MKTG 305: FINAL EXAM
148 Cards in this Set
| Front | Back |
|---|---|
|
Exchange
|
Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.
|
|
Marketing
|
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
|
|
Market
|
A market consists of people with both the desire and the ability to buy a specific offering
|
|
Target Market
|
A target market consists of one or more specific groups of potential consumers toward which an organization directs its marketing program.
|
|
Marketing Mix
|
The marketing mix consists of the marketing manager's controllable factors-product, price, promotion, and place-that can be used to solve a marketing problem.
|
|
Mission Statement
|
A mission is a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision.
|
|
Profit
|
Profit is the money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
|
|
Code of Ethics
|
Ethics are the moral principles and values that govern the actions and decisions of an individual or group.
|
|
Laws
|
Laws are society's values and standards that are enforceable in the courts.
|
|
Caveat Emptor
|
Caveat emptor is the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s.
|
|
Market Share
|
Market share is the ratio of sales of revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
|
|
Consumer Behavior
|
Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
|
|
Evaluative Criteria
|
Evaluative criteria are the factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.
|
|
Cognitive Dissonance
|
Cognitive dissonance is the feeling of post purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
|
|
Brand Loyalty
|
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
|
|
Marketing Research
|
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending action.
|
|
Protectionism
|
The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.
|
|
Tariffs
|
Government taxes on goods or services entering a country that primarily serve to raise prices on imports.
|
|
Quota
|
A quota is a restriction placed on the amount of a product allowed to enter (import quota) or leave a country (export quota).
|
|
Product
|
A product is a 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.
|
|
Derived demand for business
|
Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.
For example, the demand for Weyerhaeuser's pulp and paper products is based on consumer demand for newspapers, FedEx packages, and dispos…
|
|
Product Modification
|
Product modification is a strategy that alters one or more of a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.
|
|
Market Modification
|
Market modification is a strategy in which a company tries to find new customers, increase a product's use among existing customers, or create new use situations.
|
|
Brand Equity
|
Brand equity is the added value a brand name gives to a product beyond the functional benefits provided.
|
|
Value
|
Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price).
|
|
Logistics
|
Logistics consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
|
|
Gray Market
|
A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.
|
|
Sales Plan Formulation (Sales Management)
|
- Setting objectives
- Organizing the salesforce
- Developing account management policies
|
|
Sales Plan Implementation (Sales Management)
|
- Salesforce recruitment and selection
- Salesforce training
- Salesforce motivation and compensation.
|
|
Sales Plan Evaluation (Sales Management
|
- Quantitative assessment
- Behavioral evaluation
|
|
Fixed Costs
|
A fixed cost remains unchanged in total for a given time period, despite wide changes in the related level of total activity or volume of output produced.
|
|
4 P's of Marketing
|
Product (or Service)
Place
Price
Promotion
|
|
Environmental Forces
|
Environmental forces consist of the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
|
|
Customer value
|
Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
|
|
Star (BCG Matrix)
|
High market share
High market growth
|
|
Cash Cow (BCG Matrix)
|
low market growth
high market share
|
|
Question Marks (BCG Matrix)
|
Low market share
high market growth
|
|
Dogs (BCG Matrix)
|
low market share
low market growth
|
|
Marketing Plan
|
A marketing program is a road map for the marketing activities (STP, 4P's, etc.) for a specified future time period such as 1 year or 5 years.
|
|
Planning Phase (Strategic Marketing Process)
|
1. Situation analysis
2. Market-product focus goal setting
3. Marketing program
|
|
Implementation phase (Strategic Marketing Process)
|
2nd step in Strategic marketing process
Put marketing plan into action
|
|
Evaluation phase
|
3rd step in Strategic Marketing Process.
Evaluatie results
|
|
Baby Boomers
|
Born 1946 - 1964 (50-68 years old)
|
|
Gen X
|
Born 1965 - 1976 (38-49 years old)
|
|
Gen Y
|
Born 1977 - 1994 (20-37 years old)
|
|
Millennials
|
Born 1995 - Current
|
|
Gross
|
Total Income
|
|
Disposable
|
Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.
|
|
Discretionary
|
Discretionary income is the money that remains after paying for taxes and necessities.
|
|
Perfect Competition
|
There are many sellers and they each have an interchangeable product and they do not control the price of their product, the market does.
--Like agricultural products
|
|
Monopolistic competition
|
many sellers with substitutes but not the same interchangeable products. They sell differentiated products—products that differ somewhat, or are perceived to differ, even though they serve a similar purpose
|
|
Monopoly
|
One seller in the market
- PG&E
- Legal patent holders
|
|
Oligopoly
|
Occurs when a few companies control the majority of industry sales.
|
|
Moral Idealism
|
Is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.
|
|
Utilitarianism
|
Is a personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.
|
|
Marketing Mix Influences
|
- Product
- Promotion
- Price
- Place
|
|
Psychological Influences
|
- Motivation
- Personality
- Perception
- Learning
- Values, beliefs, attitudes
- Lifestyle
|
|
Situational influences
|
- Purchase task
- Social surroundings
- Physical surroundings
- Antecedent states
|
|
Sociocultural influences
|
- Personal influence
- Reference groups
- Family influence
- Social class
- Culture and subculture
|
|
Consumer Purchase Decision Process
|
1. Problem Recognition
2. Information search
3. Alternative evaluation
4. Purchase decision
5. Post purchase behavior
|
|
Triple-bottom line
|
Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
|
|
Green marketing
|
Marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms.
|
|
Cause Marketing
|
Occurs when the charitable contributions (i.e., Special Olympics) of a firm (i.e., 3M) are tied directly to the customer revenues produced through the promotion of one of its products.
|
|
Extended Problem Solving
|
1. Many brands examined
2. Many sellers considered
3. Many product attributes evaluated
4. Many external information sources used
5. Considerable time spent searching.
|
|
Limited Problem Solving
|
1. Several brands examined
2. Several sellers considered
3. Moderate product attributes evaluated
4. Few external information sources used
5. Little time spent searching.
|
|
Routine Problem Solving
|
1. One brands examined
2. Few sellers considered
3. One product attributes evaluated
4. None external information sources used
5. Minimal time spent searching.
|
|
Maslow's Hierarchy of Needs
|
1. Self-actualization (self-fulfillment)
2. Personal needs: (status, respect, prestige)
3. Social needs: (friendship, belonging, love.)
4. Safety needs: (freedom from harm, financial security.)
5. Physiological needs: (food, water, shelter, oxygen)
|
|
Five-step marketing research approach
|
1. Define the Problem
2. Develop Your Research Plan
3. Collect Relevant Data and Information
4. Analyze Data and Report Findings
5. Take Action
|
|
Primary data
|
Are the facts and figures that are newly collected for the project.
- Expensive and time consuming
- Perfectly targeted towards your experiment at hand
- Questionnaires, observations, data mining, etc.
|
|
Secondary data
|
Are the facts and figures that have already been recorded before the project at hand.
- Cheaper and easier to access
- Less targeted towards your experiment at hand
- Internal Data from the Firm
- Data from reputable sources like US Census which is ~80% accurate
|
|
Market segmentation steps
|
1. Identify market needs
2. Link needs to actions
3. Execute marketing mix of 4 P's
|
|
Geographic segmentation
|
- Region
- City size
- Statistical area
- Media-Television density
|
|
Demographic segmentation
|
- Gender
- Age
- Race/ethnicity
- Life State
- Birth era
- Household size
- Marital status
|
|
Psychographic segmentation
|
- Personality
- Values (VALS2)
- Lifestyle (Nielsen PRIZM)
- Needs
|
|
New Product Process
|
1. New-product strategy development
2. Idea generation
3. Screening and evaluation
4. Business analysis
5. Development
6. Market testing
7. Commercialization
|
|
Marketing reasons for new product failure.
|
1. Insignificant points of difference (most common reason for product failure)
2. No economic access to buyers
3. Not satisfying needs on critical factors
4. Bad timing (market intro)
5. Poor product quality
6. Too little market attractiveness
7. Poor execution of the marketing mix…
|
|
Perceptual Map
|
A perceptual map is a 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 the firm's own product or brand.
|
|
Exporting
|
Exporting is a global market-entry strategy in which a company produces goods in one country and sells them in another country.
|
|
Licensing
|
A company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.
Joint Venture - Joint venture is a global market-entry strategy in which a foreign company and a local firm invest together to creat…
|
|
Direct Investment
|
Direct investment is a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
|
|
Dumping
|
Dumping occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.
|
|
Product Positioning
|
Product positioning is the place a product occupies in a consumer's mind on important attributes relative to competitive products.
|
|
Product Repositioning
|
Product repositioning involves changing the place an offering occupies in a consumer's mind relative to competitive products.
|
|
Product line
|
A product line is a 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.
|
|
Product mix
|
A product mix consists of all of the product lines offered by an organization.
|
|
Continous innovation
|
Requires no new learning by consumers
|
|
Dynamically continuous innovation
|
Disrupts continuous innovation
|
|
Discontinuous innovation
|
Requires new learning and consumption patters by consumers.
|
|
Product branding
|
Branding is a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors.
|
|
Total Revenue Equation
|
Total Revenue = Price x Quantity
|
|
Profit Equation
|
Profit = Total Revenue - Total Cost
(Unit price x Quantity sold) - (Fixed cost + Variable cost)
|
|
Break-even analysis
|
Break-even analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
The break-even point formula is calculated by dividing the total fixed costs of production by the price per unit less the varia…
|
|
Skimming
|
Skimming pricing involves setting the highest initial price
that customers really desiring the product are willing to pay when introducing a new or innovative product.
|
|
Penetration
|
Penetration pricing involves setting a low initial price on a new product to appeal immediately to the mass market.
|
|
Prestige
|
Prestige pricing involves setting a high price so that quality- or status conscious consumers will be attracted to the product and buy it.
|
|
Price lining
|
The process used by retailers of separating goods into cost categories in order to create various quality levels in the minds of consumers. Effective price lining by a business will usually involve putting sufficient price gaps between categories to inform prospective buyers of quality di…
|
|
Odd-even
|
Involves setting prices a few dollars or cents under an even number
|
|
Target
|
Manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers.
|
|
Bundle
|
The marketing of two or more products in a single package price
|
|
Yield management
|
The charging of different prices to maximize revenue for a set amount of capacity at any given time.
|
|
Quantity Discount
|
To encourage customers to buy larger quantities of a product, firms at all levels in the marketing channel offer quantity discounts, which are reductions in unit costs for a larger order.
|
|
Noncumulative Quantity Discount
|
based on the size of an individual purchase order.
|
|
Seasonal Discount
|
To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use seasonal discounts.
Smooths out seasonal manufacturing peaks and troughs, thereby contributing to more efficient production.
Snow blowers
Pool gear
|
|
Trade (functional) Discount
|
These reductions off the list or base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future.
Although the manufacturer may suggest the trade discounts shown i…
|
|
Cash Discount
|
To encourage retailers to pay their bills quickly, manufacturers offer them cash discounts.
|
|
Exclusive distribution
|
A level of distribution density whereby only one retailer in a specific geographical area carries the firm's products.
|
|
Intensive distribution
|
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.
|
|
Selective distribution
|
lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products.
|
|
Direct Channel
|
Producer directly deals with ultimate consumer
|
|
Indirect Channel
|
Intermediaries between producer and ultimate consumer
|
|
Multichannel Marketing
|
Is the 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
|
|
Dual Distribution
|
an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
Selling to business users and ultimate consumers
|
|
Vertical Marketing
|
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
|
|
Channel Conflict
|
arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
|
|
Disintermediation
|
Channel conflict that arises when a channel member bypasses another member and sells or buys products direct
|
|
Horizontal conflict
|
occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers (Target and Kmart) or two or more wholesalers that handle the same manufacturer's brands.
|
|
Vertical integration
|
Although not illegal, this practice is sometimes subject to legal action under the Clayton Act if it has the potential to lessen competition or foster monopoly.
|
|
Push Strategy
|
Flow of promotion: Mainly personal selling directed to intermediaries.
|
|
Pull Strategy
|
Flow of promotion mainly advertising directly to consumers.
|
|
Television (advantages)
|
Reaches large audience. Uses picture, print, sound, and motion for effect. Can target specific audiences
|
|
Television (disadvantages)
|
High cost to prepare and run ads. Short exposure time and perishable message. Difficult to convey complex information
|
|
Radio (advantages)
|
Low cost, can target specific local audiences, ads can be placed quickly, can us sound, humor, and intimacy effectively.
|
|
Radio (disadvantages)
|
No visual element, short exposure time and perishable message, difficult to convey complex information
|
|
Magazines (advantages)
|
Con target specific audiences, high-quality color, long life of ad, ads can be clipped and saved, can convey complex information
|
|
Magazines (disadvantages)
|
Long time needed to place ad, relatively high cost, competes for attention with other magazine features.
|
|
Newspapers (advantages)
|
Excellent coverage of local markets, ads can be placed and changed quickly, ads can be saves, quick consumer response, low cost
|
|
Newspapers (disadvantages)
|
Ads compete for attention with other newspaper features, short life span, poor color
|
|
Yellow Pages (advantages)
|
Excellent coverage of geographic segments, long use period, available 24/7 365 days
|
|
Yellow Pages (disadvantages)
|
Proliferation of competitive directories in many markets, difficult to keep up-to-date
|
|
Internet (advantages)
|
Video and audio capabilities, animation can capture attention, ads can be interactive and link to advertiser.
|
|
Internet (disadvantages)
|
Animation and interactivity require large files and more time to load, effectiveness is still uncertain.
|
|
Outdoor (advantages)
|
Low cost, local market focus, high visibility, opportunity for repeat exposures.
|
|
Outdoor (disadvantages)
|
Message must be short and simple, low selectivity of audience, criticized as traffic hazard.
|
|
Direct mail (advantages)
|
High selectivity of audience, can contain complex information and personalized messages, high-quality graphics
|
|
Direct mail (disadvantages)
|
high cost per contact, poor image (junk mail)
|
|
Trade-Oriented Sales Promotions
|
Trade-oriented sales promotion programmes are directed at the dealer network of the company to motivate them to the sell more of the company's brand than other brands. It is also known as a push strategy
|
|
The Four I's of Service
|
1. Intangibility
2. Inconsistency
3. Inseparability
4. Inventory
|
|
Personal selling process
|
1. Prospecting
2. Pre approach
3. Approach
4. Presentation
5. Close
6. Follow-up
|
|
Prospecting
|
search for and qualify prospects.
|
|
Pre approach
|
Gather information and decide how to approach the prospect
|
|
Approach
|
Gain a prospects attention, stimulate interest, and make transition to the presentation.
|
|
Presentation
|
Begin converting a prospect into a customer by creating a desire for the product or service
|
|
close
|
Obtain a purchase commitment from the prospect and create a customer
|
|
Follow-up
|
Ensure that the customer is satisfied with the product or service.
|
|
Promotion mix
|
1. Advertising
2. Personal selling
3. Public relations
4. Sales promotion
5. Direct marketing
|
|
Elastic demand
|
exists when a 1 percent decrease in price produces more than a 1 percent increase in quantity demanded, thereby actually increasing total revenue. This results in a price elasticity that is greater than 1 with elastic demand. In other words, a product with elastic demand is one in which a…
|
|
Inelastic demand
|
exists when a 1 percent decrease in price produces less than a 1 percent increase in quantity demanded, thereby actually decreasing total revenue. This results in a price elasticity that is less than 1 with inelastic demand. So a product with inelastic demand means that slight increases o…
|
|
Stages of Product Life Cycle
|
1. Introduction
2. Growth
3. Maturity
4. Decline
|
MKTG 305: TEST 1