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59 terms

Marketing Exam #2

STUDY
PLAY
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.