Term
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Definition
Search-may be evaluated prior to purchase
Experience
Require trial or consumption before evaluation
Credence
Qualities
High Involvment
Low Involvment |
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Definition
Hotel
Bed-Core
Spa Shower value added |
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Definition
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Definition
| Number of products in lines |
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Definition
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Term
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Definition
| Serve different segments with different products or multiple segments with one product or multiple products on segment |
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Definition
Customer
Company
Context
Competition
Collaborators |
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Term
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Definition
Segmentation
Targeting
Positioning |
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Term
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Definition
Product
Price
Place
Promotion |
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Term
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Definition
| One brand name to all of its products |
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Term
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Definition
| Company introduces a new brand name for every major line of prodict it brings to the marketplace |
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Term
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Definition
| Marketer leverages the brand’s good name to get customers to buy something new. |
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Definition
| Apply to a product witin a product line |
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Term
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Definition
| Apply to a product in a different product line |
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Term
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Definition
| Two companies collaborate ina joint venture to creat a good or service for the customer |
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Term
| Steps in developing a new product |
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Definition
Idea Generation
Concept Testing
Product Testing
Test Marketing
Area Test Markets
Electronic Test Markets
Simulated Test Markets
Forecasting |
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Term
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Definition
Market Introduction
Market Growth
Market Maturity
Market Decline |
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Term
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Definition
Inovators first 3-5%
Early Adopters next 10-15
Early Majority next 34
Late Majority next 34
Laggards or non-adopters next 5-15% |
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Term
| Intensive Distribution Channel |
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Definition
Widely distributed (drugstores, supermarkets etc)
Mostly for simple inexpensive easily transported products
Uses pull strategy (promote directly to end consumer to pull through channel) |
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Term
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Definition
Less widely distributed and for more expensive products that require assistance
Push strategy (promote to distribution partners to push goods to consumer
Manufacturer has more control due to fewer relationships to manage. |
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Term
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Definition
Extreme case of selectivity
Manufactures have the most control
May become monopolistic |
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Term
| Media Planning of Advertising cycles |
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Definition
Continuous
Occasional
Seasonal |
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Term
| Difference between advertising and personal selling |
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Definition
Advertising
Customers can be anywhere
Product is simple to understand
Product is fairly standard
Product is relatively inexpensive, less risky
Advertising can be expensive
Results are mor difficult to establish
Personal selling
Geographic concentration is necessary
Product is often technical complicated
It involves customization
It involves high priced B2B items
Sales forces can be expensive
There is quick feedback, measurable results |
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Term
| Elements in the communication process (Dyadic Communication) |
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Definition
Message is encoded in the media by the sender
Receiver decodes the message and responds which provides feedback o the sender
Difference in message decoding is considered noise |
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Term
| Goals of Ad Campaign (AIDA- Attention, interest, desire, action) |
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Definition
1. Cognition increase awareness and knowledge about brand
2. Affect enhance attitudes and positive associations about brand
3. Behavior encourage more buying of brand |
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Term
| Cognitive or Rational Ads |
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Definition
One sided
Focuses on expressing products benefits
Two sided
Emphasizes benefits but acknowledges weaknesses
Comparative
Noncomparative
Product demonstration
Drama |
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Term
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Definition
Humor
Fear
Subliminal
Image
Endorsement |
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Term
| Measuring Cognitive Goals in Advertising |
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Definition
Awareness and knowledge
Recall
Recognition
Mere exposure |
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Term
| Measuring Affective Goals |
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Definition
Measure image and preference
Concept testing
Copy Testing |
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Term
| Steps in Analyzing Competitors |
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Definition
Identifying the companys competitors
Assessing competitors objectives strategies strengths and weaknesses and reaction patterns
Selecting which competitors to attack or avoid |
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Term
| Porters basic competitive strategies |
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Definition
Overall cost leadership
Lowest production and distribution costs
Differentiation
Creating a highly differentiated product line and marketing program
Focus
Effort is focused on serving a few market segments |
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Term
| Treacy and Wiersemas Basic Competive Strategies: Value Disciplines |
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Definition
Operational Excellence
Superior value via price and concenience
Customer Intimacy
Superior value by means of building strong relationships with buyers and satisfying needs
Product Leadership
Superior value via product innovation |
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Term
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Definition
Market Leader 40%
Market Challengers 30
Market followers 20
Market nichers 10 |
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Term
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Definition
Easiest to change
Sends signal regarding the positioning and image of the brand |
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Term
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Definition
Company’s cost
Customers sense of products value
Competitions price |
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Term
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Definition
E>1 demand is elastic
E<1 demand is inelastic
Demand Increases
With increased customer’s desire
With favorable perceptions of the product’s benefits or band image
If competitors brands aren’t favorable
If there are few good sustitutes
If substitutes are priced even higher
Demand is more elastic when
Customers don’t care about the purchase
Customers don’t have strong preferences
Item is a luxury rather than a necessity
Many substitutes are available
Purchase is large compared to income
When household incomes are lower
It is easier to compare prices |
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Term
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Definition
| (fixed costs)/[(price – variable costs)] |
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Term
| Product life cycle priceing |
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Definition
Introduction
Penetration seek market share
Skimming: seek profit
Adjust price in various stages, usually end with lower prices in decline stage |
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Term
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Definition
| A duty levied by a nation on goods bought outside its borders and brought into the country |
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Term
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Definition
| A limit on the amount of goods an importing contry will accept for certain product categories in a specific period of time |
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Term
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Definition
| A government’s suspension of trade in a particuluar product or with a given country |
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Term
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Definition
| Government restrictions on the amount of a particular currency that can be bought or sold |
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Term
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Definition
| The difference in value between a nation’s exports and its imports |
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