Marketing Exam #2

59 terms by lrh2208

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What are 3 Buying Motives?

1. Thrift/Make Money
2. Status/Prestige
3. Protection/ Safety
4. Ease/ Connivence

Two Levels of Buying Motives

Rational: thoughts, logic, conscious
Emotional: Feelings

Mental States Theory aka A.I.D.A.S. Theory

Sales presentation: strong opener is to get your attention, Sales people want customers to ask Q's, Buying signal, Repeat Sales.
-Attention, Interest, Desire, Action, Satisfaction-

Maslow's Hierarchy of Needs

Physical: food, water, shelter, safety, protection
Social: love, Belonging (parents, marital status, best friend), Prestige/status (coworkers, friends, neighbors)
Self Actualization: need to perfect ones talents and abilities for yourself

Balance of Trade- Favorable

-exports > imports
-more dollars coming into the us
-Owners get profit
-Workers get higher salaries
-More employment
-Government benefits (taxes)

Balance of Trade- Unfavorable

-Exports< Imports
-More dollars going out of the us

Factors that affect a companies ability to business in a foreign market

- Culture/language/values
-Government protection of domestic industry
-Currency Exchange Rates
-Bribe/ Payoff

Quota

Restrict quantity of product coming into the US

Tariff

Tax on products that your want to bring into the US

Embargo

Illegal products

Value of Dollar

As value of currency goes up pressure to raise prices

As value of currency goes down flexibility to lower your prices.

La Mordida

The bite/ the bribe

Counter Trade

Exchanging product for product
-Ex: pepsi for stikuchaya vodka

Factors to consider in foreign markets

-credit collections
-political unrest
-distribution/place

Globalization Strategy

Little to no change in our marketing mix
-Ex: marketing pampers worldwide

Resoprosity

owners of a company agree to buy eachothers product, often work out badly

Customizing/adapting strategy

adjustment in one or more marketing factors

Markets other than the consumer market

Industrial Market-not selling directly to the consumer

Factors that affect buying and selling in the industrial market

-primary motive-thrift/profit
-reliability of supply: on time delivery, back orders (bad)
-Derived Demand

Derived Demand

The demand for the industrial product is determined by the demand for the consumer product that the industrial product becomes apart of

Back orders

vendor is telling me they cannot ship the merchandise on time, order still stands will ship later.

Fluctuating Demand

Seasons, economics

Product

Goods, Services, and Ideas that have features and benefits

Features tell what the product is but its the benefits that actually sell the product.
Benefits satisfy the needs and wants of the target market

Benefits

What the features do for the consumer

Give 2 or 3 other factors of product

Brand, Packaging, Delivery, Warrantee

Connivence Impulse goods

Candy, cigarettes, disposable razors
-lower priced products
-consumption is quick
-high traffic areas
-require intensive distribution (producer needs to get the product into as many retailers in a given geographical area).
-Little or no planning and comparison shopping when it comes to consumer
-lowest quality and performance

Shopping Goods

opposite of impulse goods (furniture, automobiles, electronics)
-Generally high prices
-Selective distribution (few stores and retailers in a geographical area)
-planning and comparison shipping
-high quality and performance
-low traffic areas

Specialty Goods

-Highest priced
-Highest quality and performance
-Exclusive distribution
-people wont accept substitutes (brand insistence)

Unsought goods/Emergency Goods

-Needed right away
-willing to pay a premium pice (maybe illegal, price gouging, loose customers)

Product Mix

The total group of products that an organization makes available to customers (every item offered for sale)

Product Line

A group of closely related product items viewed as a unity because of marketing technical, or end use considerations (grouping of products that are related in some way)

Product Life Cycle-Introduction (1)

Promote Product: object is to educate/inform our target market and how our product is going to benefit them

Brand/Product Positioning

Introduction Phase
you do this with a particular slogan
-the concept/idea that we want to pop into the consumers mind when the see/hear our products brand name

Product Life Cycle - Period of growth (sales) (2)

expect competition
Promotion: competitive nature persuade target market that your product is better
Ex: It has a lower price

Product Life Cycle - Maturity (3)

Sales/ profits at highest point
Promotion: remind people that your company is there

Product Life Cycle- Period of Decline (4)

sales and profit declining
Prolong the like of product: discounts, lower price, add new features, enhance benefits, add new benefits

Fad

a product that goes through its lifestyle very quickly

Classic

gets stuck at the maturity phase (monopoly)

What is the purpose of patents?

To encourage the research and development of new products
Ex: if your company couldn't get a patent other companies could make the same product for much less money.

Brand Name

part of brand that is spoken
brand becomes the trademark the exclusive right to use it
not only can people not copy it they cant use it

Brand Mark

what the consumer sees

Functions of a brand - companies point of view

-a way to differentiate your product with other products
-can build loyalty which ends up in repeat sales
-introduce new products
-adds to the value of your company

Functions of a brand- consumer view

- pre judge the quality and performance of a product
-vote for the products they want to stay in the marketplace
-brand enables to a consumer to repeat purchases of a product they like

Brand Recognition

Good
aware of the brand name

Brand loyalty

Better
consumer seeks out your brand/product (buy your brand when available)
if brand isnt available a consumer will buy a substitute

Brand instance

Best

Explain the difference between brand loyalty and brand insistence

Seek out your brand but if its not available they wont buy a substitute

Private Brands

Owned by a retailer
kirkland

Two reasons why retailers carry private brands

-reduces/eliminates the consumers ability to comparison shop in the area of price
-repeat sales

Family Brand

a single brand thats used for more than one product
Coke- all different flavors

3 characteristics of a good package

acts as a silent sales person
easily transportable
easy to stack/store
ecologically friendly

Straight Rebuy Purchase

A routine purchase of the same products under approximately the same terms of sale by a business buyer

MOdified Rebuy Purchase

A new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified. MIght seek faster delivery, lower prices, or different quality.

Influencers/Deciders

Buying Center- is as group of people within an organization who make business purchase decisions

Influencers- technical personnel

Deciders- actually choose the products

Multiple Sourcing

an organization's decision to use several suppliers
Advantage: lessens the probability of strikes, shortages

Sole Sourcing

An organization's decision to use only one supplier
advantage: when product is available from only one company

NAFTA

North American Free Trade Agreement
An alliance that merges Canada, Mexico and the US into a single market.
Goal: to eliminate nearly all tariffs on goods produced and traded among these countries

The European Union

An alliance that promotes trade among its member countries in Europe.
France and Italy

Outsourcing

The practice of contracting manufacturing or other tasks to companies in countries where labor and supplies are less expensive.

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