Chapter 11 Flashcards
Marketing; “Right” Principle
the process of communicating the value of a product/service to customers so that it sells
Exchange
takes place when two parties give something of value to each other to satisfy their respective needs or wants
Sales
incorporates actually selling the company’s products/services to its customers
Marketing Concept
the use of marketing data to focus on the needs & wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers but also accomplish the goals of the organization
Customer Value
the ratio of benefits for the customer to the sacrifice necessary to obtain those benefits
Customer Satisfaction
the customer’s feeling that a product has met or exceeded expectations
Relationship Marketing
a strategy that focuses on forging long-term partnerships with customers
Product
something offered in exchange & for which marketing actions are taken & marketing decisions made
Price
something given in exchange for a product (monetary or nonmonetary)
Place
some method of getting the product from the creator to the customer
Promotion
methods for informing & influencing customers to buy the product; not related to marketing
People
methods of utilizing organization employees to support the marketing strategies of the company
Environmental Scanning
collecting & evaluating environmental information to identify current & future market opportunities & threats
Convergence
means that the digital industry will merge together with entertainment
Target Market
specific group of customers towards which a firm directs its marketing efforts
Competitive Advantage (Differential)
a set of unique features of a company and its products that are perceived by the target market(s) as significant and superior to those of the competition
Cost Competitive Advantage
a firm can produce a product or service at a lower cost than all its competitors while maintaining satisfactory profit margins
Product Differential Competitive Advantage
the durability can be more successful for the long-term viability of the company
Service Differentiation Competitive Advantage
the ability to create the service product, continually refine the service process, & interact with customers is crucial
Niche Competitive Advantage
a company targets & effectively serves a single segment of the market
Marketing Mix
based on the 5P’s, brings a specific group of consumers a product with superior value
Product Strategy
involves choosing a brand name, packaging, colors, a warranty, accessories, and a service program
Pricing Strategy
based on demand for the product & the cost of producing that product
Place (Distribution) Strategy
creating the means (the channel) by which a product flows from the producer to the consumer
Promotion Strategy
promotional selling is called promotional mix
E-Commerce
the use of the company website to support and expand the marketing strategies of the 5 P’s
Buyer Behavior
the actions people take with regard to buying and using products
Culture
the set of values, ideas, attitudes, & symbols created to shape human behavior
Social Factors (reference group)
all the formal & informal groups that influence the buying behavior of an individual
Individual Influences
personal characteristics unique to each individual that affects a person’s buying decisions
Psychologicla influences
an individual’s buying decisions are further influenced by psychological factors such as perception, beliefs, & attitudes
Market Segmentation
process of separating, identifying, and evaluating the layers of a market to identify a target market
Demographic Segmentation
uses categories such as age, education, gender, income, & household size to differentiate among markets
Geographic Segmentation
segmenting markets by region of the country, city or county size, market density, or climate
Market Density
the number of people or businesses within a certain area
Psychographic Segmentation
market segmentation by personality or lifestyle
Benefit Segmentation
based on what products will do rather than on consumer characteristics
Volume Segmentation
based on the amount of the product purchased
Business Market Segmentation
may segment based on geography,volume, & benefit
Marketing Research
the process of planning, collecting, and analyzing data relevant to a marketing decision
Primary Data
where the organization actually gets the data and analyzes it
Secondary Data
where the organization uses data that has already been developed and published by another entity & the organization is able to utilize the data for its own purposes
Survey Research
data is gathered from respondents to obtain facts, opinions, and attituds
Observation Research
research that monitors respondents’ actions without direct interaction
PPM
Portable People Meter
Experiment Research
measures causality
Consumer Products
products that are bought by the end user
Consumer Non-Durables
consumer products that get used up such as Lay’s potato chips, Nexxus shampoo
Consumer Durables
consumer products that last for a long time such as Whirlpool washing machines
Unsought Products
products unplanned by the potential buyer or known products that the buyer does not actively seek
Convenience Products
relatively inexpensive products that require little shopping effort
Shopping Products
bought only after a brand-to-brand and store-to-store comparison to the price, suitability, and style
Specialty Products
products for which consumers search long and hard and for which they refuse to accept substitutes
Capital Products
usually large, expensive items with a long lifespan
Expense Items
typically smaller, less expensive items that usually have a lifespan of less than a year
Line Extension
a new flavor, size, or model using an existing brand name in an existing category
Focus Group
consists of 8-12 participants led by a moderator in an in-depth discussion on one particular topic/concept
Test Marketing
testing the product among potential users
Rollout
market introduction, requires a lot of logistical coordination
Product Manager
develops and implements a complete strategy and marketing program for a specific product or brand of product
Product Life Cycle
Introduction - Growth - Maturity - Decline (death)
Perceived Value
the perception of the product’s value at the time of the transaction
Barter (trade)
when products are exchanged for each other
Gross Revenue
the prices charged customer * the number of units sold
Price Skimming
the practice of introducing a new product on the market at a high price & then lowering the price over time
Penetration Pricing
a company offers new products at low prices in hopes of achieving a large sales volume
Leader Pricing
pricing products below the normal markup or even below cost to attract customers to a store where they wouldn’t otherwise shop
Loss Leader
a product priced below costs
Dynamic Pricing
uses computer algorithms to analyze demand & automatically raises prices as demand increases
Bundling
grouping 2 or more related products together and pricing them as a single product
Odd-Even Pricing (Psychological Pricing)
the strategy of setting a price at an odd number to connote bargain & at an even number to imply quality
Prestige Pricing
the strategy of raising the price of a product so consumers will perceive it as being of higher quality, status, or value
One-to-One Marketing
creating a unique marketing mix for every consumer
Marketing Database
a computerized file of customers’ and potential customers’ profiles and purchase patterns
Database Marketing (Micromarketing)
can get a customized, individual message to everyone simultaneously through direct mail or through the internet
