BCOR 2400: EXAM 2
223 Cards in this Set
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product life cycle
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introduction, growth, maturity, decline; the stages a product goes through in the marketplace
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product form
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pertains to variations within the product class (i.e. cassette tapes, CDs)
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product modification
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involves altering a product’s characteristic, such as its quality, appearance, performance, to increase the product’s value to customers and increase sales
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market modification
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company tries to find, increase a product’s use among existing customers, or create new use situations
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branding
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when an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of its competitors
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brand name
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any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s goods or services
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brand equity
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the added value a brand name gives to a product beyond the functional benefits provided
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brand licensing
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contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or a fee
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multiproduct branding
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company uses one name for all its products in a product class
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multibranding
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involves giving each product a distinct name (useful when each brand is intended for a different market segment
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private branding
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company manufactures products but sells them under the brand name of a wholesaler or a retailer
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mixed branding
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firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market) types of branding
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packaging
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any container in which the product is offered for sale and on which label information is conveyed
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label
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an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
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warranty
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statement indicating the liability of the manufacturer for product deficiencies
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price
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money or other considerations (including other products and services) exchanged for the ownership or use of a product or service
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value
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the ratio of perceived benefits to price
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value-pricing
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practice of simultaneously increasing product or service benefits while maintaining or decreasing price
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profit equation
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Profit = Total Revenue – Total Cost
= (Unit Price x Quantity Sold) – (Fixed Cost + Variable Cost)
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pricing objectives
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involve specifying the role of price in an organization’s marketing and strategic plans
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pricing constraints
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factors that limit the range of prices a firm may set
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demand curve
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a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
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price elasticity of demand
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percentage change in quantity demanded relative to a percentage change in price:
Price Elasticity of Demand = % change in quantity demanded/% change in price
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marginal analysis
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a continuing, concise trade-off of incremental costs against incremental revenues
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break-even analysis
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technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
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break-even point (BEP)
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quantity at which total revenue and total cost are equal; profit then comes from all units sold beyond the BEP
BEP = Fixed Cost/(Unit Price – Unit Variable Cost)
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price war
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involves successive price cutting by competitors to increase or maintain their unit sales or market share
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quantity discounts
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reductions in unit costs for a larger order (used by firms at all levels in the marketing channel)
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promotional allowances
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sellers in the marketing channel can qualify for these for undertaking certain advertising or selling activities to promote a product
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price fixing
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conspiracy among firms to set prices for a product (illegal)
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price discrimination
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practice of charging different prices to different buyers for goods of like grade and quality
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marketing channel
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consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
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industrial distributor
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performs a variety of marketing channel functions, including selling, stocking, delivering full product assortment, and financing
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electronic marketing channels
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employ the Internet to make goods and services available for consumption or use by consumers or business buyers
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direct marketing channels
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allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson (i.e. catalogs, etc.)
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multichannel marketing
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blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
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dual distribution
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arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
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strategic channel alliances
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one firm’s marketing channel is used to sell another firm’s products (popular in global marketing)
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merchant wholesalers
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independently owned firms that take title to the merchandise they handle
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manufacturer’s agents
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(manufacturer’s representatives) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
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selling agents
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represent a single producer and are responsible for the entire marketing function of the producer
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brokers
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independent firms or individuals whose principal function is to bring buyers and sellers together to make sales
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vertical marketing systems
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professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
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franchising
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contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules
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channel partnership
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consist of agreements and procedures among channel members for ordering and physically distributing a producer’s products through the channel to the ultimate consumer
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intensive distribution
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a firm tries to place its products and services in as many outlets as possible
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exclusive distribution
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extreme opposite of intensive distribution because only one retailer in a specifies geographical area carries the firm’s products
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channel conflict
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arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
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disintermediation
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conflict that arises when a channel member bypasses another member and sells or buys products direct
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channel captain
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channel member that coordinates, directs, and supports other channel members (economic, expertise, identification, and legitimate right can be forms of influence)
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communication
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process of conveying a message to others; requires six elements: (1) source, (2) message, (3) channel of communication, (4) receiver, (5) encoding, (6) decoding
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source
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company or person who has information to convey
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message
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information sent by the source
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channel of communication
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means by which the message is conveyed
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receivers
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means by which the message is conveyed
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receivers
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consumers who read, hear, or see the message
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encoding
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process of having the sender transform an idea into a set of symbols
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decoding
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process of having the receiver take a set of symbols, the message, and transform the symbols back into an idea
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field of experience
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similar understanding and knowledge applied to the message by the sender and receiver
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response
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impact the message had on the receiver’s knowledge, attitudes, or behaviors
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feedback
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the sender’s interpretation of the response; indicates whether the message was decoded and understood as intended
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noise
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includes extraneous factors that can work against effective communication by distorting a message or the feedback received
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advertising
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any paid form of nonpersonal communication about a organization, good, service, or idea by an identified sponsor
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personal selling
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two-way communication between a buyer and seller designed to influence a person’s or group’s purchase decision
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public relations
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form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
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publicity
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nonpersonal, indirectly paid presentation of an organization, good, or service
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sales promotion
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a short-term inducement of value offered to arouse interest in buying a good or service
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direct marketing
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uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
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push strategy
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directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
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pull strategy
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directing promotional mix at ultimate consumers to encourage them to ask the retailer for a product
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profit equation
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tr-tc
(Unit contribution x quantity sold)-fixed costs
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Break Even Quanitiy Equation
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Quantity= Fixed Cost/ Unit Contribution
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Quantity Sold equation based on market share
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Industry sales x market share
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Break even Market Share
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BEQ/Industry Sales
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Profit Goal
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(Fc+Profit Goal)/ Unit Contribution
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Ethics
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Moral principals and values that govern the actions and decisions of an individual or group
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Laws
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Societys values and standards that are enforceable in the courts
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Culture
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a set of values ideas and attitudes learned and shared among members of the group
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Business Culture
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Compromise the effective rules of the game, boundaries between competitive and unethical behavior and codes of conduct in business dealing
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Cave at Emptor
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Let Buyer beware
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a consumer bill of rights
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codified the ethics of exchange between buyers and sellers
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economic espionage
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clandestine collection of trade secrets or proprietary information about a company competitor
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codes of ethics
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a formal statement of ethical principles and rules of conduct
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whistle blowers
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employees who report unethical or illegal action of their employers
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moral idealism
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a personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome
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utilitarianism
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the greatest good for the greatest number by assessing costs and benefits of consequences
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social responsibility
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organizations are part of a larger society and are accountable to that society for their actions
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profit responsibility
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Companies duty to maximize profit for their stockholders or owner
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stakeholder responsibility
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obligations an organization has to those who can affect achievement of objectives
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societal responsibility
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obligation to the preservation of ecological environment and the general public
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triple bottom line
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recognition of the need for organization to improve the state of the people planet and profit simultaneously if they are to achieve sustainable long term growth
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Green Marketing
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to produce promote and reclaim environmentally sensitive
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cause marketing
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charitable contributions of a firm are tied directly to customer revenue produced through the promotion of one of its products
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Social Audit
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systematic assessment of a firms objectives strategies and performance in terms of social responsibility
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sustainable development
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conducting business in a way that protects the natural environment while making economic progress
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green washing
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making an unsubstantiated or misleading claim about environmental benefits of a product service technology or company
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consumer behavior
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the actions a person takes in purchasing and using products and services including the mental and social process that come up before these actions
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problem recognition
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perceiving a difference between a persons ideal and actual situations big enough to trigger a decision
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internal search
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scan memory for previous experience with brands or products
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external search
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when past expierence isnt enough. risk of making a wrong decsion is high cost of gathering info is low
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personal sources
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consumer reports government agencey tv consumer programs
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marketer dominated sources
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info from sellers advertising company websites sales people
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evaluate criteria
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info provided inadequate, represents both the objective attributes of a brand and subjective you use to compare different product or brands
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consideration set
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group of brands a consumer considers acceptable from among all the brands if which they are ware in the product class
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cognitive dissonance
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post purchase psychological tension or anxiety
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involvement
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personal social and economic significant
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situational influences
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a purchase task, social surroundings, physical surroundings, temeperol effects (time of day, time available) , antecedent states
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motivation
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energizing force that stimulates behavior to satisfy a need
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personality
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a persons consistent behavior or responses to recurring situation
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key traits
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enduring characteristics with in a person or in his or her relationship with others
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selective perception
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filtering of exposure, comprehension and retension
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self concept
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the way people see themselves and the way they belive others see them
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perception
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process an individual selects organizes and interprets info that creat a meaningful picture of the world
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selective perception
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filtering of exposure compreension and retension
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selective comprehension
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interpreting info so its consistent with attitudes and beliefs
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selective retention
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consumers dont remember all info they see read or hear even min after exposure
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subliminal perception
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see or hear messages with out being aware of them
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perceived risk
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anxiety felt because consumer cannot anticipate the outcomes of a purchase but believes here may be negative consequences
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learning
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behaviors that result from repeated experience and reasoning
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behavioral learning
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the process developing auto responses to a situation built up through repeated exposure to it
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stimulus generalization
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response one stimulus generalized to another stimulus Ie Tylenol different types
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stimulus discrimination
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precive difference in stimuli
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cognitive learning
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making connections between two or more ideas or observation outcomes of other behaviors and adjusting your own accordingly
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brand loyalty
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favorable attitude toward and consistent purchase of a single brand overtime
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attitude
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learned predisposition to respond to an object or class of objects in a consistently favorable way
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beliefs
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consumers subjective perception of how a produce or brand preforms on different attributes
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life style
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mode of living that is identified by how peopel spend their time and resources what they consider importnat in their ifestyle what they think of themselves and the world aroudn them
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pschographics
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analysis of consumer lifestyle that provides insights into consumers needs and wants
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opion leadership
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people who exert direct or indirec social influence over others
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word of mouth
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influencing of people during conversations
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buzz
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popularity created by consumer word of mouth
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reference groups
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poeple whom other people look as a basis for self appraisal or as a source of personal standards
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consumer socialization
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process by which people quire skills knolege and attitudes necessary to function as consumers
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family life cycle
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distinct phases a family progresses through from formation to retirement
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social class
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realitivly permanent homogeneous divisions in a society into which people sharing similar values interest and behaviors
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subcultures
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sub groups with in a larger or national culture with unique values ideas and attitudes
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countertrade
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practice of using boarder rather then money for making global
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trade feed back effect
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exports increase national output and income up. which leads to a rise in demand for imports. this stimulates exports of other countries which raise income stimulates demand for imports
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gross domestic product
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monetary value of all goods and services produced in a country during one year
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balance of trade
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the differnece between monetary value of a nations exports and imports
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factor conditions
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nations ability to turn its natural resources education and infrastructure into a competitive advantage.
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demand conditions
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number and sophistication of domestic customers for an industry product
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economic espionage act (1996)
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the theft of trade secrets by foreign entities a federal crime in us 15 years in prison fines up to 500,000
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protectionism
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the practice of shielding one or more industries with in a countries economy
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tariffs
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A tariff is a tax levied on imports or exports
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quota
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restriction placed on amount of product allowed to enter or leave a country
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word trade organization
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address an array of world trade issues. sets rules governing trade between members and issue binding decisions.
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global competition
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firms originate produce and market their products and services world wide
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strategic alliances
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agreements among two or more independent firms to cooperate for the purpose of achieving common goals
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international firm
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views the world as consisting of nique parts and markets to each differently
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multidomestic marketing strategy
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have as many different product variations brand names and ad programs as countries in which they do business
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transitional firm
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views world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more then differences
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global marketing strategy
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practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
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global brand
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brand marketed under the same name in multipule countries with similar and centrally coordinated marketing programs
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global consumers
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consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar gestures and benefits from products or services
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cross cultural analysis
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the study of similarities and differences among consumers in two more more nations or societies
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values
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represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
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customs
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what is considered normal and expected about the way people do things in a specific country
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foreign corrupt practices act
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a crime for us corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
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cultural symbols
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things that represent ideas and concepts
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semiotics
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examines the corispondence between symbols and their role in the assignment of meaning for poeple
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back translation
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translate word or phrase is re translated into the original language by a different interpreter to catch errors
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cultural ethnocentric
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the belief that aspect of one culture and are superior to another
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bottom of the pyramid
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larest but poorest socioeconomic group of people in the world
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economic infrastructure
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a countries communication transportation financial and distribution system
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currency exchange rates
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price of one countries currecy expressed in terms of another
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exporting
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producing goods in one country and selling them in another
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indirect exporting
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a firm sells domestic produced products in a foreign country though a intermediary
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direct exporting
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a firm sells domestic product produced firm sells its domestic goods in a foreign country with out intermidearies
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contact manufacturing
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us company may contract with a foreign firm to manufacture products according to stated specifications sold in a foreign country or back to the us
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contract assembly
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us company may contact with a foreign firm to assemble not manufacture parts and components that have been shipped to that country
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joint venture
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when a foreign company and a local firm invest together to create a local business
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direct investment
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a domestic firm actually investing in and owning a foreign subsidiary or division
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product extension
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selling virtually the same product in other countries
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product adaption
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changing in some way to make it more appropriate for a countries climate or consumer preferences is a product adaption strategy
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product invention
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companies invest totally new product designed to satisfy common needs across countries
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dumping
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a firm sells a product in a foreign country below its domestic price or actual cost
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gray market
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parallel importing products are sold through unauthorized channels of distribution
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marketing research
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defining a marketing problem and opportunity systematically collecting and analyze info and recommending actions
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decision
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a conscious choice from among two or more alternatives
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measures of success
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criteria or standards used in evaluating proposed solutions to the problem
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constraints
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restrictions placed on potential solutions to a peoblem
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concepts
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ideas about products or services
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methods
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aproaches that can be used to solve all or part of the problem
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data
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the facts and figures that have already been recorded
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secondary data
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facts and figures that have already been recorded
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primary data
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facts and figures that are newly collected for the project
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information technology
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operating computer networks that can store and process data
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sales forecast
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total sales of a product a firm expects to sell during a specific period of time under specified environmental conditions and its own marketing efforts
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market
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people with both the desire and the ability to buy a specific offering
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environmental forces
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social, economic, technological, competitive, regulatory
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strategy
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an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
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functional level
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where groups of specialists actually create value for the organization; where the strategic direction becomes the most specific and focused
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market share
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ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
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marketing dashboard
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visual computer display of the essential information related to achieving a marketing objective-
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marketing plan
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a road map for the marketing activities of an organization for a specified future time period, such as one year or five years
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diversification analysis
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tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
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strategic marketing process
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whereby an organization allocates its marketing mix resources to reach its target markets
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situation (SWOT) analysis
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taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it; an organization’s appraisal of its internal Strengths and Weaknesses and its external Opport…
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market segmentation
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nvolves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
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marketing strategy
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the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
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environmental scanning
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process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
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social forces
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the demographic characteristics of the population and its values
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demographics
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describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
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culture
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incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group
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gross income
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total amount of money made in one year by one person, household, or family unit
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disposable income
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money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
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discretionary income
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the money that remains after paying for taxes and necessities
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market-product grid
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framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization
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product positioning
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refers to the place a product occupies in consumers’ minds on important attributes relative to competitive
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perceptual map
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means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand
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product
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good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
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product mix
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consists of all the product lines offered by an organization
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new-product process
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seven stages an organization goes through to identify business opportunities and convert them to a salable good or service
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product item
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specific product that has a unique brand, size, or price
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product line
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group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
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new-product strategy development
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stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives
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idea generation
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develops a pool of concepts as candidates for new products, building upon the previous stage’s results
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screening and evaluation
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internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
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business analysis
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specifies the features of the product and the marketing strategy needed to bring it to the market and make financial projections
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development
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stage of the new-product process that turns the idea on paper into a prototype
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market testing
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involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy
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commercialization
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positions and launches the new product in full-scale production and sales
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BCOR 2400: FINAL