Chapters 6-10 for MKTG 250 Flashcards
what is the definition for business-to-business marketing?
Business-to-business marketing involves the marketing of
products and services to companies, governments, or not-for-profit organizations for use in the creation of goods and
services that they can produce and market to others.
what are organizational buyers?
Organizational buyers are those manufacturers, wholesalers,
retailers, and government agencies that buy goods and
services for their own use or for resale.
what is derived demand?
Derived demand is the demand for industrial products and
services that is driven by, or derived from, the demand for
consumer products and services.
what is the organizational buying criteria?
Organizational buying criteria are the objective attributes of
the supplier’s products and services and the capabilities of the
supplier itself.
what is the definition of organizational buying behavior?
Organizational buying behavior is the decision-making
process that organizations use to establish the need for product
and services and identify, evaluate, and choose among
alternative brands and suppliers.
what is supplier development?
Supplier development is the deliberate effort by organizational
buyers to build relationships that shape suppliers’ products,
services, and capabilities to fit a buyer’s needs and those of its
customers.
what is the definition of supply partnetship?
A supply partnership is a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the
ultimate consumer.
what is reciprocity?
Reciprocity is an industrial buying practice in which two organizations agree to purchase each other’s products and services.
what is the definition for buying center?
A buying center consists of the group of people in an
organization who participate in the buying process and share
common goals, risks, and knowledge important to a purchase decision.
what are the three types of buy classes and what is the definition?
Buy classes consist of three types of organizational buying
situations: straight rebuy, new buy, and modified rebuy.
what is the definition for e-marketplaces?
E-marketplaces are online trading communities that bring together buyers and supplier organizations to make possible
the real time exchange of information, money, products, and
services. Also called B2B exchanges or e-hubs.
what is the definition for traditional auction?
A traditional auction, in an e-marketplace, is an online auction in which a seller puts an item up for sale and would-be buyers
are invited to bid in competition with each other.
what is the definition for a reverse auction?
A reverse auction, in an e-marketplace, is an online auction in which a buyer communicates a need for a product or service
and would-be suppliers are invited to bid in competition with
each other.
what are the three different types of global companies?
international firms, multinational firms, and transnational firms
what is the definition for an international firm?
Extension of home marketing strategy
what is the definition for a multinational firm?
Different products, brands, and advertising
what is the definition for a transnational firm?
Standardized marketing activities when
cultures are similar, different activities
when cultures differ
what is the definition for countertrade?
Countertrade is the practice of using barter rather than money for
making global sales.
what is the definition for GDP?
Gross domestic product (GDP) is the monetary value of all
products and services produced in a country during one year.
what is the definition for balance of trade?
Balance of trade is the difference between the monetary value of a
nation’s exports and imports.
what is the definition for protectionism?
Protectionism is the practice of shielding one or more industries
within a country’s economy from foreign competition through the
use of tariffs or quotas
what is the definition for a tariff?
Tariffs are government taxes on products or services entering a
country that primarily serve to raise prices on imports.
A U.S.-based company, FreshSip, sells premium bottled water sourced from natural springs in France. The company imports the water, bottles it in sleek, eco-friendly packaging, and markets it as a luxury product in the U.S. However, the U.S. government has recently imposed a 25% tariff on imported bottled water.
- How might this tariff impact FreshSip’s pricing strategy?
A) FreshSip may have to lower its prices to stay competitive.
B) FreshSip might absorb the extra cost to keep prices the same.
C) FreshSip could pass the tariff cost to consumers by increasing prices.
D) Both B and C.
D)Both B and C
a quota refers to?
A quota is a restriction placed on the amount of a product
allowed to enter or leave a country.
globalization refers to?
Globalization is the focus on creating economic, cultural, political,
and technological interdependence among individual national
institutions and economies.
global competition refers to?
Global competition exists when firms originate, produce, and
market their products and services worldwide.
strategic alliances refer to?
Strategic alliances are agreements among two or more independent firms to cooperate for the purpose of achieving
common goals such as a competitive advantage or customer value creation.
what is the definition for a multidomestic marketing strategy?
A multidomestic marketing strategy involves multinational firms
that have as many different product variations, brand names, and
advertising programs as countries in which they do business.
what is the definition for a global marketing strategy?
A global marketing strategy involves transnational firms that
employ the practice of standardizing marketing activities when
there are cultural similarities and adapting them when cultures
differ.
what is definition of a global brand?
A global brand is a brand marketed under the same name in
multiple countries with similar and centrally coordinated marketing
programs.
what is the definition for a global consumer?
Global consumers are consumer groups living in many countries
or regions of the world who have similar needs or seek similar
features and benefits from products or services.
what is definition for cross-cultural analysis?
Cross-cultural analysis involves the study of similarities and
differences among consumers in two or more nations or societies
what is the definition for values?
Values are a society’s personally or socially preferable modes
of conduct or states of existence that tend to persist over time.
what is the definition for customs?
Customs are what is considered normal and expected about the
way people do things in a specific country
what is the definition for cultural symbols?
Cultural symbols are things that represent ideas and
concepts
what is the definition for back translation?
Back translation is the practice where a translated word or phrase
is retranslated into the original language by a different interpreter to
catch errors
what is the definition for consumer ethnocentrism?
Consumer Ethnocentrism is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign made
products
what is the definition for currency exchange rate?
A currency exchange rate is the price of one country’s
currency expressed in terms of another country’s currency
what is the definition for exporting?
Exporting is a global market-entry strategy in which a company
produces products in one country and sells them in another
country.
what is the definition for joint venture?
Joint venture is a global market-entry strategy in which a foreign company and a local firm invest together to create a
local business in order to share the ownership, control, and profits of the new company.
what is the definition for direct investment?
Direct investment is a global market-entry strategy that entails a
domestic firm actually investing in and owning a foreign subsidiary
or division.
what is the definition for dumping?
Dumping occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.
what is the definition of a gray market?
A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing
what is definition of market research?
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information and recommending actions.
what is definition for measures of success?
Measures of success are criteria or standards used in evaluating proposed solutions to the problem.
what is the definition of constraints?
Constraints are, in a decision, the restrictions placed on
potential solutions to a problem.
what is the definition for data?
Data are the facts and figures related to the project that are
divided into two main parts: secondary data and primary data
what is the definition for secondary data?
Secondary data are the facts and figures that have already been recorded prior to the project at hand
what is the definition for primary data?
Primary data are the facts and figures that are newly collected for the project
what is the definition for observational data?
Observational data are the facts and figures obtained by watching, either mechanically or in person, how people actually
behave
what is the definition for questionnaire data?
Questionnaire data are the facts and figures obtained by
asking people about their attitudes, awareness, intentions, and
behaviors
what is the definition for information technology?
Information technology involves operating computer networks that can store and process data
what is the definition for sales forecast?
A sales forecast consists of the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing
efforts
what is the definition for cross tabulation?
A cross tabulation is a method of presenting and analyzing data involving two or more variables to discover relationships in
the data
what is the definition for market segmentation?
Market segmentation involves aggregating prospective buyers
into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
what is the definition for product differentiation?
Product differentiation is a marketing strategy that involves a firm using different marketing mix actions to help consumers
perceive the product as being different and better than competing products
what is the definition for a market-product grid?
A market-product grid is a framework to relate the market
segments of potential buyers to products offered or potential
marketing actions
what is the definition for product positioning?
Product positioning is the place a product occupies in consumers’ minds based on important attributes relative to
competitive products
what is the definition for product repositioning?
Product repositioning involves changing the place a product
occupies in a consumer’s mind relative to competitive products
what is the definition for a perceptual map?
A perceptual map is a means of displaying in two dimensions the location of products or brands in the minds of consumers to
enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand
what is the definition for usage rate/frequency marketing?
Usage rate is the quantity consumed or patronage (store visits)
during a specific period. Also called frequency marketing
what is the definition for the 80/20 rule?
The 80/20 rule is a concept that suggests 80 percent of a firm’s
sales are obtained from 20 percent of its customers.
what is the definition for customer lifetime value?
Customer lifetime value (CLV) represents the financial worth
of a customer to a company over the course of their relationship.
what is the definition of personas?
Personas are character descriptions of a brand’s typical customers
what is the definition of a product?
A product is a good, service, or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
what is the definition of services?
Services are the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange
for money or something else of value
what is the definition of consumer products?
Consumer products are products purchased by the ultimate
consumer.
what is the definition of convenience products?
Convenience products are items that the consumer
purchases frequently, conveniently, and with a minimum of
shopping effort
what is the definition for shopping products?
Shopping products are items for which the consumer compares several alternatives on criteria such as price, quality, or style
what is the definition of specialty products?
Specialty products are items that a consumer makes a special effort to search out and buy
what is the definition for unsought products?
Unsought products are items that the consumer either does not know about or knows about but does not initially want
what is the definition for business products?
Business products are products organizations buy that assist
in providing other products for resale. Also called B2B products
or industrial products.
what is the definition for a product item?
A product item is a specific product that has a unique brand, size, or price.
what is the definition for a product line?
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used
together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
what is the definition for a product mix?
A product mix consists of all of the product lines offered by an
organization
what is the definition for protocol?
A protocol is a statement that, before product development
begins, identifies: (1) a well-defined target market; (2) specific
customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers
what is the definition for the new product development process?
The new-product development process consists of the seven
stages an organization goes through to identify opportunities, and convert them to salable products or services
what is the definition for new product strategy development?
New-product strategy development is the stage of the new- product process that defines the role for a new product in terms of the firm’s overall objectives
what is the definition for idea generation?
Idea generation is the stage of the new-product process that develops a pool of concepts to serve as candidates for new
products, building upon the previous stage’s results
what is the definition of screening and evaluation?
Screening and evaluation is the stage of the new-product process that internally and externally evaluates new-product
ideas to eliminate those that warrant no further effort
what is the definition for customer experience management?
Customer experience management (CEM) is the process of managing the entire customer experience within the company
what is the definition for business analysis?
Business analysis is the stage of the new-product process that specifies the features of the product and the marketing
strategy needed to bring it to market and make financial projections
what is the definition for development?
Development is the stage of the new-product process that turns the idea on paper into a prototype
what is the definition for market testing?
Market testing is the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy.
what is the definition for commercialization?
Commercialization is the stage of the new-product process that positions and launches a new product in full-scale production and sales
what is the definition for Open Innovation?
Open Innovation consists of practices and processes that encourage the use of external as well as internal ideas, as well as internal and external collaboration when conceiving, producing, and marketing new products and services
what is “the rule”?
direct selling to organizational buyers
what are some requirements or researching points about suppliers?
price, past performance, technical capabilities, production facilities and capacity, ability to meet quality specifications, and ability to meet delivery schedules.
what drives all decisions in business?
Data
what the difference of a consumer purchase and an organization purchase?
organization purchases are bigger in size and everything takes a longer time
what do buying centers always keep the same personnel?
No, personnel change based on the product
what is a new buy?
something a company are buying for the first time
what is a straight rebuy?
rebuying the same product with no alterations or modifications
what is a modified rebuy?
a rebuy but with some modifications, like not the same color of paper or thicker paper
what is the Tiffany/Walmart marketing strategy?
tiered pricing strategy where a company offers products at both high-end (luxury) and budget (mass-market) levels
