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Marketing 100S Final Exam Terms
Terms in this set (128)
Processes a consumer uses to make purchase decisions, as well as the use and disposal of purchased goods or services; also includes factors that influence purchase decisions and product use.
CONSUMER DECISION-MAKING PROCESS
A five-step process used by consumers when buying goods or services
CONSUMER SALES PROMOTIONS
Promotion activities targeted to the ultimate consumer market to generate an immediate, but short-term sales increase. Reduced price, contests, bonus product, etc.
Branded, Generic or private label manufacturing conducted by a domestic or foreign company other than the brand owner (e.g., Budweiser produces a portion of Samuel Adams Beer total beer production).
A relatively inexpensive item that merits little shopping effort or thought. A candy bar, carton of milk, toothpaste, etc.
COST PER CONTACT (COST PER THOUSAND OR CPM)
The cost of reaching 1,000 members of the target market (usually the basis on which media is priced)
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services. A form of bartering.
A coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable evenT (e.g., When a batch of Perrier was found to contain cleaning chemicals used to clean the Production Line.
Using consumers to develop and market products.
CUSTOMER RELATIONSHIP MANANGEMENT (CRM)
A companywide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
The relationship between benefits and the sacrifice necessary to obtain those benefits. A $1,000 watch might be a good value for a wealthy person while a $50 watch might be a good value for an individual with limited income
DECISION SUPPORT SYSTEM (DSS)
An interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions. Provides answers to "what if........" questions such as the impact of raising (or lowering) prices on demand, adding line extensions, etc.
The process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior.
A long-run drop in sales of a product or service. This is the fourth and final stage in the product life cycle. Requires less advertising and relies primarily on sales promotion. Production will continue as long as the product produces reasonable profit margins or a new product with higher profits can utilize the production line.
The quantity of a product that will be sold in the market at various prices for a specified period.
Segmenting markets by age, gender, income, ethnic background, education, family life cycle, etc. This is selecting people with specific demographic characteristics (age, gender, ethnicity, etc.) who are most likely to have the need and want to buy your product or service.
The study of people's vital statistics, such as age, gender, race and ethnicity, and location
A distribution channel in which producers sell directly to consumers
ELASTICITY OF DEMAND
Consumers' responsiveness or sensitivity to changes in price. Inelastic means that demand for a product will remain generally unchanged regardless of price while elasticity means that demand will decline when prices go up and vice-versa.
The collection and interpretation of information in the external environment that may affect the future of the organization or the
Implementation of the marketing plan. The External Environment consists of:
The competitive set
Economic conditions and forecasts Political and Legal factors Technology
(NOTE: The external environment cannot be controlled by management, but it can be influenced in some circumstances (lobbyists, new to the market technology)
The moral principles or values that generally govern the conduct of an individual or a group. "Doing the right thing when nobody is watching."
EUROPEAN UNION (EU)
A free trade zone encompassing twenty- seven European countries with additional European countries seeking membership. Most, but not all, EU members have adopted a single currency called the EURO.
People giving up something to receive something else they would rather have. The amount of money (or a particular object) you would be willing to trade for an object or service you want.
Selling domestically produced products to buyers in other countries.
EXTENSIVE DECISION MAKING
The most complex type of consumer decision-making. Used when buying an unfamiliar or expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information. Items falling into this category would include a house, car, or a high dollar investment.
A unit cost that does not change as output is increased or decreased. The total fixed cost for manufacturing computer processors remains the same whether 10,000 units are produced or one million are produced. However, as production increases the fixed cost per unit declines. Fixed costs include such things as insurance, legal counsel, routine maintenance, etc.
Seven to ten people who participate in a group discussion led by a moderator. This is a qualitative research technique that is directional (typically leading to quantitative research), but not projectable.
Product, Price, Promotion and Place (distribution) - Collectively they make up the Marketing Mix. All four must be addressed, have specific objectives and must be executed as part of the Marketing Plan.
The activity and processes companies employ for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. It is the implementation of the "4 P's" (Product, Pricing, Promotion and Place/distribution) of the marketing strategy.
A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. The Marketing Mix has any number of combinations and permutations that allow it to address the specific target market identified.
Defining a business in terms of goods and services rather than in terms of the benefits that customers seek. In short, it effectively ignores the needs and wants of the customer and tries to impose the company's self-determined benefits of its products or services.
A statement of what is to be accomplished through marketing activities. These objectives typically focus on distribution, sales volume, profit, market share (either dollar or volume share), etc.
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
A domestic firm buys part of a foreign company (or vice-versa) or joins with a foreign company to create a new entity.
A unique/customized blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a specific target market having specific needs.
LEADER PRICING (LOSS-LEADER PRICING)
A retailer pricing tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.
The legal process whereby a licensor (brand owner) allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.
LIMITED DECISION MAKING
The type of decision-making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category.
LOYALTY MARKETING PROGRAM
A promotional program designed to build long- term, mutually beneficial relationships between a company and its key customers.
People or organizations with needs or wants and the ability and willingness to buy.
A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept.
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
A company's product sales as a percentage of total sales for that industry or category.
MARKETING CHANNELS (CHANNELS OF DISTRIBUTION)
A set of
interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer: Manufacturer➔Distributor➔Retailer➔Consumer.
The social and economic justification for an organization's existence based on satisfying customer wants and needs while meeting that organization's objectives. If a company's product or service does not meet the needs or wants of targeted customers, the marketing concept is invalid and there will be no demand for it and no sale or exchange.
Based on identifying specific consumer needs and wants and fulfilling them via implementation of the "4 P's." It is synonymous with the MARKETING CONCEPT.
A statement of what is to be accomplished through marketing activities. The objective typically addresses market share (dollars, cases, tonnage), distribution, sales volume, profit, etc.
A written document that acts as a guidebook of marketing activities for the marketing manager dealing with Product, Price, Place and Promotion.
The process of planning, collecting, and analyzing data relevant to a marketing decision.
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
MASLOW'S HIERARCHY OF NEEDS
A method of classifying human needs and motivations into five categories in ascending order of importance: PHYSIOLOGICAL, SAFETY, SOCIAL, ESTEEM, and SELF-ACTUALIZATION.
Result of an imbalance between actual and desired states. Example: Actual state - "I'm unemployed." Desired state - "To have a good job."
A determination of the customer's specific needs and wants and the range of options the customer has for satisfying them.
A situation requiring the purchase of a product for the first time. Normally associated with the business-to-business market segment.
One segment of a market. Concentrating all marketing efforts on a small but specific and well-defined segment of the population. Examples: Coconut water, supplements for weightlifters, etc.
Anything that interferes with, distorts, or slows down the transmission of information. Examples: Poor telephone or Internet connection, background noise while having a conversation, etc.
NONMARKETING-CONTROLLED INFORMATION SOURCE
information source that is not associated with advertising or promotion. This could be editorial content in print or electronic media or something learned from family members or friends.
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Examples: Police departments, American Red Cross, Good Will, etc.
An interview question that encourages an answer phrased in the respondent's own words. Example: "Where do you typically go on vacation" (the possible answers are endless).
A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing. Examples: UPS, FedEx, etc.
A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach a mass market.
The inability of services to be stored, warehoused, or inventoried. Example: When a commercial aircraft takes off, the revenue lost with each empty seat can never be regained.
MASS CUSTOMIZATION (BUILD-TO-ORDER)
A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications. Dell Computers is a good example of this concept. Via computer or phone an individual can order a custom-built computer to meet his or her' specific needs.
A period during which product sales increase at a decreasing rate or have peaked and remain static.
The combination of media to be used for a promotional
campaign. It includes electronic (radio, television), print (magazines, catalogues, newspapers) social and digital, etc.
Determining the appropriate combination of media to be used for a promotional campaign.
The communications channel used to convey a message to a target market.. TV, radio, magazines, digital, etc.
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them.
A statement of a firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.
The rules of conduct people develop as a result of cultural values and norms. Multiple wives (Middle East) vs. one wife at a time (U.S.)
A company that is heavily engaged in international trade, beyond exporting and importing. Examples of this include overseas manufacturing facilities, Foreign Direct Investment (FDI), etc.
MULTISEGMENT TARGETING STRATEGY
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. General Motors uses a Multisegment Marketing Strategy for its various vehicles - Chevy Volt vs. Corvette.
The practice of modifying products so those that have already been sold become obsolete (aesthetically, technologically, etc.) before they actually need replacement. This was prominent in the 50's and 60's in the US automobile industry and is currently judged to be part of the marketing of items such as computers, smart phones, etc.
The process of anticipating future events and determining strategies to achieve organizational objectives in the future. Example: New product development.
POINT OF PURCHASE (P-O-P) DISPLAY
A promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying.
The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings. Example: Apple products are more innovative and aesthetically pleasing than the competition.
Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general (Positioning = Perception).
The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.
Charging a high price to help promote a high-quality image.
An agreement between two or more firms on the price they will charge for a product. Example: Airlines agree to charge the same fares for the same flights (this is illegal in the US under the Sherman Anti-Trust Act).
A brand name owned by a wholesaler or a retailer. Example: Costco's Kirkland brand.
All brands that satisfy a particular type of need. Examples: Canned soup, batteries for electronic devices, dog food, etc.
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products.
Providing something that is unique and valuable to buyers compared to the competition. These points of differentiation include such things as:
PRODUCT LIFE CYCLE (PLC)
Concept that provides a way to trace the stages of a product's acceptance through four stages.
INTRODUCTION PERIOD: Quick growth, heavy promotion spending
GROWTH PERIOD: accelerating growth, heavy promotion spending
MATURE STAGE: Marginal/no growth with sustainable promo. Spending
DECLINING STAGE: Declining sales, reduced promo spending
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. This orientation only works when demand is equal to or greater than supply: "If you make it, they will buy it."
Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics.
A group of closely related product items produced or marketed by a company. Example: Betty Crocker cake mixes, muffin mixes, frosting.
PRODUCT LINE EXTENSION
Adding additional products to an existing product line in order to compete more broadly in the industry. Example: Adding a new soup to the Campbell's existing line of canned soup.
All products that an organization sells or markets across all categories: Soups, cake mixes, deodorants, laundry detergents, etc.
PRODUCT MIX WIDTH
The number of product lines an organization offers. See above - four product lines.
A public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events.
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
PROMOTIONAL ALLOWANCE (TRADE ALLOWANCE)
A payment to a broker,distributor or retailer for promoting the manufacturer's products. This is typically in the form of a reduction in the case price of the promoted product for a limited period of time (Example: $1 per case reduction for a specific four week period).
The combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals. NOTE: It is not necessary to use all of the promotional tools when developing the promotional mix.
A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media.
The marketing function that evaluates public attitudes identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance.
PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY
A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure.
The percentage of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
RELATIONSHIP SELLING (CONSULTATIVE SELLING)
A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
Changing consumers' perceptions of a brand in relation to competing brands. Example: Arm & Hammer baking soda was repositioned from being a mere baking ingredient to a refrigerator deodorizer.
A company philosophy that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. Example: Life insurance, burial plots, time-share properties.
The marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. These are typically (although not exclusively) directed at retail consumers and includes activities such as price reductions, bonus product, sampling, loyalty programs, etc.
A closed-ended research question designed to measure the intensity of a respondent's answer Example: a series of responses available to the consumer to determine purchase intent ranging from "1-would never buy" to "5-would definitely buy."
Any tool or service that uses the Internet to facilitate conversations. Facebook, Twitter, etc.
A particular item for which consumers search extensively and are very reluctant to accept substitutes. Example: Cartier watches, Rolls-Royce automobiles (specialty products are typically very expensive and produced in very limited quantities) .
A measure of a web site's effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit (site reach).
A business-to business situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
STRATEGIC ALLIANCE (STRATEGIC PARTNERSHIP)
A cooperative agreement between business firms.
STRATEGIC BUSINESS UNIT (SBU)
A subgroup of a single business or collection of related businesses within the larger organization. Example: Household cleaning products division of Proctor and Gamble.
STRATEGIC CHANNEL ALLIANCE
A cooperative agreement between business firms to use the other's already established distribution channel. Example: A small dairy producing goat's milk (a niche product) reaches agreement to have Producer's Dairy handle order entry and distribution on its behalf.
A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group. Example: sub- cultures in the U.S. would include African-Americans, Asian Americans, Hispanics, etc.
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function. This would range from raw materials through warehousing and delivery.
SUPPLY CHAIN MARKETING MANAGEMENT
A marketing management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
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. Example: UPS converting to natural gas delivery vans, forestry companies planting more trees than they harvest.
Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).
SWOT - STRENGTHS
What are the company's core competencies (things it does well or better than the competition - Technological superiority, low production costs, service, etc.)
SWOT - WEAKNESSES
What areas of the company's performance could serve as a barrier to functioning or expanding in the marketplace and what improvements need to take place?
SWOT - OPPORTUNITIES
What is occurring in the market (see Environmental Scanning) that has created an unfulfilled need?
SWOT - THREATS
What is happening in the market that could negatively impact a business (See Environmental Scanning)
A price reduction offered by manufacturers to intermediaries such as wholesalers and retailers. This is one of the elements of sales promotion.
A group of people or organizations for which another organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. Usually involves two to four representative markets geographically dispersed and accounting for 1% to 3% of total sales in the country.
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. Example: Chocolate candy bars, cell phones.
UNIQUE SELLING PROPOSITION (USP)
A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Example: "You're in good hands....,," "i'm lovin it."
A product unknown to the potential buyer or a known product that the buyer does not actively seek. Example: Life insurance, burial plots, time-share properties.
Recognition of the existence of an unfulfilled need and a product that will satisfy it.
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