Chapter 10 Flashcards
The simplest form of a product.
Basic product
Additions and improvements to the basic product.
Product features
When customers are offered choices of features.
Options
Provides a unique identification for companies products.
Brand-name
Provides protection and security for the product before it is used.
Packaging
It wait to build customer confidence in the company’s products.
Guarantee or warranty
The process of planning and executing the conception, pricing, promotion, distribution of ideas, goods, and services to create exchanges that satisfies my individual and organizational objectives.
Marketing
A company’s plan that identifies how it will use marketing to achieve its goals.
Marketing strategy
A specific group of consumers that have similar wants and needs.
Target market
The blending of the four market elements – product, distribution, price, and promotion.
Marketing mix
Considers the needs of customers when developing a marketing mix.
Marketing orientation
Persons who buy products and services mostly for their own use.
Final consumers
Persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.
Business consumers
Sequence of steps consumers follow to make a purchase.
Consumer decision-making process
Analyzing existing information gathered for another purpose but used to solve a current problem
Secondary research
The reasons consumers decide what products or services to purchase.
Buying motives
Finding solutions to problems through carefully design studies involving consumers.
Marketing research
Everything is business offers to satisfy customers needs.
Product
They are heterogeneous, perishable, intangible, and inseparable.
Services
Have no physical form
Intangible
Consumed at the same time they are produced
Inseparable
Availability of the service must match the demand for that service at a specific time.
Perishable – services are perishable
There will be differences in the type and quality of service provided.
Heterogeneous
The money a customer must pay for a product or service.
Price
Selling price
Product cost + operating expenses +profit
The amount added to the cost of a product to set the selling price.
Markup
The amount of money available to the businesses after all costs and expenses have been paid.
Profit
The difference between the selling price in the product cost.
Gross margin
The locations and message used to make a product or service available to the target market.
Distribution
The route a product follows in the businesses involved in moving a product from the producer to the final consumer
Channel of distribution
A reduction from the original selling price.
Markdown
Businesses that take part in the channel of distribution.
Channel members
Direct channel of distribution versus indirect channel of distribution
In a directional distribution product move from the producer straight to the consumer. In an indirect channel of distribution there are one or more other businesses between the producer and consumer.
Any form of communication used to inform, persuade, or remind.
Promotion
Do you exchange of information so that there is a common understanding by all participants
Effective communication
Direct individualized communication with prospect of customers to assess their needs and a system and satisfying those knees with appropriate products and services.
Personal selling
Paid form of communication through mass media directed at individual customers to provide information and influence their actions.
Advertising
