FINAL Flashcards
SERVICES
intangible, inseparable, heterogenous, perishable
search quality
a characteristic that can be assessed before a purchase
experience quality
a characteristic assessed only after use
CREDENCE QUALITY
a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge and experience
TANGIBLES
the physical evidence of a service ie facilities/tools/ingredients
GAP MODEL
a model IDing 5 gaps that can cause problems in service delivery, and in turn affect customers’ evaluation of its quality
- between expectations and reality
- between service and external info about the service
- between management perception and actual service specs
- between management perception and customer expectation
- between quality specs and delivery
CORE SERVICE
the most basic benefit the consumer is buying
SUPPLEMENTARY SERVICE
a group of services that enhance the core service
MASS CUSTOMIZATION
: a strat that uses technology to deliver customized services on a mass basis (eg customization of items)
NONPROFIT ORGANIZATION
an organization that exists to serve a goal besides usual business goals (eg profit/market share/ROI)
SUPPLY CHAIN AGILITY
an operational strat to induce inventory velocity and operational flexibility simultaneously in the supply chain
SUPPLY CHAIN INTEGRATION
when multiple businesses are linked and coordinated to supply customers
DEMAND-SUPPLY INTEGRATION
balancing supply with demand to meet the needs of the entire market
CRM PROCESS
capturing relevant customer info to appeal to them, and improve relations
DEMAND MANAGEMENT PROCESS
seeks to align supply & demand by anticipating customer requirements
ORDER FULFILLMENT PROCESS
generating, filling, delivering, and serving customer orders.
- eg. you order on AMAZON, which provides companies with the abilities to list their products online, the payment is made through PAYPAL/BANKS, the wholesaler packs the order, it’s delivered BY MAIL
MANUFACTURING FLOW MANAGEMENT PROCESS
ensures that firms in the supply chain mentioned above have resources + flexibility to fulfill orders
SUPPLIER RELATIONSHIP MANAGEMENT PROCESS
supports manufacturing flow by maintaining relationships with suppliers
PRODUCT DEV AND COMMERCIALIZATION PROCESS
all the activities that go into developing new products and commercializing them, babygirl
RETURNS MANAGEMENT PROCESS
enables firms to manage volumes of returned products well, while minimizing costs related to returns
LOGISTICS
strategically managing flow of ingredients, in-process inventory, and finished goods
INVENTORY CONTROL SYSTEM
method of maintaining a good assortment of inventory for customers’/firms’ demand
MATERIALS REQUIREMENT PLANNING
an inventory control system that manages replenishment of raw materials and supplies from the supplier to the manufacturer
DISTRIBUTION RESOURCE PLANNING
inventory control system that manages replenishment of goods from manufacturer to CONSUMER
AUTOMATIC REPLENISHMENT PROGRAM
a real time inventory system that triggers shipments only when a good is sold to the end user
ORDER PROCESSING SYSTEM
a system where orders are entered into the supply chain and filled
ELECTRONIC DATA INTERCHANGE
info technology that replaces paper used for business transactions (eg. orders and invoices)
BUILD-TO-STOCK
products are made in advance based on demand forecasts, and stored till customer orders arrive
MASS CUSTOMIZATION (BUILD TO ORDER)
product is not made till customer makes a personalized order
POSTPONEMENT
a hybrid of the two methods, where finished, uncustomized products are stored in advance of actual demand, and customized when a customer makes an order (eg. plain shirts that a customer comes in to do a custom print of later)
MATERIALS-HANDLING SYSTEM
a method of moving inventory into, within, and outside the warehouse
LOGISTICS INFO SYSTEM
link that connects all logistics functions of the supply chain
SMART RFID
an inventory handling and tracking system that uses an electronic tag reader
OUTSOURCING/CONTACT LOGISTICS
a manufacturer’s use of another independent firm to do some of the logistics process (eg transportation, warehousing, processing)
3RD PARTY LOGISTICS COMPANY
a firm that provides functional logistics services to others
4TH PARTY LOGISTICS COMPANY
a consulting organization that assesses another’s entire logistics needs and provides solutions
OFFSHORING
outsourcing of a business process from one country to another for economic advantages
NEARSHORING
transfer of offshored activity from a distant country to a nearby one
SUPPLY CHAIN RISK
a disruption that threatens the supply chain’s efficacy
SUPPLY CHAIN SECURITY
attempts to protect in-transit inventory/ingredients from threats
SUPPLY CHAIN RESILIENCE
the ability of a supply chain to return to its ideal operations after disruptions
ELECTRONIC DISTRIBUTION
a way to electronically distribute products or services
SUSTAINABLE SUPPLY CHAIN MANAGEMENT
a philosophy that aims to make supply chains sustainable
INTERPERSONAL COMMUNICATION
face to face, between 2+ people
MASS COMMUNIATION
communication to mass audiences
DECODING
interpretation of the message sent through the channel
ENCODING
conversion of thoughts into a message
CHANNEL
medium of communication eg radio/newspaper/voice
PROMOTIONAL MIX
combo of promotional tools (advertising, PR, social media etc) used to achieve goals
PR
evaluates public attitudes, earns public understanding and acceptance
PUBLICITY
public info about a company appearing in media
SALES PROMO
marketing activities apart from persona selling, advertising, and PR, that stimulate buying
PERSONAL SELLING
selling through person to person communication
PAID MEDIA
banner ads, sponsored ads
OWNED MEDIA
websites, blogs, social
EARNED MEDIA
media coverage, public activities
AIDA CONCEPT
Attention, Interest, Desire, Action. A model that outlines promo goals in terms of these stages of consumer involvement
INTEGRATED MARKETING COMMUNICATIONS
coordination of all promotional messages to make sure the information is consistent
PUSH STRAT
aggressive personal selling and advertising to convince a retailer to carry the product
PULL STRAT
stimulates consumer demand to obtain product distribution
ADVERTISING RESPONSE FUNCTION
phenomenon where spending for ads and promotion increases sales up to a certain point, but produces diminishing returns eventually
INSTITUTIONAL ADVERTISING
enhances a company’s image rather than promotes a new product
ADVOCACY ADVERTISING
an organization expresses views on controversial issues
PIONEERING ADVERTISING
stimulates primary demand for a new product
COMPETITIVE ADVERTISING
influences demand for a specific brand
COMPARATIVE ADVERTISING
compares 2+ competing brands (eg pepsi and coke)
AD CAMPAIGN
series of related ads focusing on a common theme
UNIQUE SELLING PROPOSITION
the essence of what makes a product better than competition’s
MEDIUM
the channel used to convey a message to a target market
MEDIA PLANNING
series of decisions made to select media to be shown in a campaign (cost effective)
COOP ADVERTISING
arrangement where the manufacturer and retailer split the costs of advertising the manufacturer’s brand
ADVERGAMING
placing ads in games online
MEDIA MIX
the combination of media used for a promotional campaign
COST PER CONTACT
the cost of reaching one member of the target market
COST PER CLICK
cost of a consumer clicking on a display or banner ad
FREQUENCY
the number of times an individual is exposed to a commercial
AUDIENCE SELECTIVITY
the ability of an ad medium to reach a defined market
MEDIA SCHEDULE
designations of what media gets shown, where and when
CONTINUOUS MEDIA SCHEDULE
advertising is run steadily throughout the advertising period
FLIGHTED MEDIA SCHEDULE
a media scheduling strat where ads are run heavily every other month/2 weeks to achieve greater impact
PULSING MEDIA SCHEDULE
uses both continuous and flighted media scheduling
PUBLIC RELATIONS
part of the promotional mix
- evaluates public attitudes/concerns and creates programs to gain public favour
PRODUCT PLACEMENT
PR strat where the product gets put/mentioned in a media medium
SPONSORSHIP
PR strat where a company spends money to support an event/cause to improve its image
CRISIS MANAGEMENT
coordinated effort to manage bad publicity
SALES PROMO
COMMUNICATION ACTIVITIES BESIDES ADVERTISING, PERSONAL SELLING, PR, where a short term incentive (adding value/decreasing price) motivates buying
TRADE SALES PROMO
promotion directed to wholesalers and retailers
CONSUMER SALES PROMO
promotion directed to the consumer market
TRADE ALLOWANCE
a price reduction offered by manufacturers to wholesalers and retailers
PUSH MONEY
money offered to intermediaries to sell products
REBATE
a cash refund for the purchase of a product during a specified period
PREMIUM
an extra item offered to the customer
POINT OF PURCHASE DISPLAY
a promotional display set up to attract attention and induce impulse buying (eg candy near cash register)
STRATEGIC BUSINESS UNIT
: large companies managing a number of small businesses, each having their own ROI and marketing mix etc
- ability for businesses to work independently
MARKET PENETRATION
a marketing strat where existing products/services are sold to an untapped part of the market to increase market share
MARKET DEVELOPMENT
attracting new customers through existing products – usually by offering them in new places/countries
PRODUCT DEVELOPMENT
a marketing strat entailing the creation of new products for present markets
DIVERSIFICATION
a strat of increasing sales by introducing new products into new markets
PORTFOLIO MATRIX
a tool for allocating resources among products and SBUs based on their market share
STAR
a business in the portfolio matrix that is a fast growing market leader
CASH COW
a business in the portfolio matrix, that generates more money than it needs to to maintain its market share
PROBLEM CHILD
in the portfolio matrix, a business that shows rapid growth but poor profit margins
DOG
in the portfolio matrix, a business that has low growth potential and a small market share
MISSION STATEMENT
clarifies what a company hopes to achieve with its content
MARKETING MYOPIA
defining a business in terms of the goods and services it provides rather than in terms of the benefits consumers seek
SWOT ANALYSIS
analysis of internal business Strengths, Weaknesses, Opportunities, Threats
ENVIRONMENTAL SCANNING
collection & interpretation of info about the external environment that might affect the marketing plan
EXPERIENCE CURVES
curves that show costs declining at a predictable rate as experience with a product increases
IMPLEMENTATION
the process that turns a marketing plan into assignments and ensures they are carried out
MARKETING AUDIT
a thorough, systematic evaluation of the objectives, strat, and performance of the marketing
SOCIAL COMMERCE
e commerce that involves selling through social media
CROWDSOURCING
using customers to develop market products (eg online reviews that help push the business to change in some way)
OWNED MEDIA
online content that the organization creates and controls
EARNED MEDIA
things like reviews, media coverage, organically generated OUTSIDE the firm
SOCIAL NEWS SITES
allow users to decide which content is promoted by upvoting or downvoting it (eg reddit)
REVENUE
price x units sold
PROFIT
revenue – expenses
ROI
net profits after tax/total assets
STATUS QUO PRICING
a pricing objective that maintains existing prices/meets the competition’s prices
PRICE EQUILIBRIUM
the price at which supply and demand are equal
UNITARY ELASTICITY
where total revenue remains the same when prices change
YIELD MANAGEMENT SYSTEMS
a digital algorithmic technique for adjusting prices
AVERAGE VARIABLE COST
total variable costs/quantity of output
AVERAGE TOTAL COST
total costs/total quantity of output
MARGINAL COST
the change in total costs associated with a one unit change in output
MARKUP PRICING
the cost of buying the product from the producer, plus amounts for profit and for expenses not accounted for
KEYSTONING
the practice of marking up prices by 100% or doubling prices
PROFIT MAXIMIZATION
a method of setting prices that occurs when marginal revenue equals marginal cost
MARGINAL REVENUE
the extra revenue associated with selling an extra unit of output, or the change in total revenue with a one unit change of output
BREAK EVEN ANALYSIS
a method of determining what sales volume must be reached before total revenue equals total costs
SELLING AGAINST THE BRAND
stocking well known branded items at high prices in order to sell store brands at discounted prices
PRESTIGE PRICING
charging a high price to help promote a high quality image
PRICE STRATEGY
a long term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
PRICE SKIMMING
a pricing policy where a firm initially charges a high price, and then lowers it over time
PENETRATION PRICING
a pricing policy where a firm initially charges a low price to attract customers
UNFAIRS TRADE PRACTICE ACTS
laws that prohibit retailers selling below cost
PRICE FIXING
an agreement between firms on the price they will charge for a product
PREDATORY PRICING
charging a very low price for a product to drive competition out of business
BASE PRICE
the general price level at which a company expects to sell a good/service
CUMULATIVE QUANTITY DISCOUNT
a price reduction offered to the customer. The discount increases over time with volume purchased
NONCUMULATIVE QUANTITY DISCOUNT
quantity discount applied to each purchase individually
CASH DISCOUNT
price reduction offered to a customer/firm/supplier in return for prompt payment of a bill
FUNCTIONAL/TRADE DISCOUNT
a discount given to members of the channel distribution for being a distributor
PROMOTIONAL/TRADE ALLOWANCE
a payment to a dealer for promoting the manufacturer’s products
REBATE
a cash refund given for the purchase of a product during a specific period
VALUE BASED PRICING
setting the price at a level that seems to be a good price to the customer compared to prices of other options
FOB (FREE ON BOARD) ORIGIN PRICING
the shipping cost from the factory/warehouse is paid by the purchaser
UNIFORM DELIVERED PRICING
all customers pay the same shipping costs regardless of their distance from shipping point
FREIGHT ABSORPTION PRICING
the seller pays for all/part of the shipping charges and does not pass them on to the buyer
BASED POINT PRICING
a price tactic that charges shipping from a given point, regardless of the city from which the goods are shipped
SINGLE PRICE TACTIC
a price tactic that offers all goods and services at the same price
FLEXIBLE PRICING/VARIABLE PRICING
a price tactic where different customers pay different prices for essentially the same product
LEADER PRICING
a product is sold near/below cost in the hopes that shoppers will buy other items once they are in the store
BAIT PRICING
gets consumers into a store through misleading price advertising, and then uses high pressure selling to convince them to buy more merchandise
ODD-EVEN/PSYCHOLOGICAL PRICING
a price tactic that uses odd numbered pricing to connote bargains and even numbered prices to imply quality (eg $9.99, and $400)
TWO-PART PRICING
a price tactic that charges tow separate amounts to consume a single good/service
CONSUMER PENALTY
an extra fee paid by the consumer for violating the terms of a purchase agreement
JOINT COSTS
costs that are shared in the manufacturing and marketing of several products in a product line. usually with similar inputs/processes eg making milking cows, processing milk, making cheese
DELAYED QUOTATION PRICES
a price tactic used for industrial installations and accessories. A firm price is not set until the item is finished/delivered
ESCALATOR PRICING
a price tactic in which the final selling price reflects the cost increases between the time the order is placed and delivered
PRICE SHADING
the use of discounts by salespeople to increase demand for one or more products in a line
PROMOTIONAL MIX
blend of advertising, PR, personal selling
SALES PROMO
short term incentive to get people to buy (discounts, coupons, displays)
DIRECT MARKETING
direct connections with targeted individual consumers. eg telemarketing
INTEGRATED MARKETING COMMUNICATIONS
integration of the company with its communication channels to deliver a clear and compelling message to audiences
AIDA
Attention Interest Desire Action. A model that outlines promo goals in terms of these stages of consumer involvement
PERCENTAGE OF SALES METHOD
sets the budget for a marketing campaign at a certain % of current or forecasted sales
COMPETITIVE-PARITY METHOD
sets budget of promotion to that of competition
OBJECTIVE AND TASK METHOD
sets budget based on what the firm wants to accomplish
EVERYDAY LOW PRICING
constant every day low price with few discounts
HIGH-LOW PRICING
charges higher prices on an everyday basis but running frequent discounts
PRICE ELASTICITY OF DEMAND
% change in quantity demand/%change in price
