Term
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Definition
| Characteristic of service cannot see touch or hold, hard to evaluate prior to rendering (Doctor's office) |
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Term
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Definition
| Characteristic of service where same service can vary each time (Hairdresser) |
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Term
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Definition
| Characteristic of service where it's impossible to separate service from provider (service encounter of fast food or bank) |
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Term
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Definition
| Characteristic of service where carrying cost depend on employees and equipment, service available but may not be in high demand (Airline) |
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Term
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Definition
tangible offering supported by services
(house, food, car) |
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Term
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Definition
| not left with anything tangible (teaching) |
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Term
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Definition
| easily evaluated prior to purchase (tangible goods have size, style, color...) |
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Term
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Definition
| can't be evaluated until during or after the purchase (child care facility) |
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Term
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Definition
| difficult to evaluate even after service because it's a professional service (car mechanic) |
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Term
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Definition
| basic benefit of service offering (Airline-Travel) |
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Term
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Definition
| extra service that differentiates the provider (Frequent flyer miles, WIFI, In-flight entertainment) |
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Term
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Definition
-target level of profit growth
-manage for long term growth
-maximize current profits (short term) |
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Term
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Definition
| price is function of supply/demand, not a lot of flexibility (Agriculture) |
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Term
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Definition
| most pricing flexibility, many sellers/buyers, a lot of product differentiation(fast food industry, specialty retailers) |
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Term
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Definition
| few sellers, market leader sets price industry follows (mobile market) |
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Term
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Definition
| lone seller, regulated or unregulated (Dominion Power is regulated) |
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Term
| Downward sloping demand curve, price and quantity demanded inverse relationship |
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Definition
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Term
| Curved demand curve initial price decrease causes increase in demand, continued price decrease cause decrease in demand |
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Definition
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Term
|
Definition
-substitute goods
-consumer taste & preference
-income effect (higher income has less effect on price) |
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Term
|
Definition
| # of buyers/potential buyers multiplied by average amount each is will to buy |
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Term
|
Definition
| Percentage of the total market that can be taken |
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Term
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Definition
| Measure of the sensitivity of customers to the change in price |
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Term
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Definition
| customers are very sensitive, change in price results in substantial change in demand (close substitution or large cash outlay) |
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Term
|
Definition
| customers are not sensitive to price changes, no substantial change in demand (necessity goods, diapers, gas) |
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Term
|
Definition
| Free on Board, seller pays to load, buyer pays to transport |
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Term
| Uniform delivered pricing |
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Definition
| same price to ship the product regardless of customer location (book club) |
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Term
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Definition
| customer pays difference price based on location/distance from seller |
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Term
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Definition
| industrial sector, price is quoted from one or more points, from where it ships |
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Term
| freight absorption pricing |
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Definition
| seller takes on all or part of ship cost (jewelry, high ticket items) |
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Term
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Definition
| firm sets a very low price to get consumer attention, other non sale items are also purchased (grocery stores) |
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Term
|
Definition
| 2 or more firms that conspire to set prices |
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Term
|
Definition
| 2 firms at 2 different levels of distribution (mfg & retail) |
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Term
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Definition
| 2 firms at the same level of distribution (2 retailers) |
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Term
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Definition
| low price set to drive out competitors, once done price is increased |
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Term
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Definition
| set a high initial price and reduce price in the future |
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Term
| market penetration pricing |
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Definition
| set a low initial price to establish market share |
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Term
|
Definition
| priced at a premium to reflect social value |
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Term
|
Definition
| products within a line have different price points consumer can trade up or down for features |
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Term
|
Definition
| design a product for a specific price consumers are willing to pay (toys) |
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Term
|
Definition
| involved in the process of making a product/service available for use |
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Term
|
Definition
| purchase finished products from mfg and resell to retailers |
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Term
|
Definition
| brick & mortar (store fronts), online or combination |
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Term
|
Definition
| facilitate transportation between buyer & seller but represent neither |
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Term
|
Definition
| represent the buyer or seller |
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Term
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Definition
| broader concept than distribution channel, consists of all firms that supply raw materials plus firms that facilitate movement to ultimate user |
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Term
| Intermediary transactional function |
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Definition
| many intermediaries take on the risk associated with selling the product |
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Term
| Intermediary logistical function |
|
Definition
| creates product assortment in one location |
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Term
| Intermediary Facilitating function |
|
Definition
| assists producers in making goods more attractive (extend credit, assign rating) |
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Term
|
Definition
| maximize coverage by selling product to all wholesalers & retailers that will stock/sell (convenience products, milk, bread) |
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Term
|
Definition
| specific sellers (appliances, electronic equipment) |
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Term
|
Definition
| limits distribution to single retail outlet in a geographic region (BMW dealership) |
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Term
|
Definition
| activities that get the right amount of the right product to the right place at the right time at the lowest cost |
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|
Term
| warehousing logistic function |
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Definition
1-storage for long term
2-distribution center, product is closer to end destination |
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Term
| inventory mgmt logistic function |
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Definition
| regulates inventory intermediary keeps on hand, factors include perishable or out-dated technology items |
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Term
| transportation mgmt logistic function |
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Definition
| how the product is transported in the US, 35% trucks,31% rail,16% pipeline,11% Water,5% air |
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Term
| logistic information management |
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Definition
| how companies share information with suppliers to better manage supply chain |
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Term
| Conventional marketing system |
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Definition
-multi-level distribution
-members work independently
-relationship limited to buying/selling to each other
-not formal |
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Term
| Vertical marketing system |
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Definition
| Formal cooperation between 2 or more levels of distribution channel |
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Term
| Administered vertical marketing system |
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Definition
| channel members are independent but work together with aid of a powerful member (WalMart, GE) |
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Term
| Corporate vertical marketing system |
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Definition
| single firm that owns two or more levels of the distribution channel (Sherwin Wms is a mfg & retailer) |
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Term
| Contractual vertical marketing system |
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Definition
| cooperation by contract that spells out rights & responsibilities of channel members (McD's 7-11 & subway franchises) |
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Term
| Horizontal marketing systems |
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Definition
| two or more channel members at the same level of the distribution channel that work together (Airlines: One World Alliance consists of Am.Airlines, British Airways, FinAir & Mexicana) |
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Term
|
Definition
| buy from mfg and sell to retailers/businesses- take title to goods and assume risk |
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Term
| Full service merchant wholesaler |
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Definition
| provide a variety of services (credit, repairs, delivery, advertising/promo support) |
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Term
| General Merchandise full service wholesalers |
|
Definition
| full line, carry broad assortment of merchandise (clothing industry) |
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Term
| Specialty Merchandise full service wholesalers |
|
Definition
| limited line, narrow range of products but extensive within the line (auto parts) |
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Term
Limited Service Wholesaler
Cash & Carry |
|
Definition
| provides low cost merchandise for retailers/industrial customers, limited product assortment (groceries & office supplies) |
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|
Term
Limited service wholesaler
Truckjobbers |
|
Definition
| carry a limited assortment of semi-perishable items (milk, bread, snacks) for small grocers |
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Term
Limited service wholesaler
Drop shippers |
|
Definition
| ship the merchandise direct from mfg (bulky items-coal, oil lumber) |
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Term
Limited service wholesalers
rack jobbers |
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Definition
| supply retailers with specialty items (health & beauty, magazines)usually responsible for display |
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Term
|
Definition
| facilitate transactions between many small buyers/sellers (real estate industry, food & used equipment) |
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Term
|
Definition
| represent several sellers- independent sales people, non competing products in exclusive territories (automotive & steel industries) |
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Term
|
Definition
| represent a single producer and do all the marketing (textile, food, apparel) |
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Term
| Manufacturer branch office |
|
Definition
| carry inventory & provide sales/service within a specific geographic area (car dealership) |
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Term
| Manufacturer sales office |
|
Definition
| Do not carry inventory but sell in a specific geographic region (Hormel foods direct sales office) |
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Term
| Wheel of Retailing Hypothesis |
|
Definition
1-start out low prices entering market
2-concept becomes popular, increase quality & assortment of goods, improves facilities & adds amenities
3-increase price of product
4-take away amenities or close |
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Term
|
Definition
1-Introduction-new concept, low profit, high development costs
2-Growth- competitors enter markets, offers expanded,sales & profits increase
3-Maturity-concept becomes industry,over-expanded, intense competition, profits & prices decline
4-Decline-concept becomes obsolete |
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Term
|
Definition
| owned by an individual, represents majority of 1.1M retailers in the US (convenience stores, clothing, hardware) |
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Term
|
Definition
| two or more outlets that are commonly owned & controlled (grocery & department stores) |
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Term
|
Definition
| franchises- business format,strict guidelines (subway)-product format, more independent, less guidelines (car dealership) |
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Term
| Merchandising conglomerant |
|
Definition
| several different retail lines under one central owner (Limited owns VS, Bath & Body Works, Pink) |
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Term
|
Definition
# of product lines carried
-Narrow-limited selection
-Broad- wide range selection |
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Term
|
Definition
# of products offered within lines
-Shallow-limited within product category
-Deep-great selection within category |
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|
Term
| 2/3 world trade countries |
|
Definition
| US, Canada, western Europe, Japan & China |
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Term
|
Definition
| Gross domestic product, most important indicator of economic health, total dollar value of goods/services produced in a country during a year |
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Term
|
Definition
| sophisticated marketing systems, strong private enterprise,market potential (US, Canada, Western Europe, Japan) |
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Term
|
Definition
| movement from an agriculture based society to industrial, strong growing middle class, increased levels of education, technology, standards of living (China, India, Brazil) |
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Term
|
Definition
| community is more important that personal (Asian cultures, China) |
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Term
|
Definition
| attach more importance to personal goals than community (English speaking cultures, US, Canada, UK, Australia) |
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Term
|
Definition
| Manufacture goods in one country and sell in another, + great way to enter global market, no - |
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Term
|
Definition
firm gives right to produce & market goods in foreign market to another firm for royalties- franchising-contract mfg-contract assembly
+ less barriers to entry
- lose some control over production |
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Term
| Strategic Alliance/joint venture |
|
Definition
firms pool resources for common goal, one is local
+better access to the market having local knowledge on team
-more commitment/risk, costly |
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Term
|
Definition
global company invests and owns foreign subsidiary or division
+maximum freedom &control over product in a foreign market
-risk of losing large amount of $, most commitment/risk |
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Term
|
Definition
| retain the same product for the new global market |
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Term
|
Definition
| modify some part of existing product in new global market (Maybelline alters makeup for weather & skin tones geographically) |
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Term
|
Definition
| creation of a new product for the global market (Whirlpool new Ideale space washers, small living spaces) |
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Term
|
Definition
| same product but company promotes product differently (language/cultural issues) |
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Term
|
Definition
| modify the product and the promotions in the new market |
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Term
IMC
Integrated Marketing Communications |
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Definition
| coordinate all promotional activities and provide a consistent message to all target markets |
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Term
|
Definition
1.creates single unified voice
2.begins with the customer
3.seeks to develop long term 1 on 1 relationships with customers
4.involves 2way communication (allows feedback)
5.focuses on stakeholders too
6.generates continuous stream of info
7.measures results based on actual feedback (ROI) |
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Term
| traditional forms of communication |
|
Definition
| advertising, sales promotion, personal selling, public relations, direct marketing |
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Term
|
Definition
| all forms of mass media & outdoor advertising |
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Term
|
Definition
| rebates, coupons, contests, product placements |
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Term
|
Definition
| one on one sales presentation offered by staff to customers |
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Term
|
Definition
-news release
-interacting with media
-special events
-sponsorship |
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Term
|
Definition
| direct connection between company & customer through 1-800 number or website |
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Term
|
Definition
| 1 on 1 interaction between company & customer +allows flexibility & modification of message -time consuming & cost, inconsistency of message |
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Term
|
Definition
+total control over message, who is likely to see it and when it appears
-expensive, low credibility, can be ignored |
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Term
|
Definition
+ low to no cost & high credibility
- lack of control over the message & no guarantee message will reach target market |
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Term
|
Definition
+ stimulates the immediate trial & purchase
- short term emphasis on sales instead of long term brand loyalty |
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Term
|
Definition
Print, radio, tv, online
+ message can be customized to meet needs of market
- needs a comprehensive and up to date database to keep in touch |
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Term
|
Definition
| Planning, setting the promo budget, implementation & evaluation, execute & assess the promo |
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Term
|
Definition
| begins with introducing the product & ends with customer loyalty |
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Term
|
Definition
awareness (publicity)
interest (importing info)
evaluation (creation of desire)
trial (try the product)
adoption (use and loyalty) |
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Term
| affordable method budgeting |
|
Definition
| company bases promo budget on the level it thinks it can afford |
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Term
| % of sales budgeting method |
|
Definition
| promo budget based on either last year's sales or projected future sale |
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|
Term
| Comparative parity budgeting method |
|
Definition
| base promo budget on what competition is doing |
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Term
| Objective & task budgeting method |
|
Definition
| Most complex but best results, upfront identifies specific objs & tasks for promos and allocates $ to achieve |
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Term
|
Definition
focused on the intermediary
push the product to the consumer by convincing channel members to carry the product
used in the introduction and a little in the growth of product life cycle |
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Term
|
Definition
focused on the consumer
move the product through channel by creating desire on the part of the consumer
used some in growth and all in maturity, small bit of decline of product life cycle |
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Term
| major findings in TNS advertising study |
|
Definition
tv 44% stayed constant
mags 21% down slightly
newspaper 17% sizable decline 1% ann
because of internet 8%
radio 7% consistent |
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Term
|
Definition
majority of advertising
focuses on a specific product or service
(informational, persuasive,reminder) |
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Term
| institutional advertisements |
|
Definition
used to build good will for the image of the organization
(Got Milk?) |
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Term
| informational advertising |
|
Definition
| pioneering -used to introduce a new product or service, tell benefits and where available |
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Term
|
Definition
| competitive ad-appears as competition intensifies (growth stage)states what makes it stand out and comparative ads mention competitors by name |
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Term
|
Definition
| used with mature product to maintain customer relationship and reinforce existing product knowledge |
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Term
|
Definition
| states a firm's position on an issue to sway public opinion |
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Term
|
Definition
| firm directly compares its product to competitor's often mentioning them by name (Sony camera) |
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Term
|
Definition
| highlights the negative consequences of not using the product (insurance) |
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Term
|
Definition
| suggests that using the product will increase the attractiveness of user (cars, lingerie) |
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Term
|
Definition
| effective way to get noticed (doritos) |
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|
Term
| testimonial/celebrity endorsement appeal |
|
Definition
| use of man on street or celebrity to state product's effectiveness |
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Term
|
Definition
| a lot of everyday products, presents dramatized scene where you see product in use (WalMart easter) |
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Term
|
Definition
| shows how product fits in a lifestyle (men's warehouse, ralph lauren) |
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Term
|
Definition
| links the brand to a slogan or jingle |
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Term
|
Definition
| creates a fantasy around the product and use of the product |
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Term
|
Definition
| builds a mood or image around product or service: love, peace, patriotism, tugs at the heart strings |
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|
Term
| personality symbols appeal |
|
Definition
| creates a characters that represents the product (chic fil a cows, geico gekko, tony the tiger) |
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|
Term
| scientific evidence appeal |
|
Definition
| presents a survey or evidence the brand is better liked (9 out of 10 dentists...) |
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|
Term
| technical expertise appeal |
|
Definition
| shows company's expertise in making the product (car manufacturers) |
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Term
|
Definition
| how many people or households were potentially exposed to the ad at least one time |
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Term
|
Definition
| the average number of times a person in the target market may have been exposed to the ad |
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Term
| CPM -roman for cost per thousand |
|
Definition
| measures the cost to deliver a message to one thousand people, indication of cost effectiveness of media |
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Term
|
Definition
+ reach, target specific audience
- high cost, short exposure time, perishable message |
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Term
|
Definition
+ low cost, target specific audience, local
- short exposure time, perishable message |
|
|
Term
|
Definition
+ targets specific audience, long life of ad, can convey complex info
- high cost, lots of competitive ads |
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Term
|
Definition
+ local market, low cost
- short lifespan |
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Term
|
Definition
+ long use period, always available
- difficult to keep up to date |
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Term
|
Definition
+ video, audio, animation, interactive
- sizable downloads, questions about effectiveness |
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Term
|
Definition
+ low cost, local market focus, repeat exposure (high frequency)
- simple short message, low selectivity of audience, some not in target market |
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Term
|
Definition
+ high selectivity of target market, complex/personalized messages
- high cost, poor image (junk mail), easily discarded |
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Term
|
Definition
| continuous (P&G),intermittent, pulsing (time when most in demand) |
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|
Term
| Post testing ad campaigns |
|
Definition
| unaided recall,aided recall, additional measures (change in feeling/belief) |
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Term
|
Definition
| most common way public relation office communicates |
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|
Term
| internal public relations |
|
Definition
| maintains relationships with internal publics (weekly newsletter for staff) |
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Term
|
Definition
| used to initiate legislation directed toward the organization & influence pending legislation |
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Term
|
Definition
| PR responsible for keeping materials, logo, stationary, etc. within standards |
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Term
|
Definition
| PR develops and maintains relationship with the media |
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Term
|
Definition
| PR responsible for financial support given to help fund an event in return for publicized recognition |
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|
Term
| Advice & Counsel organization/company |
|
Definition
| PR's most important activity |
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|
Term
|
Definition
| programs designed to build interest or encourage the purchase of good/service (consumer & trade) |
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|
Term
| Price based consumer sales promotions |
|
Definition
coupons ($ of cerficates)
cash refunds (given at register) rebates (conditions to get $ back after purchase)
deal (more product for same $) |
|
|
Term
| Attention getting sales promotions |
|
Definition
contests (require skill)
sweepstakes (no skill just enter)
Premium (free/low price item offered with purchase)
Sampling (most expensive/free trial size)
Point of Purchase (attractive display)
Promotional Products (logo items)
Product Placement (movies/tvs)
Loyalty Programs (mvp, vic cards)
Cross Promotion (2 marketers together) |
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|
Term
|
Definition
given to resellers
% discount for bulk, free goods to push certain products, allowances for in store support, cooperative advertising covers % of ad costs, push money paid to staff to motivate selling |
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