Marketing Final

gcannon007's version from 2016-05-03 18:53

Section 1

Question Answer
existing productsorganization can benefit by assessing the composition of the current product mix, a marketer can identify weaknesses and gaps
line extensiondevelopment of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs
product modificationchanging one or more characteristics of a product
3 Conditions to improve1. must be modifiable 2. customers must perceive a change has been made 3. change should make the product more consistent with customer's’ desires
3 Major ways to modifyquality, functional, aesthetic
7 phase process1. idea generation 2. screening 3. concept testing 4. business analysis 5. product development 6. test marketing 7. commercialization
idea generationseeking product ideas that will help them to achieve objectives
screeningchoosing the most promising ideas for further review
concept testingseeking potential buyers’ responses to a product idea.
business analysisevaluating the potential contribution of a product idea to the firm’s sales, costs, and profits.
product developmentdetermining if producing a product is technically feasible and cost effective
test marketingintroducing a product on a limited basis to measure the extent to which potential customers will actually buy it
commercialization deciding on full-scale manufacturing and marketing plans and preparing budgets
differentiationprocess of creating and designing products so that customers perceive them as different from competing products
3 physical aspectsproduct quality, product design and features, and product support services
positioning refers to the decisions and activities intended to create and maintain a certain concept of a firm’s product (relative to competitive brands) in customers’ minds
re-positioning evaluating the positions of existing products is important because a brand’s market share and profitability is strengthened by product repositioning
perceptual mapcreated by questioning a sample of consumers about their perceptions of products, brands, and organizations with respect to two or more dimensions
head-to-headmay be a marketer’s positioning objective if the product’s performance characteristics are at least equal to those of competitive brands and if the product is priced lower
3 ways to eliminatephase out, run out, drop
servicesusually provided through the application of human and/or mechanical efforts directed at people or objects.
intangibility a service that is not physical and cannot be touched
inseparability being produced and consumed at the same time
perishabilitythe inability of unused service capacity to be stored for future use
Heterogeneityvariation in quality
client based relationshipsinteractions that result in satisfied customers who use a service repeatedly over time
customer contactthe level of interaction between provider and customer needed to deliver the service
standardized packagedoffered when customized services can be expensive for both provider and customer, and when the face the dilemma
distribution Some customers go to a service provider’s facility, some services are provided at the customer’s home or business, some are delivered primarily at “arm’s length”
promotionThe intangibility of services results in several promotion-related challenges to services markets
performancePrices of pest-control services, dry cleaning, sports events, and physician’s consultation usually are based on performance of specific tasks.
timeattorneys, consultants, counselors, piano teachers, and plumbers
demand/peak demandwhen some services are very time-sensitive because a significant number of customers desire the service at a particular time.
bundleswhen services are offered to customers in a bundle, marketers must decide whether to offer the services at one price, price them separately, or use a combination of the two methods
product managerperson within an organization responsible for a product, a product line, or several distinct products that make up a group
brand managerperson responsible for a single brand
manager venture teamcross-functional group that creates entirely new products that may be aimed at new markets

Section 2

Question Answer
pricethe value paid for a product in a marketing exchange
price competitionemphasizes price as an issue and matching or beating competitor’s prices.
non-price competitionemphasizes factors other than price to distinguish a product from competing brands
pricing objectivesgoals that describe what a firm wants to achieve through pricing.
7 common objectivesSurvival, Profit, Return on Investment, Market Share, Cash Flow, Status Quo, and Product Quality
Target Mkt’s assessment of priceby assessing the target market’s evaluation of price, a marketer is in a better position to know how much emphasis to put on price in the overall marketing strategy.
valuemore than just a product’s price. It combines price with quality attributes, which customers use to differentiate between competing brands
break even analysis (FC/per-unit contribution to fixed costs) point at which the costs of producing a product equal the revenue made from selling the product
cost based pricing flat dollar amount or percentage is added to the cost of the product, which means marketers apply a desired level of profit to the cost of the product
competition basedorganization considers costs to be secondary to competitors’ prices, commonly used among producers of relatively homogeneous products, particularly when the target marekt considers price to be an important pruchase consideration
price skimmingstrategy of charging the highest possible price for a product during the introduction stage of its life cycle
penetration pricingis the strategy of setting a low price for a new product
differential pricingcharging different prices to different buyers for the same quality and quantity of product
secondary-market pricingsetting one price for the primary target market and a different price for another market
periodic discountingtemporary reduction of prices on a patterned or systematic basis
random discountingtemporary reduction on prices on an unsystematic basis
premium pricingwhen the highest-quality product or the most-versatile and most desirable version of a product in a product line is assigned the highest price (i.e.- beer or ice cream)
price lining strategy of selling goods only at certain predetermined prices that reflect explicit price breaks (i.e.- a shop may sell men’s ties only at $22 and $37_
geographic pricingstrategies deal with delivery costs
transfer pricingwhen one unit in an organization sells a product to another unit

Section 3

Question Answer
distribution decisions and activities that make products available to customers when and where they want to purchase them
supply chainall the activities associated with the flow and transformation of products from raw materials through to the end customer
upstreamSuppliers (work to serve customers and generate competitive advantage)
downstreamWholesalers and Retailers (work to serve customers and generate competitive advantage)
logistics managementplanning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers’ needs and wants
direct channelsthe product goes straight from the producer to the customer
intermediaries middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products.
retailingall transactions in which the buyer intends to consume the product through personal, family, or household use
retaileran organization that purchases products for the purpose of reselling the to ultimate consumers
incomeretailers contribute a great deal to the U.S. economy, generating more than $384 billion in annual sales
department storelarge organization offering a wide product mix and organized into separate departments (Macy's, Sears, JCPenny)
discount storeself-service, general-merchandise store offering brand-name and private-band names at low prices (Walmart, Target)
convenience store small, self-service store offering narrow product assortment in convenient locations (7-eleven)
supermarketself-service store offering complete line of food products and some non food (Kroger, Safeway)
superstoregiant outlet offering all food and non products found in supermarkets (SuperTarget)
hypermarketcombination supermarket and discount store, larger than a superstore (Carrefour)
Warehouse clublarge-scale. members only establishments combining cash and carry wholesaling with discount retailing (Costco)
locationleast flexible variable of the marketing mix
positioninginvolves identifying an unserved or underserved market segment and reaching it through a strategy that distinguishes the retailer from others in the minds of customers in the market segment
imagefunctional and psychological picture in the consumer’s mind, that appeals to its target market
direct marketinguse of telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet
franchising an arrangement in which a supplier, or franchiser, grants a dealer, or franchisee, the right to sell products in exchange for some type of consideration

Section 4

Question Answer
primary demanddemand for a product category rather than for a specific brand of product- example: shampoo
selective demanddemand for a specific brand, a marketer employs promotional efforts that point out the strengths and benefits of a specific brand
id prospectscertain types of promotional efforts aim to identify customers who are interested in the firm’s product and are likely potential buyers
retainmaintaining long-term customer relationships is a major goal of most marketers
facilitate eseller support is a two-way street: producers generally want to provide support to resellers to assist in selling their products, and in turn they expect resellers to support their products
word of mouth is personal, informal exchanges of communication that customers share with one another about products, brands, and companies
buzzan attempt to incite publicity and public excitement surrounding a product through a creative event
viral marketingstrategy to get consumers to share a marketer’s message, often through e-mail, or online video such as YouTube, in a way that spreads dramatically and quickly
pushproducer promotes the product only to the next institution down the marketing channel
pull policiespromotes directly to consumers to develop strong consumer demand for its product

Section 5

Question Answer
advertisingis a paid performance of nonpersonal communication that is transmitted to a target audience through mass media
institutional promotes organizational images, ideas, and politic issues
competitiveattempts to stimulate demand for a specific brand by promoting the brand’s features, uses and advantages
comparative compares the sponsored brand with one or more identified competing brands on the basis of one or more product characteristics
reinforcementassures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand
target marketgroup of people at whom advertisements are aimed
advertising objectiveswhat the firm hopes to accomplish with the campaign, guide campaign development, objective should be defined clearly
platformsconsists of the basis issues or selling points that an advertiser wishes to include in the advertising campaign
Objective-and-task approachmarketers determine the objectives a campaign is to achieve and then attempt to list the task required to accomplish them
percent-of approachmarketers simply multiply the firm’s past sales, plus a factor for planned sales growth or decline, by a standard percent based on both what the firm traditionally spends on advertising and the industry average
competition-matching approach ry to match their major competitors’ appropriations in absolute dollars to allocate the same percentage of sales for advertising that their competitors do
arbitrary approachhigh-level executive in the firm states how much to spend on advertising for a certain period
reach refers to the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period
frequencythe number of times these targeted consumers are exposed to the advertisement
CPM (cost per thousand)is the cost comparison indicator for magazines: it shows the cost of exposing 1,000 people to one advertisement
public relationsCommunication efforts used to create and maintain favorable relations between an organization and its stakeholders.
news releasemost common publicity-based public relations tool, sometimes called a press release, which is usually a single page of typewritten copy containing fewer than 300 words and describing a company event or product
featured articlea manuscript of up to 3,000 words prepared for a specific publication

Section 6

Question Answer
personal sellingpaid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation.
business to businessPersonal selling is perhaps the most important with business-to-business transactions involving the purchase of expensive products
order gettersalespeople who sell to new customers and increase sales to current customers.
order takersalespeople who primarily seek repeat sales
Straight salary compensation planpaying salespeople a specific amount per time period, regardless of selling effort.
Straight commission compensation planpaying salespeople according to the amount of their sales in a given period.
Combination compensation planpaying salespeople a fixed salary plus a commision based on sales volume.
cent-off offerspromotions that allow buyers to pay less than the regular price to encourage purchase
rebatesSales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase.
point-of-purchaseSigns, window displays, display racks, and similar devices used to attract customers
demonstrationssales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how product works
premiumsitems offered free or at a minimal costs as a bonus for purchasing a product