Term
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Definition
| a set of tangible and intangible attributes, which may include packaging, color, price, quality, and brand, plus the seller's services and reputation. May be a good, service, place, person, or idea. Want-satisfaction in the form of the benefits they expect to receive. |
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Term
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Definition
| intended for personal consumption by hosueholds |
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Term
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Definition
| intended for resale, for use in producing other products, or for providing services in an organization |
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Term
| determining consumer vs business products |
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Definition
| who will use them and how they will be used |
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Term
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Definition
| a tangible product that the consumer feels comfortable purchasing without gathering additional information and then actually buys with a minimum of effort |
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Term
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Definition
| a tangible product for which a consumer wants to comparie quality, price, and perhaps stile in several stores before making a purchase is considered a shopping good |
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Term
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Definition
| a tangible product for which a consumer has a strong brand preference and is willing to expend substantial time and effort locating the desired brand |
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Term
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Definition
| a new product that the consumer is not yet aware of or a product that the consumer is aware of but does not want right now |
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Term
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Definition
| convenience goods, shopping goods, speciality goods, unsought goods |
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Term
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Definition
| raw materials, fabricating materials and parts, installations, accessory equipment, operating supplies |
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Term
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Definition
| become part of another tangible product prior to being processed in any way |
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Term
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Definition
| undergo further processing; ex: yarn being woven into cloth |
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Term
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Definition
| assembled with no further change in form; ex: zippers in clothing and semiconductor chips in computers |
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Term
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Definition
| manufactored products that are an organization's major, expensive, and long-lived equipment |
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Term
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Definition
| tangible products that have substantial value and are used in an organization's operations (ex: office desk) |
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Term
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Definition
| characterized by low dollar value per unit and a short life that contribute to an organizations operations without becoming part of the finished product (ex: lubricating oils, pencils, heating fuel) |
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Term
| "rule of thumb" product failure rate |
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Definition
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Term
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Definition
| really innovative, significantly different, imitative |
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Term
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Definition
| a statement identifying the role a new product is expected to play in achieving corporate and marketing goals |
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Term
| new product development process |
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Definition
| 1. generating new-product ideas, 2. screening ideas, 3. business analysis, 4. prototype development, 5. market tests, 6. commercilization |
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Term
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Definition
| management a. identifies product features b. estimates market demand, competition, and the product's profitability, c. establishes a program to develop the product, and d. assigns responsibility for further study of feasibility |
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Term
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Definition
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Term
| producer's criteria for new products |
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Definition
| adequate market demand, satisfy key financial criteria, compatible with environmental standards, fit into the company's present marketing structure |
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Term
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Definition
| set of successive decisions and individual person or organization makes before accepting an innovation |
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Term
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Definition
| the process by which an innovation spreads throughout a social system over time |
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Term
| stages in the adoption process |
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Definition
| 1. awareness, 2. interest, 3. evaluation, 4. trial, 5. adoption, 6. confirmation |
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Term
| innovation adopter categories |
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Definition
| 1. innovators, 2. early adopters, 3. early majority, 4. late majority, 5. laggards |
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Term
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Definition
| venturesome consumers who are the first to adopt an innovation, 3% |
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Term
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Definition
| purchase a new product after innovators but sooner than other consumers, 13% |
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Term
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Definition
| representing about 34% of the market, includes more deliberate consumers who accept an innovation just before the average adopter in the social system |
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Term
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Definition
| another 34% in the market, is a skeptical group of consumers who usually adopt an innovation to save money or in response to social pressure from their peers |
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Term
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Definition
| consumers who are bond by tradion and, hence, are last to adopt an innovation |
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Term
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Definition
| a person who seeks to accelerate the speed of a given innovation |
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Term
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Definition
| speed or ease with which a new product is adopted. 5 characteristics that affect: relative advantage, compatibility, complexity, trialability, observability |
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Term
| product-planning committee |
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Definition
| memers include executives from major departments - marketing, production, finance, engineering, and research |
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Term
| new-product department or team |
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Definition
| these units are small, consisting of 5 or fewer people. the head of the group typically reports to the company president |
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Term
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Definition
| this individual is responsible for planning new products as well as managing established products |
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Term
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Definition
| the set of all products offered for sale by a company |
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Term
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Definition
| the number of product lines carried |
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Term
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Definition
| the set of all products offered for sale by a company |
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Term
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Definition
| the variety of sizes, colors, and models offered within each product line |
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Term
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Definition
| a broad group of products, intended for essentially similar uses and having similar physical characteristics |
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Term
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Definition
| position in relation to a competitor, positioning in relation to a product class or attribute, positioning by price and quality |
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Term
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Definition
| accomplished by increasing the depth within a particular line and/or the number of lines a firm offers to customers. |
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Term
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Definition
| when a company adds a similar item to an existing product line with the same brand name |
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Term
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Definition
| to add a new product line to the company's present assortment |
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Term
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Definition
| improving an established product |
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Term
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Definition
| carried out either by eliminating an entire line or by simplifying the assortment within a line |
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Term
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Definition
| adding a higher-price product to a line in order to attract a broader market |
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Term
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Definition
| adding a lower-price product to a company's product line |
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Term
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Definition
| consists of the aggregate demand over an extended period of time for all brands comprising a generic product category |
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Term
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Definition
| aka pioneering stage, a product is launched into the market ina full-scale marketing program |
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Term
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Definition
| aka market acceptance stage, sales and profits rise, frequently at a rapid rate |
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Term
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Definition
| sales continue to increase but at a decreasing rate |
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Term
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Definition
| as gauged by sales volume for the total category, is inevitable for one of the following reasons: a better or less expensive product is developed to fill the same need OR the need for the product disappears, often because of another product development |
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Term
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Definition
| a product or style that becomes immensely popular nearly overnight and then falls out of favor with consumers almost as quickly |
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Term
| types of product life-cycles |
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Definition
| extended introduction, fad, indefinite maturity |
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Term
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Definition
| a benefit to getting a head start in marketing a new type of product |
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Term
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Definition
| what must happen when a company can't revive a failing product |
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Term
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Definition
| to make an existing product out of date and thus increase the market for replacement products |
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Term
| technological obsolescence |
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Definition
| significant technical improvements result in more effective product. generally socially and economically desirable because the replacement product offers more benefits and/or a lower cost |
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Term
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Definition
| superficial characeteristics of a product are latered so that the new model is easily differentiated from the previous model |
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Term
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Definition
| distinctive manner of construction or presentation in any art, product, or endeavor |
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Term
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Definition
| any style that is popularly accepted or purchased by successive groups of people over a reasonably long period of time |
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Term
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Definition
| a series of buying waves that arise as a particular style is popularly accepted in one group, then another group, and another, until it finally falls out of fashion |
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Term
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Definition
| introduction, rise, popular culmination, and decline of the market's acceptance of a style |
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Term
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Definition
| a given fashion cycle flows downward through several socioeconomic levels |
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Term
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Definition
| the cycle moves horizontally and simultaneously within several socioeconomic levels |
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Term
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Definition
| a style first becomes popular at lower socioeconomic levels and then flows upward to become popular among higher levels |
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Term
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Definition
| a name and/or mark intended to identify the product of one seller or group of sellers and to differentiate the product from competing products |
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Term
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Definition
| consists of words, letters, and/or numbers that can be vocalized |
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Term
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Definition
| the part of the brand that appears in the form of a symbol, design, or distinctive color or lettering |
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Term
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Definition
| a brand that has been adopted by a seller and given legal protection |
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Term
| producers' brands vs middlemen's brands |
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Definition
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Term
| two responsibilities come with brand ownership |
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Definition
| 1. promoting the brand 2. maintaining a consistent quality of output |
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Term
| 5 characteristics of a good brand |
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Definition
| 1. suggest something about the product, particularly its benefits and use 2. be easy to pronounce, spell, and remember 3. be distinctive 4. be adaptable to addtions to the product line 5. be capable of registration and legal protection |
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Term
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Definition
| placing a highly regarded brand on their offering, disregarding the basic fact that they do not own the rights to the brand |
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Term
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Definition
| more than one brand of essentially the same product, aimed either at the same target market or at distinct target markets |
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Term
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Definition
| two separate companies or two divisions within the same company agree to place both of their respective brands on a particular product or enterprise |
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Term
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Definition
| the value a brand adds to a product |
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Term
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Definition
| products with considerable brand equity have strong potential for this. under such arrangement, the owner of a trademark grants permission to other firms to use its brand name and brand mark on their products |
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Term
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Definition
| all the activities of designing and producing the container or wrapper for a product |
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Term
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Definition
| protect the product on its way to the consumer, protect the product after it is purchased, help persuade middlemen to accept the product, help persuade customers to buy the product |
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Term
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Definition
| either highly similar packages for all products or packages with a common and clearly noticable feature |
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Term
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Definition
| the practice of placing several units of the same product in one container |
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Term
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Definition
| depletes natural resources, health hazards, disposal of used packages, deceptive packaging, expensive packaging |
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Term
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Definition
| the part of a product that carries information about the product and the seller |
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Term
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Definition
| simply the brand alone applied to the product or package |
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Term
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Definition
| gives objective information about the product's use, construction, care, performance, and/or other pertinent features |
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Term
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Definition
| identifies the product's judged quality with a letter, number, or word |
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Term
| fair packaging and labeling act of 1966 |
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Definition
| 1. mandatory labeling requirements, 2. an opportunity for business to voluntarily adopt packaging standards that can limit the proliferation of the same product in different weights and measures, 3. administrative agencies, notably the FDA and the FTC, with the discretionary power to set packaing regulations |
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Term
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Definition
| standards for processed food |
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Term
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Definition
| the arrangement of elements that collectively form a good or service |
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Term
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Definition
| the intent is to desin products so they can be easily used by all consumers, including diabled individuals, the burgeoning number of senior citizens, and others needing special considerations |
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Term
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Definition
| cradle to cradle; seeks to recycle parts and components as much as possible (vs cradle to grave - lots of waste) |
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Term
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Definition
| often the determining factor in a customer's acceptance or rejection; can be registered as part of a trademark under the Lanham Act |
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Term
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Definition
| the set of features and characteristics of a good or service that determine its ability to satisfy needs |
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Term
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Definition
| a philosophy that commits the organization to continuous quality improvement in all its activities |
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Term
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Definition
| a set of related standards of quality management that has been adopted by more than 150 countries |
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Term
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Definition
| the companies that add value to a product that is eventually bought by an individual or an organization |
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Term
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Definition
| a business firm that renders services related directly to the sale and/or purchase of a product as it flows from producer to consumer |
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Term
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Definition
| take title to the products they help to market. tow types: wholesalers and retailers |
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Term
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Definition
| never own the products, but they do arrange the transfer of title (real estate brokers, manufacturers' agents, and travel agents) |
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Term
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Definition
| eliminating middlemen from channels |
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Term
| middlemen axiom of marketing |
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Definition
| you can eliminate middlemen, but you cannot eliminate the essential distribution activities they perform. |
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Term
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Definition
| the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user |
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Term
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Definition
| 1. specify the role of distribution, 2. select the type of channel, 3. determine intensity of distribution, 4. choose specific channel members |
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Term
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Definition
| export diversion, items sold through distribution channels that are not authorized by the manufacturer |
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Term
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Definition
| a channel consisting only of producter and final customer, with no middlemen providing assistance |
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Term
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Definition
| a channel of producer, final customer, and at least one level of middlemen |
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Term
| five channels of consumer goods |
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Definition
| 1. producer - consumer 2. producer - retailer - consumer 3. producer - wholesaler - retailer - consumer 4. producer - agent - retailer - consumer 5. producer - agent - wholesaler - retailer - consumer |
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Term
| 5 channels for business goods |
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Definition
| 1. producer - user 2. producer - industrial distributor - user 3. producer - industrial distributor - reseller - user 4. producer - agent - user 5. producer - agent - industrial distributor - user |
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Term
| multiple distribution channels |
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Definition
| producers utilize more than one distribution channel |
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Term
| vertical marketing system |
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Definition
| has become the dominant form of distribution channel; tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness |
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Term
| corporate vertical marketing system |
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Definition
| a firm at one level of a channel owns the firms at the next level or owns the entire channel |
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Term
| contractual vertical marketing system |
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Definition
| independent producers, wholesalers, and retailers operate under contracts specificying how they will try to improve the effectiveness and efficiency of their distribution |
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Term
| administered vertical marketing system |
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Definition
| coordeinates distribution activities through 1. the market and/or economic power of one channel member or 2. the willing cooperation of channel members |
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Term
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Definition
| 1. type of market, 2. number of potential customers, 3. geographic concentration of the market, 4. order size |
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Term
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Definition
| 1. unit value 2. perishability 3. technical nautre |
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Term
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Definition
| 1. services provided by middlemen, 2. availability of desired middlemen, 3. producer's and iddleman's policies |
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Term
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Definition
| 1. desire for channel control, 2. services provided by seller, 3. ability of management, 4. financial resources |
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Term
| intensity of distribution |
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Definition
| how many middlemen will be used at the wholesale and retail levels in a particular territory. intensive, selective, or exclusive |
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Term
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Definition
| sells its product through every available outlet in a market where a consumer night reasonably look for it |
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Term
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Definition
| a producer sells its product through multiple, but not all possible, wholesalers and retailers in a market where a consumer might reasonably look for it |
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Term
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Definition
| the supplier agrees to sell its product only to a single wholesaling middleman and/or retailer in a given parket |
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Term
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Definition
| exists when one channel member perceives another channel member to be acting in a way that prevents the first member from achieving its distribution objectives |
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Term
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Definition
| a penalty that a retailer or wholesaler assesses to a vendor that actually or allededly violates an agreed-upon distribution policy or procedure |
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Term
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Definition
| occurs among firms on the same level of distribution - ie toys r us vs walmart, a form of business conpetition |
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Term
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Definition
| middlemen diversify by adding product lines not traditionally carried by their type of business |
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Term
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Definition
| typically occurs between producer and wholesaler |
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Term
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Definition
| to place a manufacturer's product on store shelves |
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Term
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Definition
| a company that is able to regulate the behavior of the other members in its distribution channel |
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Term
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Definition
| the ability to influence or determine the behavior of another channel member |
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Term
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Definition
| the ability to influence or determine the behavior of another channel member (expertise, rewards, sanctions) |
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Term
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Definition
| a manufacturer that prohibits its dealers from carrying products offered by the producer's competitors |
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Term
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Definition
| when a supplier sells a product to a middleman only under the condition that the middleman buy another (possibly unwanted) product from the supplier |
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Term
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Definition
| to select and perhaps control its channels, a producer refuses to sell to certain middlemen |
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Term
| exclusive-territory policy |
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Definition
| a producer requires each middleman to sell only to customers located within an assigned territory |
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Term
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Definition
| the sale, and all activities directly related to the sale, of goods and services to ultimate consumers for personal, nonbusiness use |
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Term
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Definition
| a firm engaged primarily in retailing |
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Term
| bricks and mortar retailers |
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Definition
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Term
| clicks and modem retailers |
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Definition
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Term
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Definition
| totaled over 3.5 trillion |
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Term
| percent of retail firms with fewer than 10 employees |
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Definition
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Term
| retailers with 500 or more employees |
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Definition
| .3%, account for 45% of total retail sales |
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Term
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Definition
| represent the distribution element of a retailer's marketing mix: location, size, design, layout |
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Term
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Definition
| consists of a planned grouping of retail stores that lease space in a structure that is typically owned by a single organization: convenience center, neighborhood center, lifestyle center, power center, regional center |
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Term
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Definition
| an organization of two or more centrally owned and centrally managed stores that generally handle the same lines of products |
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Term
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Definition
| a company with a single store that is not affiliated with a contractual vertical marketing system. most retailers are independents, and most independents are quite small |
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Term
| contractual vertical marketing system |
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Definition
| independentally owned firms join together under a contract specifying how they will operate. three types: 1. retailer cooperatives 2. voluntary chains, 3. franchise systems, |
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Term
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Definition
| formed by a group of small retailers that agree to establish and operate a wholesalewarehouse |
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Term
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Definition
| sponsored by a wholesaler that enters into a contract with interested retailers |
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Term
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Definition
| a continuing relationship in which a parent company provides management assistance and the right to use its trademark in return for payments from the owner of the individual business unit |
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Term
| product and trade name franchising |
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Definition
| the dominant kind of product and trade name franchising ins prevalent in the automobile and petroleum industries; a distribution agreement under which a supplier authorizes a dealer to sell a product line, using the parent company's name for promotional purposes |
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Term
| business format franchising |
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Definition
| ie taco bell, midals, and h&r block; covers an entire method for operating a business |
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Term
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Definition
| seeks a differential advantage through a combination of distinctive, appealing merchandise and numerous customer services, such as alterations, credit plans, and bridal registry |
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Term
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Definition
| comparatively low prices as a major selling point combined with reduced costs of doing business |
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Term
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Definition
| a large-scale retail institution that normally carries a broad assortment of soft goods (particularly apparel) and hard goods (including popular brands of appliances and home furnishings) |
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Term
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Definition
| a much expanded discount store, discount + grocery |
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Term
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Definition
| typically sell products such as clothing, baked goods, and furniture and seek to maintain full, or nondiscounted, prices |
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Term
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Definition
| concentrates on a particular product line or even part of a product line (ex: Discover Channel Stores, Batteries Plus, Old Navy) |
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Term
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Definition
| position themselves below discount stores with lower prices on selected products |
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Term
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Definition
| aim to capture a large portion of sales in a specific product category and, in so doing, "kill" the competition |
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Term
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Definition
| features several related product lines, a high degree of self-service, largely centralized checkout, and competitive prices |
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Term
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Definition
| offers a moderately braod, moderately deep product assortment spanning groceries and some nonfood lines |
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Term
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Definition
| to satisfy consumers' increasing desire for convenience, particularly in suburban areas, sell selected groceries and nonfoods, gasoline, fast foods, and selected services |
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Term
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Definition
| combined retailing and wholesaling operation |
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Term
| retail transactions made in stores |
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Definition
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Term
|
Definition
| retailing activities resulting in transactions that occur away from a physical store |
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Term
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Definition
| personal contact between a sales person an da consumer away from a store that results in sale |
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Term
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Definition
| a sales person initiating contact with a prospective customer and closing a sale over the telephone |
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Term
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Definition
| sale of products through a machine with no personal contact between buyer and seller |
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Term
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Definition
| electronic transactions in which the purchaser is an ultimate consumer |
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Term
| "according to a study several years ago" percent of brick-and-mortar stores that also offer online |
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Definition
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Term
|
Definition
| using advertising to contact consumers who, in turn, buy products without visiting a retail store |
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Term
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Definition
| the sale, and all activities directly related to the sale, of goods and services to busines and other organizations for 1. resale, 2. use in producing other goods or services, or 3. operating organization |
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Term
|
Definition
| firms engaged primarily in wholesaling |
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Term
| total annual sales volume of wholesaling middlemen |
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Definition
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Term
|
Definition
| an independently owned firm that engages primarily in wholesaling and takes title to (that is, owns) the products being distributed |
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Term
| agent wholesaling middleman |
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Definition
| independently owned form that engages primarily in wholesaling by actively negotiating the sale or purchase of products on behalf of other firms but that does not take title to the products being distributed |
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Term
| manufacturer's sales facility |
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Definition
| an establishment that engages primarily in wholesaling and is owned and operated by a manufacturer but is physically spearated from manufacturing plants |
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Term
| manufacturer's sales branch |
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Definition
| carries an inventory of the product being sold |
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Term
| manufacturer's sales office |
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Definition
| does not carry an inventory of the product being sold |
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Term
| merchant wholesalers average expenses |
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Definition
|
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Term
|
Definition
| an independent merchant middleman that performs a full range of wholesaling functions |
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Term
|
Definition
| carries a limited line of perishable products and delivers them by truck to stores |
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Term
|
Definition
| sells merchandise for delivery directly from the producer to the customer but does not physically handle the product |
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Term
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Definition
| an independent agent wholesaling middleman that sells part or all of a manufactuer's product mix in an assigned geogrpahic territory |
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Term
|
Definition
| an independent agent wholesaling middleman that brings buyers and sellers together and provides market information to one party or the other |
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Term
|
Definition
| substitutes for a marketing department by marketing a manufacturer's entire output |
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Term
|
Definition
| helps assembled buyers and sellers comlete their transactions |
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Term
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Definition
| bring together sellers and buyers from different countries |
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Term
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Definition
| logistics; all activities involved in moving the right amount of the right products to the right places at the right time |
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Term
| total annual spending on logistics in the US |
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Definition
|
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Term
|
Definition
| having the merchandise that is ordered by a customer in stock and then packaging and shipping it in an efficient, timely manner |
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Term
|
Definition
| a total system perspective of distribution, combining distribution channels and physical distribution |
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Term
|
Definition
| determine the set of activiies that produces the best relationship between costs and profit for the entire physical distribution system |
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Term
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Definition
| third-party logistics, firms are outsourcing various business tasks ranging from payroll to public relations |
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Term
| physical distribution management |
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Definition
| the development and operation of processes resulting in the effective and efficient physical flow of products |
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Term
| electronic data interchange (EDI) |
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Definition
| orders, invoices, and perhaps other business information are transmitted by computer rather than by mail |
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Term
|
Definition
| goal is to satisfy the order-fulfillment expectations of customers while minimizing both the investment and fluctuations in inventories |
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Term
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Definition
| the volume at which the sum of inventory-carrying costs and order-processing costs are at a minimum |
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Term
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Definition
| combines inventory control, purchasing, and production scheduling. a firm buys in small quantities that arrive just in time for production and then it produces in quantities just in time for sale |
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Term
|
Definition
| expected or actual purchases by final customers - those who intend to consume the product - should activate a process to produce and deliver replacement items |
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Term
| radio frequency identification (RFID) |
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Definition
| a tag that consists of a tiny memory chip equipped with a miniscule radio antenna, allow constant monitoring of the whereabouts of products in various locations |
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Term
| collaborative planning, forecasting, and replenishment (CPFR) |
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Definition
| a method by which a producer or a wholesaler and a customer, ordinarily a retail chain,jointly develop sales forecasts through a shared website and also design marketing plans |
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Term
| enterprise resource planning systems |
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Definition
| intended to integrate by means of computer programs the various business functions of an organization, including sales, manufacturing, purchasing, distribution, financial management, and human resources |
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Term
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Definition
| advantage if 1. a company moves a large volume of products through a warehouse 2. there is very little, if any, seasonal fluction in this flow 3. the goods have special handling or storage requirements |
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Term
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Definition
| offers storage and handling facilities to individuals or companies |
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Term
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Definition
| planned around markets rather than transportation requirements, under one roof, fully integrated system for the flow of products |
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Term
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Definition
| a cargo-handling system that has become standard practice in physical distribution; shipmets of products are enclosed in large metal or wood containers; a container is transported and remains unopened from the shipper's facility to its destination |
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Term
| major modes of transportation |
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Definition
| 2. railroads 2. trucks 3. pipelines 4. water vessels 5. airplanes |
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Term
| intermodal transportation |
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Definition
| using two or more modes of transportation to move freight |
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Term
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Definition
| one transportation firm offering multiple modes of transportation to customers |
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Term
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Definition
| a specialized intermediary serving firms that ship in less-than-full-load quantities |
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Term
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Definition
| deliver shipments of small packages and high-priority mail |
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Term
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Definition
| the amount of money and/or other items with utility needed to acquire a product |
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Term
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Definition
| exchanging goods and/or services for other products |
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Term
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Definition
| the ratio of perceived benefits to price and any other incurred costs |
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Term
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Definition
| 1. profit oriented, 2. sales oriented, 3. status quo oriented |
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Term
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Definition
| aka list price, the price of one unit of the product at its point of production or resale |
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Term
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Definition
| the price at which customers consciously or unconsciously value it -- what they think the product is worth |
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Term
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Definition
| the higher the price, the greater the unit sales |
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Term
| competition can come from these sources |
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Definition
| 1. directly similar products, 2. available substitutes, 3. unrelated products seeking the same consumer dollar |
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Term
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Definition
| remains constant regardless of how many items are produced |
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Term
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Definition
| directly related to production |
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Term
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Definition
| the cost of producing and selling one more unit |
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Term
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Definition
| setting the price of one unit of a product to the total cost of the unit plus the desired profit on the unit |
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Term
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Definition
| that quantity of output at which total revenue equals total costs, assuming a certain selling price |
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Term
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Definition
| the income derived from the sale of the last unit |
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Term
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Definition
| the unit price at a given level of unit sales; calculated by dividing total revenue by the number of units sold |
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Term
| pricing to meet competition |
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Definition
| simple to carry out; in a situation with multiple suppliers, a firm should ascertain what the prevailing market price is and, after allowing for customary markups for middlemen, should arrive at its own selling price |
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Term
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Definition
| product differentiation is absent, buyers and sellers are well informed, and the seller has no discernable control over the selling price. Pricing to meet competition reflects these conditions |
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Term
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Definition
| a sharp drop in revenue occurring when the price is raised above the prevailing market level indicates that the seller faces this |
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Term
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Definition
| prices are adjusted instantly and frequently in line with what the market will bear |
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Term
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Definition
| when the market is dominated by a few firms, each marketing similar products |
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Term
| pricing below competition |
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Definition
| done by discount retailers |
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Term
| pricing above competition |
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Definition
| works only when the product is distinctive or when the seller has acquired prestige in its field |
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Term
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Definition
| a broad plan of action by which an organization intends to reach a particular goal |
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Term
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Definition
| regularly offering products priced as low as possible and typically accompanied by few, if any, services |
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Term
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Definition
| 1. offers products with lower prices bu tthe same, or perhaps added, benefits while 2. seeking ways to slash expenses so profits do not suffer |
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Term
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Definition
| sellers maintain stable prices and attempt to improve their market positions by emphasizing other aspects of their marketing programs |
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Term
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Definition
| setting a relatively high initial price for a new product |
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Term
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Definition
| setting a relatively high initial price for a new product |
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Term
| market-penetration pricing |
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Definition
| a relatively low initial price is established for a new product. The price is low in relation to the target market's range of expected prices |
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Term
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Definition
| deductions from a seller's list price intended to encourage customers to buy in larger amounts or to buy most of what they need from the seller offering the deduction. based on the size of the purchase |
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Term
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Definition
| based on the size of an individual order of one or more products |
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Term
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Definition
| based on the total volume purchased over a specified period |
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Term
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Definition
| aka functional discounts, reductions from the list price offered to buyers in payment for marketing functions the buyers will perform |
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Term
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Definition
| a deduction granted to buyers for paying their bills within a specified time |
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Term
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Definition
| a discount on a product that a customer obtains by submitting a form or certificate provided by the seller: coupon or mail-in rebate |
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Term
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Definition
| to establish various prices on the basis of how much value is attached to a product by different people |
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Term
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Definition
| given to a customer who places an order during the slack season |
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Term
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Definition
| a price reduction granted by a seller as payment for promotional services performed by buyers |
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Term
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Definition
| various prices for different customers |
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Term
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Definition
| passed in 1936, intended to curb price discrimination by large retailers. price discrimination i unlawful only when the effect may be to substantially injure competition |
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Term
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Definition
| the only geographic pricing strategy in which the seller does not pay any of the freight costs (FOB = free on board) |
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Term
| uniform delivered pricing |
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Definition
| the same delivered price is quoted to all buyers regardless of their locations |
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Term
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Definition
| divides a seller's market into a limited number of braod geographic zones and then sets a uniform delivered price for each zone |
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Term
| freight-absorption pricing |
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Definition
| a manufacturer quotes to the customer a dilivered price equal to its factory price plus the shipping costs that would be charged by a competitive seller located near that customer |
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Term
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Definition
| charges the same price to all similar customers who buy identical quantities of a product |
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Term
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Definition
| similar customers may pay different prices when buying identical quantities of a product |
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Term
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Definition
| a variation of the one-price strategy, a purchaser pays a stipulated single price and then can consume as little or as much of the product as desired |
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Term
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Definition
| an extreme variation of the one-price strategy, not only are all customers charged the same price, but all items sold by the firm carry a single price |
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Term
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Definition
| selecting a limited number of prices at which a business will sell related products |
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Term
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Definition
| sets prices at uneven amounts rather than even amoungs. often avoided in prestige stores or on higher-priced items |
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Term
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Definition
| temporarily cut prices on a few items to attract customers |
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Term
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Definition
| the items on which prices are cut |
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Term
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Definition
| if the leader is priced below the store's cost |
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Term
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Definition
| to regulate leader pricing. typically prohibit a retailer or wholesaler from selling an item below invoice cost plus some stipulated amount |
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Term
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Definition
| alternating between regular and "sale" prices on the most visible products offered by a retail firm. frequent price reductions are combined with aggressive promotion to convey an image of low prices |
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Term
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Definition
| consistently low prices and few, if any, temporary price reductions |
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Term
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Definition
| manufacturers want to control the prices at which middlemen resell their products |
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Term
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Definition
| price is set by a manufacturer at a level that provides retailers with their normal markups |
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Term
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Definition
| may begin when one firm decreases its price in an effort to increase its sales volume and/or market share. the battle is on if other firms retaliate, reducing prices on their competing products |
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Term
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Definition
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Term
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Definition
| 1. personal selling, 2. advertising, 3. sales promotion 4. public relations |
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Term
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Definition
| the direct presentation of a product to a prospective customer by a representative of the organization selling it. more money is spent on personal selling than on any other form of promotion |
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Term
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Definition
| nonpersonal communication paid for by a clearly identified sponsor promoting ideas, organizations, or products |
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Term
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Definition
| sponsor-funded, demand-stimulating activity designed to supplement advertising and facilitate personal selling. many sales promotions are directed at customers. when a sales promotion is directed to the members of the distribution channel, it is called trade promotion |
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Term
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Definition
| encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward and organization and its products. does not include specific sales messages. |
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Term
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Definition
| a special form of public relations that involves news stories about an organization or its products |
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Term
| integrated marketing communication |
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Definition
| a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive communications with an organization's internal and external audiences. begins with a strategic planning effort to coordinate with other P's |
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Term
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Definition
| the verbal or nonverbal transmission of information between someone wanting to express an idea and someone else expected or expecting to get that idea |
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Term
| 4 elements of communication |
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Definition
| 1. message 2. source 3. channel 4. receiver |
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Term
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Definition
| encode -- decode -- response -- feedback. all affected by noise |
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Term
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Definition
| an organization's combination of personal selling, advertising, sales promotion, and public relations |
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Term
| designing an effective promotion mix |
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Definition
| 1. target audience 2. objective of the promotion effort 3. nature of the product 4. stage in the PLC 5. amount of money available for promotion |
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Term
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Definition
| promotion aimed at middlemen |
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Term
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Definition
| promotion aimed at end users |
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Term
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Definition
| 1. awareness 2. knowledge 3. liking 4. preference 5. conviction 6. purchase |
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Term
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Definition
| the seller's task is to let the buyers know that the product/brand exists |
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Term
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Definition
| goes beyond awareness to learning about the product's features |
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Term
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Definition
| how the market feels about the product; can be used to move a knowledgeable audience from being indifferent to liking a brand |
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Term
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Definition
| distinguishing among brands so that the market finds your brand more attractive than the alternatives |
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Term
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Definition
| entails the actual decision or commitment to purchase |
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Term
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Definition
| can be delayed or postponed indefinitely, even for customers who are convicted they should buy a product |
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Term
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Definition
| creating a situation in which consumers spread information about a company or brand to other people |
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Term
| promotional budgeting methods |
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Definition
| percent of sale, all available funds, following the competition, budgeting by task or objective |
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Term
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Definition
| simple to calculate, probably most widely used, important flaw: management is effectively making promotion a result of sales when, in fact, it is a cause of sales |
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Term
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Definition
| objective is to build sales and market share as rapidly as possible during those early, critical years |
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Term
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Definition
| to match the promotional expenditures of competitors or to spend in proportion to market share |
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Term
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Definition
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Term
| federal trade commission act |
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Definition
| prohibits unfair methods of competition, including false, misleading, or deceptive advertising |
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Term
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Definition
| strengthened the original FTC act by specifying that an unfair competitive act violates the law if it injures the public, regardless of the effect it may have on competition |
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Term
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Definition
| making false claims about a company's own products is illegal |
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Term
| trademark law revision act |
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Definition
| encompass comparisons made in promotional activity. regulates claims about where a product is manufactured |
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Term
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Definition
| punish untrue, deceptive, or misleading advertising |
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Term
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Definition
| restrict sales people who represent firms located outside the affected city and who sell door-to-door or call on business establishments |
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Term
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Definition
| the personal communication of information to persuade somebody to buy something; in many companies, it is the largest single operating expense (often 8%-15% of sales) |
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Term
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Definition
| primarily involves retail sales, the customers come to the sales people |
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Term
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Definition
| sales people go to the customer |
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Term
| typical sales job includes 3 activities |
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Definition
| 1. taking orders, 2. customer support, 3. order getting |
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Term
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Definition
| a group of people representing a sales department as well as other functional areas in a firm, such as finance, production, and research and development, brought together to meet the needs of a particular customer. sometimes called sales team or team selling |
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Term
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Definition
| selling a total package of related goods and services to solve a customer's problem |
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Term
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Definition
| responsible for all of a company's sales to an account anywhere in the world |
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Term
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Definition
| developing a mutually beneficial relationship with selected customers over time |
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Term
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Definition
| the innovative use of telecommunications equipment and systems as part of the "going to the customer" category of personal selling |
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Term
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Definition
| b2b auction qualifies as personal selling because of its interactive nature |
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Term
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Definition
| the prospective buyer notifies prequalified potential sellers of its willingness to purchase a specified product and an online auction is held to select a seller |
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Term
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Definition
| capability of using electronic tools to combine company and client information in real time to enhance the sales function |
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Term
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Definition
| a logical sequence of four steps that a sales person takes in dealing with a prospective buyer. 1. prospecting, 2. preapproach to individual prospects, 3. presenting the sales message, 4. postsale services |
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Term
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Definition
| identifying prospective customers and qualifying prospects |
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Term
| preapproach to individual prospects |
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Definition
| learning all they can about the persons or companies to whom they hope to sell |
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Term
| presenting the sales message (AIDA) |
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Definition
| attention, interest, desire, action |
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Term
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Definition
| build customer goodwill and lay the groundwork for future business |
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Term
| methods of sales-force compensation |
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Definition
| salary, commission, combination |
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Term
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Definition
| 1. verbal/visual nonpersonal message, 2. identified sponsor, 3. delivery through one or more media, 4. payment by the sponsor to the medium carrying the message |
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Term
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Definition
| consists of all activities involved in presenting through the media a nonpersonal, sponsor-identified, paid-for message about a product or organization |
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Term
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Definition
| business-to-consumer or business-to-business |
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Term
| primary-demand advertising |
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Definition
| designed to stimulate demand for a generic category of a product |
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Term
| selective-demand advertising |
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Definition
| intended to stimulate demand for individual brands |
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Term
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Definition
| when the product is in the introductory stage of its lifecycle |
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Term
| demand-sustaining advertising |
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Definition
| primary-demand, done throughout the lifecycle |
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Term
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Definition
| special case of selective-demand, makes reference to one or more competitors |
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Term
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Definition
| focuses on a particular product or brand. direct-action or indirect-action |
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Term
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Definition
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Term
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Definition
| designed to stimulate demand over a longer period of time |
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Term
| institutional advertising |
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Definition
| presents info about the advertiser's business or tries to create a favorable attitude toward the organization (ex: McDonald's I'm Lovin It) |
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Term
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Definition
| consists of all the tasks involved in transforming a theme into a coordinated advertising program to accomplish a specific goal for a product or brand |
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Term
| framework for establishing advertising campaign |
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Definition
| 1. identify the target audience, 2. establish the overall promotional goals, 3. set the total promotional budget, 4. determine the overall promotional theme |
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Term
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Definition
| a joint effort by two or more firms intended to benefit each of the participants. vertical (different levels of distribution) and horizontal (2 or more firms on the same level of distribution) |
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Term
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Definition
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Term
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Definition
| the cost of reaching a thousand people, one time each, with a particular ad |
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Term
|
Definition
| lack permanence, so they must be seen and understood immediately, relatively expensive but can reach a large audience, expensive to produce |
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Term
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Definition
| has the potential of being the most personal and selective of all media, highly specialized lists can be developed from a firm's own customer database or purchased from list suppliers |
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Term
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Definition
| flexible and timely, ads can be inserted or canceled on very short notice, can vary in size, relatively low CPM, difficult to design ads that stand outo |
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Term
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Definition
| low CPM, makes only an audio impression |
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Term
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Definition
| been around since the late 1800s |
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Term
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Definition
| the medium to use when high-wuality printing and color are desired in an ad. can reach a national market at a relatively low cost per reader |
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Term
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Definition
| spending is growing at about 10%/year, includes billboards (now in malls, arenas, airports, and other indoor locations) |
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Term
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Definition
| a feature that permits the advertising message recipient to respond immediately using the same medium, includes internet |
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Term
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Definition
| compile the responses to an ad or a campaign, can only be used with a few types of ads |
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Term
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Definition
| measures of something other than actual behavior (ex: recall) |
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Term
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Definition
| an independent company that provides specialized advertising services |
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Term
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Definition
| demand-stimulating devices designed to supplement advertising and facilitate personal selling |
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Term
| reasons for sales promotion |
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Definition
| 1. short term results, 2. competitive pressure, 3.buyers' expectations 4. low quality of retail selling |
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Term
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Definition
| the only sure way of getting a product in the hands of potential customers |
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Term
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Definition
| largest category: Free Standing Inserts (FSI) in newspapers. cons: expensive, reduced margins to seller, undermine brand loyalty |
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Term
| sponsorship and event marketing |
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Definition
| viewed as a long-range image-building activity |
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Term
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Definition
| associations in industries as diverse as computers, sporting goods, food, and broadcasting sponcer these, appeal - efficiency, expensive for exhibitors |
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Term
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Definition
| props in movies and tv shows. most notable: back to the future (large number) et (reeses pieces), cast away (fedex) |
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Term
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Definition
| a management tool designed to favorably influence attitudes toward an organization, its products, and its policies; usually not the responsibility of the marketing dept |
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Term
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Definition
| any communication about an organization, its products, or policies through the media not paid for by the organization |
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Term
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Definition
| lower costs, increased attention, more information, timeliness |
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Term
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Definition
| loss of control over the message, limited exposure, ot truly free |
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