Term
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Definition
| the process by which organizations adjust their offerings in an attempt to match demand. |
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Term
| critical incident technique |
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Definition
| method for measuring service quality in which marketers use customer complainst to identify critical incidents - specific face-to-face contacts between consumer and service providers that cause problems and lead to dissatisfaction |
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Definition
using self-service technologies to eliminate the face-to face interaction between customers and salespeople (who are costly and error prone). Goal is to minimize negative service, reduce service variability, and reduce costs.
ATM's, web, kiosks |
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Definition
| product characteristics that customers can only judge during or after consumption (taste of latte) |
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Definition
| a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred. |
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Definition
| the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service (haircut is produced when a client arrives) |
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Definition
| characteristic of a service the means customers can't see, touch or smell good service |
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Definition
| characteristic of a service that makes it impossible to store for later sale or consumption |
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Definition
| product characteristics that the consumer can examine prior to purchase (the price, # of shots and brand of caramel syrup in a latte) |
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Definition
| the actual interaction between the customer and the servie providers |
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Definition
| intangible products that are exchanged directly from the producer to the customer |
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Definition
| actual physical facility where the service is performed, delivered, and consumed. Smart service providers place quality cues in their servicescape to increase consumer beliefs that they are receiving a high quality service. (great msuic, wallpaper, lighting). Servicescape is PART OF THE PRODUCT |
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Definition
| multiple-item survey scale used to measure service quality across the dimensions of tangibles, reliability, responsivness, assurance, and ampathy |
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Definition
| the characteristic of a service that means that even the same service performed by the same indiviudual for the same customer can vary (ever had the same meal at the same restaurant and it not be the same? |
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Definition
| the fixed cost per unit produced. |
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Definition
| an illegal marketing practice in which an advertising price special is used as bait (like baiting fish) to get customers into the store with the intention of switching them to a higher priced product. Its illegal to not have the advertised product (or provide rain checks for them). |
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Definition
| a pricing tactic in which customers pay shipping charges from set basing0point geographical locations, whether the goods are actually shipped from these points or not. See FOB (location) |
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Definition
| a method for determining the number of units that firm must produce and sell at a given price to cover all its costs |
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Definition
| pricing tactic for two items taht must be used together; one item is priced very low, and the firm makes its profit on another, high-margin item essential to the operation of the first item (HP inkjet cartridges) |
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Definition
| contribution from each sale to fized costs and profits. the difference between the price the firm charges for product and the variable costs |
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Definition
| method of setting prices in which the seller totals all the costs for the product and then adds the amount to arrive at the selling price |
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| cross-elasticity of demand |
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Definition
when changes in the price of one product affect the demand for another item
-When sales of gelatto or sherbert go down, the sales of ice cream fall as well |
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Definition
| price-setting method based on estimates of demand at different prices |
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Definition
| pricing strategy in which th eprice can easily be adjusted to meet changes in the marketplace |
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Definition
| demand in which changes in price have large effects on the amount demanded |
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Term
| F.O.B. (location) pricing |
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Definition
| mostly a b2b term that is negotiable. Its a pricing tactic. If the terms are FOB Seattle, then the selling price icnludes the cost of loading the transporting the product to Seattle. The customer has to pick up the product in Seattle. If the terms are FOB Pullman, then the sales price includes shipment to Pullman. |
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Definition
| costs of production that do not change with the number of units produced |
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| freight absoption pricing |
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Definition
| a pricing tactic where the price of product is calculated to include shipping |
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Definition
| demand for product in which moderate changes in price have little or NO effect on the amount demanded. (Coffee shops still buy coffee beans even if the prices double). |
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Definition
| a set price or a price range in consumers' minds that they refer to in evaluating a product's price. Prices that are too different from this price are questioned. This phenomenon is an indicant of consumers being very 'programmed' |
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Definition
| the price the end customer is expected to pay as determined by the manufacturer; also referred to as the suggested retail price or MSRP |
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Definition
| a retail or manufacturer pricing policy of setting prices very low or even below cost on one product or one line to attract customers into a store. The retail store of mfr will make up the lost earnings on that sale of other products that occur when the consumer is in the store |
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Definition
| method that uses cost and demand to identify the price that will mazimize profits |
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Definition
| the increase in total income or revenue that results from selling one additional unit of a product |
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Definition
| e-commerce that allows shoppers to purchase products through online bidding |
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Definition
| a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it |
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Definition
| illegal pricing strategy in which a company sets a very low price for the purpose of driving cempetitors out of business |
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Definition
| selling two or more goods or services as a single package for one price |
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Term
| price elasticity of demand |
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Definition
| the percentage change in unit sales that results from a percentage change in price. A higher ratio (>1.0) indicates a more price inelastic demand. |
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Term
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Definition
| collaboration of two or more firms in setting prices, usually to keep prices high. Airlines used to do this much more |
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Definition
| a pricing stategy in which one firm first sets its price and other firms in the industry follow with the same or vary similar prices |
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Definition
| practice of setting a limited number of different specific prices, called price points, for items in a product line |
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Definition
| pricing discount of charging reduced prices for purchases or larger quantities of a product |
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Definition
| a very, premium price that a firm charges for its new, highly desirable product. The idea is to gain sales from the top of the market (those consumers that don't mind paying a premium fo rthe newest innovative product) |
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Term
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Definition
| process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed; the product is manufactured only if the firm can control costs to meet the required price |
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Definition
| the total of the fized costs and the variable costs for a set number of units produced |
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Term
| trade or functional discounts |
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Definition
| discounts off list price of products to members of the channel of distrubtion who perform various marketing functions |
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Definition
| pricing a new product low for aliminted period of time in order to lower the risk for a customer |
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Definition
| state laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors |
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| uniform delivered pricing |
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Definition
| pracing tactic in which a firm adds a standard shipping price to the price for all customers regardless ofthe location |
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Definition
| the cost of production (raw and processed materials, parts, and labor) that are tied to and vary depending on the number of units produced |
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Definition
| practice of charging different prices to different customers in order to manage capacity while maximixing revenues |
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Definition
| the coordination of a marketer's communication efforts to influence attitudes or behavior |
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Term
| integrated marketing communication (IMC) |
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Definition
| strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences. |
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Term
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Definition
| process whereby meaning is transferred from a source to a receiver |
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Definition
| process of translation an idea into a form of communication that will convey meaning |
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Definition
| communication vehicle through which a message is transmitted to a target audience |
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Definition
| the process by which a receiver assignes meaning to the message |
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Definition
| major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing |
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Term
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Definition
| using high-profile entertainment or news to get people to talk about your brand |
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Term
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Definition
| creating entertaining of informative messages that are designed to be passed along in an exponential fashion, often electronically or by 3-mail |
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Definition
| marketing activity in which a firm "ambushes" consumers with promotional content in places they are nto expectin gto encounter this kind of activity |
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Term
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Definition
| marketing activities that attempt to give customers an opportunity to actually interact with brands, thus enabling them to make more intelligent and informed purchase decisions |
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Term
| Consumer-generated media (CGM) |
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Definition
| the on-line consumer-generated comments, opinions, and produt-related stories available to other consumers through digital technology |
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Term
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Definition
| the creation of an ogoing relationship with a set of customers who have an identifiable interest in a good or service and whose responses to promotional efforts become part of future commmunication attempts |
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Term
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Definition
| a series of steps prospective customers move through, from initial awareness of a product to brand loyalty |
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Term
| top-down budgeting techniques |
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Definition
| allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing communication |
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Term
| percentage of sales method |
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Definition
| a method for promotion budgeting taht is based on a certain percentage of either last years sales or on estimates for the present years sales |
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Term
| competitive parity method |
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Definition
| promotion budgeting method n which an organization matches whatever competitors are spending |
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Term
| bottom-up budgeting technique |
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Definition
| allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them |
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Term
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Definition
| promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotional efforts it will take to meet these goals |
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Term
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Definition
| company triest o move its products through the channel by convincing channel members to offer them |
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Term
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Definition
| company tries to move its products through the channel by building desire for the products among consumers, thus convincing retailers to respond to this demand by stocking these items. |
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Term
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Definition
| the communication goals to attention, interest, desire and action |
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Term
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Definition
| dividing larger quantities of goods into smaller lots in order to meet the needs of the buyers |
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Term
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Definition
| firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user |
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Term
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Definition
| the number of distinct categories of intermediaries that populate a channel of distribution |
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Definition
| the series of firms or individuals that facilitates the movement of a product from the producer to the final customer |
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Term
| conventional marketing system |
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Definition
| a multiple-level distribution channel in which channel members work independently of one another |
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Term
| disintermediation of channel of distribution |
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Definition
| elimination of some layers of the channel of distrubtion in order to cut costs and improve the efficiency of the channel |
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Term
| enterprise resource planning (ERP systems) |
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Definition
| a software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing and transportation and then facilitates sharing of the data throughout the firm. |
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Definition
| selling a product only through a single outlet in a particular region |
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Term
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Definition
| functions of channel intermediaries that make the purchase process easier for customers and manufacturers (breaking bulk, creating assortments, transport product, facilitate info flow, handle movement of prodcut through customs, consolidate orders, extend credit) |
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Term
| horizontal marketing system |
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Definition
| an arrangement within a channel of distrubtion in which two or more firms at the same channel level work together for a common purpose (member os IGA-independent grocers of america consolidating orders to reap volume discounts) |
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Term
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Definition
| marketing systemthat uses a number of different channels and communications methods to serve as target market |
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Definition
| a company contracts with a specialist firm to handle all or part of its supply chain operations |
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Definition
| selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product |
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Definition
| activities to ensure that goods are always available to meet customers demands |
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Definition
| inventory management and purchasing processes that manufacturuers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed. |
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Term
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Definition
| comprehensive pproach to collecting, organizatin, storing, and reteiving a firm's information assets |
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Term
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Definition
| the proces of designing, managing, and imporving the movement of products through the supply chain. Logistics include purchasing manufacturing, storage and transport |
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Term
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Definition
| the moving or products into, within and out of warehouses |
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Term
| merchandise agents or brokers |
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Definition
| cannel intermediaries that provide services in exchange for commissions but never take title to the product |
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Term
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Definition
| intermediaries that buy goods from the manufacturers (take title to them) and sell to retailers and other business-to business customers |
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Term
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Definition
| the series of activities that occurs between the time an order comes into the organization and the time product goes out the door |
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| radio frequency identification (RFID) |
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Definition
| product tags with tiny chips containing information about the items content, origin, and destination |
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Definition
| distribution using fewer outlets than intensive distrubtion but more then exclusive distribution |
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Definition
| a fee paid in exchange for agreeing to place a manufactuer's products ona retailer's valuable shelf space |
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Term
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Definition
| all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer |
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Term
| supply chain management (SCM) |
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Definition
| the management of lows among firms in the supply chain to maximize total profitablility. SCM uses specialized SCM software applications that link together many different firms' ERP systems |
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Term
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Definition
| to accept legal ownership or a product and assume the accompanying rights and responsibilities of ownership |
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Term
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Definition
| a series of activities involved in designing, producting, marketing, delivering, and supporting any product. Each link has potential to either add or remove value from the product the customer eventually buys. Larger concept than supply chain management as this includes engineering, marketing, etc. |
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Term
| vertica marketing system (VMS) |
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Definition
| channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels |
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Definition
| storing goods in anticipation of sale or transfer to another member of the channel of distribution |
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Term
| wholesaling intermediarieis |
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Definition
| firms that handle the flow or products from the manufacturer to the retailer or business user |
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