question

Product

answer

Good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers needs and is received in exchange for money or something else of value

question

Product line

answer

Group of product or service items that are closely related because they satisfy a class of needs, are used together, sold to the same customer group are distributed through the same outlets, or fall in the same price range

question

Example of Product line

answer

Nike's product line includes shoes and clothing; Smuckers sells various flavors of jams, jellies and preserves

question

Stock Keeping Unit (SKU)

answer

Unique identification number that defines an item for ordering or inventory purposes

question

Test Marketing

answer

offering a product for sale in limited area for limited time

question

Product Repositioning

answer

Chancing the place a product occupies in a consumer's mind

question

Trading Up

answer

Adding value to a product through additional features

question

Trading Down

answer

simplifying a product offering by reducing the number of features

question

Packaging

answer

Container in which product is offered for sale

question

Label

answer

Identifies product and supplies essential product information (usually legally mandated)

question

Product Life Cycle

answer

Stages a product goes through in the market place

question

Product Bundling

answer

sale of 2 or more separate products in one package

question

Warranty

answer

statement indicating liability of the manufacturer for product deficiencies

question

Branding

answer

using a name, phrase, design, symbol, or combination of these to distinguish a product (or service) from others in the market place

question

Brand name

answer

Word or device (or combination)

question

Brand personality

answer

set of human characteristics associated with a brand

question

Brand Equity

answer

added value from a brand name beyond functional benefits

question

Trade name

answer

Commercial Legal name under which company does business

question

Trademark

answer

Legally registered trade name or brand name to protect exclusive use and help develop brand loyalty

question

2 types of Goods:

answer

Durable and Non Durable

question

Durable Good

answer

Lasting product

question

Non-Durable Good

answer

Perishable item (ex: food)

question

As products become more commoditized, how to companies differentiate themselves?

answer

By selling memorable customer experiences

question

Consumer Products can be separated into 4 classes

answer

1) Convenience 2)Shopping 3)Specialty 4)Unsought

question

Convenience Product

answer

Frequent purchase with minimum effort

question

Shopping product

answer

Compare options, considering price, quality and style

question

Specialty Product

answer

Special Effort to find and buy

question

Unsought

answer

Consumer is unaware of their need, and the product is unwanted

question

Industrial products are divided into 3 classes

answer

1)Derived 2)Components 3)Support Products

question

Derived Demand

answer

As housing market improves, demand for paint rises

question

Components

answer

Raw materials/parts

question

Support Products

answer

Used to help make other products and services

question

Product Mix

answer

All, most or many product lines offered by an organization

question

How does a broad product line benefit both consumers and retailers

answer

It enables bother consumers and retailers to simplify their buying decisions

question

A product is Considered new if:

answer

1)It is functionally different form existing products 2)Has not been on the market for longer than 6 months 3)Indicated by a level of innovation within the company 4)There is a degree of learning required by the customer

question

7 stages in the new product process

answer

1) New product Strategy and development 2) Idea generation 3) Screening and evaluation 4) Business Analysis 5) Development 6)Market Testing 7)Commercialization

question

Product LifeCycle

answer

Introduction, Growth, Maturity, Decline

question

Introduction

answer

Consumers gain awareness as the product is released into the market

question

Growth

answer

Producers stress differentiation (how their product stands out)

question

Maturity

answer

Producers attempt to maintain brand loyalty

question

Decline

answer

As profits decrease, producers harvest what is left and eventually delete the product

question

Example of a high-learning product

answer

Microwave oven/ fancy camera

question

Example of a low-learning product

answer

Razor/ ketchup squeeze bottle

question

Example of a Fashion Product

answer

Stiletto Heels, bell bottoms

question

Example of a fad prodcut

answer

Beanie babies, yo-yos

question

A brand name should:

answer

1)Suggest product benefits 2)Be memorable, distinctive, positive 3)Fit company or product image 4)Have no legal or regulatory restrictions 5)Be simple 6)Be emotional

question

3 benefits of Packaging

answer

1)Communication Benefits 2)Functional benefits 3)Perceptual Benefits

question

Communication benefits of packages

answer

Directions for use, required information (nutritional facts)

question

Functional Benefits of packaging

answer

Protection, product quality, storage tamper resistance

question

Perceptual Benefits of packaging

answer

Brand recognition, image, country of origin bias

question

Brand Personality

answer

set of human characteristics associate with a brand-differentiates a product

question

5 categories of product adopters

answer

1)Innovators 2)Early Adopters 3)Early Majority 4)Late Majority 5)Laggards

question

Innovators

answer

Venturesome, higher educated, use multiple info sources

question

Early Adopters

answer

Leaders in social settings, slightly above average education

question

Early Majority

answer

Deliberate, many informal social contacts

question

Late majority

answer

Skeptical, below average ed

question

Laggards

answer

fear of debt, neighbors and friends are info sources

question

Brand positioning in terms of increasing strength

answer

Product Attributes--> Desirable benefit--> Beliefs and Values

question

Trading up

answer

adding value to a product through additional features

question

Trading down

answer

simplifying the product by reducing the umber of features (downsizing)

question

Multi-product branding strategy ex

answer

Toro (snowblowers, lawn mowers, garden hoses etc)

question

Multibranding strategy ex

answer

Procter and Gamble (tide, cheer, ivory snow, bold)

question

Private branding strategy

answer

Sears (kenmore, craftsman, diehard batteries)

question

Mixed Branding strategy ex

answer

Michelin: michelin tires and Sears Tires; Epson: epson printers and IBM printers

question

Price

answer

money or other negotiable instrument exchanged for the ownership or use of a product or service

question

Barter

answer

exchange of goods/services; money is not used

question

Value

answer

consumers perceived benefit from product/service (quality, durability)

question

Total Revenue

answer

Total money received from the sale of the product

question

average revenue

answer

average amount of money received from selling one unit of product

question

Marginal revenue

answer

change in total revenue from producing/mktg one additional unit of that product

question

total cost

answer

total expense incurred by a company to produce and market a product

question

variable cost

answer

a company's expenses that change directly with the quantity of product produced and sold

question

fixed cost

answer

overhead=company's expenses that are stable and d o not change with quantities of product produced and sold

question

marginal cost

answer

change in total cost from producing one more unit of product

question

Price fixing

answer

conspiracy among companies to set prices for a product; illegal in the US

question

Price discrimination

answer

charging different prices to different buyers for the same products

question

predatory pricing

answer

charging a very low price in order to drive competitors out of business

question

Demand Curve

answer

curve on a graph showing number of units consumers will buy in a given time period at different prices that might be charged

question

price elasticity of demand

answer

a measure of the sensitivity of demand to changes in price

question

break-even analysis

answer

analysis of relationship between total cost and total revenue to determine profitability at various levels of production

question

discount

answer

straight reduction in price of purchases during stated period of time

question

allowance

answer

promotional money paid by manufacturers to retailer in return for featuring mfg-ers products

question

FOB pricing

answer

geographical pricing strategy where goods are placed Free On Board a carrier; customer pays freight from factory to destination

question

CIF pricing

answer

includes Cost + Insurance + Freight

question

Uniform Delivery pricing

answer

geographical pricing strategy where company charges same price including freight to customers regardless of location

question

Skimming pricing

answer

setting a very high initial price for a new or innovative product

question

Penetration pricing

answer

setting a low initial price on a new product to appeal quickly to the mass market

question

Prestige pricing

answer

setting a high price to attract quality- or status-conscious consumers

question

Price lining

answer

setting prices for a line of products at a number of different price points

question

odd-even pricing

answer

pricing a few center/dollars below an even number (11.99 rather than 12.00)

question

Target pricing

answer

working backwards from price consumers are though to be willing to pay

question

Bundle pricing

answer

marketing 2 or more products or services in a single package price

question

yield management pricing

answer

pricing in differentiated categories to maximize revenue for finite capacity commonly used by airline

question

standard mark-up pricing

answer

adding a fixed percentage to the cost of all items in a specific product category

question

cost plus

answer

market up pricing-adding a specific amount to the cost of providing a product or service common in some professions and in construction

question

experience curve pricing

answer

pricing based on experience that unit cost of a particular product or service declines 10-30% each time a company's experience at producing and selling them doubles, used in electrionics

question

target profit pricing

answer

pricing to achieve a target of a specific $ volume of profit

question

Target return on sales pricing

answer

pricing to return a profit of a specified percentage of sales, used by some supermarket chains

question

Target return on investment priving

answer

pricing to meet a target of a particular return on investment commonly used by public utilities. (aka break even pricing)

question

Customary pricing

answer

pricing levels set by tradition, a standardized channel of distribution or some other competitive factor

question

Above-at-or-below market pricing

answer

pricing strategy in relation to competitors or market leaders

question

loss-leader pricing

answer

intentionally pricing below customary price in order to entice customers into the sales venue where they will be tempted to buy other goods in addition to the loss leader

question

one price policy

answer

fixed pricing--> setting one price for all buyers of a product or service

question

Flexible price policy

answer

setting different prices for products/services depending on individual buyers and purchase situations (aka dynamic pricing)

question

Types of price

answer

tuition, rent, interest, premium, fee, dues, fare, salary, wage, commission

question

Value

answer

perceived benefits/price

question

value pricing

answer

increasing product and/or service benefits + maintaining or decreasing price

question

Profit

answer

Total revenue-total cost

question

Total rev

answer

unit price X quantity sold

question

Total cost

answer

fixed cost + variable cost

question

6 steps of setting a price

answer

1)ID pricing objectives 2)Estimate demand and revenue 3(Determine cost, volume, profit relationships 4)Select approximate price level 5)set list or quoted price 6)Make special adjustments to list or quoted price

question

Objectives of pricing

answer

profit, sales, market share, unit volume, survival, social responsibility

question

Pricing constraints

answer

market size/demand, newness/life cycle, strength, cover cost of production and marketing, lag time, type of competitive market

question

Average Revenue equation

answer

Total revenue/quantity of units sold

question

Marginal revenue equation

answer

change in Ttle rev/1 unit increase in Quantity

question

Price elasticity of demand

answer

a measure of the sensitivity of demand to changes in price

question

Inelastic items

answer

necessities like toothpaste, open heart surgery

question

Elastic items

answer

luxuries like yachts, ski vactions

question

Breakeven point

answer

where total cost equals total revenue

question

profit is maximized where...

answer

marginal cost=marginal revenue

question

4 approaches to selecting the price level

answer

1)demand oriented 2)cost oriented 3)profit oriented 4)competition oriented

question

Communication

answer

process of conveying message to others

question

source

answer

company/person with information to convey

question

message

answer

information sent by a source

question

channel of communication

answer

who/what conveys the message (eg sales person advertising media, PR tools)

question

Receiver

answer

consumer who reads, sees, hears the message

question

encoding

answer

process of having the sender transform an idea into a set of symbols

question

Decoding

answer

process of having the receiver interpret the message

question

Field of experience

answer

mutually shared understanding that will facilitate appropriate understanding of massages

question

response

answer

reactions of receiver after receiving message

question

feedback

answer

part of the receivers response communicated back to the sender

question

noise

answer

interference with effective communication/interpretation

question

Product life cycle

answer

course of a product's sales and profits over it's lifetime

question

channel strategies

answer

selection of the most effective channel to communicate the message to the target market

question

promotional objectives

answer

what the communication/message aims to accomplish (eg: use of models ranking progressive stages of consumer awareness action)

question

Promotional budget setting

answer

how much to spend on each element of the promotion mix

question

product placement

answer

consumer sales promotional tool that uses a brand name product in a move, tv show video game or commercial for another product

question

Owned Social media

answer

conversations on social media you control

question

earned social media

answer

conversations on social media outside your control

question

5 elements of Marketing communications

answer

1)promotion 2)personal selling 3)Direct marketing 4)PR and Publicity 5)advertising

question

Advertising includes

answer

print, broadcast, internet, outdoor etc

question

public relations includes

answer

press releases, sponsorships, special events etc

question

Direct marketing includes

answer

catalogs, telemarketing, kiosks, internet etc.

question

Personal selling includes

answer

sales presentations, trade shows, incentive programs etc

question

sales promotions include

answer

premiums, discounts, coupons etc

question

2 types of advertising

answer

product advertisements and institutional advertisements

question

product advertisements

answer

focus on selling product/service

question

institutional advertisements

answer

aims to build goodwill or an image for an organization; often used to support public relations plan or counter adverse publicity

question

Reach

answer

number of different people/households exposed to an ad

question

frequency

answer

number of times person in target audience is exposed to an ad

question

rating

answer

% of households in market tuned to particular tv show or radio station (reach for radio and TV)

question

Gross rating points

answer

reach (as % of total mkt) X frequency = commonly used reference number to judge success of campaign

question

cost per thousand (CPT)

answer

cost of reaching 1000 individuals/households with ad massage in a given medium

question

Media options

answer

TV, Radio, Magazines, Newspapers, yellow pages, internet, outdoor (billboards), direct mail

question

Sales Management

answer

planning the selling program and implementing and evaluating the company's personal selling effort

question

Customer sales support

answer

help sales efforts of order getters

question

missionary salespeople

answer

promote products and introduce new products; don't usually sell directly themselves; especially in pharmaceutical industry

question

team selling

answer

cross-functional team work, especially in complex technological situations; specialized knowledge is needed

question

Closing

answer

getting the order from the customer

question

sales quota

answer

specific sales goals assigned to a salesperson, team, branch office, etc, for a stated time period

question

Sales plan

answer

statement of what sales are to be achieved, and where and how salespeople will be deployed

question

Key account management

answer

team selling focus on important customers, in order to foster long-term relationship

question

Emotional intelligence

answer

ability to understand one's own emotions and the emotions of people with whom one interacts daily

question

Publicity

answer

non-personal, indirectly paid presentation of an organization, product or service; most frequently-used public relations tool

question

Publicity tools

answer

methods of obtaining non-personal presentation of an organization, product or service without direct cost; e.g. news releases, news conferences, public service announcements

question

Advantage of publicity

answer

credible

question

Disadv to publicity

answer

lack of control

question

Direct orders

answer

result of offers containing all info necessary for prospective buyer to make purchase decision, and complete transaction

question

Lead generation

answer

result of offer intended to generate interest in product/service, and request additional info

question

traffic generation

answer

outcome of offer to motivate people to visit a business

question

Push strategy

answer

directs marketing activities at resellers, to make customer aware at point of purchase, e.g. p.o.p. displays

question

Pull strategy

answer

encourages the customer to seek out your brand, to stimulate customer demand, e.g. advertising, mass media, word of mouth

question

AIDA

answer

awareness, interest, desire, action

question

Marketing channel

answer

individuals & companies involved in in the process of making a product or service available for use or consumption by consumers or other businesses

question

Vertical Marketing systems

answer

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

question

Horizontal Marketing systems

answer

channel arrangement where two or more companies at one level join together to follow a new marketing opportunity

question

Logistics

answer

activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

question

Supply chain managment

answer

integration & organization of information & logistics activities ACROSS companies in a supply chain, for the purpose of creating & delivering products & services that provide value to final consumers

question

Lead time

answer

lag from ordering an item until it is received and ready for use or sale = order cycle time

question

Freight forwarder

answer

companies that accumulate small shipments into larger lots, then hire a carrier to move them, usually at reduced rates

question

Distribution center

answer

large, highly automated warehouse designed to receive goods from various suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

question

Materials handling

answer

moving goods in and out of warehouses, and around inside factories and warehouses

question

Back order

answer

order for an item currently out of stock

question

retailing

answer

all activities involved in selling, renting, and providing services to ultimate consumers for personal, family or household use

question

Category killer

answer

product/service/brand/company that has such strong competitive advantage that would-be competitors find it almost impossible to operate profitably in that industry/area

question

Scrambled merchandise

answer

mix of unrelated products offered for sale by a retailer; these products are often not related to the retailer's original or usual range of products; increased WIDTH of assortment

question

Hyper market

answer

very large store (> 200,000 square feet) that offers comprehensive range of food and non-food products

question

Electronic Data interchange

answer

combination of proprietary computer & telecommunication technologies to exchange electronic invoices, payments, & info among suppliers, manufacturers, & retailers

question

Value delivery network

answer

company, suppliers, distributors, and consumers, who 'partner' with each other to improve the performance of the entire system

question

Multichannel marketing

answer

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and on line

question

Slotting allowances

answer

fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their products placed on their shelves

question

3rd party logistics providers

answer

companies that perform all or most of the logistical functions that manufacturers, suppliers and distributors would otherwise perform themselves

question

Just-in-time

answer

inventory supply system that operates with very low inventories and requires fast, on-time delivery

question

Vendor Managed inventory

answer

inventory management system whereby the supplier determines the product amount and assortment a customer (e.g. retailer) needs, and automatically delivers the appropriate items

question

Reverse logisitics

answer

process of reclaiming recyclables and reusable materials, returns, and reworks from the point of consumption, or use for repair, remanufacturing, redistribution, or disposal

question

Online retailing

answer

retailing and selling via the internet

question

off-price retailing

answer

selling brand-name merchandise at lower than regular prices

question

Dual Distribution

answer

company uses two (or more) different channels at once to reach different customers with same basic product

question

Strategic Channel Alliances

answer

one company's marketing channel is used to sell another company's products (or services); e.g. Kraft distributes Starbucks coffee products

question

Transportation is evaluated based on

answer

cost, time, capability, dependability, accessibility, frequency

question

top 5 franchises in the world

answer

McDonald's, KFC, Burger King, Subway, 7-eleven

question

Planogram

answer

diagram of where to place products in store

question

Destination items

answer

places at back or center of store

question

impulse items are places

answer

on the way to or at checkout line

question

Eye-level-buy-level

answer

Consumers scan shelves left to right, starting at eye level, then work down.

question

Marketspace

answer

information- & communication-based electronic exchange environment mostly occupies by sophisticated computer & telecommunication technologies & digitized offerings

question

Choiceboard

answer

an interactive Internet-enabled system that allows individual customers to design their own products & services by answering a few questions, & choosing from a menu of product or service attributes, prices, & delivery options

question

Collaborative Filtering

answer

process that automatically groups people with similar buying intentions, preferences, & behaviors, & anticipates future purchases

question

Personalization

answer

consumer-initiated practice of generating content on a marketer's web site, that is custom-tailored to an individual's specific needs & preferences

question

Customerization

answer

customizing a product/service, and also personalizing the marketing & overall shopping & buying interaction for each customer

question

Dynamic Pricing

answer

changing prices for products & services in real time in response to supply & demand conditions

question

Bots

answer

electronic shopping agents, robots, that comb web sites to compare prices & product/service features

question

8-second rule

answer

view that customers will give up their efforts to enter & navigate a web site if download time > 8 seconds

question

Web communities

answer

web sites that allow people to congregate on line and exchange views on topics of common interest

question

Blog

answer

web page serves as a personal journal for an individual or organization

question

Cookies

answer

computer files that a marketer can download onto the computer or smart phone of an online shopper who visits the marketer's web site

question

Interactive marketing

answer

2-way buyer-seller electronic communication in a computer-mediated environment, where buyer controls the type and amount of information received from the seller

question

Opt-in (permission marketing)

answer

solicitation of a consumer's consent to receive email and advertising based on personal data supplied by the consumer

question

Opt out

answer

change (or cancel) the kind, amount, or timing of electronic information sent to consumer

question

Customer experience

answer

= internal response that customers have to all aspects of an organization & its offering

question

Webrooming

answer

online customer who researches products on line, then purchases them at a retail store

question

Showrooming

answer

customer visits stores to examine products before buying them on line, at a lower price

question

Click and mortar companies

answer

= traditional brick-and-mortar companies that have added e-marketing to their operations

question

Click only companies

answer

companies that ONLY operate online, without any brick-and-mortar presence

question

interactive marketing

answer

relies on customers expressing their preferences, so that marketers can produce more relevant marketing messages. 2-way buyer-seller electronic communication

question

Individuality

answer

marketers treat customers as individuals, and facilitate their integral participation in the aspects of the marketing interaction not previously available to individual customers, e.g. customers can tell marketers what they like/want on a regular basis, and marketers can accommodate these preferences in the normal course of doing business.

question

Why do consumers shop and buy online?

answer

1) convenience 2)Choice 3)customization 4)Communication 5)Cost 6) Control

question

Strategy

answer

organization's long-term course of action designed to deliver value to customer while achieving organization's goals

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