Ch12 Flashcards
Value
Good quality at a fair price. When consumers calculate value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the cost
Total product offer
Consists of everything consumers evaluate when deciding whether to buy something
Product line
A group of items that are physically alike or intended for a similar market
Product mix
The combination of product lines offered by a manufacturer
Product differentiation
The creation of real or perceived product differences
Bundling
Combines goods and/or services for a single price
Brand
A name, symbol, or design (or combination of) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors
Trademark
A brand that has exclusive legal protection for both its brand name and its design
Brand equity
The value of the brand name and associated symbols
Brand loyalty
The degree of which customers are satisfied, like the brand, and are committed to further purchases
Brand awareness
How quickly or easily a given brand name comes to mind when someone mentions a product category
Brand manager
A manager directly responsible for one brand or one product line; called a product manager in some firms
Product life cycle
A theoretical model of what happens to sales and profits for a product class over time; the 4 stages of the cycle are introduction, growth, maturity, and decline
Target costing
Designing a product so that it satisfies customers and meets the profit margins desired by the firm
Competition based pricing
Strategy based on what all the other competitors are doing
Price leading
Strategy by which one or more dominant firms set pricing practices all competitors in an industry follow
Break even analysis
Process used to determine profitability at various levels of sales
Total fixed costs
All the expenses that remain the same no matter how many products are made or sold
Variable costs
Price changes according to the level of production
Skimming price strategy
Prices a new product high to recover research and development costs and make as much profit as possible while there is little competition
Penetration strategy
Strategy in which a product is priced low to attract many customers and discourage competition
Every day low pricing (EDLP)
Setting prices lower than competitors and then not having any special sales
High-low price strategy
Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors
Psychological pricing
Pricing goods and services at price points that make the product appear less expensive than it is
marketing intermediaries
organizations that assist in moving goods and services from one producer to businesses (B2B) and from businesses to consumers (B2C)
channel of distribution
A whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers that joined together to transport and store goods in their path (or channels) from producers to consumers
Agents/Brokers
Getting intermediaries who bring buyers and sellers together and assist in negotiating exchange, but don’t take title(ownership) to the goods
Wholesaler
A marketing intermediary that sells to other organizations such as retailers manufacturers and hospitals
retailer
A B2C organization that sells to ultimate consumer who buys for their own use
intensive distribution
Puts product into as many retail outlets as possible
selective distribution
Uses only a preferred group of the available retailers in an area.
Exclusive distribution
Use of only one retail outlet in a given geographical area
online retailing
Consists of selling goods and services to ultimate customers online
social Commerce
Form of online Commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online, buying and selling of products and services
Telemarketing
Sale of goods and services by telephone
direct selling
Reaches consumers in their homes or workplaces
Direct marketing
Includes any activity that directly links, manufacturer’s or intermediaries with the ultimate consumer
Supply chain (value chain)
Consists of all the linked activities, various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers
Promotion mix
Contribution of promotional tools, an organization uses
Integrated marketing communication (IMC)
Combines the promotional tools into one comprehensive unified promotional strategy
Advertising
Paid, non personal communication through various media, by organizations and individuals who are in some way identified in the message
product placement
Putting products into TV shows and movies where they will be seen
personal selling
Face to face presentation and promotion of goods and services, including the sales persons search for new prospects and follow-up service after the sale
trial close
Step in the selling process that consists of a questioner statement that moves the selling process towards the actual close
Publicly relations (PR)
The function that gauges public opinion, changes policies and procedures, in response to the public’s request and executes a program of action and information to earn public understanding and acceptance
Publicity
Any information about an individual, product, or organization that’s distributed to the public through the media, and that is not paid for or controlled by the seller
Sales promotion
The promotion tools that simulates consumer purchasing and dealer interest by means of short term activities
Sampling
Letting customers have a small sample of the product for no charge
Word of mouth promotion
People tell other people about products they’ve purchased or services they’ve used
Viral marketing
Strategy that encourages people to pass on a marketing message. Everything from paying customers to say positive things on the Internet to setting up multilevel selling schemes whereby customers get commissions for directing friends to specific websites
Push strategy
Producer used advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.
Pull strategy
Directs heavy advertising and sales promotion efforts towards consumers
