Term
| firms build long-term relationships in 4 ways |
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Definition
1) gather info about customers
2) analyze the data and use it to modify marketing mix
3) monitor interactions with customers
4) use knowledge of customers to boost sales |
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Term
| three levels of relationship marketing |
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Definition
1) primary bond
2) degree of cutomization
3) potential for sustained competitive advantage |
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Term
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Definition
an organizational function and a set of processes for creating, communicating and delivering value to customers
mananging customer relationships in ways that benefit the organization and its stakeholders |
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Term
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Definition
want satisfying power of a good or service
form
time
place
ownership |
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Term
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Definition
| process of anticipating future events and conditions and determining the best way to achieve organizational objectives |
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Term
| stages of the business cycle |
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Definition
prosperity
recession
depression
recovery
inflation/deflation
unemployment |
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Term
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Definition
| marketing philosophies, policies, procedures and actions that have the enhancement of society's welfare as a primary objective |
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Term
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Definition
philanthropic
ethical
legal
economic |
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Term
| Maslow's Hierarchy of Needs |
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Definition
self-actualization
esteem needs
belongingness needs
safety needs
physiological needs |
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Term
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Definition
real-self
self-image
looking-glass self
ideal-self |
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Term
| high involvement vs. low involvement purchase decisions |
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Definition
1) problem recognition
2) search
3) alternative evaluation
4) purchase decision
5) purchase act
6) post-purchase evaluation |
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Term
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Definition
| imbalance among knowledge, beliefs and attitudes that occurs after an action or decision, such as a purchase |
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Term
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Definition
| demand for a resource is derived from the demand for the goods and services that are produced by that resource |
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Term
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Definition
| derived demand creates volatility in business market demand |
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Term
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Definition
| demand for a product depends on the demand for another product used in combination with it |
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Term
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Definition
| demand does not change significantly due to a price change |
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Term
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Definition
users
gatekeeper
influencer
decider
buyer |
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Term
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Definition
competitive environment
political-legal environment
economic environment
technological environment |
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Term
| steps in the marketing research process |
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Definition
define the problem
conduct exploratory research
formulate a hypothesis
create a research design
collect data
interpret and present information |
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Term
| primary vs. secondary data |
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Definition
primary: data you collect yourself
secondary: data collected by others |
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Term
| criteria necessary for effective segmentation |
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Definition
measurable
accessible
profitable
feasible |
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Term
| geographic approach to segmenting consumer markets |
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Definition
| region, city/county size, pop density, climate |
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Term
| demographic approach to segmenting consumer markets |
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Definition
| age, gender, household size, family life cycle, income, occupation, education, nationality |
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Term
| psychographic approach to segmenting consumer markets |
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Definition
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Term
| product related segmentation |
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Definition
| benefits sought, usage rate, loyalty status |
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Term
| 4 strategies for reaching target market |
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Definition
undifferentiated/mass marketing
differentiated marketing
concentrated marketing
micromarketing |
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Term
| transaction based marketing vs. relationship marketing |
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Definition
transaction: buyer/seller exchanges characterized by limited communications and little/no ongoing relationship b/n parties, short term
relationship: development, growth and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees and other partners for mutual benefit |
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Term
| 4 basic elements of relationship marketing |
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Definition
1) gather info about customers
2) analyze the data, modify marketing mix
3)monitor interactions w/ customers
4) use knowledge of customers to orient organization |
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Term
| 3 levels of relationship marketing continum |
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Definition
level 1: focus on price
level 2: social interactions
level 3: interdependent partnership |
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Term
| customer relationship market (CRM) |
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Definition
| combination of strategies and tools that drive relationship programs, focus on satisfying customers |
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Term
| calculating customer lifetime value (CLV) |
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Definition
aquisition cost: initial cost to acquire customer
margin: annual gross margin per customer
retention: constant "natural" rate of retention
discount factor |
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Term
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Definition
| profit=price*quantity sold-total cost |
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Term
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Definition
profitability: profit max and target return
volume: sales max and market share
meeting competition: value pricing
prestige objectives: lifestyle, image
not for profit: profit max, cost recovery, market incentives, market suppression |
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Term
| methods for determining price |
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Definition
econ theories: supply/demand and elasticity
cost-oriented approach: cost plus and break-even analysis |
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Term
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Definition
| % change in quantity/% change in price |
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Term
| cost per impression (CPM) |
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Definition
| technique that related the cost of an ad to every thousand people who read it |
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Term
| cost per response (click-throughs) |
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Definition
| assumes that those who actually lick on an ad want more info |
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Term
| objectives of advertising |
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Definition
informative
persuasive
reminder |
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Term
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Definition
product: non personal selling of good/service
institutional: promotes concept, idea, philosophy or goodwill of an industry |
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Term
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Definition
comparative advertising
celebrity testimonials
retail advertising
interactive advertising |
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Term
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Definition
use a base-cost figure per unit and adds a markup to cover unassigned costs and to provide a profit
price=base cost*(1+mark-up) |
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Term
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Definition
| pricing technique used to determine the number of products that must be sold at specified price in order to generate sufficient revenue to cover total cost |
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Term
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Definition
| unit margin=per unit revenue-the variable cost per unit/unit revenue |
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Term
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Definition
psychological
price flexibility
product-line pricing
promotional pricing
price-quality relationships |
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Term
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Definition
skimming: high price when enter market
penetration: low price when enter market
competitive: price goods at general price level |
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Term
| integrated market communications |
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Definition
| coordination of all promotional activities-media advertising, direct mail, personal selling, sales promotion and public relations |
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Term
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Definition
provide info
differentiate the product
accentuate the product's value
increase demand
stabilize sales |
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Term
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Definition
| blend of personal selling and non personal selling designed to achieve promotional objectives |
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Term
| customer oriented promotions |
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Definition
coupons/refunds
samples, bonus packs, premiums
contests/sweepstakes
specialty ads |
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Term
| trade-oriented promotions |
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Definition
appeal to marketing intermediaries
trade allowances
point of purchase ads
trade shows
dealer incentives, contests and training programs |
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Term
| functions of marketing channels |
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Definition
1) reduce number of marketplace contacts
2) distributers adjust for discrepancies in the market's assortment of goods and services
3) standardize payment terms, delivery schedules, prices, purchase lots and other conditions
4) facilitate searchers by buyers and sellers and bring them together |
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Term
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Definition
intensive: all channels
selective: a limited number of retailers
exclusive: specialty stores |
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Term
| types of marketing channels |
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Definition
direct selling
using intermediaries
dual distribution
reverse channels |
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Term
| factors for choosing a marketing channel |
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Definition
market: business/consumer, market needs, order size, location
product: perishable/durable, size
organizational: financial strength
competitive: competition |
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Term
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Definition
| a dominant member of a marketing channel |
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Term
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Definition
horizontal
vertical
the grey market |
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Term
| vertical marketing strategy (VMS) |
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Definition
| planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution channel |
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Term
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Definition
| target market-market merchandising, promotion, location/distribution, store atmospherics, pricing, customer service |
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Term
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Definition
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Term
| types of shopping centers |
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Definition
neighborhood
community
regional/super-regional
power center
lifestyle center |
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Term
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Definition
shopping effort
provide services
product lines
retail transactions
ownership |
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Term
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Definition
| bundle of physical, service and symbolic attributes designed to enhance buyers' want satisfaction |
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Term
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Definition
| pure good------pure service |
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Term
| classification of products |
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Definition
convenience
shopping
specialty |
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Term
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Definition
a company's assortment of product lines and individual offerings
width: # of product lines offered
length: # of different products a firm sells
depth: variations in each product that a firm markets in its mix |
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Term
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Definition
| progression of products through introduction, growth, maturity and decline stages |
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Term
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Definition
generic product
national brand
private brand
captive brand
family brand
individual brand |
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Term
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Definition
| added value that a respected, well-known brand name gives to a product in the market place |
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