question

marketing

answer

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large; activities buyers and sellers perform to facilitate mutually satisfying exchanges

question

What are the 4 eras marketing in the US has passed through?

answer

1) production - produce as much as you can, because there is a limitless market for it 2) selling - 1920s developed mass production techniques, and production capacity often exceeded immediate market demands, so companies emphasized selling and advertising to persuad consumers to buy existing products 3) marketing concept - 3 part business philosophy: customer, service, and profit orientation 4) customer relationship - learn as much as possible about customers and doing everything to satisfy them

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marketing concept

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1) customer orientation - find out what customers want and provide it for them 2) service orientation - customer satisfaction: total integrated organizational effort 3) profit orientation - focus on those goods and services that will earn the most profit and enable organization to survive and expand to serve more consumer wants and needs

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customer relationship management (CRM)

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process of learning as much possible about present customers and doing everything you can over time to satisfy them or exceed their expectations with goods and services

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marketing mix - 4 P's

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ingredients that go into a marketing program product price place promotion

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product

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any physical good, service or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of the consumers, such as the brand name

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test marketing

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process of testing products among potential users

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brand name

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word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors

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promotion

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all the techniques sellers use to inform people about and motivate them to buy their products or services; includes advertising, personal selling, public relations, publicity, word of mouth and various sales promotion efforts`

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marketing research

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analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions

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secondary data

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information that has already been compiled by others and published in journals and books or made available online; normally the least expensive method to gather info; gov publications, magazines, newspapers

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primary data

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data that you gather yourself i.e. interviews, surveys, observation, focus groups, questionnaires

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environmental scanning

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process of identifying factors that can affect marketing success including global, tech, sociocultural, competitive, and economic influences

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consumer market

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all the individuals or households that want goods and services for personal consumption or use

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business to business (B2B) market

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all individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent or supply goods to others

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market segmentation

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process of dividing the total market into groups whose members have similar characteristics

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target marketing

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marketing directed toward those groups (market segments) an organization decides it can serve profitably; shoe store may choose to sell only women's shoes, only children's shoes, or only athletics shoes

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geographic segmentation

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dividing a market by cities, countries, states, or regions

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demographic segmentation

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dividing market by age, income, and education level

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psychographic segmentation

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dividing market using groups values, attitudes, and interests

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benefit segmentation

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dividing the market by determining which benefits of the product to talk about

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volume segmentation

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dividing market by usage (volume of use); once you know who your customer base is, you can design your promotions to better appeal to that specific group or groups

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niche marketing

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process of finding small but profitable market segments and designing or finding products for them

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one to one marketing

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developing a unique mix of goods and services for each individual customer

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mass marketing

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developing products and promotions to please large groups of people

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relationship marketing

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marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements

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value

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good quality at a fair price; look at benefits and then subtract the cost to see if the benefits exceed the costs

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total product offer

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everything that consumers evaluate when deciding whether to buy something; also called a value package

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product line

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group of products that are physically similar or are intended for a similar market; diet coke, coke zero, diet vanilla coke

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product mix

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combination of product lines offered by manufacturing; i.e. P&G Tide, Era, Downy

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product differentiation

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creation of real or perceived product differences

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convenience goods and services

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products that consumer wants to purchase frequently and with minimum effort like candy, gum, milk, gas

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shopping goods and services

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products the consumer buys only after comparing value, quality, price and style from a variety of sellers

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specialty goods and services consumer products with unique characteristics

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consumer products with unique characteristics and brand identity; often marketed through specialty magazines

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unsought goods and services

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products consumers are unaware of, haven't necessarily thought of buying or suddenly find they need to solve an unexpected problem

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industrial goods

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products used in production of other products; sometimes called business goods or B2B goods; advertising less of a factor

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product screening

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reduces number of new product ideas a firm is working on at anyone time so it can focus on the most promising

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product analysis

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making cost estimates and sales forecasts to get a feeling for the profitability of new product ideas

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commercialization

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promoting a product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers

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product life cycle

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theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline

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target costing

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designing a product so that it satisfies customers and meets the profit margins desired by the firm

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competition based pricing

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pricing strategy based on what all the other competitors are doing; can be at, above, or below competitors' prices

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price leadership

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strategy by which one or more dominant firms set pricing practices all competitors in an industry follow

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break even analysis

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process used to determine profitability at various levels of sales; break even point is point where revenues from sales equal all costs; (total fixed costs)/(price of one unit - variable costs of one unit)

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total fixed costs

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all expenses that remain the same no matter how many products are made or sold

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variable costs

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costs that change according to level of production

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skimming price strategy

answer

strategy in which a new product is priced high to make optimum profit while there's little competition

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penetration strategy

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strategy in which a product is priced low to attract many customers and discourage competition because profits are slim; enables the firm to penetrate or capture a large share of the market quickly

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everyday low pricing (EDLP)

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setting prices lower than competitors and then not having any special sales

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high-low pricing strategy

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setting prices that are higher than EDLP stores but having many special sales where the prices are lower than competitors' prices

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psychological pricing

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pricing goods and services at price points that make the product appear less expensive than it is ($2.99 rather than $3.00)

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marketing intermediaries (middlemen)

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organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumer (B2C)

question

channel of distribution

answer

whole set of marketing intermediaries such as agents, brokers, wholesalers, and retailers that join together to transport and store goods in their path from producers to consumers

question

agents/brokers

answer

marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods; real estate agent

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wholesaler

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marketing intermediary that sells to other organizations such as retailers, manufacturers, and hospitals

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retailer

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organization that sells to ultimate consumers

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utility

answer

in economics, the want satisfying ability or value that organizations add to goods or services

question

time utility

answer

adding value to products by making them available when they're needed; retailer, grocery store open 24 hrs

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place utility

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adding value to products by having them where people want them

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possession utility

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doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow up service

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information utility

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adding value to products by opening two way flows of information between marketing and participants

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service utility

answer

adding value by providing fast, friendly , service, during and after the sale and by teaching customers how to best use products over time

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merchant wholesalers

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independently owned firms that take title to the goods they handle; about 80% wholesalers fall in this category

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rack jobbers

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wholesalers that furnish racks or shelves full of merchandise to retailers, display products and sell on consignment, meaning they keep title to the goods until they're sold and then share the profits withe retailer

question

cash and carry wholesalers

answer

wholesalers that serve mostly smaller retailers with a limited assortment of products; traditionally paid cash to wholesalers, and carried goods back to stores

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drop shippers

answer

wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer

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intensive distribution

answer

distribution that puts products into as many retail outlets as possible, including vending machines; goods like candy, gum and magazines are examples of products

question

electronic retailing

answer

selling goods and services to customers over the internet

question

social commerce

answer

form of electronic commerce that involves using social media and user contributions to assist in the online buying and selling of products and services

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telemarketing

answer

sale of goods and services by phone

question

direct selling

answer

selling to consumers in their homes or where they work

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direct marketing

answer

any activity that directly links manufacturers or intermediaries with the ultimate consumer; direct mail, catalogs, online marketing

question

corporate distribution system

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one firm owns all the organizations in the channel of distribution; owns its retail stores and coordinates everything from pricing, promotion, inventory control

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contractual distribution system

answer

members are bound to cooperate through contractual agreements i.e. franchises like McDonalds, wholesaler sponsored chains like Ace Hardware, retail cooperatives

question

administered distribution system

answer

producers manage all the marketing functions at eh retail level; Kraft cheese

question

supply chain

answer

all the linked activities various organizations must perform to move goods and services from sources of raw materials to ultimate consumers; longer than channel of distribution because it includes links from suppliers to manufacturers whereas channel of distribution begins with manufacturers

question

supply chain management

answer

process of managing the movement of raw materials, parts, work in progress, finished goods, and related info through all the organizations involved in the supply chain; managing the return of such goods, if necessary and recycling materials when appropriate

question

logistics

answer

marketing activity that involves planning, implementing, and controlling of physical flow of materials, final goods, and related info from points of origin to points of consumption to meet customer requirements at a profit

question

inbound logistics

answer

area of logistics that involves bringing raw materials, packaging, other goods, and services and info from suppliers to producers

question

materials handling

answer

movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations

question

outbound logistics

answer

involves managing the flow of finished products and information to business buyers and ultimately to consumers

question

reverse logistics

answer

managing flow of bringing goods back to manufacturer because of defects or recycling materials

question

freight forwarder

answer

organization that puts many small shipments together to create a single large shipment that can be transported cost effectively to the final destination by truck or train

question

A good percentage of the total cost of logistics is for ___________

answer

storage. this includes the cost of the storage warehouse (distribution facility) and its operation, plus movement of goods within the warehouse

question

promotion mix

answer

combination of promotional tools an organization uses

question

integrated marketing communciations (IMC)

answer

combines the promotional tools into one comprehensive, unified promotional strategy

question

advertising

answer

paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message; ID of sender separates advertising from propaganda

question

retail advertising

answer

advertising to consumers by various retail stores such as supermarkets and shoe stores

question

product placement

answer

putting products into TV shows, movies, and other media where they will be seen

question

infomercial

answer

full length TV program devoted exclusively to promoting a particular good or service; show product and how it works ing reat detail

question

interactive promotion

answer

allows marketers to go beyond monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships

question

personal selling

answer

face to face presentation and promotion of goods and services, including the salesperson's search for new prospects and follow up service after the sale

question

prospecting

answer

first step in selling process in which you research potential buyers and choose those most likely to buy

question

qualifying

answer

in the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to sales messages

question

trial close

answer

step in selling process that consists of a question or statement that moves the selling process toward the actual close; question or statement

question

public relations

answer

the function that evaluates public attitudes, changes policies and procedures in response to the public's requests and executes a program of action and information to earn public understanding and acceptance

question

publicity

answer

any information about an individual, product, or organization that's distributed to the public through the media and is NOT paid for or controlled by the seller

question

sales promotion

answer

promotional tool that stimulates consumer purchasing and dealer interest by means of short term activities

question

sampling

answer

promotional tool in which company lets consumers have a small sample of a product for no charge

question

word of mouth promotion

answer

promotional tool that involves people telling other people about products they've purchased

question

viral marketing

answer

any strategy that encourages people to pass on marketing message to others, creating exponential growth in the message's influence as the message reaches thousands to millions

question

podcasting

answer

means of distributing digital files on the internet for downloading to a portable media player

question

push strategy

answer

promotional strategy in which producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

question

pull strategy

answer

promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they'll request the products from retailers

question

True or False: The most important component of the marketing mix is the actual design and production of the product.

answer

False. The marketing mix involves decisions about product development, pricing, distribution, and promotion. However, the actual production process is not part of marketing.

question

True or False: Marketing research usually begins with secondary data because it is more accurate and more relevant than primary data.

answer

False, Marketers often do look at secondary data first, but not because it is more accurate and relevant. The main advantage of secondary data is that it is already published and is less expensive than primary data.

question

True or False: Marketing goods and services to the B2B market relies more heavily on advertising than marketing efforts aimed toward the consumer market.

answer

False. The strategies used in business-to-business markets are often quite different from those used in the consumer market because the buyers are so different. B2B buyers expect personal service, while advertising, a nonpersonal promotional strategy, can more effectively reach the large number of customers in the consumer market.

question

Comparing the business practices of the 1950s to those of today indicates that today's marketing managers: A) have a more ambitious goal of not just satisfying customers, but of exceeding their expectations. B) are much more focused on production and mass marketing. C) put less emphasis on earning a profit, since doing so makes it harder to satisfy the needs of the firm's stakeholders. D) operate essentially the same as their predecessors.

answer

A) have a more ambitious goal of not just satisfying customers, but of exceeding their expectations. Today, firms are trying to go beyond satisfying customers by forging close relationships with customers to provide products that exactly meet their requirements and a level of service that both surprises and pleases them.

question

Which of the following would be considered part of a firm's marketing mix? A) Identifying the best source of funds to finance a firm's marketing activities B) Determining the best pricing strategy for a product C) Establishing a production schedule that enables the firm to meet forecasted sales D) Designing the most efficient production plan

answer

B) Determining the best pricing strategy for a product The marketing mix involves: (1) designing a want satisfying product, (2) setting an appropriate price for the product, (3) distributing the product, and (4) promoting the product. It does not directly involve financing, production, or employment decisions. References

question

Good marketing research helps us identify what customers have purchased in the past and what they are likely to want in the future. Super Fun World is preparing to open its latest theme park in Shanghai. It will be collecting lots of information on what customers want while they are at the park. The marketing research company representing Super Fun might create original surveys with targeted questions that help it collect reliable information. This type of research is described by marketing professionals as the collection of _______. A) sequential data B) formative data C) primary data D) secondary data

answer

C) primary data Primary data is the collection of original information, by creating research techniques unique to this particular study. The creation of a survey is one type of primary data.

question

Which of the following represents an example of demographic segmentation? A) A firm producing recreational equipment divides its market into groups by region of the country, designing different products for people in different parts of the country. B) An automobile manufacturer offers different types of cars designed to appeal to different age groups and income levels. C) A motion picture company divides its market according to the attitudes and interests of its customers, marketing some films to people who enjoy action movies and targeting other movies to people who prefer romantic comedies. D) A company that produces food products has designed a special line of easy-to-prepare microwavable meals that are low fat and high in fiber to attract people interested in the health benefits of the foods they eat.

answer

B) An automobile manufacturer offers different types of cars designed to appeal to different age groups and income levels. Demographic segmentation divides a market according to factors such as age, income, or education. References

question

T/F: Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

answer

TRUE. Different products offered by El Trovodor's make up the company's product mix that it offers to its customers.

question

T/F: Consumers are best served by providing specialty goods in convenient locations.

answer

FALSE. Consumers actually expect to make an extra effort in acquiring specialty goods. They may be disappointed to find them too readily available.

question

T/F: Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

answer

FALSE. Different stages in the product life cycle call for different strategies.

question

T/F: Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.

answer

TRUE. Fixed costs are those costs that do not vary with changes to the level of production. Rent, insurance, and property taxes will certainly change from one time period to the next. However, these changes are not driven by changes to the level of production.

question

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider. A) total product offer B) product line C) competitive environment D) marginal utility package

answer

A) total product offer A total product offer consists of everything that consumers evaluate when deciding whether to buy something.

question

Borden, Inc., makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden's: A) product mix. B) product line. C) product differentiation. product life cycle.

answer

A) product mix. Product mix is the term used to describe the combination of product lines offered by a manufacturer.

question

Which of the following products would be considered an unsought good or service by a typical college student? A) college textbook B) pizza C) car towing D) cable television

answer

C) car towing An unsought good or service is an item that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem. College students (and most other people) don't recognize a need for car towing until their car breaks down or they have a wreck.

question

Which stage of the product life cycle does rapidly rising sales, very high profit levels, and a growing number of competitors characterize? A) growth B) maturity C) saturation D) decline

answer

A) growth Figure 14.6 shows that all of these factors tend to characterize a product in the growth stage of its product life cycle.

question

T/F: A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

answer

TRUE

question

T/F: The costs added by marketing intermediaries usually outweigh the value they create.

answer

FALSE

question

T/F: Marketing intermediaries concentrate on providing mainly form, time and place utility, while producers focus on the provision of possession, information, and service utility.

answer

FALSE

question

T/F: Jack Deck is a computer salesperson for a major retail electronics chain. When he advises customers to help them select a computer that will meet their needs, Jack is providing information utility.

answer

TRUE. By answering questions and offering advice, salespeople supply information to customers that enables them to choose a product that suits their needs. This creates value, or utility.

question

T/F: Water transportation has benefits and drawbacks; for example, it is inexpensive but slow.

answer

TRUE

question

The types of utility commonly provided by marketing intermediaries include: A) product, price, place, and promotion. B) time, place, possession, information, and service. C) retailing, wholesaling, brokering, and financing. D) cost, value, flexibility, use, and resale.

answer

B) time, place, possession, information, and service.

question

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist. A) brokers B) rack jobbers C) wholesalers D) sales discounters

answer

A) brokers

question

The highest-cost transportation method is: A) railroad. B) truck. C) ship. D) air.

answer

D) air.

question

T/F: Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.

answer

TRUE

question

T/F: Depending upon the promotional campaign, advertising may include paid and nonpaid forms of nonpersonal communication.

answer

FALSE. Advertising is paid

question

T/F: Businesses pay for product placement to have their products displayed in a TV episode of The Big Bang Theory or a feature movie.

answer

TRUE. Product placement refers to advertising dollars spent to put products into TV shows and movies where they will be widely seen.

question

T/F: Using effective public relations involves establishing a dialogue with customers so that information can be exchanged and trust can be developed.

answer

TRUE

question

T/F: Businesses always welcome publicity because it presents the name of the firm and its products to the public for free.

answer

FALSE. As the chapter clearly explains, not all publicity is good publicity.

question

Compared to other promotional tools, publicity: A) costs more. B) offers the firm little control over the message. C) prevents a response from competitive firms. D) is the easiest to manage.

answer

B) offers the firm little control over the message.

question

_________ refers to any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message. A) Publicity B) Promotion C) Public relations D) Advertising

answer

D) Advertising

question

pull strategy

answer

promotional

MGMT 1 Chapter 13-16 Marketing – Flashcards

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