10 things

Question 1

Target marketing

Answer 1

A marketing mix that is tailored to fit some specific target customers

Question 2

Segmentation

Answer 2

An aggregating process that clusters people with similar needs into a market segment

Question 3

Positioning

Answer 3

An approach that refers to how customers think about proposed or present brands in a market

Question 4

Differentiation

Answer 4

The marketing mix is distinct from and better than what’s available from a competitor

Question 5

Customer Satisfaction

Answer 5

The extent to which a firm fulfills a consumer’s needs, desires, and expectations

Question 6

Micro-macro dilemma

Answer 6

What s good for some producers and consumers may not be good for society as a whole

Question 7

Why is customer satisfaction important in the U.S.?

Answer 7

Our basic objective of our market-directd economic system has been to satisfy consumer nees as they, the consumers, see them

This objective implies that political freedom and economic freedom go hand in hand and that citizens in a free society have the right to live as they choose

Question 8

Why should you get your customers to complain?

Answer 8

Majority of customer complaints are never reported

Many complaints that are reported never get fully resolved

Question 9

Pricing objectives

Answer 9

Pricing oriented

sales oriented

status quo oriented

Question 10

Profit oriented pricing objetive

Answer 10

Target return

Maximize profits

Question 11

Sales oriented pricing objective

Answer 11

Dollar or unit sales growth

Growth in market share

Question 12

Status quo oriented pricing objective

Answer 12

Meeting competition

Nonprice competition

Question 13

One price policy

Answer 13

Makes pricing easier

Competitors can easily undercut if price is high

Question 14

Flexible-price policy

Answer 14

Frequent changes to prices are easier

Can lead to a lower price and lower profit

comomon in business products and at retail for expensive shopping products

People can get unhappy if other customers paid cheaper

can increase selling costs and frustrate customers

Question 15

Skimming pricing policy

Answer 15

Trie to sell the top of the market at a high price before aiming at more price-senstive customers

situation: if few substitutes or if customers are not price sensitive

when you dont know much about the demand curve

Question 16

Penetration pricing policy

Answer 16

Tries to sell the whole market at one low price

Used for elite market is small

if selling large quantities results in lower costs because of economies of scale

if firm expects strong competition very soon after introduction

Question 17

Geographic pricing

Answer 17

FOB

Zone pricing

Uniform delivered pricing

Freight absorption pricing

Question 18

Relationship between stockturn and markup

Answer 18

IF people can sell a much greater amount in the same time period the may be able to take a lower markup and still earn a higher profits

increasing their stockturn rate

Question 19

Factors that affect sensitivity

Answer 19

When customers have substitute ways of meeting a need they are likely to be more price sensitive

compare prices

People are less price senstive when someone else pays the bill or share sthe cost

custoemers are more price senstive the greater the total expenditure

less price sensitive th egreater the significance of the end benefit of the purchase

Question 20

Retailer’s “whole” offer

Answer 20

Convenience

Product selection

Special services

Fairness in dealings

Helpful information

Prices

social and emotial needs: social image, shoppng atmosphere

Question 21

single line/limited line store

Answer 21

Stores that specialize in certain lines of related products rather than a wide assortment

Question 22

First year failiure rates of retailers

Answer 22

3/4 of new retailing ventures fail during the first year

Question 23

Expanded asortment and service

Answer 23

Specialty shops and department stores

Question 24

Expanded assortment and/or reduced margins and service

Answer 24

Supermarkets, discount hoouses, superstores, club stores

Question 25

Added convenience and higher than conventional margins, usually reduced assortment

Answer 25

Convenience stores, vending machines, door-to-door, telephone and some electornic retailng

Question 26

Expanded assortment, reduced margins and more information

Answer 26

Internet

Question 27

Scrambled merchandising

Answer 27

Carrying any product lines they think they can sell profitly

super markets and drugstores sell anything they can move in volume

Question 28

Advantages of a corprate change

Answer 28

They take advantage of quantity discounts and develop their own efficient distribution centers

use computer networks

spread promotion ifnrmation and management costs to many stores

Question 29

Difference between merchant wholesalers and merchant middlemen

Answer 29

Merchan wholesalers Own (take title to) the products they sell

Agent middlement do not own the products they sell

Question 30

When does it make sense to go direct distribution?

Answer 30

The internet makes directi distribution easier

Direct contat with customers

Suitable intermediaries are not available

Common with business customers and services

Some consumer products are sold direct

Question 31

When indirect channels are best

Answer 31

Some consumers prefer to shop at specific places

Limited financial resources or wants to retain flexibility will go indirect

Indirect further reduces the need for working capital

Question 32

Direct marketing

Answer 32

Direct communication between a seller and an indiidual customer using a promotion method other than face-to-face personal selling

Question 33

Regrouping activities

Answer 33

adjust the quantiities or assortments of products handled at each level in a channel of distribution

fix discrepancy of quantity and discrepancy of assortment

Question 34

Difference between vertical and horizontal conflict

Answer 34

vertical conflict => occur between firms at different levels in the channel of distribution

ex. wherehouse ent. started to sell used CDs several recording companies said they would halt payments to any retailer that sold used CDs

Horizontal conflict => occur between firms at the same level in the channel of distiribution

ex. bike store that keeps bikes on hand isnt happy that there is an online store that offers lower prices

Question 35

Ideal market exposure

Answer 35

Makes a product available widely enough to satisfy target customers’ needs but not exceed them

intensive distribution - selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product

selective distribution - selling through only those intermediaries who will give the product special attention

exclusive distribution - selling through only one interemediary in a partiuclar geographic area

Question 36

horizontal and vertical distribution arrangements

Answer 36

horizontal arrangements - among competing retailers, wholesalers or producers to limit sales by customer or territory have consistently been ruled illegal by the U.S. supreme court

vertical arrangements - between producers and intermediaries

may or may not be illegal

Question 37

Reverse channels

Answer 37

Help the enviornment can also be profitable

a way to give customers enviornmentaly friendly choices