Shared Flashcard Set

Details

Final Review
Chapters 8-16
62
Marketing
Undergraduate 3
12/06/2008

Additional Marketing Flashcards

 


 

Cards

Term
Steps in Marketing Planning
Definition
  • perform SWOT analysis
    • internal - strengths & weaknesses - core capabilities
    • external - opportunities& threats - competition, target markets
  • set marketing objectives
  • develop marketing strategies to achieve marketing objectives
  • implement, evaluation, and control of marketing plan
Term
What is a product?
Definition
  • tangible good, idea, service, or idea that satisfies customer needs
Term
Product layers to benefit customer needs
Definition
  • core product - basic benefits
  • actual product - physical good or delivered servce
  • augmented product - actual product plus supporting features such as warranty, repair, installation, and customer support
Term
Product Classifications
Definition
  • convenience product - frequently purchased
  • shopping product - purchased w/ considerable time/effort
  • specialty products - unique
  • unsought products
Term
Product Innovation
Definition
  • continuous innovations - modifications
  • dynamically continous innovations - pronounced modification
  • discontinious innovations - totally new
Term
Stages in consumer aboption of a new product
Definition
  • awarenes
  • interest
  • evaluation
  • trial
  • adoption
  • confirmation (of value)
Term
Phases in New-Product development
Definition
  • idea generation
  • product-concept development & screening
  • marketing strategy development - how it fits with other 3 P's
  • business analysis
  • technical development
  • test marketing
  • commercialization
Term
What is a brand?
Definition
  • name, term, symbol,or any other unique element that identifies one firm's product and sets it apart from the competition
    • a good brand name is positive, memorable,fits target market & legal requirements
Term
What is brand equity?
Definition
  • a brand's value to its organization over and above the value of the generic version of the product
Term
What are services?
Definition
  • intangibles that are acts, efforts, or performances exchanged from producer to user w/o ownership rights
Term
What are the major service characteristics?
Definition
  • intangibility: can't see, touch, or smell
  • perishability: can't store
  • variability: can't standardize
  • inseparability: can't separate production from consumption
Term
What are the service quality attributes?
Definition
  • search qualities: examine color, style, price, fit, smell, etc. before purchases
  • experience qualities: determine during or after consumption
  • credence (professionalism) qualities: evaluate after experiencing them (believability through signs or actions)
Term
Measuring service quality
Definition
  • SERVQUAL Scale Dimensions: tangibles (facilities, equipment & professionalism); Reliability, Responsiveness, Assurance, & Empathy
  • Gap analysis: measures the difference b/w customer expectations and what actually happened
  • critical incident technique: close examination of customer dissatisfaction complaints
Term
What is price?
Definition
  • the assignment of value, or the amount the consumer must exchangeto recieve the offering
Term
What are the steps in price planning?
Definition
  • develop pricing objectives
  • estimate demand for the product
  • determine costs
  • evaluate the pricing environment
  • choose a pricing strategy
  • develop pricing tactics
Term
Developing pricing strategies
Definition
  • sales or market share: maximize dollars or units
  • profit
  • competition effect
  • customer satisfaction
  • image enhancement
Term
estimate demand
Definition
  • demand: how much of a product are customers willing to buy as its price goes up or down?
  • law of demand: as price goes up, quantity demanded goes down;however, a price increase may actually result in increase of quantity demanded
Term

Price elasticity of demand

elastic demand

inelastic demand

Definition
  • measure of customer sensitivity to price
  • % change in quantity demanded/% change in price
  • elastic demand: change in price results in a substanial change in quantity demanded; if price is increased, revenues decrease and vice versa
  • inelastic demand: change in price has little or no effect on quantity demanded; if price is increased, revenue increase
Term
cross-elasticity of demand
Definition
  • changes in prices of other products affect a product's demand
    • when products are substitutes or are compliments
Term
marginal analysis
Definition
  • a method that uses cost and demand to identify the price that will maximize profits
    • marginal costs: increase in total costs from producing one additional unit of a product
    • marginal revenue: increase in total revenue from selling one additional unit of a product
    • profit is maximized where marginal cost is exactly equal to marginal revenue
Term
Choosing a price strategy
Definition
  • cost - cost plus pricing: total all product costs and add markup
  • demand - target costing:identify quality and functionality customers need and price they're willing to pay; yield management pricing: charge different prices to different customers, based on demand
  • competition - pricing near, at, above, or below the competition or price leadership
  • customers' needs -value pricing
  • new product pricing- skimming, penetrating or low trial pricing
Term
Develop pricing tactics
Definition
  • individual product pricing: w/ two part pricing (dues & activities) and payment pricing (broken into perodic amounts)
  • multiple product pricing: w/ price bundling (selling two or more goods or services as a single package) and captive pricing (pricing two products that work when using together)
Term
distribution based pricing: F.O.B (free on board)
Definition
  • origin based pricing: transportation cost to customer
  • delivered pricing: transportation costs to customer
  • basing point pricing: transportation cost from some point to customer
  • uniform delivered pricing: same price to all customers no matter distance
  • freight absorption pricing: seller takes on all or part of delivery charge in very competitive markets
Term

What is Promotion?

What is Integrated Marketing Communications?

Definition
  • the coordination of marketing communication efforts to inform, remind, persuade, develop relationships to influence attitudes or behavior
  •  integrates all marketing communication which marketers use to plan, develop, execute and evaluate coordination, measurable persuasive brand communication programs over time to targeted audiences
Term
Promotion mix
Definition
  • advertising: nonpersonal communication from an identified sponsor using mass media
  • sales promotion: short-term and supporting incentives designed to build interest or encourage product purchases
  • public relations: communication activities that create/maintain a positive image of a firm & its products
  • personal selling: direct interaction b/w a company representitive & a customer
  • direct marketing: efforts to gain a direct response from individual customers
Term

Contempory promotion mix

(buzz appeals)

 What is buzz marketing?

Definition
  • buzz marketing: high profile entertainment or news that gets people to talk about the brand
    • viral marketing: entertaining or informative messgaes designed to be passed along
    • word or mouth (WOM) marketing: activites that give people a reason to talk about a product
    • Guerrilla marketing: activities that "ambush" consumers w/ promotional content where not expected
Term
What are some IMC characteristics?
Definition
  • a single, unified voice for firm
  • provides information for consumers when they want it and in the amount needed
  • seeks to develop relationships with customers through one-to-one marketing
  • relies on two way communication
  • focuses on all stakeholders, not just customers - employees, stockholders, suppliers, media, trade groups etc
  • generates a continious stream of communication
Term

What are the steps in developing the IMC plan?

 

Definition
  • step 1: identify target audiences
  • step 2: establish communication objectives
    • create awareness
    • inform the market (how product benefits positioned against competitors
    • create desire
    • encourage purchases and trial
    • build loyalty


Term
continued - steps in developing IMC plan
Definition
  • step 3: determine and allocate the marketing communication budget
    • top down budgeting techniques-
      • percentage of sales (last year or present estimate)
      • competitive parity (same as competitors)
    • bottom up budgeting techniques
      • objective task: identify communication goal & cost of promotion effort
Term

What is push strategy?

What is pull strategy?

Definition
  • push strategy: move products through the channel by pushing channel members to offer them
  • pull strategy: move products through the channel by building desire among consumers, convincing retailers to respond to demand
Term

What are the three vehicles of promotion & communication?

 

Definition
  • advertising:nonpersonal communication paid for by an identified sponsor using mass media to persuade ot inform an audience
  • sales promotion: short term and supporting incentives designed to build interest or encourage product purchase
  • public relations:communication activities that create/maintain positive image of a firm and it's products
Term
What are the 4 types of advertising?
Definition
  • product advertising: focuses on a specific g/s
  • institutional advertising: promotes the activities, personality, or point of view of an organization or company
  • retai&local advertising:
  • do-it yourself: consumer-generated ad content (web, blogs, etc)
Term

Creation of an Ad/marketing campaign

What is it?

Definition
  • what is it?
    • a coordinated, comphrensive plan that carries out promotion objectives & results in a series of ads placed in media over aperiod of time
  • who creates it?
    • a limited-service agency (one or more specialized services)or a full service agency with account management, creative services, research and marketing services and media planning
Term
What are the steps in developing an advertising campaign?
Definition
  • step 1: identify the target audiences
  • step 2: establish message and budget objectives
  • step 3: design the ads with a central advertising appeal
  • step 4: pretest what the ads will say
  • step 5: determine the media types & schedule
    • media planning: developes media tactics, strategies and objectives
    • aperture: is the best window (place &time) to reach target market
    • step 6:evaluate the advertising



Term
what are some advertising appeals?
Definition
  • sex appeal
  • comparative advertising (names competitors)
  • demonstration(shows product in action)
  • slice of life (scene from everyday life)
  • lifestyle (appealing target market)
  • testimonial (celebrity endorser)
  • fear appeals (negative consequence of not using product)
  • humorous appeals
Term

media scheduling

"when to say it"

 

Definition
  • advertising exposure: degree to which the target market will see an advertising message
  • impressions: # of people exposed to a message
  • reach: % of target market exposed to media vehicle
  • frequency: average no. of times a person in the target group is exposed to the message
Term

Media scheduling

"how to measure it"

Definition
  • Gross Rating Points (GRP) = reach (% total target market exposure) x frequency (avg number times a person in target group exposed)
  • cost per thousand (CPM): the cost to deliver message to 1,000 people
Term

Media scheduling

"how often to say it"

Definition
  • continious schedule: puts out steady stream of advertising
  • pulsing schedule: varies the amount of advertising
  • flighting schedule: puts ads out in short, intense bursts
Term

evaluate advertising (step 6)

-posttesting

- unaided recall

-aided recall

attitudinal measures

Definition
  • posttesting:(phone or personal interview) on consumers' responses to advertising they have seen or heard through:
    • unaided recall: remember ad? - no brand identification
    • aided recall: remember ad? - brand identification
    • attitudinal measures: deep probing of consumer feelings/beliefs of product
Term

Sales Promotion

(directed toward the trade B2B)

Definition
  • discounts & deals
    • merchandising allowances (retailers in store for support)
    • case allowances (volume discount for retailer/wholesaler)
  • increasing industry visibility
    • trade shows (producer shows to retailers & wholesalers)
    • promotional products
    • incentive programs (push money to channel members or own sales force)
Term

Sales Promotion

(directed towards consumer)

Definition
  • price-based consumer sales promotion: special/bonus packs (more product for same price) coupons, price deals, refunds, and rebates; frequency (loyalty/continuity) programs (discount or free product);
  • attention getting consumer promotion: & sweepstakes; premiums, samplingcreative; product/brand placements (movies/TV) and cross promotion(two or more goods/services together) contests print-of-purchase promotion ( displays/signs)
Term

Public relations

"do something good, then talk about it"

Definition
  • Publics: include consumers, stockholders, legislatures, and other firm stakeholders
  • objectives:
    • introducing new products to manufacturers
    • introducing new products to consumers
    • influencing gov't legislation
    • enhancing image of a firm
    • enhancing image of a city,region,or country
    • calling attention to a firm's involvement w/community
Term
Public relations activities
Definition
  • press releases (timely topics)
  • internal PR (employees)
  • investor relations (stockholders)
  • lobbying (gov't officials)
  • speech writing
  • corporate identity (logos, brochures, stationery)
  • media relations
  • sponsorships
  • special events
  • buzz building
Term

What is personal selling?

What is direct marketing?

 

Definition
  • personal selling: direct interaction b/w company representative and customer
  • direct marketing: efforts to gain a direct response from individual consumers
Term
what are some personal selling characteristics?
Definition
  • for firms using push strategy
  • more in B2B contexts
  • for inexperienced consumers who need hands on assistance
  • for higher risk products bought infrequently (houses, cars,computers)
  • cost per contact is very high
Term
What are 2 personal selling appraoches?
Definition
  • transactional selling: (hard sell) that focuses on making an immediate sale w/no concern for developing long term relationship
  • relationship selling: building long term customer relationships
Term
Explain the steps in the creative selling process
Definition
  • step 1: prospecting & qualifying (potential customers)
  • step 2: preapproach (compiling background information about prospective customers& planning the interview)
  • step 3: approach (contacting prospect & building rapport
  • step 4: sales presentation (laying out benefits & added value over the competition
  • step 5: handling objections
  • step 6: closing the sale
  • step 7: follow up
Term
What are the steps in sales management process?
Definition
  • step 1: setting sales force objectives: what sales force is expected to accomplish when
  • step 2: sales force strategy: establishing the structure & size of a firm's sales force
  • step 3: recruiting, training, & rewarding sales force 
    • recruiting the right people
    • sales training & development
  • step 4: paying salespeople well for motivation
  • step 5: running sales contests
  • step 6: call reports
  • step 7: evaluating the sales force
Term

Channel strategy

-define value chain

-define supply chain

-define distribution channel

Definition
  • value chain: (everything) a series of activities directed at designing, producing, marketing, delivering, and supporting any product
  • supply chain: activities necessary to turn raw materials into a good or service & put it into the hands of a consumer
  • distribution channel: where firms/individuals facilitate the movement of a product from producer to consumer
Term
Distribution Channel Models
Definition
  • Direct Channel: a producer and a customer       M ->C/B2B
  • Indirect Channel: one or more intermediaries   M -> W ->
Term
What are the functions of a distribution channel?
Definition
  • To ease the flow of goods from producer to customer
  • To provide time, place, and ownership utility
  • To provide logistics or physical distribution functions
  • To create efficiencies by reducing number of transactions/channel functions through by breaking bulk or creating assortments
  • To make purchase process easier
  • To manage risk
  • To perform communication& transaction functions
Term

Types of wholesaling

(intermediaries)

Definition
  • independent intermediaries:
    • merchant wholesalers: buy goods from manufacturers and sell to retailers and other B2B customers - take title to goods
      • full service merchant wholesalers
      • cash-and-carry wholesalers (low cost merchandise)
      • truck jobbers (often perishable food items)
      • drop shippers (take orders but no posession)
Term
types of wholesalers
Definition
  • independent intermediaries
    • merchandise agents/brokers: provide services in exchange for commissions - do not take title to goods
      • manufacturers'agents/reps
      • selling agents
      • commission merchants

Term
Steps in planning a channel strategy
Definition
  • step 1: develop distribution objectives that support the firm's marketing goals
  • step 2: evaluate internal&external environmental influences
  • step 3: choose a distribution strategy
  • step 4: develop distribution tacticts
Term
what are logistic functions?
Definition
  • physical distribution that is used to move finished goods from manufacturers to final customers
    • order processing
    • warehousing
    • materials handeling
Term
define inventory control
Definition
  • activities to ensure goods are always available to meet customers' demands
    • Radio frequency identification (RFID): electronic chip to track product content;origin and destination
    • Just in time (JIT): inventory techniques as goods are needed on the production floor
Term

Retailing.

What is it?

Definition
  • the process by which goods and services are sold to customers for their personal use
    • retailer is a channel intermediary, providing time, place, and ownership utility to customers
Term
how retailing evolves
Definition
  • wheel-of-retailing hypothesis: new types of retailers enter the market by offering lower priced and or innovative goods.
    • gradually improve facilities, quality and assortment of merchandis,and amenities & increased prices
    • "wheel turns" where new lower-priced competitors come into the market
Term
retail life cycle
Definition
  • introduction stage: low price or innovative & aggressive
  • growth: seek more outlets due to competitors
  • maturity: intense competition leading to price cutting
  • decline: become obsolete or changes to start a new life cycle
Term

how retailing evolves-

the future

Definition
  • demographics: new ways to sell to diverse groups i.e. convenience for working consumers, specific age segments, ethnic diversity
  • technology: web, point of sale, RIFD
  • globalization:new cultures,younger populations
Term
classifying retail stores by:
Definition
  • level of service
    • self service
    • limited service
    • full service
  • merchandise & assortment selection
    • merchandise breadth: # of diff. product lines
    • merchandise depth: choices available in each product line
Term

classifying retail stores by:

 major retailer shops

 

Definition
  • convenience stores (limited, higher priced assortment)
  • supermarkets (wide selection of edible & nonedible)
  • specialty stores (narrow & deep inventories)
  • discount stores (warehouse clubs & factory outlet stores - low priced, broad assortment w/little service
  • department stores (broad range & deep selection)
  • hypermarkets (combined warehouse & supermaket - 5 times the size of traditional market & more successful in europe
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