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final exam
bradley-mtg 315
67
Marketing
Undergraduate 3
12/14/2009

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Cards

Term
stages of PLC
Definition
intro, growth, maturity, death
Term
intro
Definition
high failure rate, little competition
Term
growth
Definition
-products offered in more colors, flavors, sizes etc

-entrance of competitors
-healthy profits
-prices fall
Term
maturity
Definition
-declining sales
-saturated markets
-cosmetic changes to product
Term
decline
Definition
-long run drop in sales
-competitor forced out of market
-adoption of substitute product
Term
5 stages of adoption
Definition
innovators, early adopters, early majority, late majority, laggards
Term
relative advantage
Definition
perceived as superior to existing substitutes

ex. cordless phones vs phones with cords
Term
complexity
Definition
degree of difficulty to use/understand
Term
complexity
Definition
degree of difficulty to use/understand
Term
trialability
Definition
degree to which product is capable of being tried on a limited basis

ex trial sizes, free samples
Term
observability
Definition
products benefits/attributes can be observed, imagined, or described
Term
types of influence diffusion
Definition
-relative advantage
-complexity
-trialability
-observability
Term
types of barriers to diffusion
Definition
-functional
-psychological
Term
functional
Definition
-usage, lots of learning required
-value, requires additional purchases
-risk, performance, economic, social
Term
Psychological
Definition
-traditional, not the way im used to
-image, hard to use/negative images
Term
Family Brand
Definition
a brand that is spread across multiple product categories
Term
individual brand
Definition
one product categor
Term
5 types of demand oriented pricing
Definition
-skimming
-penetration
-prestige pricing
-odd/even pricing
-bundle pricing
Term
skimming
Definition
priding product high, skimming th extra off top and putting into products
Term
penetration
Definition
pricing very low
-reaping market share instead of profit
Term
prestige pricing
Definition
pricing above competition
-whether benefits warrant it or not
-maintaining the price
Term
odd/even pricing
Definition
-making something $7.99 instead of $8.00
Term
Bundle Pricing
Definition
-pricing something together instead of individual pricing
-throwing something in with the deal
Term
Cost Oriented Pricing
Definition
-mark up
cost+
Term
competition oriented pricing
Definition
-habit
-above, below, or meeting competitors price
-loss leader
Term
Profit Oriented Pricing
Definition
-market share
-sales maximization
Term
Inelastic Demand
Definition
relatively inelastic, a relatively large increase in price results in only a small decrease in quantity demanded
-not bouncy
Term
Elastic
Definition
a relatively small decrease in price results in a substantial increase in quantity demanded
Term
3 methods of cost-based pricing
Definition
-mark up pricing
-break even pricing
-profit maximization pricing
Term
Mark up pricing
Definition
hitting an ideal target
-setting price where price = markup + cost
Term
Equation for markup on selling price
Definition
markup on selling price= (selling price-cost)/selling price
Term
Equation for selling price
Definition
SP = (cost)/(1-markup on SP)
Term
markup on selling price (#2)
Definition
(markup at cost)/(1+markup at cost)
Term
Equation for Elasticity
Definition
E= ((q1-q2)/(q1+q2))/((P1-P2)/(P1+P2))
Term
Middle man
Definition
intermediary between manufacturer and end-user markets

ex. whole saler and retailers
Term
Disintermediation
Definition
skipping over some/all of middleman
Term
agent/broker
Definition
any intermediary with legal authority to act of behalf of the manufacturer
-doesnt have title of the goods-just sells
Ex. Real estate
Term
Wholesaler
Definition
intermediary who sells to other intermediaries, usually to retailers
-sells to someone who is then selling it to someone else
Term
Retailer
Definition
an intermediary who sells to consumers
-sells to final customer
Term
distributor
Definition
an imprecise term, used to describe intermediaries who perform a variety of
-sells to final customer, consumer/business
Term
Marketing channel
Definition
-a marketing channel is how goods move in the system
-pipeling
Term
Supply Chain Management
Definition
-a system that coordinates and integrates all aspects of businesses that perform/support the logistics function
-managing relationships, determine channel strategies, gathering research, should result in value for the customer.
Term
Trends in logistics
Definition
-increased automation
-outsourcing of logistics functions
-electronic distribution (hulu, apple tv)
-increased service
Term
Intensive objective
Definition
achieve mass market selling convenience goods
many intermediaries (Ex hersheys choc)
Term
Selective Objective
Definition
work with selected intermediaries, shopping and some specialty goods
several intermediaries (ex godiva choc)
Term
exclusive objective
Definition
work with single intermediary, specialty goods, and industrial equipment
one intermediary (bissingers choc)
Term
Forms of transportation
Definition
Air-fastest, costliest
Truck-best availability
train-most used
Ship-cheapest (ton/miles)
Pipeline-most dependable
Term
Vertical Marketing System (VMS)
Definition
consists of producers, wholesalers, and retailers acting together as a unified system
Term
Reverse Logistics
Definition
all of the processes that occur when something is returned
Term
channel vs scm
Definition
channel
m->w->r->c
SCM
coordination between all parts
Term
Vertical Marketing Systems
Definition
-corporate
-administered
-contractual
Term
Corporate VMS
Definition
ownership structure in place
system where the levels in the channel are wholly owned and operated (buying parts of the process)
Term
Administered VMS
Definition
some leadership structure in place

closest to traditional channel except one or more firms coordinate activities of the channel
-channel captain takes lead
Term
Contractual VMS
Definition
administer through contracts
1)voluntary group, can break contract at will
2) cooperatives, owning the wholesaler by multiple retailers (owning stock)
3) franchise systems, difficult to get in and out of
Term
Promotional mix
Definition
-advertising
-sales promotions
-public relations
-personal selling
Term
Advertising
Definition
paid form of promotion by an identified entity
Term
Sales Promotions
Definition
coupons, p.o.p, rebates, sweepstakes, incentives
Term
public relations
Definition
efforts to influence various publics
Term
personal selling
Definition
most expensive per contact
usually b2b
Term
Types of Sales Promotions
Definition
-free sample
-contests, based on skill, judged against other people
-premiums, free stuff added on to purchase
-trade shows
-sweepstakes, not built on skill
-coupons
-rebate
Term
Informative Objection of Promotion
Definition
-increase awareness
-explain how product works
-suggest new uses
-build company image
Term
Persuasion Objective
Definition
-encourage brand switching
-change customers perception
-influence buying decision
-persuade customers to call
Term
Reminder objective
Definition
-remind customers that product may be needed
-remind customers where to buy product
-maintain customer awareness
Term
AIDA
Definition
Awareness, interest, desire, action
Term
Effectiveness of promotion
Definition
ad-better at awareness/attention
Personal selling-best at desire/action
Sales promotion-best at repurchase/action
Term
Push strategy
Definition
pushing the product on the next step
-Ex. manufacturer pushing onto the wholesaler
Term
Pull Strategy
Definition
spending money pulling the customer to the product through advertising
-customer asks retailer, retailer asks wholesaler, wholesaler asks manufacturer
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