)
question
Evoked Set
answer
What's "In the pool" for consideratin
question
Purchase
answer
Based on product attributes or, perhaps predominantly, intangibles and image
question
Cognitive Dissonance
answer
Tension/anxiety about the purchase decision
question
Routine Response Behavior
answer
Least Complex, Low Involvement
question
Limited decision-making
answer
Moderately quick limited-consequence decision
question
Extensive decision-making
answer
Major decision, significant risk-consequences
question
Subculture
answer
Groups of consumers with similar component lifestyles
question
Component lifestyle
answer
What do you do on a Saturday night?
question
Reference group
answer
Groups that influence and individual's AIO's (Activities/Interest/Opinion) and purchasing behavior
question
Primary membership group
answer
Meet with regularly and face-to-face (family, friends, co-workers)
question
Secondary membership groups
answer
meet with less frequently, more formally (professional associations, clubs)
question
Direct Membership group
answer
Actually belong to it
question
Indirect aspirational group
answer
Desire to belong/Want to emulate
question
Nonaspirational group
answer
Want nothing to do with it or its members
question
Selective Exposure
answer
Choose which stimuli to see/not see
question
Selective perception
answer
Notice certain stimuli/fail to notice others
question
Selective distortion
answer
Distort what you hear to make it consistent with preconcieved attitudes/beliefs
question
Selective retention
answer
Only remember that which is consistent with feelings/beliefs
question
Decision support system (DSS)
answer
In-house data and information system
question
Marketing research
answer
Process of planning/collecting/analyzing data relevant to a specific marketing decision
question
Define problem:
answer
What is happening/what should be happening
question
Situation analysis
answer
What are we doing/what's happening in the external environment
question
Tentative hypothesis
answer
Cause-and-effect relationships
question
Secondary data
answer
What information is already available, in-house or on-line
question
Plan research design
answer
Questions to be answered/how-what data to be collected-analyzed
question
Collect primary data
answer
Precisely relevant to the problem at hand
question
In-home interview
answer
Comfy setting/can show-tell-demonstrate
question
Mall intercept
answer
Questionably representative, but can still show-tell-demonstrate
question
Telephone interview
answer
High refusal rate and the cell phone problem, but quick-and-dirty
question
Mail survey
answer
Low quality, low cost
question
Executive interview
answer
B-2-B equivalent of an in-home interview
question
Focus group
answer
Loosely-structured interview with 7-10 people discussing product/concept/issues
question
Watching customers
answer
Traffic patterns, shopping habits, how customers use product
question
Mystery shoppers
answer
See how employees deal with customers, especially demanding customers
question
EXPERIMENT
answer
Verify cause-and-effect relationships employing Scientific Method
question
Universe
answer
Total population of interest
question
Representative sample
answer
An exact proportional representation of the universe, in miniature
question
Probability sample
answer
Every element has known non-zero likelihood of being selected
question
Random sample
answer
Every element has an equal likelihood of being selected
question
Non-probability sample
answer
not Representative
question
Measurement error
answer
Information provided not reliable
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
Sample drawn from non-representative population
question
Random error
answer
Any sample will yield readings + or - the actual universe
question
External validity
answer
Everything about the research is done right, but results are not projectable to the real world
question
Strategic planning
answer
Managerial process of creating and maintaining a fit between the organization's objectives/resources and evolving market opportunities
question
Mission statement
answer
Defines the business mission by answering the questions "What business are we in?" and "Where are we going?"
question
Marketing myopia
answer
Narrow such statement defining the firm in terms of present products/services rather than the benefits customers seek
question
Strategic Business Unit (SBU)
answer
"Company within a company" that controls its business independently of other SBUs in the organization
question
SWOT (Strengths/Weaknesses/Opportunities/Threats) analysis
answer
Assess how you're doing, plus assess the external environment, to determine your competitive advantages, as a prelude to setting objectives
question
Star
answer
High share within a high growth segment
question
Problem child/Question mark
answer
Low share within a high growth segment
question
Cash cow
answer
High share within a low growth segment
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/present market
question
Market development:
answer
Present product/new market
question
Product development:
answer
New product/present market
question
Diversification:
answer
New product/new market
question
Marketing mix:
answer
The 4 Ps: Product/Place/Promotion/Price Implementation/evaluation/control: In bottom-up marketing, this is where you begin
question
Sacred cows
answer
All those formulas/beliefs/practices which built success in the past, but won't take you to the future.
question
Producers (aka Original equipment manufacturers = OEMs):
answer
Manufacture products/provide services used by business customers
question
Resellers:
answer
Buy finished goods/Sell to final customers or other business customers
question
Governments & Institutions:
answer
Including schools, health care facilities, public service organizations
question
North American Industrial Classification System (NAICS):
answer
Numbering system developed for NAFTA to use in classifying businesses by their predominant economic activity
question
Derived demand:
answer
Demand for consumer products drives demand for business products
question
Inelastic demand
answer
Item comprises a small percentage of final product cost
question
Joint demand
answer
1-to-1 relationship
question
Fluctuating demand (aka multiplier effect/aka accelerator principle)
answer
Drop in demand for final product has an inordinately strong effect on the marketing organization and its suppliers
question
Major equipment (aka Installations)
answer
Expensive capital goods that will last a long time
question
Accessory equipment
answer
Less expensiveâbut significantâgoods with a shorter life span
question
Raw materials
answer
Unprocessedâoften agriculturalâproducts
question
Component parts
answer
Finished items that become part of the final product
question
Processed materials
answer
Some processing/to be used in manufacturing final product
question
Supplies
answer
Consumables that do not become part of final product
question
Business services
answer
Outsource to specialists!
question
New buy
answer
New need/buying certain product-service for first time
question
Modified rebuy
answer
Modest change in specifications from current supplier/Same thing from different supplier
question
Straight rebuy
answer
Low-involvement reordering of same things from same vendor
question
Intangible
answer
Can't see/feel/taste prior to purchase
question
Inseparable
answer
Simultaneously sold/produced/consumed
question
Heterogeneous
answer
Often wide variation in performance of each individual service provider
question
Perishable
answer
Can't be warehoused/stored
question
Service quality
answer
Degree to which service performance matches customer expectations
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
question
Mass customization
answer
Application of technology to customize the offering within the cost-effective context of standardization
question
NONPROFIT PUBLIC SERVICE ORGANIZATIONS
answer
1. Start by defining objectives 2. Avoid over-generalized objectives 3. Possible challenge: May be dealing with apathetic or even strongly opposed target markets 4. In the marketing mix, seek to promote with PSAs = Public Service Announcements
question
Start with a market
answer
People/organizations who want/need your product/service and are qualified to buy
question
Break into market segments
answer
Subgroups with similar needs
question
Substantial
answer
Large enough to be profitable
question
Identifiable/Measurable
answer
Who/how many are there?
question
Accessible
answer
Can you reach them?
question
Responsiveness
answer
Each segment must respond differently to a marketing mix, or no need to segment
question
BASES FOR SEGMENTATION
answer
Geography Demographics Benefits sought/Usage rate (Often a function of other bases)
question
Psychographics
answer
Persons with similar personalities and motives tend to have similar component lifestyles
question
Geodemographics
answer
Particular neighborhoods feature similar psychographics and similar component lifestyles
question
Undifferentiated
answer
One product/one marketing mix for all customers
question
Concentrated
answer
Target a single segment most receptive to your differential advantage
question
Niche marketing aka Guerilla marketing
answer
Target a segment small enough to defend, small enough that the big guys won't mess with you
question
Majority fallacy:
answer
Go after the biggest segment, just like everyone else
question
Multisegment
answer
More than one target market, with a separate marketing mix for each
question
Cannibalization
answer
New product sales come out of existing lines
question
Positioning
answer
Where your product (or your company) fits in the mind of the customer and how you are differentiated vav the competition
question
Repositioning
answer
Change where you are in the customer's mind (if you can). Easier to expand a position than to totally change it
question
Product
answer
All the tangibles and intangibles a customer receives in an exchange
question
Convenience product
answer
Usually a relatively inexpensive item, routinely purchased with little shopping effort
question
Shopping product
answer
More expensive, less intense distribution, requires some shopping effort
question
Homogeneous shopping product
answer
All basically the same, price is the key
question
Heterogeneous shopping product
answer
Identifiable differences such as style/quality/image
question
Specialty product
answer
Perceived as unique: Brand loyal, will accept no substitutes
question
Unsought product
answer
Unknown/not aware of until need arises/made aware of
question
Product item
answer
Specific version of a particular product/service
question
Product line
answer
Group of closely-related product items
question
Product mix
answer
Composite list of everything offered by the firm
question
Product mix width
answer
Number of product lines
question
Product line depth
answer
Number of product items in a product line
question
Product modification
answer
Functional improvement or change in style
question
Line extension
answer
Adding new product items under an existing brand name
question
Line contraction
answer
Get rid of the dawgs, sooner, not later
question
Brand
answer
Use of a name/term/symbol/designâor any combination thereofâwhich identifies and differentiates a product
question
Brand name
answer
Words that can be spoken
question
Brand mark
answer
Symbols that cannot be spoken
question
Logo
answer
Symbol or script that represents the brand or the company
question
Trademark/Service mark
answer
Legally protected brand name/brand mark/logo/phrase
question
Brand equity
answer
Reputation/loyalty for which customers are willing to pay more
question
Generic product
answer
No physical difference among brands
question
Generic brand:
answer
No brand
question
Generic product name
answer
Common name, which may once have had trademark protection, now in the public domain
question
Manufacturer's brand
answer
Named by its producer, who distributes it wherever
question
Private brand
answer
Brand owned by retailer/wholesaler/other intermediary and only available there
question
Individual brand
answer
Different names for different products
question
Family brand
answer
Same brand name identifies different product items in product line(s)
question
Master brand
answer
Positioning of the brand is synonymous with the category itself
question
Co-branding
answer
2 or more brand names together
question
New-to-the world products (aka discontinuous innovations)
answer
Truly new products that change the world
question
NEW PRODUCT DEVELOPMENT PROCESS
answer
Idea Generation Idea Screening Concept tests focus group Storyboards Business Analysis Development Test Marketing Commercialization
question
CATEGORIES OF ADOPTERS (aka DIFFUSION PROCESS)
answer
Innovators (2%) Early adopters (14%; Total 16%) Early majority (34%; Total 50%) Late majority (34%; Total 84%) Laggards (16%; Total 100%) Non-adopters
question
Accumulating
answer
Buy up in smaller quantities and sell in large
question
Bulk-breaking
answer
Buy/produce in large quantities and sell in smaller
question
Discrepancies of Assortment
answer
Combine products from several-to-many sources to be available at one location
question
Temporal Discrepancy
answer
Difference in time produced and time needed
question
Drop shippers (a merchant wholesaler)
answer
Take order/Have producer-supplier ship directly to buyer
question
Rack jobbers (a merchant wholesaler)
answer
Handle products/sections in the store that chain management doesn't want to mess with
question
Agents/Brokers
answer
Facilitators who handle selling/negotiating functions or who bring buyers and sellers together, but who do not take title to goods
question
Independent retailer
answer
One--or a very few--units under the same ownership
question
Chain store
answer
Multiple units under the same ownership
question
Franchise
answer
Independent owner-operator licensed by larger support organization
question
Product & trade name franchising
answer
Contractual vertical marketing arrangement
question
Business format franchising
answer
Recognized name + expertise
question
Department store
answer
Large store organized into many separate departments
question
Specialty store
answer
Single-limited lines/High margin/High service
question
Supermarket
answer
Large departmentalized self-serve retailer that specializes in food and some non-food items
question
Scrambled merchandising
answer
Offering non-traditional goods such as cards/gadgets
question
Drug store
answer
Pharmacy-related items +++
question
Convenience store
answer
Limited lines/High margin/High turnover
question
Full-line discount store aka Mass merchandiser
answer
Moderate to low prices/Less atmosphere and service than department store/High volume and turnover
question
Category superstore aka Specialty discount store
answer
Single to very limited lines/Low prices/High turnover/More-or-less self service (Often--erroneously--called category killers)
question
Warehouse membership club
answer
Limited assortment/In bulk to members only
question
Off-price retailer
answer
Buy up manufacturers' overruns and unsold merchandise
question
Factory outlet store
answer
Vertically-integrated off-price retailer
question
Break-even analysis
answer
How many units must you sell at a given price to recover fixed costs
question
Price skimming (Profit maximization strategy)
answer
Come in with high initial price, lowering it when/if competition enters
question
Penetration pricing (Sales maximization strategy)
answer
Come in with low initial price to match or pre-empt competition
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
question
DAGMAR
answer
Defining advertising goals for measured advertising results
question
Point-of-purchase (POP) materials/Display equipment
answer
2x sales, especially important for discretionary impulse products
question
Trade allowances
answer
Price reduction/rebate/free merchandise for performance of some kind
question
Non-discretionary items
answer
Traffic builder
question
Discretionary items
answer
"Plus" business
question
Push money
answer
Financial incentives to inside salespeople in retail outlets
question
Conventions/Trade shows
answer
Industry get-togethers for B2B meeting & schmoozing
question
Push strategy
answer
Promo $ directed toward channel members-MUST do this if your product is undifferentiated/you are not a category leader
question
Pull strategy
answer
Promo $ directed toward ultimate consumer-MAY do this if your product has a competitive advantage/you are a category leade
