188 terms

MARK Final Review

Ch. 1, 2, 8, 10, 13, 16, 19, 21, 22
STUDY
PLAY
What is Promotion?
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
What is Promotional Strategy?
A plan for the optimal use of the elements of promotion:
What are the Elements of the Promotional Straategy?
-Advertising
-Public Relations
-Sales Promotion
-Personal Selling
What are the Categories of Communication?
-Interpersonal Communication
-Mass Communication
What is the AIDA Concept?
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
What does AIDA stand for?
-Attention
-Interest
-Desire
-Action
What are the Factors Affecting the Promotional Mix?
-Nature of the Product
-Satage in PLC (Product Life Cycle)
-Target Market Factors
-Type of Buying decisions
-Promotion Funds
-Push or Pull Strategy
What is Push Strategy?
Manufacturers may use agressive pesonal selling and trade advertising to convince a whole saler or a retailer to carry and sell their merchandise
What is Pull Strategy?
Stimualtes consumer demand to obtain product distribution
What is Integrated Marketing Communications?
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
What is Price?
Price is that which is given up in an exchange to acquire a good or service.
What is Revenue?
The price charged to customers multiplied by the number of units sold.
Profit =
Revenue - Expenses
What is Demand?
The quantity of a product that will be sold in the market at various prices for a specified period.
What is Supply?
The quantity of a product
that will be offered to the market
by a supplier at various prices for a specific period.
What is Price Equilibrium?
The price at which demand and supply are equal.
What is Elasticity of Demand?
Consumers' responsiveness or sensitivity to changes in price.
Elasticity =`
% change in Quantity Demanded / % change in Price
Inelastic Demand
E < 1
Elastic Demand
E > 1
Unitary Elasticity
E = 1
What are the Factors the Affect Elasticity of Demand?
-Availability of Substitutes
-Price Relative to Purchasing Power
-Product Durability
-A Product's other uses
-Rate of infaltion
What is Availability of Substitutes?
Consumer can easily switch from one product to another
What is Price Relative to Purchasing Power?
If a price is so low that it is an inconsequential part of an individuals budget, demand will be inelastic.
What is Product Durability?
Being able to repair the product rather than replacing it
How is A Product's Other Uses affect elasticity of demand?
The greater the number of different uses for a product, the more elastic the demand tends to be
How does Rate of Inflation affect the elasticity of demand?
When inflation is high, the more elastic the demand becomes
What is Yield Management Systems?
A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity.
What are the types of Costs?
-Variable Costs
-Fixed Costs
What are Variable Costs?
Deviate with changes in level of output
What are Fixed Costs?
Do not deviate as level of output changes
Break-Even Quantity =
Total Fixed Costs / Fixed Cost Contribution
Fixed Cost Contribution =
Price - Avg. Variable Cost
What is Profit Maximization?
A method of setting prices that occurs when marginal revenue equals marginal cost.
What is Satisfactory Profits?
Reasonable level of profits
What is Target Return on Investment?
Measures managements overall effectiveness in generating profits with the available assets
What is Market Share?
Company's product sales as a percentage of total sales for the industry
What is Sales Maximization?
Rather than strive for market share, the company strives to maximize sales
What is Status Quo Pricing?
The company seeks to maintain existing prices or to meet the competitions prices
What is Marginal Revenue?
The change in total revenue (cost) with a one-unit change in output.
What does Markup Pricing use?
The cost of buying the product, plus amounts for profit and for expenses not otherwise accounted for.
What is Keystoning?
Marking the price by doubling the cost
What are other Determinants of Price?
-Stages of the PLC
- Competition
-Distribution Strategy
-Promotion Strategy
-Perceived Quality
What is Customer Relationship Management?
A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
What is Customer-Centric?
The company customizes its product and service offering based on data generated through interactions between the customer and the company.
What is learning?
An informal process of collecting customer data through customer comments and feedback on product or service performance.
What is Knowledge Management?
The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.
What is the Customer Relationship Management Cycle?
- Identify Customer Relationships
- Understand Interactions with Current Customer Base
- Capture Customer Data Based on Interactions
- Store and Integrate Customer Data using IT
- Identify Best Customers
- Leverage Customer Information
What is Interaction?
Occurs when a customer and a company representative exchange information and develop learning relationships
What is Lifetime Value Analysis?
A data manipulation technique that projects the future value of the customer over a period of years.
What is Predictive Modeling?
A data manipulation technique in which marketers try to determine what the odds are that some other occurrence will take place in the future.
What is Social Media?
any tool or service that uses the Internet to facilitate conversations.
A Marketing Channel (or Channel of Distribution) is?
a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.
What are the Channel Intermediaries?
-Retailer
-Merchant Wholsaler
-Agents and Brokers
What is the Retailer channel?
A channel intermediary that
sells mainly to customers.
How are Merchant Wholesalers a channel?
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
How are Agents and Brokers a channel?
Wholesaling intermediaries who facilitate the sale of a product from producer to end user by representing retailers, wholesalers, or manufacturers.
What are Logistics?
The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies.
What are the Types of Channel Relationships?
-Arm's Length
-Integrated
-Cooperative
What are the Factors Affecting Channel Choice?
-Market Factors
-Product Factors
-Producer Factors
What do Market Factors Target?
Customer considerations
What are Product Factors?
More complex customized and expensive
What do Producer Factors pertain to?
The producer itself. Selling, Hiring or Storing
What are the Level of Distribution Intensity?
-Intensive Distribution
-Selective Distribution
-Exclusive Distribution
What is Intensive Distribution?
A form of distribution aimed at maximum market coverage
What is Selective Distribution?
By screening dealers and retailers to eliminate those, but not intangible area
What is Exclusive Distribution?
A form of distribution that establishes one or a few dealers within a given area
What is an Arm's length channel relationship?
Relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
What is an Integrated channel relationship?
Relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
What is an Cooperative channel relationship?
Relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals
What is Channel Power?
A channel member's capacity to control or influence the behavior of other channel members
What is Channel Control?
A situation that occurs when one marketing channel member intentionally affects another member's behavior
What is Channel Leader?
A member of a marketing channel that exercises authority/power over the activities of other members
What is marketing?
Is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What does marketing do?
Creates value, Communicates value, Delivers value
The 4 P's
product, place, promotion, price
What do the 4 P's create?
Exchange between 2 people
The concept of exchange
People giving up something to receive something they would rather have.
What is Production marketing?
internal capabilities of the firm
What is Sales marketing?
agressive sales techniques and belief that high sales result in high profits
What is Market marketing?
satisfying customer needs and wants while meeting objectives
What is Societal marketing
satisfying customer needs and wants while enhancing individual and societal well-being
What is the Marketing Concept?
The idea that social and economic justification for an organization's existence is the satisfaction of cutomer wants and needs while meeting organizational objectives
What is Customer Value?
The relationship between benefits and the sacrifice necessary to obtain those benefits
What is Customer Satisfaction
The cutomer's evaluation of a good or service in terms of whether it has met their needs and expectations.
What is Relationship Marketing?
A strategy that focuses on keeping and improving relationships with current customers
Why is marketing important to society?
To assure that the product being marketed is beneficial and has good interest
Why is marketing important to business?
Assesing the wants and needs of potential customers
How does marketing have a, Role in everday life?
By ubderstanding the process of marketing, you will better understand the buying process and be able to negotiate more effectively with sellers
Why is there a good career opportunity in marketing?
For every product and service that is wanted and needed, there will always be a buyer and marketers help communicate to the buyer the importance of what is wanted and needed.
What is Strategic Planning?
A managerial process of creating and maintaning a fit between the organizations objectives and resources and the evolving market opportunities
What is needed with Strategic Planning?
1. Resources and Objectives
2. Evolving Market Opportunities
Resources & Objectives + Evolving Market Opportunities =
Long run profitability and growth
To help insure long run profitability and growth. You need?
long term commitment of resources
What is a marketing plan?
A written document that acts as a guidebook of marketing activities for the marketing manager.
What are the Elements of a Marketing Plan?
-Business Mission Statement
-Situation or SWOT Analysis
-Objectives
-Marketing Strategy
-Implementation Evaluation Control
What are the Elements of a Marketing Strategy?
-Target Market Strategy
- Marketing Mix
What are the Elements of a Marketing Mix?
-Product
-Place
-Promotion
-Price
What is the importance of a firm's mission statement?
Answers the question, "What business are we in?"
What is marketing myopia?
Defining a business in terms of goods and services rather than in terms of the benefits customers seek
What should Strategic Business Units have?
A distinct mission and specific target market
What does a SWOT analysis identify?
Internal strengths and weaknesses and also examining external opportunities and threats.
What are strengths defined as for a company?
Things the company does well
What are weaknesses defined as for a company?
Things the company does not do well
What are opportunities defined as for a company?
Conditions in the external environment that favor strengths
What are threats defined as for a company?
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
What is environmental scanning?
The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
What is a marketing objective?
A statement of what is to be accomplished through marketing activities
What is competitive advantage?
The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
What is, sustainable competitive advantage?
An advantage that cannot be copied by the competition
What is a marketing strategy?
The activities of selecting and describing one or more target markets and developing and maintaning a market mix that will produce mutually satisfying exchanges with target markets.
What is implementation?
Process that turns a marketing plan into action assignments
What is marketing audit?
A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
What is sustainability?
The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.
What is a Market?
People or organizations with needs or wants and the ability and willingness to buy
What is a Market Segment?
A subgroup of people or oganizations sharing one or more characteristics that cause them to have similar product needs
What is a Market Segmentation?
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups
What is Criteria for Successful Segmentation?
-Substantiality
-Identifiablity and Measurability
-Accessibility
-Responsiveness
What is Substantiality segmentation?
Segment must be large enough to warrant a special marketing mix
What is Identifiability and Measurability segmentation?
Segments must be identifiable and their size measurable
What is Accessibility segmentation?
Members of targeted segments must be reachable with marketing mix
What is Responsiveness segmentation?
Unless segment responds to a marketing mix differently, no seperate treatment is needed
What are the Segmentation Bases?
Characteristics of individuals, groups, or organizations used to divide a total market into segments
What are the elements of the Demographic Segmentation?
-Age
-Gender
-Income
-Ethic
-Family life cycle
What are the elements of the Psychographic Segmentation?
- Personality
-Motives
-Lifestyles
-Geodemographics
What is Personality psychographic segmentation?
Reflects a person's traits, attitudes, and habits
What is Motives psychographic segmentation?
Appeal to consumer's emotional motives
What is Lifestyles psychographic segmentation?
Dividing people into groups according to the way they spend their time
What is Geodemographics psychographic segmentation?
Clusters potential customers into neighborhood lifestyle categories
What is Benefit Segmentation?
The process of grouping customers into market segments according to the benefits they seek from the product
What is Usage-rate Segmentation?
Dividing a market by the amount of product bought or consumed
What are the steps in Segmenting a Market?
-Select a market for study
- Choose bases for segmentation
-Select descriptors
-Profile and analyze segments
-Select target markets
-Design, implement, maintain marketing mix
What is Undifferentiated Targeting Strategy?
A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
What are the Advantages of undifferentiated targeting strategy?
Potential savings on production and marketing costs
What are the Disadvantages of undifferentiated targeting strategy?
Unimaginative product offerings. companys more susceptible to competition
What is Concentrated Targeting Straategy?
Firm selects a niche market
What are the Advantages of a concentrated targeting strategy?
A company can concentrate resources. The company can better meet the needs of a defined segment. Allows small firms to better compete with larger ones. There is strong positioning for the product
What are the Disadvantages for a concentrated targeting strategy?
The segment is too small and changing. The larger competitors may market to a niche segment
What is Multisegment Targeting Strategy?
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
What are the Advantages for a multisegment targeting strategy?
There is greater financial success for the company.
What are the Disadvantages for multisegment targeting strategy?
There are high costs and cannibalization can occur.
What is Position?
The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
What is Positioning?
Developing a specific marketing mix to influence potential customers' overall perception of a brand, product, or organization in general
What is Product Differentiation?
A positioning strategy that some firms use to distinguish their products from those of competitors
What is Repositioning?
Is changing consumers' perception of a brand in relation to competing brands
What are Bases for Positioning?
-Attribute
-Emotion
-Use or Application
-Product User
-Product Class
-Competitor
-Price and Quality
What is the Attribute base for positioning?
A product is associated with a product feature or customer benefit
What is the Emotion base for positioning?
Targeting how a customer should feel toward the product
What is the Use or Application base for positioning?
Using buyers to position the product
What is the Product User base for positioning?
Focuses on the personality of the buyer
What is Product Class base for positioning?
Position the product as being associated with a particular category
What is Price and Quality base for positioning?
High price may signal quality and low price may signal value
What is Product?
Everything, both favorable and unfavorable, that a peson receives in an exchange
What can a product be?
-Tangible Good
-Service
-Idea
What the types of products?
-Consumer
-Business
What are the types of Consumer products?
-Convenience products
-Shopping products
-Specialty products
-Unsought products
What are Convenience Products?
Relatively inexpensive item that merits little shopping effort
What are Shopping Products?
A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
What are Specialty Products?
A particular item that consumers search extensively for and are very relunctant to accept substitutes
What are Unsought Products?
A product unkown to potential buyer or a known product that the buyer does not actively seek
What is a Product item?
A specific version of a product that can be designated as a distinct offering among an organization's products
What is Product Line?
A group of closely-related product items?
What is Product Mix?
All products that an organization sells
What is Planned Obsolescences?
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement
What is Brand?
A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competetors' products
What is Brand Name?
The part of a brand that can be spoken, including letters, words, and numbers
What is Brand Mark?
The elements of a brand that cannot be spoken
What is Brand Equity?
The value of company and brand names
What is Global Brand?
A brand where at least 1/3 of the product is sold outside its home country
What are the Branding Strategies?
-Manufactures' Brand
-Private Brand
-Captive
What is the branding strategy, Manufacture's Brand?
The brand name of a manufacturer
What is the branding strategy, Private Brand?
A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand.
What is the branding strategy, Captive?
A brand manufactured by a third party for exclusive retailer, without evidence of that retailerls affiliation
What is a Individual Brand?
Using different brand names for different products?
What is a Family Brand?
Marketing several different products under the same brand name
what are the types of Co-Branding?
-Ingredient Branding
-Cooperative Branding
-Complementary Branding
What are Functions of Packaging?
-Contain and Protect
-Promote
-Facilitate Storage, use, and convenience
-Facilitate Recycling
Why is Containing and Protecting the product important to packaging?
Making sure the product does not get ruined before getting a chance to be sold
Why is Promotion importatn to packaging?
Make sure the product is well known and looks good on display. Allowing the product to sell itself
Why is Facilitating Storage, Use, and Convenience important to packaging?
Make sure the product is easy to distrubute
Why is Facilitating Recycling important to packaging?
Make sure the packaging is environmentally friendly
What is Persuasive Labeling?
Focuses on promotional theme or logo with consumer information being secondary
What is Informational Labeling?
Designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
What is Universal Product Codes?
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products
What is a Warranty?
A confirmation of the quality or performance of a good or service
What is an Express Warranty?
A written gurantee
What is an Implied Warranty?
An unwritten gurantee that the good or service is fit for the purpose for which it was sold
What are the types of Product Warranties?
-Warranty
-Express Warranty
-Implied Warranty