Chapters 13-16 Flashcards
(126 cards)
1
Q
What is marketing?
A
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.
2
Q
What are the 4 (now 5) eras that influenced the evolution of marketing?
A
- The production era
- The selling era
- The marketing concept era
- The customer relationship era
- The emerging mobile/on-demand marketing era
3
Q
Explain the production era
A
Understanding and meeting customers needs and was during the early 1900’s
4
Q
Explain the selling era;
A
Turned to more selling than producing and took place in the 1920’s
5
Q
Explain the marketing concept era;
A
Understanding and meeting customer’s needs and took place in the 1950’s (after World War II)
6
Q
What is the three-part marketing concept? List them;
A
- A customer orientation: find out what consumers want and provide it for them.
- A service orientation: make sure every worker is giving great customer satisfaction.
- A profit orientation: focus on the goods/services that will earn you the most profit.
7
Q
Explain the customer relationship era;
A
In the 1990s and early 2000s, some managers extended the marketing concept by adopting the practice of customer relationship management and the customer relationship management (CRM) was created.
8
Q
What is customer relationship management (CRM);
A
The process of learning about customers and doing everything to satisfy them.
9
Q
Explain the emerging mobile/on-demand marketing era;
A
Is now taking place and focuses on consumer good through technology.
10
Q
As digital technology grows, so do consumer demands in 4 areas, what are those 4 areas?
A
- Now: consumers can interact anywhere at anytime.
- Can I?: consumers can see if they can afford a product by just looking it up.
- For me: consumers data is personalized for what they like and are interested in.
- Simple: consumers expect all interaction to be easy.
11
Q
Do non-profit organizations use marketing?
A
Yes, they use it to promote and hook new supporters.
12
Q
What is the marketing mix?
A
The ingredients that go into a marketing program (the 4 P’s)
13
Q
What are the 4 P’s?
A
- Product: any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand name.
- Price: setting a price for product.
- Place: putting the product in a place to sell it.
- Promotion: all the techniques sellers use to inform people about and motivate them to buy their products or services.
14
Q
What is marketing research?
A
The analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions.
15
Q
What is the marketing research process?
A
- Defining the question (problem or opportunity) and determining the present situation (how to go with gathering the data).
- Collecting research data (primary and secondary data, focus group) (secondary data is more important/useful).
- Analyzing the research data.
- Choosing the best solution and implementing it.
16
Q
What is environmental scanning
A
the process of gathering, analyzing, and interpreting information about external factors that could impact an organization’s success.
17
Q
What are the factors that environmental scanning includes;
A
- Global Factors: to deliver products to global customers.
- Technological Factors: using consumer databases like social media and blogs that can develop products and services.
- Sociocultural Factors: monitor social trends to keep close relationships with consumers.
- Competitive Factors
- Economic Factors: paying attention to price and matching it with what the customer is able to pay due to the economy.
18
Q
What are the two different markets?
A
- Consumer Markets
- Business-to-Business (B2B) Market
19
Q
What is the consumer market?
A
All individuals or households that want goods and services for personal consumption or use and have the resources to buy them.
20
Q
What is the Business-to-Business (B2B) Market?
A
All individuals and organizations that want goods and services to use in productions other goods and services or to sell, rent, or supply goods to others. Also known as Industrial goods!!!!
21
Q
What is market segmentation?
A
The process of dividing the total market into groups whose members have similar characteristics
22
Q
What is target marketing?
A
marketing directing toward one group from the marketing segmentation that an organization decides it can serve.
23
Q
What is geographic segmentation?
A
Dividing the market by cities, counties, states, or regions.
Ex: Selling your product in only Florida and Texas because it has more potential to sell.
24
Q
What is demographic segmentation
A
Dividing the market by age, income, and education level.
25
What is psychographic segmentation?
Dividing the market using the groups values, attitudes, and interests.
Ex: studying millennials to find out which celebrity they like/remember and use that celebrity for an ad to trap millennials attention.
26
What is benefit segmentation?
Dividing the market by determining which benefits of the product to talk about.
Ex: Lets say you’re selling organic food, if you appeal to older people then you will promote and talk about your foods health benefits.
27
What is volume (or usage) segmentation?
Dividing your market by usage (volume of use).
Ex: Study the type of people that are using your product/service, do they live far away? Are they older? Then using this info design a promotion that better appeals to them.
28
What is niche marketing?
The process of finding small but profitable market segments and designing or finding products for them.
29
What is one-to-one marketing?
Developing a unique mix of goods and services for each individual customer.
Ex: Travel agencies provide flight bookings but they also provide hotel reservations, museum ticket discounts, etc.
30
What is mass marketing?
Developing products and promotions to please large groups of people.
Ex: Airlines are so focused on targeting everyone and competing with other companies that they overlook their customers which annoys them.
31
What is relationship marketing?
Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.
32
What is the consumer decision-making process/steps?
Problem Recognition (your computer breaks and you need a new one)
Information Search (looking for computer ads for options)
Evaluate Alternatives (evaluate all your research/findings)
Purchase Decision (buy the best and more suitable computer)
33
What are the factors that affect consumer behavior (how buyers make decisions to buy)?
Learning : you have a product you bought and never buy it again.
Reference Group : a college student who uses a briefcase instead of a back[ack may use businesspeople as a reference.
Culture : education, freedom, diversity.
Subculture : ethnic group, racial group, age group (teenagers).
Cognitive Dissonance : a smoker purchasing cigarettes (which they know is harmful) but also believes in maintaining good health (creates conflict).
34
Value
Good quality at a fair price
35
What is one of the American Marketing Associations definitions of marketing?
“A set of processes for creating, communicating, and delivering value to customers.”
36
Define distributed product development;
Handing off various parts of your innovation process - often to companies overseas.
37
What is the total product offer which is also known as the value package?
Everything that consumers evaluate when deciding whether to buy something.
38
What is the core product?
Basic product
39
What is the augmented product?
Total product offer
40
Define tangible product offer
Product itself and packaging
41
Define intangible product offer
Producer’s reputation and the image created by advertising
42
Define product line
A group of products that are physically similar or are intended for a similar market.
Ex: iPhone 16 Pro & iPhone 16 Pro Max
43
Define product mix
The combination of product lines offered by a manufacturer.
Ex: iPhone, MacBook, & iPad
44
Define product differentiation
Highlighting the unique features, benefits, or qualities of a product that make it appealing to consumers.
45
What are the four general categories in marketing different classes of consumer goods and services?
1. Convenience goods and services
2. Shopping goods and services
3. Specialty goods and services
4. Unsought goods and services
46
What are convenience goods and services?
A product that a consumer wants to buy frequently with minimum effort.
Ex: milk, snack, toilet paper
47
What are shopping goods and services?
Products that the consumer buys only after comparing value, quality, price and style from other sellers.
Ex: laptop, water bottle
48
What are specialty goods and services?
Products with unique characteristics and brand identity. Because these products have no reasonable substitute, the consumer puts forth a special effort to purchase.
Ex: Coach bag, Gucci
49
What are unsought goods and services?
Products that consumers are unaware of, haven’t thought of buying, or find that they need to solve an unexpected problem.
Ex: car-towing service, burial service
50
What are industrial goods?
Products used in the production of other products. Sometimes called business goods or B2B goods.
Ex: computers for a firm to use in production/servicing
51
Define bundling;
Grouping two or more products together and pricing them as one.
52
What is a brand?
A name, symbol, or design that identifies a product/service of one seller group.
53
What is a trademark?
A brand that has legal protection from both its brand name and design.
54
What are the four brand categories?
1. Manufacturers’ (national) brands
2. Dealer (private-label) brands
3. Generic goods
4.Knockoff brands
55
What is a manufacturers’ (national) brand?
Manufacturers that distribute products nationally
Ex: Sony, Dell
56
What is a dealer (private-label) brand?
Products that don’t carry manufacturers’ name but carries retailer’s name
Ex: Marshalls, Walmart
57
What are generic goods?
No branded products that usually sell at a discount compared to national or private-label brands
Ex: Bounty paper towel compared to a random cheaper paper towel brand.
58
What are knockoff brands?
Illegal copies or national brand-name goods
Ex: fake coach purse, fake Rolex
59
What is brand equity?
The value of the brand name and associated symbols.
60
What is brand loyalty?
The degree to which customers are satisfied, like the brand, and are committed to further purchase.
61
What is brand awareness?
How quickly/easily a brand name comes to mind when a product category is mentioned.
62
What is brand association?
Associating a brand to favorable images.
Ex: Mercedes-Benz associates its cars with successful people.
63
What is a brand manager/product manager?
A manger who has control over one brand or product line.
64
What are the six stages for new-product development?
1. Idea generation: takes about 7 ideas to generate; ideas majority of the time come from employees.
2. Product screening: a process designed to reduce number of new-product ideas.
3. Product analysis: making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.
4/5. Product Development and Testing: counters as two steps, the firm develops the product and has customers a test to see reactions which is known as concept testing!!!!
6. Commercialization: promoting a product and developing strong advertising.
65
What is the product life cycle and name all the stages;
A theoretical model of what happens to sales and profits for a product, class, over time. Knowing which stage your product is at can help you decide when new strategies are needed.
1. Introduction
2. Growth
3. Maturity
4. Decline
66
What are the three major approaches to the pricing strategy?
1. Cost-Based Pricing: measures production costs (material, labor), adds some profit and comes up with a price.
2. Demand-Based Pricing/TargetCosting: designing a product so that it satisfies customers and meets the profit margins designed by the firm.
3. Competition-Cased Pricing: pricing strategy based on what all the other competitions are doing. The price can be set at, above, or below competitor’s price.
4. Break-Even Analysis: determine how many products you have to sell before making profit.
67
What is price leadership?
The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.
68
What is the Break-Even Point equation?
Total Fixed Costs (costs that never change in production, ex: mortgage)
Break-Even Point = ———————————————————————————————————————————————-
Price of one unit - Variable costs of one unit (costs that change due to production (ex: price of material)
69
What is the skimming price strategy?
Strategy in which a new product is priced high to make as much profit while there’s little to no competition.
70
What is the penetration strategy?
Strategy in which a product is priced low to attract many customers and discourage competition.
71
What is everyday low print (EDLP)?
Setting prices lower than competitions and then not having any special sails.
Ex: Walmart
72
What is the high-low pricing strategy?
Setting prices higher than EDLP stores but having many special sales that are lower costs compared to competitions.
73
What is psychological pricing?
Pricing goods and services at price points that make the product appear less expensive than it is.
Ex: Gas station selling gas for $2.99 instead of $3.00 because it makes it look more appealing to customers
74
What are marketing intermediaries?
Organizations that assist in moving goods/services from producers to businesses (B2B) and from businesses to consumers (B2C).
75
Define channel of distribution;
A whole set of market intermediaries, such as agents, brokers, wholesalers, and retailers that joint together to transport and store goods in their path (or channel) from producers to consumers.
76
Who are agents/brokers?
Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but dont take title to the goods.
Ex: real estate agent
77
Who are wholesalers?
A marketing intermediary that sells to other organizations.
Ex: retailers, manufacturers, hospitals
78
Who is a retailer?
An organization that sells to ultimate consumers.
79
Define utility;
The satisfaction or benefit that a consumer derives from consuming a good/service. Value/usefulness of a product in fulfilling a need/desire.
80
What are the six kinds of utility?
1. Form Utility: changing raw materials into useful product.
2. Time Utility: making products available when consumers need them.
3. Place Utility: placing products where people want them.
4. Possession Utility: doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installations, etc.
5. Information Utility: usefulness of information in making decisions based on its relevance and accuracy.
6. Service Utility: providing fast, friendly service during and after sale.
81
Define merchant wholesaler;
Independently owned firms that take title to the goods they handle
82
What are the two types of merchant wholesalers?
1. Full-Service Wholesaler : perform all the distribution functions
2. Limited-Function Wholesalers : perform select functions
83
What are the three common types of limited-function wholesalers?
1. Rack Jobbers
2. Cash-and-Carry
3. Drop Shippers
84
Define Rack Jobbers;
Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
85
Define Cash-and-Carry Wholesalers;
Wholesalers that serve mostly smaller retailers with limited assortment of products.
Retailers pay cash to wholesaler and carry goods back to their store.
86
Define Drop Shippers;
Wholesalers that solicit orders from retailers and other wholesalers and have merchandise shipped directly from producer to buyer.
87
What are the three categories of retail distribution?
1. Intensive Distribution
2. Selective Distribution
3. Exclusive Distribution
88
Define intensive distribution;
Distribution that puts products into as many retail outlets as possible.
Ex: convenience store goods like soft drinks, gum, magazines
89
Define selective distribution;
Distribution that sends products to only a preferred group of retailers in an area.
Ex: furniture, clothing
90
Define exclusive distribution;
Distribution taht sends products to only one retail outlet in a. Given geographic area.
Ex: luxury auto manufacturers
91
Define Online Retailing
Selling goods/services online or on a website
92
Define Social Commerce
Selling goods/services online social media/media platforms
93
Define telemarketing
The sales of goods and services by phone.
94
Define direct selling
Selling to consumers in their homes or where they work
Ex: at home sponsorship
95
Define Multilevel Marketing (MLM)
strategy where salespeople earn money by selling, recruiting others to sell, and forming a network
96
Define direct marketing
Any activity taht directly links manufacturers or intermediaries with the ultimate consumer
Ex: mail, catalog sales
97
What are the four systems that have emerged to tie firms together?
1. Corporate Distribution Systems: a distribution system in which all of the organizations in teh channel of distribution are owned by one firm.
2. Contractual Distribution Systems: a distribution system in which members are bound to cooperate through contractual agreements. (Three forms: franchise system, wholesaler-sponsored chain, and retail cooperatives).
3.Administered Distribution Systems: a distribution system in which producers manage all of the marketing functions at retail level.
4. Supply Chain (value chain): the sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.
98
Define Supply-Chain Management;
The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate.
99
Define logistics;
The marketing activity that involves planning, implementing and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
100
Define inbound logistics;
The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.
101
Define materials handling ;
The movement of goods within a warehouse to the factory floor, and from the factory floor to various workstations.
102
Define outbound logistics;
The area of logistics that involves managing the flow of finished products and information to business buyers and consumers like us.
103
Define reverse logistics;
The area of logistics taht involves bringing goods back to manufacturer because of defects or for recycling materials.
104
Define freight forwarder;
An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.
105
Define intermodal shipping;
The use of multiple modes of transportation to complete a single long-distance movement of freight.
106
Define promotion mix;
The combination of promotional tools and organization uses.
107
Define integrated marketing communication (IMC);
Combines all the promotional tools into one comprehensive and unified promotional strategy.
108
Define advertising
Paid, no personal communication through various media by organizations and individuals who are in some way identified in the advertising message.
109
Define product placement;
Putting products into tv shows and movies where the will be seen.
110
Define infomercial
A full-length tv program devoted exclusively to promoting goods or services.
111
Define interactive promotion;
A type of marketing where businesses and customers talk and work together, instead of just the business trying to sell something (more like a convo) (working with, not promoting to).
112
Define globalism advertising;
One ad for everyone in the world.
113
Define regionalism advertising;
Specific ads for each country or for specific groups within a country.
114
Define personal selling
The face-to-face presentation and promotion of goods and services.
115
What are the steps in the selling process for B2B?
1. Prospect and Qualifying
2. Re-approach
3. Approach
4. Make a Presentation
5. Answer Objections
6. Close the Sale
116
Define prospecting;
Researching potential buyers and choosing those most likely to buy.
117
Define qualifying;
Making sure potential buyers have a need for the product, the authority to buy, and the willingness to listen to sales message.
118
Define prospect;
A person with the means to buy a product, teh authority to buy, and the willingness to listen to a sales message.
119
Define trial close;
A step in the selling process that consists of a question or statement that moves th seeking process toward the actual close.
120
What are the steps in the selling process for B2C?
1. Approach
2. Ask Questions
3. Make a Presentation
4. Close Sale
5. Follow Up
121
Define public relations (PR);
Management function that evaluates public attitudes, changes policies and procedures in response to public’s requests and executes a program of action and information to earn public understanding and acceptance.
122
Define sales promotion;
A way to boost customer buying and get stores in rewards in selling a product by using short-term deals or special offers.
123
Define word-of-mouth promotion;
A promotional tool that involves people telling other people about products they’ve purchased.
124
Define viral marketing;
When a company encourages people to spread good word about their products online - sometimes by paying them or giving rewards when they get friends to visit a website or make a purchase.
125
Define push strategy;
When the producer promotes a product to stores and distributors (like wholesalers and retailers) to get them to carry and sell it.
126
Define pull strategy;
This is when the producer focuses on advertising directly to consumers so they’ll go into stores and ask for the product themselves.
