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Product
Bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs
Good
Tangible products customers can see, hear, smell, or touch
Service
Intangible tasks that satisfy the needs of consumer and business users
Conivence Product
Goods and services consumers want to purchase frequently, immediately, and with minimal effort EX. Milk, bread, toothbrush
Specialty Product
Products with unique characteristics that cause buyers to prize those particular brands EX. Hermes scarves, Kate Spade handbag, Tiffany jewelry, Lexus cars, etc.
Shopping Product
Products consumers purchase after comparing competing offerings (more than convince products) EX. clothing, furniture, electronics, child care, hotel stays
Consumer Products
Products bought by ultimate consumers for personal use
Business Products
Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale
Product Life Cycle
Progression of a product through introduction, growth, maturity, and decline stages
Exchange Rates
Price of one nation's currency in terms of another country's currency
Tarrif's
Tax level against imported goods (goods that are coming in)
Embargo
Complete ban on the import of specified products
NAFTA
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)
Export Firms
Firms where a majority of their products are exported
Licensing
Permit to do an action
Global Marketing Strategy
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
Domestic Marketing Strategy
Tailoring the marketing strategy to a specific location
Brand Recognition
Consumer awareness and identification of a brand
Brand Awareness
Consumers know of its existence
Brand Association
Superficial stuff like name, logo, slogan, jingles, etc. that we connect the brand with (visual, smell, feeling)
Brand Principle
Guides all actions of the brand EX. Volvo = Safety
Brand Personality
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)
Family Brand
Single brand name that identifies several related products EX. Johnson and Johnson (baby stuff) or All Clad metal crafters (kitchen products)
Private Brand
Brand offered by a wholesaler or retailer EX. Kirkland
Generic Brand
Products characterized by plain labels, no advertising and the absence of brand names
Brand Equity
Added value that a respected, well-known brand name gives to a product in the marketplace EX. Apple, etc.
Market-share objective
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)
Product positioning
Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands
Product Features
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.
Product Attributes
descriptions we use to define kinds of products (EX. color, size, etc.)
Product Advantages
attribute that allows you to outperform your competitors
Product Benefits
actual factors (cost effectiveness, design, performance, etc.) or perceived factor (image, popularity, reputation, etc.) that satisfies what a customer needs or wants
Canibalization
Loss of sales of an existing product due to competition from a new product in the same line
Venture Team
Group of associates from different areas of an organization who work together in developing new products
Robinson-Patman Act
federal legislation prohibiting price discrimination not based on a cost differential - also prohibits selling at an unreasonable low price to eliminate competition
New Product Planning
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
Profit Maximizing Price
Point at which the addition revenue gained by increasing the price of a product equals the increase in total costs
Price: MR=MC
Exchange value of a good or service (marginal revenue = marginal cost)
Value Pricing
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)
Pure Competition
Market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price
Monopolistic Competition
Market structure involving a heterogeneous product and product differentiation among competing suppliers, allowing the marketer some degree of control over prices
Oligopoly
Market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors
Monopoly
Market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes
Break Even Point
(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
Yield management
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
Pricing Strategy: Skimming
Pricing strategy involving the use of a high price relative to competitive offerings
Pricing Strategy: Penetration
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
Pricing Strategy: Every Day Low Pricing
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)
Pricing Strategy: Prestige Pricing
Chanel, Rolex, Bentley
Pricing Strategy: Freemium
regular app is free and then you can upgrade
Pricing Strategy: Psychological Pricing
Pricing policy based on the belief that certain prices or price ranges make a good or service more appealing that others to buyers
Pricing Strategy: Promotional Pricing
Pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy
Pricing Strategy: Competitive Pricing
Pricing strategy designed to deemphasize price as a competitive variable by pricing a good or service at the general levels of comparable offerings
Pricing Strategy: Bundle Pricing
Offering two or more complementary products and selling them for a single price EX. Comcast TV/Internet/Phone
Integrated Marketing Communications Process (IMC)
Coordination of all promotional activities to product a unified, customer-forced promotional message (unified message over different platforms)
AIDA Model
Steps through which an individual reaches a purchase decision: attention, interest, desire, and action
Communication Hierarchy of Effects
Awareness, Knowledge, Liking, Preference, Trial, Purchase
Trade Promotions
Sales promotion that appeals to marketing intermediaries rather than to consumers
Advertising
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
Personal selling
Interpersonal influence process involving a seller's promotional presentation conduct on a person-to-person basis with the buyer
Sales Promotions
Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness
Earned Media
Earned media (or free media) refers to publicity gained through promotional efforts other than advertising (EX. Journalism) (Dan in bar)
Owned Media
Media under your control EX. Your website, your...
Paid Media
Media you pay for (EX. top of the Google search)
Digital Advertising
also called Internet advertising ("Internet marketing") is when businesses leverage Internet technologies to deliver promotional advertisements to consumers.
Traditional Advertising
messages or commercials communicated through historically established media such as television, radio, outdoor (billboards), print, and direct mail.
Outdoor Media
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.
Public Relations
Firm's communications and relationships with its various publics
Product Placement
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
Celebrity Testimonials
Celebrity endorsement advertising is defined as a well-known person using his or her fame to help promote a product or service
Comparative (Competitive) advertising
Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands (EX. MAC vs. PC )
Cooperative advertising
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
Objective-task budgeting
a process for creating a marketing budget
Social media
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
Digital Apps
digital application
Adoption of Innovation Curve (Diffusion of Innovation)
Innovators, early adopters, early majority, late majority, laggards
Early Adopters
a person who starts using a product or technology as soon as it becomes available
Innovators
Someone who purchases a new product almost as soon as the product reaches the market
Early Majority
group of people who purchase or try new products -- typically technology -- after a much smaller population of innovators and early adopters have done so.
Late Majority
accounts for roughly 34% of the population, and will adopt a new product only after seeing that the majority of the population already has
Laggards
a person who makes slow progress and falls behind others.
Landing page
online marketing - first page you get to when you click on a ling
Content marketing (inbound marketing)
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)
Content Programer (marketer)
A person who's role it is to manage the content delivered to consumers
Brand Manager
Marketer responsible for a single brand
Copywriter
a person who writes the text of advertisements or publicity material
Price Elasticity of Demand
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/% …
Search Engine Optimization
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.
Search Engine Marketing (SEM)
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
Search Marketing
Paying search engines, such as Google, a fee to make sure the company's listing appears toward the top of the search results
Personal Selling: Telemarketing
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
Personal Selling: Field Selling
Sales presentation made at prospective customer's locations on a face-to-face basis
Personal Selling: Over-the-counter selling
Personal selling conducted in retail and some wholesale locations in which customers come to the seller's place of business
Personal Selling: Indirect selling
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)
Personal Selling: Inside sales
Selling by phone, mail, and electronic commerce
Personal Selling: Outside Sales
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)
Personal Selling: consultative sales
meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sales (EX insurance)
Personal Selling: Relationship Sales
Regular contact between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship (EX. Mary K)
Short term orientation
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.
long term orientation
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.
Personal selling: prospecting
personal selling function of identifying potential customers (see if they have business potential)
Personal selling: Lead Qualifications
The prospect has demonstrated some level of interest or engagement that tells marketing this is a genuine lead
Personal selling: Sales Funnel
buying process that companies lead customers through when purchasing products
Direct to consumer
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
Business to consumer
transactions conducted directly between a company and consumers who are the end-users of its products or services
Business to business
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.
Channel Captain
the individual or organization responsible for managing a particular distribution channel and overseeing channel partnerships (most powerful member)
Intensive Distribution
Distribution of a product through all available channels
Exclusive distribution
Distribution of a product through a single wholesaler or retailer in a specific geographic region
Selective distribution
distribution of a product through a limited number of channels
Target Market
Specific group of people a firm believes is most likely to buy its goods and services
Convenience Retailer
Store that appeals to customers by having an accessible locations, long hours, rapid checkout, and adequate parking (EX. Rite aid, Hagen, etc.)
Specialty Retailer
Store that combines carefully defined products lines, services, and reputation to persuade shoppers to spend considerable shoppers effort there (EX. REI, Nordstrom, etc.)
Category Killer
Store offering huge selections and low prices (EX. Walmart) they put other specialty business out of business
Big Box Store
(also supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain. (EX. Big lots, Costco, Winco, etc)
Breaking Bulk
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
Sellers Market
a market in which there are more buyers for fewer goods and services
Bottom line profitability
Reference to overall company profitability
Blog
Short fo Web log - an online journal for an individual or organization
Blogger
Person who blogs
Personalization (customization)
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.
Marketing Website
Site whose main purpose is to increase purchases by visitors
Corporate Website
Site designed to increase a firm's visibility, promote its offerings and provide information to interested parties
Online Shopping
shopping online
E-Marketing
Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the internet or through digital tools
Personalized Marketing
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)
Distribution Channels
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.
Distribution Channel Conflicts
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.
Wholesalers
Channel intermediary that takes title to goods it handles and then distribute those goods to retailers, other distributors, or business or B2B customers
Retailers
A term describing businesses that sell goods directly to individuals
Consumers
a person who purchases goods and services for personal use
Push Money
Cash reward paid to retail salespeople for every unit of a product they sell (Commission)
Rebate
Refund of a portion of the purchase price, usually granted by the product's manufacturer
Coupon
Sales promotion technique that offers a discount on the purchase price of goods or services
Trade Allowance
Price reductions given to middlemen, such as retailers, to encourage them to stock an organization's product
Merchandising Allowance
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
Slotting Fee
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)
Case Allowance
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)
Vertical Channel Conflict
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)
Horizontal Channel Conflict
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
Backward Integration
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)
Forward Integration
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)
Horizontal integration
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 …
Vertical Marketing system (VMS)
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)
Franchise
Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser (EX. Dairy Queen)
Marketing Intermediaries (agents/brokers)
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
Buyer market
a market in which there are more goods and services than people willing to buy them
Marketing concept
philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition
marketing orientation
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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