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120 terms

MKC1

Based on book, Principles of Marketing and Business Communication.
STUDY
PLAY
Strategic Planning Levels in an Organization
Corporate Level
Business Level
Functional Level
First-mover Strategy
Corporate level strategy theorizing that being the first organization to offer a product in the marketplace will be the long-term market leader.
Second-mover Strategy
Corporate level strategy theorizing that closely observing the innovations of the first movers, and then improving on them can help an organization gain advantage in the marketplace.
Porter's Five Forces Model
Central is Competitive Rivalry (Direct Competitors), influence by Potential New Entrants, Bargaining Power of Suppliers, Substitutes, and Bargaining Power of Buyers.
Marketing Strategies in Deflationary Times
1. Price bundle goods/services at the level of fixed costs, results in significant price reduction.
2. Unbundle good/services, price them individually. Provide some at no-cost basis.
3. Financing terms--volume discounting, trade in/up programs, delayed payments, etc.
4. Focus on values delivered by product.
Marketing Plan
A document that is designed to communicate the marketing strategy for an offering. The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.
Market Penetration Strategies
Selling more of existing products and services to existing customers.
Product Development Strategies
Creating new products or service for existing markets.
Market Development Strategies
Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.
Diversification Strategies
Offering products that are unrelated to other existing products produced by the organization.
Boston Consulting Group (BCG) Matrix
A portfolio planning approach that examines strategic business units based on their relative market shares and growth rates. Businesses are classified as stars, cash cows, question marks (problem children), or dogs.
Star
Business or offering with high growth and a high market share.
Cash Cow
Business or offering with a large share of a shrinking market.
Question Marks or Problem Children
Businesses or offerings with a low share of a high-growth market.
Dogs
Business or offering with low growth and a low market share.
Harvest and Divest
Harvest - When a firm lowers investment in a product or business.
Divest - When a firm drops or sells a product or business.
The General Electric (GE) Approach
A portfolio planning approach that examines a business' strengths and the attractiveness of industries.
Sherman Antitrust Act
July 2, 1890 - Fed placed limits on business monopolies and cartels to prevent restraints on trade, such as price fixing.
Clayton Act
Specific types of restraints including exclusive dealing arrangements, tie-in sales, price discrimination, mergers and acquisitions, and interlocking directorates.
Robinson-Patman Act
A US act that limits price discrimination, such as charging different customers different prices for the same products.
Wheeler-Lea Act
1938 - An amendment to FTC that attempts to tackle the evils of false and misleading advertisement.
Federal Trade Commission Act
A catch-all enactment which has been construed to include all the prohibitions of the other antitrust laws and, in addition, may be utilized to fill what may appear to be loopholes in the more explicit regulatory statutes. Protect Customers, Maintain Competition, and Advance Performance.
Federal Food and Drug Act
Responsible for protecting and promoting public health through regulation and supervision of food safety, drugs, and cosmetics.
North American Free Trade Agreement
Agreement to eliminate restrictions on the flow of goods, services, and investment in North America.
Consumer Product Safety Act
A statute that provides authority to find unreasonable risk of injury associated with a consumer product and create standards to reduce or eliminate the risk; ban the product if there is no feasible standard; and pursue recalls for products that present substantial product hazard.
Stages in the Buying Process
1. Need Recognition
2. Search for Product Information
3. Product Evaluation
4. Product Choice and Purchase
5. Postpurchase Use and Evaluation of Product
6. Disposal of the Product
Low-involvement Products
Products that carry a low risk of failure and/or have a low price tag for a specific individual or group making the decision.
Routine Response Behavior
When consumers make automatic purchase decisions based on limited information or information they have gathered in the past.
High-involvement Products
Products that carry a high price tag or high level of risk to the individual or group making the decision.
Extended Problem Solving
Purchasing decisions in which a consumer gathers a significant amount of information before making a decision.
Limited Problem Solving
Purchasing decisions made based on consideration of some outside information.
Atmospherics
The physical aspects of the selling environment retailers try to control--locations, layout, music, lighting, and smells.
Personality
An individual's disposition as other people see it.
1. Openness
2. Conscientiousness
3. Extraversion
4. Agreeableness
5. Neuroticism
Psychographics
Measuring the attitudes, values, lifestyles, and opinions of consumers using demographics.
Maslow's Hierarchy of Needs
Physiological > Safety > Social > Esteem > Self-Actualization
Selective Perception
The process whereby a person filters information based on how relevant it is to them.
Selective Retention
The process whereby a person retains information based on how well it matches their values and beliefs.
Operant Conditioning
A type of behavior that's repeated when it's rewarded.
Reference Groups
Groups a consumer identifies with and wants to join.
Opinion Leaders
People with expertise certain areas. Consumers respect these people and often ask their opinions before they buy goods and services.
Consumer Market
Many customers, geographically dispersed.
Smaller total dollars amounts due to fewer transactions.
Shorter decision cycles.
More reliance on mass marketing via advertising, Web sites, and retailing.
Less-rigid product standards.
Business Market
Fewer customers, often geographically concentrated, with a small number accounting for most of the company's sales.
Larger dollar amounts due to more transactions.
Longer decision cycles.
More reliance on personal selling.
More-rigid product standards.
Derived Demand
Demand that springs from, or is derived from, a secondary source other than the primary buyer of the product.
Fluctuating Demand
Demand that fluctuates sharply in response to a change in consumer demand.
Joint Demand
When the demand for one product increases the demand for another.
Producers
Companies that purchase goods and services that they transform into other products.
Resellers
Companies that sell goods and services produced by other firms without materially changing them.
Business-to-government (B2G) Markets
Markets in which local, state, and federal governments buy products.
Institutional Markets
Nonprofit organizations such as the American Red Cross, churches, hospitals, charitable organizations, private colleges, and civic clubs.
Buying Centers
Groups of people within organizations who make purchasing decisions.
Users
The people and groups within the organization that actually use the product.
Influencers
People who may or may not use the product but actively participate in the purchasing process in order to secure a decision they consider favorable.
Gatekeepers
People who decide if and when a salesperson gets access to members of the buying center.
Deciders
The person who makes the final purchase decision.
Stages in the B2B Buying Process
1. A need is recognized.
2. The need is described and quantified.
3. Potential suppliers are searched for.
4. Qualified suppliers are asked to complete responses to requests for proposal.
5. The proposals are evaluated and suppliers selected.
6. An order routine is established.
7. A postpurchase evaluation is conducted and the feedback provided to the vendor.
Straight Rebuy
When a purchaser buys the same product in the same quantities from the same vendor.
New-Buy
When a firm purchases a product for the first time.
Modified Rebuy
When a company wants to buy the same type of product it has in the past but make some modifications to it.
Sell-Side Site
A Web site in which a single seller sells products to many different buyers.
Buy-Side Site
A Web site in which a business buys products from multiple sellers that go there to do business with the firm.
B2B Exchanges
E-commerce Web sites where multiple buyers and sellers go to find and do business with one another.
B2B Auctions
Web-based auctions that occur between businesses.
Reverse Auctions
When the buyer lists what he or she wants to buy and also states how much he or she is willing to pay. The reverse auction is finished when at least one firm is willing to accept the buyer's price.
Steps in One-to-One Marketing
1. Establish short-term measures to evaluate your efforts.
2. Identify your customers.
3. Differentiate among your customers.
4. Interact with your customers, targeting your best ones.
5. Customize your products and marketing messages to meet their needs.
Segmentation Bases
Behavioral
Demographic
Geographic
Psychographic
Proximity Marketing
The process of segmenting buyers geographically and target them within a few hundred feet of a business using wireless technology.
Targeting Strategies Used in Global Markets
Mass or Targeted. Targeted is Multisegment or Concentrated. Concentrated is Niche or Microtargeting or One-to-One Marketing.
Encoded
The act of transforming an idea into message that can be transmitted by means of a communication channel.
Artifacts
Nonverbal representations of communication.
Intracultural Communication
Communication within the same culture.
Intrapersonal Communication
Communication with yourself.
Ethnocentrism
The tendency to view other cultures as inferior to one's own.
Hall's Eight Contributions to Intercultural Communication
1. Compare cultures.
2. Shift to local perspective.
3. You don't have to know everything to know something.
4. There are rules we can learn.
5. Experience counts.
6. Perspectives can differ.
7. Intercultural communication can be applied to international business.
8. It integrates the disciplines.
Individualistic Cultures
This culture values individual freedom and personal independence.
Explicit-Rule Culture
Rules are clearly communicated so that everyone is aware of them.
Implicit-Rule Culture
Rules are often understood and communicated nonverbally.
Monochromatic Time
Interruptions are to be avoided, and everything has its own specific time.
Polychromatic Time
A more fluid approach to scheduling time, where several things can be done at once, and each may have different levels of importance and urgency.
McGregor's Theory X, Y, Z
Based on Maslow's hierarchy of needs.
Theory X - Workers are motivated by their basic needs and have a general disposition against labor.
Theory Y - Employees as ambitious, self-directed, and capable of self-motivation.
Theory Z - Combines elements of X & Y; views workers as having a high need for reinforcement and belonging.
Acculturation
The transition to living abroad.
Product-Oriented
An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices.
Line Depth
The number of variations in a single product line.
Line Extension
A new idea or offering that occurs when a company comes out with another model (related product or service) based on the same platform and brand as one of its other products.
Line Breadth
The number of different, or distinct, product lines offered by a company.
Product Mix
The entire assortment of products that a firm offers.
Three-Way Product Classification System
A framework for classifying consumer products as either a convenience good, a shopping good, or a specialty good. Applying the categories helps to guide marketers in developing successful strategies.
Original Equipment Manufacturer (OEM)
A company that assembles and manufactures a product into its final form.
Maintenance, Repair, and Operations (MRO)
Offerings used to maintain, repair, and operate the physical assets of an organization.
Facilitating Offerings
Offerings that support an organization's ability to do business but do not go into the final product.
Primary Packaging
Packaging designed to hold a single retail unit of a product.
Secondary Packaging
Packaging designed to hold a single wholesale unit of a product.
Tertiary Packaging
Packaging designed for the shipping and efficiently handling of large quantities of a product.
Quality Function Deployment (QFD)
A specific process for designing new offerings that begins by specifying a customer's requirements and then designing a product to meet those needs.
Product Life Cycle (PLC)
The stages (introduction, growth, maturity, decline) that a product may go through over time.
Penetration Pricing Strategy
A strategy in which an organization offers a low initial price on a product so that it captures as much market share as possible.
Skimming Pricing Strategy
A high initial price that companies set when introducing new products in order to get back money invested.
Life Cycle Extension Strategies
Increase the frequency of use.
Increase the number of users.
Find new uses for the product.
Change the product.
Ansoff Matrix
Matrix that cross old products and new products with old markets and new markets, creating: market penetration, product development, market development, and product diversification.
Physical Distribution
A broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer.
Push Strategy
A strategy in which businesses are the target of promotions so products get "pushed" through their marketing channels and sold to consumers.
Pull Strategy
A strategy in which consumers are targeted with sales promotions such as coupons, contents, games, rebates, and mail-in offers.
Intensive Distribution
A strategy of selling a product in as many outlets as possible
Selective Distribution
A strategy of selling products at specific outlets and/or locations.
Exclusive Distribution
A strategy of selling products through one or a few retailers in a specific location.
Gray Market
A market in which a producer hasn't authorized its products to be sold.
Vertical vs. Horizontal Conflict
Vertical - A conflict between two different types of members of the channel.
Horizontal - A conflict between organizations of the same type.
Vertical Marketing System
A system in which channel members formally agree to cooperate with one another.
Conventional Marketing System
A marketing system in which the channel members have no affiliation with one another.
Horizontal Marketing System
A system in which two companies at the same channel level agree to cooperate with one another to sell their products.
Supply Chain
All the organizations that participate in the production, promotion, and delivery of a product or service from the producer to the end consumer.
Supply Chain Management
The process of managing and refining supply chains so as to make them as efficient as possible.
Value Chain
A term that is sometimes used interchangeably with the term supply chain. The idea behind the value chain is that your supply chain partners should do more for you than perform just basic functions.
Research Design
An outline that specifies the research data to be gathered, from whom, how, and when the data will be analyzed once it has been obtained.
Primary Data
Data collected using hands-on tools such as interviews or surveys to answer a question for a specific research project.
Secondary Data
Data already collected by your firm or another organization for purposes other than the marketing research project at hand.
Integrated Marketing Communications (IMC)
Approach designed to deliver one consistent message to buyers across an organization's promotions.
Primary Demand
Demand for a product category (orange juice) versus a product brand (Tropicana).
Selective Demand
Demand for a specific brand.
AIDA Model
A model that includes several different promotion objectives, including attention, interest, desire, and action. One objective may be to get attention. Other objectives of promotion may be to generate interest and desire. The ultimate objective is to get customers to take action or purchase the product or service.
Gramm-Leach-Bliley Act of 1999
Requires certain institutions to provide written notice of their privacy policies.