Exam 2 Flash Cards
1
Q
Consumer Market
A
For personal and household uses; do not buy to make profit
2
Q
Business Markets
A
Buy for resale, use in other product, or use in daily operation
3
Q
Undifferentiated Targeting Strategy
A
Mass marketing, one marketing mix to go after all segments
4
Q
Pros of Undifferentiated Target Strategy
A
Cheap
5
Q
Cons of Undifferentiated Target Strategy
A
Only works in homogeneous segments
6
Q
Differentiated Targeting Strategy
A
Each segment gets own marketing mix, more than one segment
7
Q
Pros of Differentiated Targeting Strategy
A
Meets needs of customers
8
Q
Cons of Differentiated Targeting Strategy
A
Expensive
9
Q
Concentrated Targeting Strategy
A
One mix for one segment
10
Q
Pros of Concentrated Targeting Strategy
A
Specialized for certain part of the market
11
Q
Cons of Concentrated Targeting Strategy
A
Only marketing to one segment
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
13
Q
Market Segment
A
Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
14
Q
What are four variables used to segment consumer markets?
A
Demographic, geographic, psychographic, behavioristic
15
Q
What are four variables used to segment business markets?
A
Geographical locations, types of organizations, customer size, product use
16
Q
Product
A
A good, service, or idea received in an exchange
17
Q
Pure Good
A
A good by itself, e.g. Pizza
18
Q
Good with Accompanying Service
A
A good with a service that comes with it, e.g. product with warranty
19
Q
Hybrid Good and Service
A
A good and service combined, e.g. oil change, restaurant
20
Q
Service with Accompanying Good
A
A service with goods that come with, e.g. flight with snacks provided
21
Q
Pure Service
A
A service by itself, e.g. movies
22
Q
Convenience Product
A
Necessities, purchased on regular basis; low price; high promotion; intensive distribution
23
Q
Shopping Products
A
Clothes, shoes, furniture, electronics, cars; moderate prices; promotion through personal selling; distribution selective close to competition
24
Q
Specialty Products
A
One or more unique characteristics, custom, high end; high price; targeted promotion about distribution; exclusive distribution
25
Unsought Products
Don't know exist or don't think about buying; no set price; aggressive sales tactic; no set distribution
26
What are the seven alternative types of business products?
Installations, accessory equipment, raw materials, component parts, process materials, MRO supplies, and business services
27
Product Mix
All products that an organization makes for customers
28
Product Line
A group of closely related product items that are considered to be a unit because of marketing, technical, or end use considerations
29
Product Item
A specific version of a product that can be designated as a distinct offering among an organizations products
30
What are the four alternative growth strategies that can be employed using the product-mix dimensions?
Increase width by adding additional product line, increase depth by adding additional product to a product line, purse more consistency, add more product varieties
31
Intro Stage of Product Life Cycle
Price at highest point, profit negative, promotion to educate consumers, distribution limited
32
Growth Stage of Product Life Cycle
Increased competition, start of profit, price drops, little promotion
33
Maturity Stage of Product Life Cycle
Sales increase at a decreasing rate, then max out then start to decrease; price at its lowest, price wars with competition
34
Decline Stage of Product Life Cycle
Caused by cultural shits, technology advances; novelty/special products; slightly higher prices
35
Innovators
First to adopt new products, enjoy trying new products, tend to be venturesome, band loyal
36
Early Adopters
Choose new products carefully, viewed as people to check with by remaining categories
37
Early Majority
Adopt just prior to average person, deliberate and cautious in trying new products
38
Late Majority
Quite skeptical of new products, eventually adopt due to economic necessity or social pressure
39
Laggards
Last to adopt new products, oriented toward past, suspicious of new products, may adopt product after it has already been replaced by new product
40
Brand Equity
The marketing and financial value associated with a brand's strength in a market
41
Brand Name
The part of the brand that can be spoken
42
Brand Mark
Element of brand not made of words
43
Trade Character
Character used to advertise good or service, mascots, celebrity, spokesperson, fictional character
44
Brand Recognition
When a customer is aware that the brand exists and views it as an alternative purchase if preferred brand is unavailable
45
Brand Preference
Strong degree of brand loyalty, definitely prefers one brand over competitive offerings and will purchase if available, will find substitute if not available
46
Brand Insistence
Customer strongly prefers a specific brand, will accept no substitute, willing to spend great deal to acquire brand
47
Manufacturer Brands
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
Private Distributor Brands
Initiated and owned by resellers, manufacturers are not identified on the products
49
Generic Brands
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
Descriptive Name
Stating what is sold
51
Suggestive Name
Suggesting what the product does
52
Arbitrary Name
Name can mean something else
53
Coined Name
Made up word
54
Family Branding
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
Individual Branding
different names for different products, expensive but segmentation possible, e.g. Proctor and Gamble
56
Flanker Brands
have high end and low end brands with different names to protect middle brand and penetrate all parts of the market
57
Brand Extensions
take existing brand name and extend it to new product in new category, can create confusion in market place
58
Co Branding
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
Brand Licensing
Lets another company use your brand name, could destroy your brand with bad product
60
How can a company prevent a brand from becoming a generic term?
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
What are the three functions of packaging?
Protecting the product, customer convenience, communication of product
62
Product Positioning
Refers to the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds
63
Perceptual Map
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
What are the alternative bases for positioning a brand?
Competition, product attributes, price, quality, and product user
65
Repositioning
Changing positioning of a product to try and target new part of the market
66
What are the characteristics of services?
Intangible, inseparable, perishable, heterogeneity, client based relationship, and customer contact
67
Development of Services
Include tangible goods to help customer determine quality
68
Pricing of Services
Demand based price, higher demand means higher prices
69
Distribution of Services
Short and direct channels
70
Promotion of Services
Emphasize things that are tangible, word of mouth is critical
71
Price Competition
Occurs when a seller emphasizes a product's low price and sets a price that equals or beats that of competitors
72
Non-Price Competition
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
Survival Pricing Strategy
Temporarily setting prices low, even at times below costs, in order to attract more sales
74
Profit Pricing Strategy
Objective to maximize profit
75
Return on Investment Pricing Strategy
Pricing to attain a specific rate of return on the company's investment is a profit related pricing objective
76
Market Share Pricing Strategy
Establish pricing objectives to maintain or increase market share
77
Cash Flow Pricing Strategy
Set prices so they can recover cash as quickly as possible
78
Status Quo Pricing Strategy
Desires to maintain the status quo such as certain market share, meeting competitors' prices, achieve price stability, and maintain a favorable public image
79
Product Quality Pricing Strategy
A higher price to signify that the product is of high value
80
Demand Curve
As price falls, quantity demanded rises
81
Price elasticity of Demand
A measure of the sensitivity of consumer demand for a product or product category to changes in price
82
Average Unit Cost
The sum of the average fixed cost and the average variable cost
83
Break Even Point
The fixed costs over per unit contribution to fixed costs
84
Cost Based Pricing
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
Demand Based Pricing
Customers pay a higher price at times when demand for the product is strong and a lower price when demand is weak
86
Competition Based Pricing
An organization considers costs to be secondary to competitors' prices
87
Compute Unit Contribution
Selling price per unit minus variable cost per unit
88
Price Skimming
The strategy of charging the highest possible price for a product during the intro stage of its life cycle
89
Penetration Pricing
The strategy of setting a low price for a new product in order to gain market share
90
Differential Pricing
Charging different prices to different buyers for the same quality and quantity of product
91
Negotiated Pricing
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
Secondary Market Pricing
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
Periodic Discounting
The temporary reduction of prices on a patterned or systematic basis; used in retail for holiday and seasonal sales
94
Random Discounting
Reducing prices temporarily on a nonsystematic basis so that users will not be able to predict when reductions will occur
95
Odd Number Pricing
Strategy of setting prices using odd numbers that are slightly below whole number amounts
96
Multiple Unit Pricing
Setting a single price for two or more units of a product
97
Reference Pricing
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
Bundle Pricing
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
Everyday Low Prices
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
Customary Pricing
certain goods are priced on the basis of tradition e.g. price for candy bars and chewing gum
101
Product Line Pricing
establishing and adjusting the prices of multiple products within a product line; provide marketers with flexibility in setting prices
102
Captive Pricing
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
Premium Pricing
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
Price Lining
the strategy of selling goods only at certain predetermined prices that reflect explicit price breaks
105
Price Leaders
When a firm prices a few products below the usual markup, near cost, or even below cost
106
Special Event Pricing
Involves advertising sales or price cutting linked to a holiday, season, or event
107
Comparison Discounting
Sets the price of a product at a specific level and simultaneously compares it with a higher prices
108
Prices for business markets are based on what?
Size of purchases, transportation considerations, and geographic issues
109
Alternative Price Discount: Trade
To attract and keep effect resellers by compensating them for performing certain functions, such as transportation, warehousing, selling, and providing credit
110
Alternative Price Discount: Quantity
To encourage customers to buy large quantities when making purchases and in the case of cumulative discounts, to encourage customer loyalty
111
Alternative Price Discount: Seasonal
To allow marketer to use resources more efficiently by stimulating sales during off-peak periods
112
Alternative Price Discount: Allowance
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
F.O.B. Origin Pricing
free on board at the point of origin, price does not include freight charges, buyer pays deliver cost
114
F.O.B. Destination
the product price does include freight charges, seller is responsible for these charges
