149 Cards in this Set
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Product
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Bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs
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Good
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Tangible products customers can see, hear, smell, or touch
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Service
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Intangible tasks that satisfy the needs of consumer and business users
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Conivence Product
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Goods and services consumers want to purchase frequently, immediately, and with minimal effort EX. Milk, bread, toothbrush
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Specialty Product
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Products with unique characteristics that cause buyers to prize those particular brands EX. Hermes scarves, Kate Spade handbag, Tiffany jewelry, Lexus cars, etc.
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Shopping Product
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Products consumers purchase after comparing competing offerings (more than convince products) EX. clothing, furniture, electronics, child care, hotel stays
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Consumer Products
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Products bought by ultimate consumers for personal use
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Business Products
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Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale
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Product Life Cycle
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Progression of a product through introduction, growth, maturity, and decline stages
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Exchange Rates
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Price of one nation's currency in terms of another country's currency
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Tarrif's
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Tax level against imported goods (goods that are coming in)
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Embargo
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Complete ban on the import of specified products
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NAFTA
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North American Free Trade Agreement - Accord removing trade barriers among Canada, Mexico, and the United States (eliminated Tarrifs) ( protecting intellectual property rights of the products) (environmental impacts)
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Export Firms
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Firms where a majority of their products are exported
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Licensing
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Permit to do an action
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Global Marketing Strategy
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Standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets EX Pringles - 6 flavors that meets 80% of the target, Nike, Microsoft, FOX
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Domestic Marketing Strategy
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Tailoring the marketing strategy to a specific location
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Brand Recognition
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Consumer awareness and identification of a brand
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Brand Awareness
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Consumers know of its existence
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Brand Association
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Superficial stuff like name, logo, slogan, jingles, etc. that we connect the brand with (visual, smell, feeling)
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Brand Principle
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Guides all actions of the brand EX. Volvo = Safety
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Brand Personality
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the foundation of emotional relationship (Organizations are filled with human personality traits, Stakeholders react to organizations as if they are people, Captures emotional aspects of relationship)
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Family Brand
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Single brand name that identifies several related products EX. Johnson and Johnson (baby stuff) or All Clad metal crafters (kitchen products)
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Private Brand
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Brand offered by a wholesaler or retailer EX. Kirkland
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Generic Brand
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Products characterized by plain labels, no advertising and the absence of brand names
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Brand Equity
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Added value that a respected, well-known brand name gives to a product in the marketplace EX. Apple, etc.
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Market-share objective
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Volume-related pricing objective with the goal of controlling a portion of the market for a firm's product (goal of trying to have a certain market share) (Procter and gamble price increase EX - by increasing their priced they lost customers)
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Product positioning
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Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands
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Product Features
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A function of an item which is capable of gratifying a particular consumer need and is hence seen as a benefit of owning the item.
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Product Attributes
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descriptions we use to define kinds of products (EX. color, size, etc.)
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Product Advantages
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attribute that allows you to outperform your competitors
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Product Benefits
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actual factors (cost effectiveness, design, performance, etc.) or perceived factor (image, popularity, reputation, etc.) that satisfies what a customer needs or wants
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Canibalization
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Loss of sales of an existing product due to competition from a new product in the same line
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Venture Team
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Group of associates from different areas of an organization who work together in developing new products
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Robinson-Patman Act
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federal legislation prohibiting price discrimination not based on a cost differential - also prohibits selling at an unreasonable low price to eliminate competition
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New Product Planning
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The development of original products, product improvements, product modifications, and new brands 1) idea generation 2) screening 3) business analysis - development 4) test marketing 5) commercialization
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Profit Maximizing Price
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Point at which the addition revenue gained by increasing the price of a product equals the increase in total costs
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Price: MR=MC
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Exchange value of a good or service (marginal revenue = marginal cost)
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Value Pricing
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Pricing strategy that emphasizes benefits derived from a product in comparison to the price and quality levels of competing offerings. (low priced goods and services EX Kroger) (getting as much as you can for the price you pay for) (low priced items don't compare to value of other item)
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Pure Competition
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Market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price
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Monopolistic Competition
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Market structure involving a heterogeneous product and product differentiation among competing suppliers, allowing the marketer some degree of control over prices
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Oligopoly
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Market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors
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Monopoly
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Market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes
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Break Even Point
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(In units - total fixed cost/per-unit contribution to fixed cost) (In dollars - total fixed costs/1 - variable cost per unit price) (specific dollar target return total fixed cost + product objective / per-unit contribution) pg. 628
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Yield management
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Pricing strategy that allows marketers to vary prices based on such factors as demand, even though the cost of providing those goods or services remains the same EX. more expensive for weekend ticket prices
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Pricing Strategy: Skimming
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Pricing strategy involving the use of a high price relative to competitive offerings
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Pricing Strategy: Penetration
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Pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance
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Pricing Strategy: Every Day Low Pricing
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Pricing strategy of continuously offering low prices rater than relying on such short-term price cuts at cents-off coupons, rebates, and special sales (EX. Walmart)
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Pricing Strategy: Prestige Pricing
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Chanel, Rolex, Bentley
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Pricing Strategy: Freemium
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regular app is free and then you can upgrade
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Pricing Strategy: Psychological Pricing
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Pricing policy based on the belief that certain prices or price ranges make a good or service more appealing that others to buyers
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Pricing Strategy: Promotional Pricing
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Pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy
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Pricing Strategy: Competitive Pricing
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Pricing strategy designed to deemphasize price as a competitive variable by pricing a good or service at the general levels of comparable offerings
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Pricing Strategy: Bundle Pricing
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Offering two or more complementary products and selling them for a single price EX. Comcast TV/Internet/Phone
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Integrated Marketing Communications Process (IMC)
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Coordination of all promotional activities to product a unified, customer-forced promotional message (unified message over different platforms)
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AIDA Model
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Steps through which an individual reaches a purchase decision: attention, interest, desire, and action
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Communication Hierarchy of Effects
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Awareness, Knowledge, Liking, Preference, Trial, Purchase
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Trade Promotions
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Sales promotion that appeals to marketing intermediaries rather than to consumers
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Advertising
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Paid, non personal communication through various media about a business firm,not-for-profit organization, product, or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience
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Personal selling
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Interpersonal influence process involving a seller's promotional presentation conduct on a person-to-person basis with the buyer
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Sales Promotions
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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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Earned Media
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Earned media (or free media) refers to publicity gained through promotional efforts other than advertising (EX. Journalism) (Dan in bar)
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Owned Media
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Media under your control EX. Your website, your...
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Paid Media
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Media you pay for (EX. top of the Google search)
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Digital Advertising
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also called Internet advertising ("Internet marketing") is when businesses leverage Internet technologies to deliver promotional advertisements to consumers.
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Traditional Advertising
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messages or commercials communicated through historically established media such as television, radio, outdoor (billboards), print, and direct mail.
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Outdoor Media
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publicizes your business's products and services. Types of outdoor advertising include billboards, bus benches, interiors and exteriors of buses, taxis and business vehicles, and signage posted on the exterior of your own brick-and-mortar location.
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Public Relations
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Firm's communications and relationships with its various publics
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Product Placement
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Form of promotion in which a marketer pays a motion picture or television program owner a fee to display a product prominently in the film or show
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Celebrity Testimonials
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Celebrity endorsement advertising is defined as a well-known person using his or her fame to help promote a product or service
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Comparative (Competitive) advertising
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Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands (EX. MAC vs. PC )
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Cooperative advertising
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strategy in which a retailer shares advertising costs with a manufacturer or wholesaler (EX. an apparel marketer may pay a percentage of the cost of a retail store's newspaper advertising featuring it's product line
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Objective-task budgeting
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a process for creating a marketing budget
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Social media
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Different forms of electronic communication through which users can create online communities to exchange information, ideas, messages, and other content such as videos or music
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Digital Apps
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digital application
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Adoption of Innovation Curve (Diffusion of Innovation)
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Innovators, early adopters, early majority, late majority, laggards
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Early Adopters
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a person who starts using a product or technology as soon as it becomes available
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Innovators
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Someone who purchases a new product almost as soon as the product reaches the market
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Early Majority
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group of people who purchase or try new products -- typically technology -- after a much smaller population of innovators and early adopters have done so.
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Late Majority
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accounts for roughly 34% of the population, and will adopt a new product only after seeing that the majority of the population already has
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Laggards
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a person who makes slow progress and falls behind others.
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Landing page
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online marketing - first page you get to when you click on a ling
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Content marketing (inbound marketing)
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creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action (EX. YouTube videos shared on FB and Twitter)
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Content Programer (marketer)
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A person who's role it is to manage the content delivered to consumers
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Brand Manager
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Marketer responsible for a single brand
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Copywriter
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a person who writes the text of advertisements or publicity material
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Price Elasticity of Demand
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Economic measurements to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus. (EX. Oil demand does not change - non elastic) (Ex. Elastic - that you can easily replace if the price goes up) % change in quantity/% …
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Search Engine Optimization
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the process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine.
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Search Engine Marketing (SEM)
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A Form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising
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Search Marketing
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Paying search engines, such as Google, a fee to make sure the company's listing appears toward the top of the search results
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Personal Selling: Telemarketing
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Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders
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Personal Selling: Field Selling
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Sales presentation made at prospective customer's locations on a face-to-face basis
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Personal Selling: Over-the-counter selling
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Personal selling conducted in retail and some wholesale locations in which customers come to the seller's place of business
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Personal Selling: Indirect selling
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sales of a good or service by a third party such as a partner of affiliate rather than a companies personel (may lead to reduced control over brand message)
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Personal Selling: Inside sales
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Selling by phone, mail, and electronic commerce
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Personal Selling: Outside Sales
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The sale of products or services by sales personnel who go out into the field to meet with potential customers. Salespeople often travel to meet customers face-to-face, as well as to maintain relationships with existing customers. (EX. Trade show)
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Personal Selling: consultative sales
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meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sales (EX insurance)
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Personal Selling: Relationship Sales
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Regular contact between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship (EX. Mary K)
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Short term orientation
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focused on the present or past and consider them more important than the future. If you have a short-term orientation, you value tradition, the current social hierarchy, and fulfilling your social obligations.
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long term orientation
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focused on the future. You are willing to delay short-term material or social success or even shot-term emotional gratification in order to prepare for the future.
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Personal selling: prospecting
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personal selling function of identifying potential customers (see if they have business potential)
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Personal selling: Lead Qualifications
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The prospect has demonstrated some level of interest or engagement that tells marketing this is a genuine lead
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Personal selling: Sales Funnel
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buying process that companies lead customers through when purchasing products
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Direct to consumer
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Sometimes refers to the marketing of pharmaceutical products but applies in other areas as well. This form of advertising is directed toward patients, rather than healthcare professionals
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Business to consumer
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transactions conducted directly between a company and consumers who are the end-users of its products or services
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Business to business
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B To B' A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer.
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Channel Captain
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the individual or organization responsible for managing a particular distribution channel and overseeing channel partnerships (most powerful member)
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Intensive Distribution
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Distribution of a product through all available channels
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Exclusive distribution
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Distribution of a product through a single wholesaler or retailer in a specific geographic region
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Selective distribution
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distribution of a product through a limited number of channels
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Target Market
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Specific group of people a firm believes is most likely to buy its goods and services
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Convenience Retailer
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Store that appeals to customers by having an accessible locations, long hours, rapid checkout, and adequate parking (EX. Rite aid, Hagen, etc.)
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Specialty Retailer
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Store that combines carefully defined products lines, services, and reputation to persuade shoppers to spend considerable shoppers effort there (EX. REI, Nordstrom, etc.)
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Category Killer
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Store offering huge selections and low prices (EX. Walmart) they put other specialty business out of business
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Big Box Store
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(also supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain. (EX. Big lots, Costco, Winco, etc)
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Breaking Bulk
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of or relating to packaged cargo, usually manufactured goods, that is marked for individual consignees and has to be loaded and unloaded piece by piece at each point of transfer
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Sellers Market
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a market in which there are more buyers for fewer goods and services
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Bottom line profitability
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Reference to overall company profitability
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Blog
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Short fo Web log - an online journal for an individual or organization
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Blogger
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Person who blogs
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Personalization (customization)
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meeting the customer's needs more effectively and efficiently, making interactions faster and easier and, consequently, increasing customer satisfaction and the likelihood of repeat visits.
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Marketing Website
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Site whose main purpose is to increase purchases by visitors
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Corporate Website
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Site designed to increase a firm's visibility, promote its offerings and provide information to interested parties
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Online Shopping
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shopping online
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E-Marketing
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Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the internet or through digital tools
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Personalized Marketing
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extreme form of database marketing. Whereas product differentiation tries to differentiate a product from competing ones, personalization tries to make a unique product offering for each customer. (EX. Amazon - items you may be interested)
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Distribution Channels
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The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet.
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Distribution Channel Conflicts
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Occurs when manufacturers (brands) disinter-mediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.
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Wholesalers
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Channel intermediary that takes title to goods it handles and then distribute those goods to retailers, other distributors, or business or B2B customers
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Retailers
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A term describing businesses that sell goods directly to individuals
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Consumers
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a person who purchases goods and services for personal use
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Push Money
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Cash reward paid to retail salespeople for every unit of a product they sell (Commission)
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Rebate
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Refund of a portion of the purchase price, usually granted by the product's manufacturer
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Coupon
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Sales promotion technique that offers a discount on the purchase price of goods or services
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Trade Allowance
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Price reductions given to middlemen, such as retailers, to encourage them to stock an organization's product
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Merchandising Allowance
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Compensation for a retailer's special promotional efforts, a manufacturer or distributor reduces the wholesale price of a good, leading to this specific type of sales promotion incentive scheme
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Slotting Fee
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a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves (paying for the shelf space)
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Case Allowance
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discount offered to a retailer by a wholesaler or manufacturer when merchandise is purchased by the case; the greater the number of cases, the greater the discount (buy in bulk) (the more you buy the less it is)
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Vertical Channel Conflict
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involve a disagreement between two channel members on consecutive levels (EX. toy manufacturer discovers its products are arriving at retail stores later than scheduled, a conflict might develop between the manufacturer and the wholesaler responsible for shipping to retailers)
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Horizontal Channel Conflict
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The effect of increased competition among businesses, typically retailers, operating within the same market space. Leads to reduced profit margins and crowding out smaller retailers which can ultimately drive down the supply of products
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Backward Integration
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Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials (EX. Hagen buying farm to control produce)
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Forward Integration
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Process through which a firm attempts to control downstream distribution (EX. Sony is the manufacture but to control the product distribution they sell it themselves)
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Horizontal integration
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acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external expansion. (EX. when a company acquires competitors in the same industry doing the same stage of production for the …
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Vertical Marketing system (VMS)
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Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain (Umbrella term for backward and forward and horizontal and vertical integration)
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Franchise
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Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser (EX. Dairy Queen)
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Marketing Intermediaries (agents/brokers)
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Four types Agents - take possession of products but don't own them, make commission. Wholesalers - own products that they sell Distributers - similar to wholesalers, distributers only carry complementary lines. Retailers - sell products directly to end user for profit
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Buyer market
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a market in which there are more goods and services than people willing to buy them
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Marketing concept
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philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition
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marketing orientation
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business model that focuses on delivering products designed according to customer desires, needs, and requirements, in addition to product functionality and production efficiency (similar to positioning)
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