BUS 135: Exam 4 Study Guide
89 Cards in this Set
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Pricing Products depends on many factors:
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-Competitors’ prices
-Production costs
-Distribution
-High or low price strategies
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Lance Fried
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was an electrical engineer who went into business after he built awaterproof player
Fried attends trade shows and runs a website to help sell more products
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Marketing Concept
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Businesses knew they needed to be responsive to consumers if they wanted their business
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Marketing Concept includes:
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Well-Defined Target Market
Customer Orientation
Integrated Marketing
Profit Orientation
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Marketing Concept has what kind of orientation
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Customer Orientation
Profit Orientation
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Customer Orientation
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Finding out what customers want (need) and then providing it
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Profit Orientation
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Focusing on the goods and services that will earn the most profit
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Consumer Market
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All the individuals or households that want goods and services for personal use and have the resources to buy them
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Business-to-Business (B2B)
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Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.
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Multi-attributeSegmentation
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Uses multiple bases
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Environmental Scanning
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The process of identifying factors that affect marketing success
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six steps for keeping customers happy:
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1. Build Trust
2. Emphasize the long term
3. Listen
4. Treat your customers like stars
5. Show appreciation
6. Remember employee are customers too
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most important step in keeping a customers happy
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Step #1
Build Trust
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Four Eras of Marketing
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•Production Era
•Selling Era
•Marketing Orientation Era
•Customer Relationship Era
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factors in consumer decision-making
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•Learning
•Reference Groups
•Culture
•Subcultures
•Cognitive Dissonance
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Cognitive Dissonance
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Anxiety about whether or not the consumer made the right purchase decision
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market tendencies for the B2B markets
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•Producer
•Reseller
•Governmental
•Institutional
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Integrated Marketing
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•Making sure everyone in an organization is committed to customer satisfaction.
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Customer Relationship Management (CRM)
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Learning as much as you can about customers
doing what you can to satisfy or exceed their expectations
Organizations seek to enhance customer satisfaction building long-termrelationships
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Product
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• A good, service, or idea that satisfies a consumer’s want or need.
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Brand
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Name, symbol, or design that identifies the goods or services and distinguishes them from competitors’ offerings
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Supply Channels
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may have a struggle between:
what is ideal
what is available
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Promotions
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sellers use to inform people about their products
motivate them to purchase those products
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Promotion includes:
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-Advertising
-Personal selling
-Public Relations
-Sales promotions
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Marketing Research
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Analyzing markets to determine challenges and opportunities
finding 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 for a purpose other than the present problem
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Primary Data
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collected to address a specific research objective
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Focus Group
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A controlled group interview of a target audience demographic, often led by a facilitator.
A set series of questions or topics are covered and the results are used to guide marketing efforts
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Microenvironment
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all actors who help or effect the company’s ability to produce/sell
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Macro environment
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environment of the firm, which includes the sociodemographic and cultural environment, the economic and natural environment, the political environment, and the technological environment
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Target Marketing
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Selecting which segments an organization can serve profitably
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Niche Marketing
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Identifies small but profitable market segments and designs or finds products for them.
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Mass Marketing
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Developing products and promotions to please “most” consumers.
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Marketing
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The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large
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Societal Marketing
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philosophy that believe in maximized society’s well-being
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McCarthy’s Four P’s of marketing
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•Product
•Price
•Place
•Promotion
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Four stages of the product life cycle
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1. Introduction
2. Growth
3. Maturity
4. Decline
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products evaluated on both tangible and intangible dimensions
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TRUE
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retailers be considered when packaging is created for a product
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TRUE
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functions of “packaging”
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To attract buyers’ attention identify brand
Protect the goods inside and be tamper-proof
Describe and provide information about the product-labeling
Explain the product’s benefits
Provide warranty information and warnings
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some Pricing Objectives
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Achieving a target return on investment or profit
Building traffic
Achieving greater market _share_
Creating an image
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Brand Equity
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the value of the brand name and associated symbols
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Value
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The overall price given the quality of the product
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Product Mix
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The combination of all product lines offered by a manufacturer or service provider
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Product Differentiation
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The creation of real or perceived product differences.
WHAT MAKES YOU DIFFERENT FROM COMPETITOR
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Convenience Goods
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Products consumers purchase frequently with minimal effort
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Shopping Goods
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Products consumers buy only after comparing value, quality, price, and styles
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Specialty Goods
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Products with unique characteristics and brand identity
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Trademark
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A brand that has exclusive legal protection for both its brand name and design
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Brand Awareness
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How quickly or easily a given brand name comes to mind when someone mentions a product category.
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Brand Loyalty
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The degree to which consumers are satisfied and are committed to further purchases.
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Product Life Cycle
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A theoretical look at what happens to sales and profits for a product over time
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Skimming Price strategy
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Pricing new products high to recover costs and make high profits while competition is limited.
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Penetration Price Strategy
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Pricing products low with the hope of attracting more buyers and discouraging other companies from competing in the market.
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Break-even analysis
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The process used to determine profitability at various levels of sales.
The break-even point is where revenues equals cost.
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Total Fixed Costs
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All costs that remain the same no matter how much is produced or sold
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Variable Costs
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Costs that change according to the level of production
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Beak-even formula in units is...
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Fixed Costs (divided by (unit price-variable costs per unit))
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RETAIL DISTRIBUTION STRATEGIES
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Intensive Distribution
Selective Distribution
Exclusive Distribution
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Intensive Distribution
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Puts products into as many retail outlets as possible including vending machines.
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Selective Distribution
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Uses only a preferred group of the available retailers in an area
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Exclusive Distribution
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The use of only one retail outlet in a given geographic area.
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Pop Goes the Retail Store
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Pop-up stores are temporary outlets that remain open for a short amount of time
offer items not found in traditional stores.
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Toys ‘R’ Us
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opened more than 600 pop-up stores during the 2010 holiday season.
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Marketing Intermediaries
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Organizations that assist in moving goods and services from businesses to businesses (B2B) and from businesses to consumers (B2C).
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Channel of Distribution
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A group of marketing Intermediaries that joining together to transport and store goods from producers to consumers
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Wholesaler
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An intermediary that sells products to other organizations such as retailers, manufacturers, and hospitals
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Supply Chain
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All the linked activities various organizations must perform to move goods and services from the source of raw materials to ultimate consumers.
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Logistics
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The planning, implementing and controlling of the physical flow of material, final goods and related information from points of origin to points of consumption
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Fishybacking
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Truck trailers placed on ships
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Promotion Mix
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The combination of promotional tools an organization uses; the traditional mix includes:
Advertising
Personal Selling
Public Relations
Sales Promotion
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Important to have a unified message in your promotional campaign
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FALSE
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What is advertising?
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Paid, non-personal communication about an organization
its products transmitted to a target audience through mass media
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What does AIDA stand for?
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Awareness
Interest
Desire
Action
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Product Placement
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Advertisers pay to put their products into TV shows and movies where the audience will see them.
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Infomercial
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A full length TV program devoted exclusively to promote a particular product
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What is Personal Selling?
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Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation.
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Qualifying
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Making sure customers have a need for a product
the authority to buy and the willingness to listen to a sales message
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The steps in the B2B Selling Process are:
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1. Prospect/Qualify
2. Pre-approach 5. Answer Objections
3. Approach 6. Close the sale
4. Make a Presentation 7. Follow up
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Public Relations (PR)
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COMMUNICATION EFFORTS USED TO CREATE AND MAINTAIN FAVORABLE RELATIONS BETWEEN AN ORGANIZATION AND ITS STAKEHOLDERS
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Publicity
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A news-story type of communication about an organization and/or its products transmitted through a mass medium at no charge
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Advantages of Publicity:
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Free
Reaches people who would not look at an advertisement
More believable than advertising
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Sales Promotion
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Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness
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Word-of-Mouth
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People tell others about products/services they have purchased
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Viral Marketing
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A strategy to get consumers to share a marketer’s message, often through e-mail or online videos, in a way that spreads dramatically and quickly
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Blog
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Short for web log; an online diary that looks like a webpage but is easier to create and update by posting text, photos, videos, or links
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QR Scanning
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Quick response, downloaded by scanning “apps”
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Car towing was listed as a type of.....
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Unsought Goods and Services
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Intermediaries should create
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value
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BUS 135: Exam 4 Study Guide