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Mgmt 322 > Exam 2 Flash Cards > Flashcards

Exam 2 Flash Cards

1
Q

Consumer Market

A

For personal and household uses; do not buy to make profit

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2
Q

Business Markets

A

Buy for resale, use in other product, or use in daily operation

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3
Q

Undifferentiated Targeting Strategy

A

Mass marketing, one marketing mix to go after all segments

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4
Q

Pros of Undifferentiated Target Strategy

A

Cheap

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5
Q

Cons of Undifferentiated Target Strategy

A

Only works in homogeneous segments

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6
Q

Differentiated Targeting Strategy

A

Each segment gets own marketing mix, more than one segment

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7
Q

Pros of Differentiated Targeting Strategy

A

Meets needs of customers

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8
Q

Cons of Differentiated Targeting Strategy

A

Expensive

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9
Q

Concentrated Targeting Strategy

A

One mix for one segment

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10
Q

Pros of Concentrated Targeting Strategy

A

Specialized for certain part of the market

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11
Q

Cons of Concentrated Targeting Strategy

A

Only marketing to one segment

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12
Q

Marketing Segmentation

A

The process of dividing a total marketing into groups with relatively similar product needs to design a marketing mix that matches those needs

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13
Q

Market Segment

A

Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs

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14
Q

What are four variables used to segment consumer markets?

A

Demographic, geographic, psychographic, behavioristic

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15
Q

What are four variables used to segment business markets?

A

Geographical locations, types of organizations, customer size, product use

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16
Q

Product

A

A good, service, or idea received in an exchange

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17
Q

Pure Good

A

A good by itself, e.g. Pizza

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18
Q

Good with Accompanying Service

A

A good with a service that comes with it, e.g. product with warranty

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19
Q

Hybrid Good and Service

A

A good and service combined, e.g. oil change, restaurant

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20
Q

Service with Accompanying Good

A

A service with goods that come with, e.g. flight with snacks provided

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21
Q

Pure Service

A

A service by itself, e.g. movies

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22
Q

Convenience Product

A

Necessities, purchased on regular basis; low price; high promotion; intensive distribution

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23
Q

Shopping Products

A

Clothes, shoes, furniture, electronics, cars; moderate prices; promotion through personal selling; distribution selective close to competition

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24
Q

Specialty Products

A

One or more unique characteristics, custom, high end; high price; targeted promotion about distribution; exclusive distribution

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25
Q

Unsought Products

A

Don’t know exist or don’t think about buying; no set price; aggressive sales tactic; no set distribution

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26
Q

What are the seven alternative types of business products?

A

Installations, accessory equipment, raw materials, component parts, process materials, MRO supplies, and business services

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27
Q

Product Mix

A

All products that an organization makes for customers

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28
Q

Product Line

A

A group of closely related product items that are considered to be a unit because of marketing, technical, or end use considerations

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29
Q

Product Item

A

A specific version of a product that can be designated as a distinct offering among an organizations products

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30
Q

What are the four alternative growth strategies that can be employed using the product-mix dimensions?

A

Increase width by adding additional product line, increase depth by adding additional product to a product line, purse more consistency, add more product varieties

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31
Q

Intro Stage of Product Life Cycle

A

Price at highest point, profit negative, promotion to educate consumers, distribution limited

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32
Q

Growth Stage of Product Life Cycle

A

Increased competition, start of profit, price drops, little promotion

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33
Q

Maturity Stage of Product Life Cycle

A

Sales increase at a decreasing rate, then max out then start to decrease; price at its lowest, price wars with competition

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34
Q

Decline Stage of Product Life Cycle

A

Caused by cultural shits, technology advances; novelty/special products; slightly higher prices

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35
Q

Innovators

A

First to adopt new products, enjoy trying new products, tend to be venturesome, band loyal

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36
Q

Early Adopters

A

Choose new products carefully, viewed as people to check with by remaining categories

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37
Q

Early Majority

A

Adopt just prior to average person, deliberate and cautious in trying new products

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38
Q

Late Majority

A

Quite skeptical of new products, eventually adopt due to economic necessity or social pressure

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39
Q

Laggards

A

Last to adopt new products, oriented toward past, suspicious of new products, may adopt product after it has already been replaced by new product

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40
Q

Brand Equity

A

The marketing and financial value associated with a brand’s strength in a market

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41
Q

Brand Name

A

The part of the brand that can be spoken

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42
Q

Brand Mark

A

Element of brand not made of words

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43
Q

Trade Character

A

Character used to advertise good or service, mascots, celebrity, spokesperson, fictional character

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44
Q

Brand Recognition

A

When a customer is aware that the brand exists and views it as an alternative purchase if preferred brand is unavailable

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45
Q

Brand Preference

A

Strong degree of brand loyalty, definitely prefers one brand over competitive offerings and will purchase if available, will find substitute if not available

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46
Q

Brand Insistence

A

Customer strongly prefers a specific brand, will accept no substitute, willing to spend great deal to acquire brand

47
Q

Manufacturer Brands

A

Initiated by producers and ensure producers are identified with their products at the point of purchase, usually requires a producer to become involved in distribution, promotion, and pricing decisions

48
Q

Private Distributor Brands

A

Initiated and owned by resellers, manufacturers are not identified on the products

49
Q

Generic Brands

A

Indicate only the product category and do not include the company name or other identifying terms, sold at lower prices than comparable branded items

50
Q

Descriptive Name

A

Stating what is sold

51
Q

Suggestive Name

A

Suggesting what the product does

52
Q

Arbitrary Name

A

Name can mean something else

53
Q

Coined Name

A

Made up word

54
Q

Family Branding

A

uses one name for multiple products, cheaper but one bad product can affect the entire brand, no ability to differentiate, e.g. Johnson & Johnson

55
Q

Individual Branding

A

different names for different products, expensive but segmentation possible, e.g. Proctor and Gamble

56
Q

Flanker Brands

A

have high end and low end brands with different names to protect middle brand and penetrate all parts of the market

57
Q

Brand Extensions

A

take existing brand name and extend it to new product in new category, can create confusion in market place

58
Q

Co Branding

A

putting two or more product names on a product, ingredient branding is a version of this when one brand is included in a product and both brand names are used

59
Q

Brand Licensing

A

Lets another company use your brand name, could destroy your brand with bad product

60
Q

How can a company prevent a brand from becoming a generic term?

A

Capitalize to signify brand name, use brand name as adjunctive, put the word brand after the name, use the registered symbol after each name appearance, go after companies you believe infringe on your brand name

61
Q

What are the three functions of packaging?

A

Protecting the product, customer convenience, communication of product

62
Q

Product Positioning

A

Refers to the decisions and activities intended to create and maintain a certain concept of the firm’s product in customers’ minds

63
Q

Perceptual Map

A

Used to analyze product poisons based on two dimensions, used to find areas of a market that are not currently taken by other products

64
Q

What are the alternative bases for positioning a brand?

A

Competition, product attributes, price, quality, and product user

65
Q

Repositioning

A

Changing positioning of a product to try and target new part of the market

66
Q

What are the characteristics of services?

A

Intangible, inseparable, perishable, heterogeneity, client based relationship, and customer contact

67
Q

Development of Services

A

Include tangible goods to help customer determine quality

68
Q

Pricing of Services

A

Demand based price, higher demand means higher prices

69
Q

Distribution of Services

A

Short and direct channels

70
Q

Promotion of Services

A

Emphasize things that are tangible, word of mouth is critical

71
Q

Price Competition

A

Occurs when a seller emphasizes a product’s low price and sets a price that equals or beats that of competitors

72
Q

Non-Price Competition

A

Competition based on factors other than price, used when a seller can distinguish its product though distinctive product quality, customer service, promotion, packaging, and other features

73
Q

Survival Pricing Strategy

A

Temporarily setting prices low, even at times below costs, in order to attract more sales

74
Q

Profit Pricing Strategy

A

Objective to maximize profit

75
Q

Return on Investment Pricing Strategy

A

Pricing to attain a specific rate of return on the company’s investment is a profit related pricing objective

76
Q

Market Share Pricing Strategy

A

Establish pricing objectives to maintain or increase market share

77
Q

Cash Flow Pricing Strategy

A

Set prices so they can recover cash as quickly as possible

78
Q

Status Quo Pricing Strategy

A

Desires to maintain the status quo such as certain market share, meeting competitors’ prices, achieve price stability, and maintain a favorable public image

79
Q

Product Quality Pricing Strategy

A

A higher price to signify that the product is of high value

80
Q

Demand Curve

A

As price falls, quantity demanded rises

81
Q

Price elasticity of Demand

A

A measure of the sensitivity of consumer demand for a product or product category to changes in price

82
Q

Average Unit Cost

A

The sum of the average fixed cost and the average variable cost

83
Q

Break Even Point

A

The fixed costs over per unit contribution to fixed costs

84
Q

Cost Based Pricing

A

A flat dollar amount or percentage is added to the cost of the product, which means marketers apply a desired level of profit to the cost of the product

85
Q

Demand Based Pricing

A

Customers pay a higher price at times when demand for the product is strong and a lower price when demand is weak

86
Q

Competition Based Pricing

A

An organization considers costs to be secondary to competitors’ prices

87
Q

Compute Unit Contribution

A

Selling price per unit minus variable cost per unit

88
Q

Price Skimming

A

The strategy of charging the highest possible price for a product during the intro stage of its life cycle

89
Q

Penetration Pricing

A

The strategy of setting a low price for a new product in order to gain market share

90
Q

Differential Pricing

A

Charging different prices to different buyers for the same quality and quantity of product

91
Q

Negotiated Pricing

A

When the final price is established through bargaining between the seller and the customer; occurs in a number of industries and at all levels of distribution

92
Q

Secondary Market Pricing

A

Setting one price for the primary target market and a different price for another market; price given to secondary market depends on costs of serving them

93
Q

Periodic Discounting

A

The temporary reduction of prices on a patterned or systematic basis; used in retail for holiday and seasonal sales

94
Q

Random Discounting

A

Reducing prices temporarily on a nonsystematic basis so that users will not be able to predict when reductions will occur

95
Q

Odd Number Pricing

A

Strategy of setting prices using odd numbers that are slightly below whole number amounts

96
Q

Multiple Unit Pricing

A

Setting a single price for two or more units of a product

97
Q

Reference Pricing

A

Pricing a product at a moderate level and positioning it next tot a more expensive model or brand in hope that the customer will use the higher price as a reference point

98
Q

Bundle Pricing

A

The packaging together of two or more product, usually of a complementary nature, to be sold for a single price usually is considerably less than the sum of the prices of the individual products

99
Q

Everyday Low Prices

A

marketer sets a low price for its products on a consistent bases; used to reduce or eliminate the use of frequent short-term price reductions

100
Q

Customary Pricing

A

certain goods are priced on the basis of tradition e.g. price for candy bars and chewing gum

101
Q

Product Line Pricing

A

establishing and adjusting the prices of multiple products within a product line; provide marketers with flexibility in setting prices

102
Q

Captive Pricing

A

the basic product in a product line is priced low but the price on the items required to operate or enhance it are higher

103
Q

Premium Pricing

A

occurs when the highest-quality product or the most-versatile and most desirable version of a product in a product line is assigned the highest price

104
Q

Price Lining

A

the strategy of selling goods only at certain predetermined prices that reflect explicit price breaks

105
Q

Price Leaders

A

When a firm prices a few products below the usual markup, near cost, or even below cost

106
Q

Special Event Pricing

A

Involves advertising sales or price cutting linked to a holiday, season, or event

107
Q

Comparison Discounting

A

Sets the price of a product at a specific level and simultaneously compares it with a higher prices

108
Q

Prices for business markets are based on what?

A

Size of purchases, transportation considerations, and geographic issues

109
Q

Alternative Price Discount: Trade

A

To attract and keep effect resellers by compensating them for performing certain functions, such as transportation, warehousing, selling, and providing credit

110
Q

Alternative Price Discount: Quantity

A

To encourage customers to buy large quantities when making purchases and in the case of cumulative discounts, to encourage customer loyalty

111
Q

Alternative Price Discount: Seasonal

A

To allow marketer to use resources more efficiently by stimulating sales during off-peak periods

112
Q

Alternative Price Discount: Allowance

A

In the case of a trade-in allowance, to assist the buyer in making the purchase and potentially earn a profit on the resale of used equipment; in the case of a promotional allowance, to ensure that dealers participate in advertising and sales support programs

113
Q

F.O.B. Origin Pricing

A

free on board at the point of origin, price does not include freight charges, buyer pays deliver cost

114
Q

F.O.B. Destination

A

the product price does include freight charges, seller is responsible for these charges

Mgmt 322 (3 decks)

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