Test 1 Flashcards Preview

Marketing > Test 1 > Flashcards

Flashcards in Test 1 Deck (105):
1

Definition of Marketing

Developing, promoting, and distributing goods/services to satisfy customers' needs and wants

2

Definition of Goods

Things you can touch or hold (tangible)

3

Definition of Services

Things you can't physically touch (intangible)

4

Function of Marketing: Channel Management

Process of deciding how to get goods in consumers' hands

5

Function of Marketing: Financing

Getting the money needed to pay for operating a business

6

Function of Marketing: Marketing Info Management

Gathering info about customers, trends, and competing products.

7

Function of Marketing: Pricing

Determining how much to charge for goods/services to maximize profit

8

Function of Marketing: Product/Service Management

Developing, maintaining, improving a product

9

Function of Marketing: Promotion

Communicate information about a product or service

10

Function of Marketing: Selling

Providing customers with goods and services that they want

11

Economic Benefits of Marketing

-Generates competition--leads to new and improved products
-Creates larger variety of goods and services
-Increase demand, lowers prices

12

Form Utility

Changing raw materials/putting parts to make them useful

13

Place Utility

Having a product where customers can buy it

14

Time Utility

Having a product available at certain season or time of day

15

Possession Utility

Exchange of a product for money

16

Information Utility

Communication with consumers

17

Definition of Market Segmentation

Analyzing a market by specific characteristics to create a target market

18

Four types of Market Segments

Demographics
Psychographics
Geographics
Behavioristics

19

Definition of Demographics

Statistics that describe a population in terms of personal characteristics

20

Types of Demographics

Age: Generations
Income
Marital Status
Ethnicity
Nationality
Religion

21

Generation Demo: Baby Boomers

1946-1964
79 million (30% population)
Most analyzed and marketed
Target for luxury and recreational
Have half of discretionary income
Buy for 4 generations

22

Generation Demo: Generation X

1964-1980
40 million
Have dual career households and divorced parents
Lots of media exposure
Savvy purchasers
Skeptical
Market using sharp images, music, humor

23

Generation Demo: Generation Y

1980-1994 (Millenials)
77 million
Tech Savvy
Racially/Ethnically diverse
Lots of Spending power
Info about products passed via technology

24

Generation Demo: Generation Z

1995-2009 (Net Generation)
Active consumers, influence over parental spending
1st generation born w/ complete technology

25

Special Sales Opportunities

New merchandise, info about a new item or sale

26

Suggestion Selling

Selling additional goods/ services to customers

27

Why use suggestion selling?

Increase sales
Increase profits
More satisfaction for the customer

28

Rules for Suggestion Selling

1. Suggest after they have made a commitment but before they check out
2. Recommend from the customers point of view and give at least one reason for it
3. Make it definite "Will that be all?"
4. Show the item suggested

29

Behavioristics Segment

Based on actual customer behavior toward products
Benefits sought/product knowledge
Usage rate
Brand loyalty
User status (potential, first time, regular, etc.)
Readiness to buy (unaware, informed, interested, etc.)

30

Service Close

Explains services that overcome obstacles/problems
Ex. Gift wrapping, return policy, warranties

31

Special Sales Opportunities

New merchandise,info about a new item or sale

32

Disposable Income

Money left after taking out taxes: for necessities

33

Discretionary Income

Money left after paying for necessities: for luxury items

34

Geographics Segment

Segmentation of market based on where people live
Ex. Region: continent, country, state, neighborhood
Metropolitan area
Climate

35

Psychographics Segment

Grouping people w/ similar lifestyles, attitudes, values, habits, perception of a company, and opinions

36

Behavioristics Segment

Based on actual customer behavior toward products
Benefits sought/product knowledge
Usage rate
Brand loyalty
User status (potential, first time, regular, etc.)
Readiness to buy (unaware, informed, interested, etc.)

37

ABC

Always be closing

38

Which Close

Encourage them to make a choice between two items
Narrow down to two choices only

39

Standing Room Only Close

Product in short supply and/or price increase in the near future

40

Direct Close

Asking for the sale when buying signals are strong

41

Service Close

Explains services that overcome obstacles/problems
Ex. Gift wrapping, return policy, warenties

42

Substitution

Finding a different product to meet the customers needs

43

Boomerang Method

Bring objection back as selling point

44

Question

Learn more about an objection

45

Superior point

Acknowledge objections, offset with with features and benefits

46

Definition Marketing Concept

Satisfying a customers' needs and wants in order to make a profit

47

Definition Customer

Person who buys product

48

Definition Consumer

Person who actually uses product

49

Definition Market

All people who share similar needs and wants and can purchase products

50

Definition Market Share

Percentage of total sales volume generation by all companies in a market

51

Definition Target Marketing

Focusing decisions on a very specific group of people who your company wants to reach

52

Definition Customer Profile

Info about target market

53

Marketing Mix

Product
Place
Price
Promotion

54

Denial

Objections based on misinformation

55

Marketing Mix: Product

What products to make and sell

56

Definition Of Product Mix

All the products a company makes and sells

57

Definition of Brand Name

Represents a product or service

58

Branding

Build product recognition and customer loyalty
Quality and consistency
Capitalize on brand exposure

59

Positioning

Price and Quality
Features and Benefits
Relation to competition
Relation to other products in a line

60

Marketing Mix: Place

Getting product into the consumers' hands
Determine how/where product will be distributed
What countries to sell to, which retail outlets, etc.

61

Price in Product Life Cycle: Skimming Pricing

Set high price for new product (Intro stage)
-high profits
-can easily lower prices
-attracts more competition

62

Price in Product Life Cycle: Penetration Pricing

Set a very low price for new product (intro stage)
-capture high number of customers
-can lead to large loss of money

63

Odd-Even Pricing

Odd numbers are a bargain, even numbers are quality

64

Prestige Pricing

Higher-than-average prices to suggest status and prestige

65

Multiple Unit Pricing

Suggest bargains and increases sales volume

66

Bundle Pricing

Including complimentary products for a single price

67

Loss Leader Pricing

Offers product at price that isn't profitable to attract new customers

68

Price Lining Pricing

Setting prices to separate between the different models of a brand

69

Definition of Promotion

Informing people about a product so that they want to buy the product

70

Reasons to Promote

Inform
Remind
Persuade

71

Types of Promotion: Advertising

Any paid form of communication (newspapers, TV, radio, billboards, etc)

72

Types of Promotion: Publicity

Free promotion (press release, sponsorship of an event, donations)

73

Types of Promotion: Sales Promotion

Special ways to get customers interested in a product (coupons, rebates, samples)

74

Types of Promotion: Personal Selling

Salesperson assisting each customer

75

Personal Selling: Business to Business Selling

Selling at showroom or customer's place of business

76

Personal Selling: Telemarketing

Any selling over the phone

77

Two Goals of Selling

To help customers make satisfying buying decisions
Create ongoing, profitable relationships

78

Customer Decision Making

Previous experience
How often product is purchased
Amt of info needed to make a wise decision
Importance of purchase
Perceived risk of purchase
Time available to make purchase

79

Customer Buying Motives: Rational Motive

A conscious, logical reason for a purchase

80

Customer Buying Motives: Emotional Motive

A feeling experienced through association with the product

81

Customer Buying Motives: Patronage Motive

Reasons for remaining a loyal customer

82

Customer Decision Making: Extensive

Little or no experience with product
Higher perceived risk, very expensive, or high value to customer

83

Customer Decision Making: Limited

Purchasing an item that you have purchased before but not often
Moderate perceived risk, some info needed before purchases

84

Customer Decision Making: Routine

Lots of experience
Low risk, inexpensive, bought on regular basis, brand loyalty

85

Feature Benefit Selling

Matching characteristics of product to customers' needs and wants
Selling point should be the greatest benefit to the customer

86

Product Features

Basic, physical, or extended attributes

87

Customer Benefits

Advantages or personal satisfaction a customer gets from a good/ service.

88

Step 1: Goals of Approach

Begin conversation
Establish relationship
Focus on merchandise

89

Step 1: Service Approach

"Hi, how may I help you?"
Offer customer opportunity to say yes or no
Use if customer is in a hurry an or routine purchases

90

Step 1: Greeting Approach

Use a rising tone in your voice, shows you are available for help
Starts on positive note

91

Step 1: Merchandise Approach

Asking questions about a product that a customer is interested in
Allows you to talk about the features of a product
Can increase customer interest in product

92

How soon do you determine a customers needs?

ASAP

93

Step 2: How to Determine Needs

Observe how long they look at or hold a product
Listen to what they say
Ask general questions early on, and ask specific questions about the product after determining general needs

94

Step 2: Do's and Don't's of Determining Needs

Ask open ended questions (no yes or no answers)
Ask clarifying questions, paraphrasing what customer said
Limit irritating questions
Avoid embarrassing questions like clothing size or budget

95

Step 3: Show and Tell

Show products that help needs of customer
Start with moderate price range if you don't know the budget
Don't show more than 3 products at once
Talk about product features, avoid unclear words (pretty, nice, fine, etc.), avoid slang and double meanings
Layman's terms are words that an average customer will understand
Find an appealing display for products (Ex: black velvet and diamonds)
Build customer confidence with demonstrations that prove selling points or claims

96

Step 4: Def. of Objection

Sincere concerns, hesitations, doubts for not making a purchase "Do you carry other brands?" "Does it come in red"

97

Step 4: Def of Excuse

Insincere reasons for not making a purchase "I'm just shopping around"

98

Step 4: 5 Common Objections

Need: "I really like this shirt but it doesn't go with anything I have"
Product: "I don't like the color of this jacket or how it fits"
Source: "The last time I bought Pumas they didn't last long"
Price: "That's more than I want to spend"
Time: "I'm going to wait until July for the summer sale to buy these flip flops"

99

Step 4: Substitution Method

Find a different product that meets their needs

100

Step 4: Boomerang Method

Bring objection back as a selling point "This jacket is so lightweight because it has Thinsulate, which the manufacturer says will make you warmer"

101

Step 4: Question Method

Learn more about objection

102

Step 4: Superior Point

Acknowledge valid objection, offset with even more features

103

Step 4: Denial

Objections based on misinformation

104

Step 4: Demonstration

Use demos you've already tried to show features

105

Step 4: Third Party

Customer or neutral person testifies about product