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Key terms and Definitions
Marketing Concepts (UNCC)
40
Marketing
11/11/2008

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Term
New Product
Definition
A product new to the world, the market, the producer, the seller, or some combination of these.
Term
Brainstorming
Definition
The process of getting a group to think of unlimited ways to vary a product or solve a problem.
Term
Screening
Definition
The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason.
Term
Simultaneous Product
Development
Definition
A new team-oriented approach to new-product development where all relevant functional areas and outside suppliers participate in the development process.
Term
Test Marketing
Definition
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Term
Diffusion
Definition
The process by which the adoption of an innovation spreads.
Term
Product Life Cycle
Definition
A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death).(Intro, Growth, Maturity, Decline).
Term
Introductory Stage
Definition
High failure rates,
Little competition,
Frequent product modification,
Limited distribution,
High marketing and production costs,
Negative profits with slow sales increases,
Promotion focuses on awareness and information,
Communication challenge is to stimulate primary demand.
Term
Growth Stage
Definition
Increasing rate of sales,
Entrance of competitors,
Market consolidation,
Initial healthy profits,
Aggressive advertising of the differences between brands,
Wider distribution.
Term
Maturity Stage
Definition
Sales increase at a decreasing rate,
Saturated markets,
Annual models appear,
Lengthened product lines,
Service and repair assume important roles,
Heavy promotions to consumers and dealers,
Marginal competitors drop out,
Niche marketers emerge,
Term
Decline Stage
Definition
Long-run drop in sales,
Large inventories of unsold items,
Elimination of all nonessential marketing expenses,
“Organized abandonment”
Term
Service
Definition
The result of applying human or mechanical efforts to people or objects.
Term
Components of Service Quality
Definition
Reliability, Assurance, Responsiveness, Empathy, Tangibles.
Term
Core Service
Definition
The most basic benefit the consumer is buying.
Term
Supplementary
Service
Definition
A group of services that support
or enhance the core service.
Term
Mass Customization
Definition
A strategy that uses technology to deliver customized services on a mass basis.
Term
Revenue-Oriented Pricing
Definition
Maximize the surplus of income over costs
Term
Operations-Oriented Pricing
Definition
Match supply and demand by varying price
Term
Patronage-Oriented Pricing
Definition
Maximize the number of customers by varying price
Term
Product/Service Mix =
Definition
Process, Core and Supplementary, Mass Customization, Standardization
Term
Place Mix =
Definition
# of outlets, direct, indirect, location
Term
Promotion Mix =
Definition
Tangible cues, personal information, strong image, post-purchase communication
Term
Price Mix =
Definition
Revenue oriented, operations oriented, patronage oriented
Term
Internal Marketing
Definition
Treating employees as customers and developing systems and benefits that satisfy their needs.
Term
Nonprofit Organization Marketing
Definition
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Ex. Gov't, Museums, Theatres, Schools, Churches.
Term
Four I's of Service
Definition
Intangibility,
Inconsistency,
Inseparability,
Inventory
Term
Gap Analysis
Definition
A tool that ask consumers to access their experience and expectations on dimensions of quality service in order to identify the difference between the two.
Term
Customer Contact Audit
Definition
A flow chart that a firm may develop to pinpoint all the places of interaction between the consumer and the service provider
Term
Customer Experience Management
Definition
the process of managing the entire customer experience with the company
Term
Capacity Management
Definition
Because most services have a limited capacity due to the inseparability of the service and the service provider, the marketing mix must be integrated with efforts to influence consumer demand (Off peak pricing)
Term
4 approaches for selecting an approximate price level
Definition
Demand, cost, profit, competition
Term
Demand oriented approaches to pricing
Definition
skimming, penetration, prestige, odd-even, [target, bundle, yield management.]
Term
Cost oriented approaches to pricing
Definition
standard markup, cost plus X amount
Term
Profit oriented approaches to pricing
Definition
Target profit(short run), target return on sales, target return on investment(long run).
Term
Competition oriented approaches to pricing
Definition
Customary, (above, at or below market), loss leader.
Term
Break-Even Analysis
Definition
A break-even point (BEP) is the quantity at which total revenue and total cost are equal. BEP(Q) = Fixed Cost / Unit Pric - Unit Variable Cost
Term
Pricing Objectives
Definition
Sales, market share, unit volume, survival, social responsibility.
Term
Pricing Constraints
Definition
[Demand for the product class, product, and brand.] [Newness of the product: stage in lifecycle.] [Cost of producing and marketing the product.] [Competitors Pricing.] [Legal and ethical considerations; price fixing, price discrimination, deceptive pricing, predatory pricing.]
Term
Why would a seller choose a flexible-price policy over a one-price policy?
Definition
A flexible-price policy involves setting different prices for products and services depending on individual buyers and purchasing situations in light of demand, cost, and competitive factors instead of setting one price for all buyers.
Term
What is the purpose of (a) quantity discounts and (b) promotional allowances?
Definition
Quantity discounts encourage customers to buy larger quantities of a product. Promotional allowances are used to encourage sellers to undertake certain advertising or selling activities to promote a product.