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MKGT 301 Final
Flashcards for Final Prof. Kulick GMU
84
Marketing
Undergraduate 3
12/10/2012
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Term
Product
 Definition

Anything of value to the customer offered through a voluntary marketing exchange.

i.e. goods, services, places, ideas, organizations, people, or communities 
Term
Augmented Product
 Definition
The non-physical aspects of the product such as product warranties, financing, product support, and after-sale service.
Term
Types of Product
 Definition
  1. Consumer Products/Services
  2. Specialty Products/Services
  3. Shopping Products/Services
  4. Convenience Products/Services
  5. Unsought Products/Services
Term
Consumer Products
 Definition
Products and services used by people for their personal use.
Term
Specialty Products
 Definition
Products toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers. 
Term
Shopping Products
 Definition
Products for which consumers will spend a considerable amount of time comparing alternatives such as furniture, apparel, fragrances, appliances, and travel alternatives. 
Term
Convenience Products
 Definition
Products for which consumers will not spend time or effort to get.
Term
Unsought Products
 Definition
Products consumers do not normally think of buying or do not know about. 
Term
Product Mix
 Definition
The complete set of all products offered by a firm.
Term
Product Lines
 Definition
Groups of associated items that consumers tend to use together or think of as part of a group of similar products. 
Term
Brand Equity
 Definition
Set of assets and liabilities linked to a brand that add or subtract from the value provided by the product or service. 
Term
Perceived Value
 Definition
Relationship between the product's or service's benefits and its costs. 
Term
Brand Ownership
 Definition
  1. Manfacturer Brands/National Brands
  2. Private-Label Brands/Store Brands/House Brands/Own Brands
  3. Premium Brands
  4. Generic Brands
  5. Copycat Brands
  6. Exclusive Co-brands
Term
Brand Dilution
 Definition
Occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. 
Term
Brand Repositioning or Rebranding
 Definition
Refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences. 
Term
Primary Package
 Definition
The one the consumer uses, such as the toothpaste tube. 
Term
Secondary Package
 Definition
The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners. 
Term
Diffusion of Innovation
 Definition
The process by which the use of innovation-whether a product, a service, or a process- spreads throughout a market group, over time and across various categories or adopters. 
Term

Diffusion of Innovation Curve 

Exhibit 11.1

 Definition
[image]
Term
Product Development/Product Design
 Definition
Entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features.
Term
Test Marketing
 Definition
A method of determining the success potential of a new product that introduces the offering to a limited geographical area (usually a few cities) prior to a national launch.
Term
Zone of Tolerance
 Definition
The area between customers' expectations regarding their desired service and the minimum level of acceptable service-- that is, the difference between what the customer really wnats and what he or she will accept before going elsewhere.  
Term
Empowerment
 Definition
Allowing employees to make decisions about how service gets provided to customers. 
Term
Price
 Definition
The overall sacrifice a consumer is willing to make to acquire a specific product or service.
Term
Demand Curve
 Definition
Shows how many units of a product or service consumers will demand during a specific period of time at different prices. 
Term
Price Elasticity of Demand
 Definition

Measures how changes in the price affect quantity of the product demanded.

 

Price Elasticity of Demand=

 

% change in Qd

  % change in price
Term
Cost-Based Pricing Methods
 Definition
Determine the final price to charge by starting with the cost. 
Term
Competitor-Based Pricing Method
 Definition
A company may set their prices to reflect the way they want consumers to interpret their own prices relative to the competitor's offerings. 
Term
Value-Based Pricing Methods 
 Definition
Include approaches to setting prices that focus on the overall value of the product offerings as perceived by the consumer. 
Term
Product Life Cycle
 Definition
[image]
Term
Core Differences between Services and Goods
 Definition
[image]
Term
Gaps Model for Improving Service
 Definition
[image]
Term
Company Objectives and Pricing Strategy Implications
 Definition
[image]
Term
Cost of Ownership Method
 Definition
Consumer may be willing to pay more for a particular product, over its entire lifetime, if it will eventually cost less to own than a cheaper alternative.
Term
Pricing Strategies
 Definition
  1. Everyday Low Pricing (EDLP)
  2. High/Low Pricing
  3. Price Lining
  4. Market Penetration
  5. Price Skimming
Term

Everyday Low Pricing

 

 Definition
With this strategy companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sales prices their competitors may offer.
Term
High/Low Pricing
 Definition
An alternative to EDLP that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases.
Term
Price Lining
 Definition
When marketers establish a price floor and a price ceiling for an entire line of similar products and then set a few other price points in between to represent distinct differences in quality.
Term
Market Penetration Strategy
 Definition
Sets the price low for the initial introduction of the new product or service.
Term
Price Skimming
 Definition
Appeals to the segments of customers who are willing to pay a premium price to have the innovation first. 
Term
Pricing Tactics
 Definition
  1. Markdowns
  2. Size Discounts
  3. Seasonal Discounts
  4. Coupons
  5. Rebates
  6. Leasing 
  7. Price Bundling
  8. Leader Pricing
Term
Deceptive or Illegal Price Advertising
 Definition
  1. Deceptive Reference Prices
  2. Loss Leader Pricing
  3. Bait-And-Switch
Term
Predatory Pricing
 Definition
A firm sets a very low price for one or more of its products  with the intent to drive its competition out of business.
Term
Price Discrimination
 Definition
When a firm sells the same product to different retailers at different prices. 
Term
Price Fixing
 Definition

The practice of colluding with other firms to control prices. 

  • Horizontal-same level.
  • Vertical-up and down supply chain.
Term
Supply Chain Management
 Definition
Refers to a set of approaches or techniques firms employ to efficiently and effectively integrate their suplliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the service levels their customers require. 
Term
Marketing Channel
 Definition
The set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; as such, it consists of all the institutions and marketing activities in the marketing process.
Term
Pull Supply Chain
 Definition
A supply chain in which orders for merchandise are generated at the store level on the basis of sales data captured by POS terminals. 
Term
Push Supply Chain
 Definition
Merchandise is allocated to stores on the basis of forecasted demand.
Term
Just-In-Time/Quick Response Inventory Systems
 Definition
Inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems. 
Term
Vertical and Horizontal Supply Chain Conflict
 Definition
When supply chain members are not in agreement about their goals, roles, or rewards up and down the supply chain or at the same level.
Term
Strategic/Partnering Relationship
 Definition
Supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial.
Term
Retailing
 Definition
The set of business activities that add value to products and services sold to consumers for their personal or family use. 
Term
Multichannel Strategy
 Definition
Involves selling in more than one channel (e.g. store, catalog, and Internet).
Term
Factors for Establishing a Relationship with Retailers
 Definition
[image]
Term
Distribution Intensity
 Definition
The number of channel members to use at each level of the marketing channel.
Term
Types of Retailers
 Definition
[image]
Term
Share of Wallet
 Definition
The percentage of the customer's purchases made from that particular retailer.
Term
Benefits of Stores
 Definition
  1. Browsing
  2. Touching and Feeling Products
  3. Personal Service
  4. Cash and Credit Payment
  5. Entertainment and Social Experience
  6. Immediate Gratification
  7. Risk Reduction
Term
Benefits of the Internet
 Definition
  1. Deeper and Broader Selection
  2. Personalization
  3. Gain Insights into Consumer Shopping Behavior
  4. Increase Customer Satisfaction and Loyalty
  5. Expand Market Presence
Term
Integrated Marketing Communications (IMC)
 Definition
Represents the Promotion P of the four P's and incompases a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media- in combination to provide clarity, consistency, and maximum communicative impact. 
Term
The Communication Process
 Definition
  1. Sender 
  2. Transmitter
  3. Encoding
  4. The Communication Channel 
  5. The Receiver
  6. Noise 
  7. Feedback Loop
Term
How Consumers Perceive Communication
 Definition
  1. Receivers Decode Messages Differently
  2. Senders Adjust Messages According to the Medium and Receivers' Traits
Term
AIDA Model
 Definition
Awareness leads to Interest, which leads to Desire, which leads to Action. 
Term
Elements of the IMC Strategy
 Definition
  1. Advertising
  2. Public Relations (PR)
  3. Sales Promotions
  4. Personal Selling
  5. Direct Marketing and Mobil Marketing
  6. Online Marketing
Term
Elements of an IMC Strategy
 Definition
[image]
Term
Click-Through Rate
 Definition
The number of times a user clicks on an ad divided by the number of impressions.
Term
Relevance
 Definition
How useful and ad message is to the consumer doing the search. 
Term
Return On Investment (ROI)
 Definition

ROI=

 

Sales revenue-Advertising cost

Advertising cost
Term
Steps in Planning and Executing an Ad Campaign
 Definition
[image]
Term
Advertising Plan
 Definition
A subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successfull.
Term
Informative Advertising
 Definition
A communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. 
Term
Persuasive Advertising
 Definition
A communication used to motivate customers to take action. 
Term
Reminder Advertising
 Definition
A communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their lifecycle. 
Term
Public Service Advertising (PSA)
 Definition
Institutional advertising that focuses on public welfare and generally is sponsored by nonprofits, civic groups, religious organizations, trade associations, or political groups. 
Term
Unique Selling Proposition (USP)
 Definition
Communicates the unique attributes of the product and thereby becomes a snapshot of the entire campaign.
Term
Appeals
 Definition
  1. Informational Appeals
  2. Emotional Appeal
Term
Media Planning
 Definition
The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.
Term
Media Mix
 Definition
The combination of media used and the frequency of advertising in each medium.
Term
Media Buy
 Definition
The actual purchase of airtime or print pages, which is generally the largest expense in the advertising budget. 
Term
Ad Schedule
 Definition

Specifies the timing and duration of advertising.

  1. Continuous 
  2. Flighting 
  3. Pulsing
Term
Public Relations (PR)
 Definition
Involves managing communications and relationships to acheive various objectives, such as building and maintaining a positive image of the firm, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media. 
Term
Sales Promotions
 Definition
Special incentives or excitement-building programs that encourage consumers to purchase a particular product or service, typically used in conjunction with other advertising or personal selling programs. 
Term
Personal Selling
 Definition
The two-way flow of communication between buyer and seller that is designed to influence the buyer's purchase decision. 
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