Marketing Exam #2
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59 terms
Terms | Definitions |
|---|---|
 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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