FINAL EXAM KEY POINTS Flashcards by bailey freeman

What is a Product?

A good, service or idea. Satisfies consumers’ needs in exchange for something of value. Physical objects, services, events, people, places, organizations, ideas, or any mixture of these. Anything can be offered to a market for attention, acquisition, use or consumption.

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What is it called when, for example, The housing market improves and demand for paint rises in turn?

Derived Demand

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What is an SKU?

Stock Keeping Unit, Unique identification number that defines an item for ordering or inventory purposes.

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What do you call a group of product or service items closely related b/c they satisfy a class of needs, are used together, sold to the same customer group, are distributed through the same outlets, or fall in the same price range? Give an Example.

Product Line - Ex: Nike’s product line of shoes and clothes

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What is a Test Market and give an example?

region whose population represents national average demographic statistics. used to test acceptability of a product/ service before a wide scale roll-out to mass market. Columbus, OH & Charlotte-Gastonia-Rock Hill, NC-SC (#6)

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What is it called when a producer offers a product for sale in a limited area for a limited time

Test Marketing

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What is Branding?

Using a name, phrase, design, symbol, or combination of these to distinguish a product (or service) from others in the marketplace

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Give some characteristics of Branding:

should ideally establish intense brand loyalty.The most distinctive skill of a professional marketer is the ability to build and manage a brand. Consumers view a brand as an important part of a product. Branding can add value to a product.

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What are the 4 stages of the product life cycle?

Introduction, Growth, Maturity, and Decline

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Give the 3 keys to brand positioning in increasing strength:

Product Attributes, Desirable Benefit, and Beliefs and Values

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What is Product Repositioning and give an example?

changing the place a product occupies in a consumer’s mind. ex: Milk b/c majority of consumers were children or teens

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What should a product name do?

Suggest product benefits, be memorable, distinctive, positive, fit company or product image, have no legal or regulatory restrictions, be simple, be emotional

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What is the most significant repositioning strategy and give an example?

Private Branding , Sears: Kenmore, Craftsman Tools, DieHard batteries

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What is packaging?

container in which product is offered for sale

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What are 2 characteristics of packaging?

Usually the 1st impression and 15% of product cost

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What are 2 communication benefits of product packaging?

Directions for use & Required information

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What are 2 Functional benefits of product packaging?

Protection, product quality, storage, tamper resistance & Convenience

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What are 2 Perceptual benefits of product packaging?

Brand Recognition, image, and Country of origin bias

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What is a statement indicating liability of the manufacturer for product deficiencies called?

Warranty, BIG impact on consumer perception

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What are the stages a product goes through in the marketplace called?

Product Life Cycle

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What do you call a very large store (> 200,000 square feet) that offers comprehensive range of food and non-food products ?

Hypermarket

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What is retailing (selling) via the Internet Called?

Online Retailing

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What kind of store is the primary tenant in a shopping mall or strip mall?

Anchor Stores

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What kind of store is described as a discount store?

Outlet Stores

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What is place?

Where the product or service is sold, Distribution

What is a Middleman?

An intermediary between manufacturer & end-user markets

What type of middleman has the legal authority to act on behalf of manufacturer?

Agent / Broker

What type of middleman sells to other middlemen, usually retailers?

Wholesaler

What type of middlemen sell to consumers?

Retailer

What type of middlemen provide a variety of distribution functions, including selling, maintaining inventories, extending credit, etc.?

Distributor

What type of middlemen are similar to distributor, wholesaler, retailer, etc.?

Dealer

What are the 3 functions of middlemen?

Transactional, Logistical, and Facilitating

Which function of a middlemen are involved in buying, selling, risk-taking, because intermediary stocks merchandise in anticipation of sales?

Transactional

Which function of a middleman involves gathering, storing & dispersing of products ?

Logistical

Which function of a middleman assists producers in making goods more attractive to buyers by providing financing, grading quality, providing market/competitive information to customers & suppliers?

Facilitating

Consumers benefit from ________________?

having the goods & services WHERE they want them, WHEN they want them, and in the FORM they want them.

What ethical issue involves a fee charged to manufacturers by supermarket distributors (retailers) in order to have their products placed on their shelves? “pay-to-stay”; ex: Food Lion $45,000 per new line; Walmart $0

Slotting Allowance

What act addresses exclusive dealing & tying arrangements?

Clayton Act

What act addresses anti-trust (monopoly) legislation?

Sherman Act

What is the lag from ordering an item until it is received and ready for use or sale/order cycle time?

Lead Time

What are the 5 modes of transportation?

Railroads, Cars, Planes, Pipelines and Water carriers

What is an order for an item currently out of stock called?

Back Order

What inventory supply system operates with very low inventories and requires fast, on-time delivery; used when demand forecasting is reliable, ex: manufacturing cars

Just-in-time

Which inventory management system whereby the supplier determines the product amount and assortment a customer (ex: retailer) needs, and automatically delivers the appropriate items ex: Campbells Soup

Vendor-Managed Inventory

What includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use?

Retailing

Give some characteristics of franchises?

909,000 franchised businesses in the USA, Employ > 11Million people, Pay ongoing royalty fee, and the fastest growing franchise is Subway (cost $15,000)

What type of retailer w/out stores dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, consumer products and even gold and gems to customers automatically, after the customer inserts cash or credit into the machine?

Vending

What is a neighborhood store cluster; often including gas station, hardware, laundry, grocery, pharmacy; catchment area within 5-10 minute drive; convenient, called?

Strip Mall

What are the 5 tactical elements of the Marketing Communications (Promotions) Mix?

Advertising, Personal Selling, Public Relations, Direct Marketing and Sales Promotion

Name the 6 Key Elements Required in the Communication process?

Source, Message, Channel of Communication, Receiver, Encoding and Decoding.

What is interference with effective communication/interpretation and give an example?

Noise, ex: Printing Error, Accent, Slang

Which type of advertising focuses on selling product/service?

Product Advertisement

Which type of advertising aims to build goodwill or an image for an organization; often used to support public relations plan or counter adverse publicity?

Institutional Advertisements

What is Personal Selling?

2-way communication between buyer & seller, designed to influence the purchase decision = personal presentation by a company’s sales force for the purpose of making sales and building customer relationships. Buyers and sellers are usually face-to-face; Most expensive of 5 promotional elements.

Name some media options:

TV, Radio, Magazines, Newspapers, Yellow Pages, Internet, Outdoor, and Direct Mail

What is a form of communication management that seeks to influence feelings, opinions or beliefs held by any stakeholders* about a company and its products or services = “building good relationships with the company’s various publics by obtaining favorable publicity, building up a good "corporate image", and handling or heading off unfavorable rumors, stories, and events”?

Public Relations

What is the name for customers, prospective customers, stockholders, suppliers, employees, and other publics?

Stakeholders

What are short-term incentives to stimulate interest in buying a product or service used in conjunction with advertising or personal selling?

Sales Promotion

What are forms of Consumer Promotions?

Coupons, Deals , Premiums, Contests, Sweepstakes, Samples, Loyalty programs, Point of purchase (POP), Rebates, Product placements

What are forms of Trade Promotions?

Allowances, Discounts, Cooperative advertising, Sales force training

What is product placement and give example?

brand-name products used in movies, TV shows, video games; integration into these shows confers authenticity. ex: Reese's Pieces in E.T., Ray-Ban's Wayfarer sunglasses in "Risky Business", Z3 in Golden Eye, Apple in Twilight

What is Direct Marketing?

Using direct communication with carefully targeted individual consumers to generate an immediate response and cultivate long-term customer relationships

What is the process of conveying a message to others called?

Communication

What is Marketspace?

Information- & communication-based electronic exchange environment mostly occupies by sophisticated computer & telecommunication technologies & digitized offerings

Why is Marketspace growing?

Value creation is greater, consumers can get info from marketers anywhere and at any time, Consumers can customize anywhere and any time.

What is Interactive Marketing?

2-way buyer-seller electronic communication in a computer-mediated environment, where buyer controls the type and amount of information received from the seller.

What is a Choiceboard and give an example?

An interactive Internet-enabled system that allows individual customers to design their own products & services by answering a few questions, & choosing from a menu of product or service attributes, prices, & delivery options. ex: My M&M's YOUR REEBOK, BMW

What is the process that automatically groups people with similar buying intentions, preferences, & behaviors, & anticipates future purchases called?

Collaborative Filtering

Choiceboards & Collaborative Filtering are different from Personalization systems how?

Choiceboards and Collaborative filtering are initiated by marketers to provide customized responses to needs of individual buys, while Personalization Systems are initiated by buyers.

What is Personaization?

A consumer-initiated practice of generating content on a marketer’s web site, that is custom-tailored to an individual’s specific needs & preferences; increasingly valuable in a mass-produced, mass-connected world.

What helps build and maintain customer relationships; Solicitation of a consumer’s consent to receive email and advertising based on personal data supplied by the consumer? (customer must ask to be involved in data collection and marketing)

Permission Marketing: Opt-In

What is it called when a company changes (or cancels) the kind, amount, or timing of electronic information sent to consumers? (companies automatically include customers in data collection unless the customer specifically asks not to be included)

Permission Marketing: Opt-Out

Describe a Click-and-Mortar business?

Browse Sites but buy in traditional outlets; important to multi-channel retailers, mostly women

Who are online consumers?

People that own of have access to computer or smart phone, more women than men, better educated than general US population, more affluent than general US pop., *20% of online consumers make 87% of online sales*, *Consumers who spend >= $1,000 per year*

What are the top 4 online retail sales categories?

Travel Reservations, Automobiles and accessories, Computer Hardware and consumer electronics, and Apparel, footwear and accessories

Why do consumers shop & buy online? (6 C's)

Convenience, Choice, Customization, Communication, Cost, and Control.

What is it called when consumers can purchase unique items that cater to specific needs or wants and offers personalization and/or personalization?

Customization

What are some results of Customization?

Makes shopping experience enjoyable, personal, and memorable; Fosters Loyalty, repeat purchases and positive Word-Of-Mouth

What are electronic shopping agents, robots, that comb web sites to compare prices & product/service features called?

Bots

What is the view that customers will give up their efforts to enter & navigate a web site if download time > 8 seconds called?

8-Second Rule

Opt-In Versus Opt-Out

European web sites generally have Opt-In policies while US sites generally have Opt-Out policies

What % of total retail sales in the US are made online?

5.8%

What is showrooming?

When shoppers check out merchandise in store, then purchase on line from a rival at a lower price. Half shoppers who buy online have checked out items in brick-and-mortar stores.

How can traditional stores combat showrooming?

Differentiate products, customer interactions, match prices selectively, strategic alliances, embrace technology, support local businesses and add value through service

What is a company that ONLY operates online, without any brick-and-mortar presence called?

Click-Only Companies

What is an organization’s long-term course of action designed to deliver value to customer while achieving organization's goals These goals should include PROFIT (in conventional businesses) or some other METRIC (in non-profits).

Strategy

What is the process of developing & maintaining a strategic fit between organization’s goals & capabilities, and its changing market opportunities. Includes defining clear company mission, setting supporting objectives, designing appropriate businesses and products, and coordinating functional strategies called?

Strategic Planning

What do line managers do?

Line managers DO; Authority and responsibility

What do staff managers do?

Staff managers ADVISE; Cannot give direct orders

What are the 3 phases in the strategic marketing process?

Planning, Implementation, Evaluation

What are the 3 steps in the planning phase of the strategic marketing process?

Situational Analysis (SWOT), Market-product focus and goal-setting, and Market Program

What does SWOT stand for?

Strengths, Weaknesses, Opportunities and Threats

What happens during the implementation phase of the strategic marketing process?

Obtaining resources, designing the market organization, developing Planning Schedules, and executing the marketing program (Marketing Strategy, Marketing Tactics)

PROFIT = ________ - __________

Total Revenue - Total Cost

Price = ________ - __________ + ___________

List Price - discounts + fees

What is selling virtually the same product in other countries called?

Product Extension ex: Coca Cola

What is it called when a company changes a product in some way to make it more appropriate for a country's climate or consumer preferences?

Product Adaptation ex: Frito Lay flavors for local taste in Russia

What is it called when companies invent totally new products designed to satisfy common needs across countries?

Product Invention ex: Whirlpool compact washing machines for those with annual incomes of < $2,000