Term
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Definition
| Creating, communicating, and delivering value for consumers/customers in ways that benefit that organization and it's stakeholders |
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Term
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Definition
| If you want to make more of a product we can make it at a lower cost per item. (Making 1 t shirt is expensive, 1000 less per shirt) |
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Term
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Definition
| Willing, able, and have the authority to make the exchange |
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Term
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Definition
| Difference between a consumers actual perceived state and some ideal or desired state |
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Term
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Definition
| How you fill the need. How you satisfy needs. Desire to satisfy needs in ways that are culturally and socially influenced |
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Term
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Definition
| Outcome sought by a consumer that motivates buying behavior |
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Term
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Definition
| Customers desire for products coupled with the resources to obtain them |
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Term
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Definition
| Sum of benefits a product or service offers- makes consumers feel they are buying more than a product, a lifestyle |
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Term
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Definition
| Is the product when I want it? |
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Term
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Definition
| Is the product where I want it? |
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Term
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Definition
| Company allows you to take ownership when you otherwise wouldn't be able to (Best Buy selling you a TV on a payment plan) |
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Term
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Definition
| Company adds value by tranforming raw materials into finished goods |
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Term
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Definition
| Comes in the form of informed staff who are knowledgeable and can inform you on products (Best Buy staff> Costco staff with electronics) |
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Term
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Definition
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Term
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Definition
| Image, Personal, Services, Product |
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Term
| Components of cost/sacrifice |
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Definition
| Monetary, Time, Energy, Psychological |
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Term
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Definition
| Focus on most efficient production and distribution of products |
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Term
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Definition
| Focus on selling products any way they could |
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Term
| Societal Marketing Orientation (New Era) |
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Definition
| Emphasis on satisfying broader needs of society (employees, stockholders, etc.). This is like marketing orientation but there is a little something more (Build long-term relationships, not just one-time needs |
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Term
| Marketing (customer) orientation |
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Definition
| A company that practices the marketing concept. Determining and then satisfying consumer needs and wants at a profit |
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Term
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Definition
| Getting the Product out the door, reducing inventories. Product supply is greater than demand. One time purchases, do not establish relationships with customer. Don't care if they come back or not |
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Term
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Definition
| Emphasis is on making the product better and more efficient production. Best when demand surpasses supply |
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Term
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Definition
| Shortsightedness; painting yourself into a corner (Starbucks is expanding from just coffee) |
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Term
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Definition
| Strengths, Weaknesses, Opportunities, Threats |
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Term
| Leverage (SWOT Interaction) |
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Definition
| Strength and opportunities |
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Term
| Vulnerability (SWOT Interaction) |
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Definition
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Term
| Constraint (SWOT Interaction) |
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Definition
| Weaknesses and opportunities |
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Term
| Problem (SWOT Interaction) |
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Definition
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Term
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Definition
| Management tool for evaluating a firm's business mix and assess the potential of its SBU's |
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Term
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Definition
| Strategic Business Unit; individual unit within a firm, each having its own mission, objective, resources, managers, and competitors |
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Term
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Definition
| High Market Growth, High Market Share |
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Term
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Definition
| Low Market Growth, High Market Share |
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Term
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Definition
| High Market Growth, Low Market Share |
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Term
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Definition
| Low Market Growth, Low Market Share |
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Term
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Definition
| Increase Market Share (Star) |
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Term
|
Definition
| Preserve Market Share (Cash Cow) |
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Term
|
Definition
| Focus on short-term profits (Question Marks) |
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Term
| Kill/Divest (SBU Strategy) |
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Definition
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Term
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Definition
| Understanding the state of the economy from two different perspectives: Economic health/Development of country & current stage of business cycle |
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Term
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Definition
| Managing what the competition is doing to keep up and surpass new product features, pricing schedules, or advertising to maintain or gain market share |
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Term
| Technological Environment |
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Definition
| Technological advances that affect marketing activities and the ways it markets to its audience |
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Term
| Political/Legal Environment |
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Definition
| Local, State, National, & Global laws/regulation that affect business |
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Term
| Sociocultural Environment |
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Definition
| The characteristics of the society, the people in it, and the culture that reflects values and beliefs |
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Term
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Definition
| The tendency to prefer products or people of one's own culture |
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Term
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Definition
| Stats that measure observable aspects of a population (size, age, gender, ethnicity, income, etc.) |
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Term
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Definition
| Specific rules dictating what is right or wrong, acceptable or unacceptable |
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Term
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Definition
| A society's deeply held beliefs about right and wrong ways to live |
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Term
| Product Standardization vs. Localization |
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Definition
| Standardization is putting your product our with no changes, localization is making minor adjustments to fit a market (Coke can's in different languages) |
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Term
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Definition
| What is changed or manipulated in an experiment |
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Term
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Definition
| The thing that is observed (and effected by the independent) in an experiment |
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Term
| Advantages of Primary data collection |
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Definition
| Good to identify trends, big pictures, or problems. Generates high quality answers from respondents, can tailor questions/experiments to answer a specific question you have |
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Term
| Disadvantages of Primary Data Collection |
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Definition
| Costly, can take a lot of time, limited external validity (can't necessarily project to whole population) |
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Term
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Definition
| Process in which analysts sift through data to identify unique patterns of behavior among different groups |
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Term
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Definition
| Concept of a long-term, continuous partnership focused on problem solving |
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Term
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Definition
| Customer Relationship Management- business strategy designed to optimize profitability, revenue, & customer satisfaction (80% of business comes from 20% of customers) |
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Term
|
Definition
| Determining which part of the market to focus on |
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Term
| Dimensions of market segmentation |
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Definition
| Homogeneous Within, Heterogeneous between (The group is similar with other members, but the group itself is different than other groups), Substantial (not like 10 people), Meaningfully defined (geo, demo, psycho, behavioral), Actionable, and Accessible (not in Siberia) |
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Term
| Undifferentiated Segmentation Strategy |
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Definition
| One strategy for everyone (mass marketing) |
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Term
| Differentiated Seg. Strategy |
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Definition
| Different product offers for each group |
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Term
| Concentrated Seg. Strategy |
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Definition
| Focusing on one segment (do what you do best). Most companies do this |
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Term
| Consumer Decision Making Process |
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Definition
| PIEPP- Problem Recognition, Information Search, Evaluation of Alternatives, Product Choice, Post-Purchase Eval. |
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Term
|
Definition
Extended Problem Solving = High Involvement
Limited Prob Solving = Medium Involve
Routine/Habitual Decisions = Low Involve |
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Term
|
Definition
| Person who influences other's attitude and behaviors (has knowledge about product, among first to buy new products) |
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Term
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Definition
| Generalized to another stimulus in an attempt to confuse you (Dreyers vs. Breyers) |
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Term
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Definition
| Designing your product or packaging to look exactly like another (usually more popular) product |
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Term
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Definition
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Term
| Cosmetic Variations/Change |
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Definition
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Term
|
Definition
| The set of brands that we'll consider buying |
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Term
| Elaboration Likelihood Model |
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Definition
| Consumers need a certain amount of info and that info is dependent upon their amount of involvement |
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Term
| Central Route to Persuasion (ELM) |
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Definition
| High Involvement, Left Brain (Facts & Info). Newspapers/(some)Magazines/Journals/Radio are good at this because it is more info, less pictures |
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Term
| Peripheral Route to Persuasion (ELM) |
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Definition
| Low Involvement, Right Brain (emotions). TV/Flashy Magazine Ads are good at this |
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Term
|
Definition
| North American Industry Classification System; A numerical coding system used to classify firms into detailed categories according to their business activities |
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Term
| Strait Rebuy (Type of B2B Buying) |
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Definition
| Low Involvement, habitual decision making; when a company has been buying from another for a while, or not very important product (ex: staples/paper/soap) it doesn't take much involvement |
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Term
| Modified Rebuy (Type of B2B Buy) |
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Definition
| Medium Involvement, limited problem solving; If a company needs to change an order or if there is a problem in the past, they might look around and consider alternatives |
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Term
| New-Task Buy (Type of B2B Buy) |
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Definition
| High Involvement, extended problem solving; When a company needs to make an important purchase or set up a long term buying relationship they will definitely shop around. |
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Term
|
Definition
| Firms outsource marketing activities to a community of users |
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Term
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Definition
| Process of obtaining outside vendors to provide goals and services that otherwise might be supplied in house (Ad agencies, PR agencies, Market Research, Manufacturing, etc.) |
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Term
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Definition
| Anything tangible or intangible that satisfies a need |
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Term
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Definition
| Benefit the product will provide (Car = transportation) |
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Term
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Definition
| Physical Good (Car = the car itself) |
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Term
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Definition
| Actual product plus supporting features (Car = warranty, repair, etc.) |
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Term
| Convenience Consumer Product |
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Definition
| Nondurable, frequently purchased, low price, little effort (Gum, paper, small shit) |
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Term
| Shopping Consumer Product |
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Definition
| Time/effort in selection, moderate brand loyalty, compare (Clothes, Food, etc.) |
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Term
| Specialty Consumer Product |
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Definition
| Significant purchase efforts, brand loyalty, unique characteristics (electronics, cars, etc.) |
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Term
| Unsought Consumer Product |
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Definition
| Little awareness/interest until arises, requires ads and personal selling (Insurance) |
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Term
|
Definition
| Process which consumers or business customers begin to buy and use a good, service, or idea (Bell-shaped Curve) |
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Term
| Innovators (Type of Adopter) |
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Definition
| First in line, willing to pay more to be on the cutting edge) |
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Term
|
Definition
| Aren't as passionate as innovators, but want the product a lot, maybe not RIGHT as it comes out though) |
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Term
| Early Majority (Type of Adopters) |
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Definition
| Wait until they know the product works and all bugs are fixed |
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Term
| Late Majority (Type of Adopter) |
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Definition
| Jumps on the bandwagon once popularity and sales are already up |
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Term
| Laggards (Type of Adopters) |
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Definition
| Have to be forced to adopt the product (old people and cell phones/computers) |
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Term
|
Definition
| Introduction (Question Mark) --> Growth (Star) --> Maturity (Cash Cow) ==> Decline (Dog) |
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Term
| Characteristics of a service |
|
Definition
Intangible- Can't smell, taste, or feel a service
Perishable- Can't save it for a long time (Hotel room, computer repair)
Inseparable- Impossible to separate the service from the production of the service (Computer/Auto repair)
Variable- Every time the service is performed it will vary from person to person |
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Term
|
Definition
| The expectation of service and what actually happened (level of satisfaction) |
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Term
| What type of utility is not a function of distribution channels? |
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Definition
| Form Utility (raw-->finished goods) |
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Term
| Functions of a Distribution Channel |
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Definition
Time, Place, & Ownership
Transportation & Storage
Facilitating (Credit for buyers)
Repair.Maintenance (Computer repair)
Risk-Taking (Retailers stock up but consumers don't buy)
Communications (can provide two-way comm for manufacturers)
Breaking Bulk (purchase large quantities and sell small amounts to different customers)
Creating Assortment (variety of products all in one location) |
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Term
| Advantages/Disadvantage of Direct Consumer Distribution Channels |
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Definition
| Manufacturer to Consumer (make more money, customization of product, control of price/service/delivery but more risk/less consumers) |
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Term
| Advantages/Disadvantages of Indirect Consumer Distribution Channel |
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Definition
| Someone in the middle like a retailer or wholesaler; (reach more consumers in more places, minimize risk, choices, less transactions BUT less money for manufacturer & more costs |
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Term
| Advantage/Disadvantages of Direct B2B Distribution Channel |
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Definition
| Make more money, buy more, less costs so more profit BUT more risk with shipping |
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Term
| Advantages/Disadvantages of Indirect B2B Distribution Channel |
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Definition
| Manufacturer->Industrial Distributor->Business Customer (Reaching more consumers and in more places BUT more costs, less money for manufacturer) |
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Term
|
Definition
| Because of the Internet, layers of channel distribution have been cut out and consumers can buy direct online |
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Term
| Types of Distribution Channel Power |
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Definition
Economic- ability to control resources
Legitimate- authority to call the shots (franchiser)
Reward/Coercive- power to reward or punish channel intermediaries (WalMart saying they won't buy a certain product unless...) |
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Term
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Definition
| Dominant firm that controls the Distribution Channel (has some form of power relative to other members) |
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Term
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Definition
| Value customers give up/exchange to obtain desired product/service |
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Term
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Definition
| Total Fixed costs / (unit selling price - unit variable costs) |
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Term
|
Definition
| How success is measured, value of a brand to an organization |
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Term
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Definition
| Pricing products $25, $50, $75 (none in between); most consumers will go toward middle price (don't want worse, but don't want/can't afford best) |
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Term
|
Definition
| $5 vs. $4.99 (all psychological obviously) |
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Term
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Definition
| Two separate types of payment required to purchase product (cell companies charge monthly fees + minutes/texts fees) |
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Term
| Components of the Promotional Mix |
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Definition
DPAPS: Direct Marketing (direct contact)
Publicity/PR (Changes public perception)
Advertising (Non-personal comm from identified sponsor)
Personal Selling (company representative & customer)
Sales Promotion (Short-term incentives to encourage sales during a specific time) |
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Term
| Top-Down Promotional Budgeting Approach |
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Definition
| % of sales, manage $ and what is left over is promotional budget (all you can afford) common because its easy |
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Term
| Bottom-Up Promotional Budgeting Approach |
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Definition
| For objective tasks, set up a goal and see how much you need to put in to reach it, more expensive b/c it needs research |
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Term
| Competitive Parity Promotional Budget Approach |
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Definition
| Spending the similar/exact amount as your competitor |
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Term
| Public Relations (yea boi) |
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Definition
| Attempts to influence the way consumers, stockholders, and other publics feel about a companies, brands, politicians, celebrities, or other organizations |
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Term
|
Definition
| Info distributed (by PR Agency or in-house PR) to media about its activities, intended to appear as publicity (timely topics, research stories, consumer info, etc.) |
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Term
|
Definition
| Programs designed to encourage the purchase of a product during a specific time period |
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Term
|
Definition
| Targeted at a firms own employees & channel partners (discounts/deals, merchandise allowance, trade shows, promo products, incentive programs) |
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Term
|
Definition
Price promotions (coupons, deals, refunds, rebated, price packs)
Non-Price Promotions (contests, sweepstakes, premiums, sampling, etc.) |
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Term
|
Definition
| Company rep. meets with customer to inform/persuade about product/service (especially important for B2B b/c the amount of $ involved) |
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Term
| Order Taker (Type of Sales Person) |
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Definition
| Doesn't seek new business, someone answering phones and reselling to existing customers |
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Term
|
Definition
| Tries to stimulate demand for product, but doesn't actually sell it (Pharmaceutical reps) |
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Term
| Order Getter (Type of Salesperson) |
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Definition
| New business salesperson, tries to create relationships for long term business & calling clients |
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Term
|
Definition
| Focus is on quick sale of the product, no relationship |
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Term
|
Definition
| Focused on relationship w/customers in order to create lifetime customers |
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Term
|
Definition
Push- When supply>demand, producer pushes product through supply chain hoping that getting it on the shelves will get it sold.
Pull- When demand>supply consumers are pulling the product through the chain and asking for it (causing stores to stock it) |
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Term
| Test Q: What were the people who first bought the paper airplanes? |
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Definition
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Term
|
Definition
| Integrated Marketing Communications: a process for managing customer relationships that drive brand value through communication efforts |
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Term
|
Definition
| Consumers talking about product and creating excitement |
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Term
|
Definition
| Company trying to create excitement about its own product |
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Term
|
Definition
| When you are unaware you are being marketed to (Nokia with the camera phone) |
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Term
|
Definition
| Being marketed to in a new/dynamic way (Coors ads on urinal cakes @ bars) |
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Term
|
Definition
| Spreading Information about the product to your friends & family electronically |
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Term
|
Definition
| Process of planning, implementing, controlling personal selling function |
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Term
| Roles of Sales Management |
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Definition
| Setting sales force objectives, creating sales strategies, recruiting/training/rewarding salespeople, evaluating sales force, compensation plans, prospecting (who are viable customers) |
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Term
| Type of Salesperson Compensation Plans |
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Definition
Straight Commission- % of what you sell
Commission w/draw- borrow an amount monthly which you pay back
Straight Salary- just a salary
Quota-Bonus: Make a quota then you get a bonus on top of that
Combination- combo of commission & salary (what most companies do) |
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Term
| Straight commission plans are likely to facilitate what type of selling? |
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Definition
| Transactional selling; if a salesperson needs to sell stuff to make $ they will be less interested in building relationships |
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Term
| Corporate Social Responsibility |
|
Definition
| Corps are seeing a growing need to be responsible from share/stakeholders so they improve their image and give back to the community |
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Term
|
Definition
| The act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service |
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Term
| Terra's Seven Deadly Sins of Greenwashing |
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Definition
Hidden Trade-Off (green barely but messes other stuff up)
No proof (no evidence)
Vagueness (very broad claim that can be misleading)
Irrelevance (claim is truthful but useless to consumers seeking env. products
Lesser of Two Evils (true within category, but risks distracting consumer from more important issue)
Fibbing (lying, false claims)
Worshiping False Labels (gives impression of 3rd party endorsement, but 3rd party is fake or made up) |
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Term
| Green Code (smartphone App) |
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Definition
| Shows consumers benefits and environmental stats of products, they can then earn points by buying env. products & share over the Internet. Can send signals of buying habits and these users can use it as an extension of themselves |
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Term
|
Definition
Right to Choose
Right to Safety
Right to be Heard
Right to be Informed |
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Term
|
Definition
| Selling a product that you need both parts, but they sell one for cheap and jack the other price up (razors & blades) |
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|
Term
| Corporate Marketing Ethics Policies (6) |
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Definition
| Distributor Relations, Advertising Standards, Customer Service, Pricing, Product Development, and General Ethical Standards |
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Term
|
Definition
| Home country is focus; associates with attitudes of national arrogance & supremacy (tries to do in other counties what they did in home country) |
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Term
|
Definition
| Opposite of ethnocentrism, operates under the assumption that every country is different; the company develops country-specific strateies |
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Term
|
Definition
| Region becomes the relevant geographic unit (rather than by country, orientation is geared to develop an integrated regional strategy |
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Term
|
Definition
| Entire world is viewed as potential market, develop integrated world market strategies |
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Term
| Historically has the Internet been Push or Pull? |
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Definition
Search engines are PULL b/c people actively search out the info
Pop-ups are PUSH because they push the message |
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Term
| In social networking, what are Marketers doing? |
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Definition
| Through company online generated "pitches" (sending out posts about upcoming products) they are PUSHING, but overall they are also PULLING b/c they are part of an "organic dialogue" with their consumers. The perception of Hype vs. Buzz is important |
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Term
|
Definition
| A technique where electronic information is collected by default unless the consumer takes an affirmative action to prevent collection (basically SPAM) |
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Term
|
Definition
| Requires an affirmative action by the consumer to allow collection and use of consumer info (consent required) creates BACN |
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Term
|
Definition
Bland, Automated, Community, Notification
Basically spam that we request to receive, when you go to a website and sign up for their newsletter, etc. |
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Term
|
Definition
| What do customers care about? What do they find talk-worthy? Will customers recommend us? What would customers say? |
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Term
|
Definition
| % of strong promoters - % all detractors |
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|
Term
| Advantages of Social Media |
|
Definition
| Communication economies of scale (super easy to reach a lot of people), build brand communities, customer loyalty, diffusion of potential problems (can respond immediately), real-time consumer perception, endless pot of gold (who will write the success stories) |
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|
Term
| Listening or just talking? |
|
Definition
| Success with social media needs to be a conversation with customers, they will get tired of sales pitches and just because you say something doesn't mean ppl will be interested. Be present in their community, give them relevant dialogue, and listen before engaging. |
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Term
| Metrics for Successful Social Media Strategy |
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Definition
| Non traditional forms of marketing require non traditional metrics. Depends on the situation & your goal. Is clicks/time on site/mentions/# of fans important or do you only look at ROI? (Dell credits social media for $1 mil annual revenue) |
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Term
|
Definition
| Earned is like buzz, paid is like ads |
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|
Term
| Influence of friends (importance of word of mouth) |
|
Definition
| 90% of people trust what their friends tell them |
|
|
Term
| Who invented the Implicit Association Test (IAT)? |
|
Definition
|
|
Term
| 3 types of brand placement (Knugg) |
|
Definition
Visual- brand can be observed on set
Verbal- actor mentions brand by name
Hands-on Actor uses or interacts with product |
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|
Term
| Six Stages of Adoption (Knugg) |
|
Definition
Awareness (Advertising)
Interest (Creating Buzz)
Evaluation (Provide Info)
Trial (Experience the product)
Adoption (Choose the Product)
Confirmation (Determine cost v. benefits) |
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|
Term
| Slotting Allowance (Knugg) |
|
Definition
| Retailer charge large fees to stock a new product |
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Term
|
Definition
| Making a claim that is so obviously fake that any reasonable person knows its false |
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