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Marketing 181
marketing
70
Marketing
Undergraduate 3
12/06/2009

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Cards

Term
firms build long-term relationships in 4 ways
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

Term
three levels of relationship marketing
Definition

1) primary bond

2) degree of cutomization

3) potential for sustained competitive advantage

Term
marketing
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

Term
utility
Definition

want satisfying power of a good or service

 

form

time

place

ownership

Term
planning
Definition
process of anticipating future events and conditions and determining the best way to achieve organizational objectives
Term
stages of the business cycle
Definition

prosperity

recession

depression

recovery

inflation/deflation

unemployment

Term
social responsibility
Definition
marketing philosophies, policies, procedures and actions that have the enhancement of society's welfare as a primary objective
Term
pyramid
Definition

philanthropic

ethical

legal

economic

Term
Maslow's Hierarchy of Needs
Definition

self-actualization

esteem needs

belongingness needs

safety needs

physiological needs

Term
self-concept
Definition

real-self

self-image

looking-glass self

ideal-self

Term
high involvement vs. low involvement purchase decisions
Definition

1) problem recognition

2) search

3) alternative evaluation

4) purchase decision

5) purchase act

6) post-purchase evaluation

Term
cognitive dissonance
Definition
imbalance among knowledge, beliefs and attitudes that occurs after an action or decision, such as a purchase
Term
derived demand
Definition
demand for a resource is derived from the demand for the goods and services that are produced by that resource
Term
volatile demand
Definition
derived demand creates volatility in business market demand
Term
joint demand
Definition
demand for a product depends on the demand for another product used in combination with it
Term
inelastic demand
Definition
demand does not change significantly due to a price change
Term
buying center
Definition

users

gatekeeper

influencer

decider

buyer

Term
types of enivronments
Definition

competitive environment

political-legal environment

economic environment

technological environment

Term
steps in the marketing research process
Definition

define the problem

conduct exploratory research

formulate a hypothesis

create a research design

collect data

interpret and present information

Term
primary vs. secondary data
Definition

primary: data you collect yourself

secondary: data collected by others

Term
criteria necessary for effective segmentation
Definition

measurable

accessible

profitable

feasible

Term
geographic approach to segmenting consumer markets
Definition
region, city/county size, pop density, climate
Term
demographic approach to segmenting consumer markets
Definition
age, gender, household size, family life cycle, income, occupation, education, nationality
Term
psychographic approach to segmenting consumer markets
Definition
lifestyle, personality
Term
product related segmentation
Definition
benefits sought, usage rate, loyalty status
Term
4 strategies for reaching target market
Definition

undifferentiated/mass marketing

differentiated marketing

concentrated marketing

micromarketing

Term
transaction based marketing vs. relationship marketing
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

Term
4 basic elements of relationship marketing
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

Term
3 levels of relationship marketing continum
Definition

level 1: focus on price

level 2: social interactions

level 3: interdependent partnership

Term
customer relationship market (CRM)
Definition
combination of strategies and tools that drive relationship programs, focus on satisfying customers
Term
calculating customer lifetime value (CLV)
Definition

aquisition cost: initial cost to acquire customer

margin: annual gross margin per customer

retention: constant "natural" rate of retention

discount factor

Term
profit
Definition
profit=price*quantity sold-total cost
Term
pricing objectives
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

Term
methods for determining price
Definition

econ theories: supply/demand and elasticity

cost-oriented approach: cost plus and break-even analysis

Term
elasticity of demand
Definition
% change in quantity/% change in price
Term
cost per impression (CPM)
Definition
technique that related the cost of an ad to every thousand people who read it
Term
cost per response (click-throughs)
Definition
assumes that those who actually lick on an ad want more info
Term
objectives of advertising
Definition

informative

persuasive

reminder

Term
types of advertising
Definition

product: non personal selling of good/service

institutional: promotes concept, idea, philosophy or goodwill of an industry

Term
advertising strategies
Definition

comparative advertising

celebrity testimonials

retail advertising

interactive advertising

Term
cost plus pricing
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)

Term
break-even analysis
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
Term
unit margin
Definition
unit margin=per unit revenue-the variable cost per unit/unit revenue
Term
pricing policy
Definition

psychological

price flexibility

product-line pricing

promotional pricing

price-quality relationships

Term
pricing strategies
Definition

skimming: high price when enter market

penetration: low price when enter market

competitive: price goods at general price level

Term
integrated market communications
Definition
coordination of all promotional activities-media advertising, direct mail, personal selling, sales promotion and public relations
Term
objectives of promotion
Definition

provide info

differentiate the product

accentuate the product's value

increase demand

stabilize sales

Term
promotional mix
Definition
blend of personal selling and non personal selling designed to achieve promotional objectives
Term
customer oriented promotions
Definition

coupons/refunds

samples, bonus packs, premiums

contests/sweepstakes

specialty ads

Term
trade-oriented promotions
Definition

appeal to marketing intermediaries

trade allowances

point of purchase ads

trade shows

dealer incentives, contests and training programs

Term
functions of marketing channels
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

Term
distribution intensity
Definition

intensive: all channels

selective: a limited number of retailers

exclusive: specialty stores

Term
types of marketing channels
Definition

direct selling

using intermediaries

dual distribution

reverse channels

Term
factors for choosing a marketing channel
Definition

market: business/consumer, market needs, order size, location

product: perishable/durable, size

organizational: financial strength

competitive: competition

Term
channel captain
Definition
a dominant member of a marketing channel
Term
channel conflict
Definition

horizontal

vertical

the grey market

Term
vertical marketing strategy (VMS)
Definition
planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution channel
Term
retailing strategy
Definition
target market-market merchandising, promotion, location/distribution, store atmospherics, pricing, customer service
Term
merchandising strategy
Definition
decides items to offer
Term
types of shopping centers
Definition

neighborhood

community

regional/super-regional

power center

lifestyle center

Term
types of retailers
Definition

shopping effort

provide services

product lines

retail transactions

ownership

Term
product
Definition
bundle of physical, service and symbolic attributes designed to enhance buyers' want satisfaction
Term
good services continuum
Definition
pure good------pure service
Term
classification of products
Definition

convenience

shopping

specialty

Term
product mix
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

Term
product life cycle
Definition
progression of products through introduction, growth, maturity and decline stages
Term
types of bands
Definition

generic product

national brand

private brand

captive brand

family brand

individual brand

Term
brand equity
Definition
added value that a respected, well-known brand name gives to a product in the market place
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