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Principles of Marketing > Final > Flashcards

Final Flashcards

1
Q

What does the marketing concept mean?

A

The idea that a company should focus on satisfying the needs of the customer while at the same time trying to achieve the goals of the company

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2
Q

What is the Micro-Macro Dilemma?

A

Consumers and producers making frees choices can cause conflicts and difficulties. What is good for some firms and consumers may not be good for society as a whole

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3
Q

What is a SWOT Analysis?

A

What is a SWOT Analysis?
Strengths, Weaknesses, Opportunities, Threats

1) Gives high level view of a company’s current status
2) An indicator of a company’s health in the current moment

**Strengths and Weaknesses exist currently; Opportunities and Threats are probabilities in the future

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4
Q

What are the types of environment that the marketing department must contend with?

A
  • Economic
  • Competitive
  • Technological
  • Political/Legal
  • Cultural/Social
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5
Q

Economic Environment

A

Refers to macro-economic factors that affect consumer and business spending patterns: GDP

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6
Q

Competitive Environment

A

Particularly harsh these days due in large part to rapid advances in technology, such as online shopping, the presence of Amazon, Craig’s List, the trend to buy used and recycled goods, etc.

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7
Q

Technological Environment

A

One of the fastest changing, making many products/services obsolete

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8
Q

Political/Legal Environment

A

Refers to nationalism, religion, etc

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9
Q

Cultural/Social Environment

A

Effects how and why people live the way they do

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10
Q

Four major areas of segmenting

A
  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
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11
Q

Demographic Segmentation

A

According to the U.S. Census: Age, Gender, Occupation, Ethnicity, etc.

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12
Q

Psychographic Segmentation

A

Lifestyle

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13
Q

Geographic Segmentation

A

Physical Location

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14
Q

Behavioral Segmentation

A

Past Purchasing Behavior

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15
Q

What is the 80/20 Rule?

A

80% of a company’s business comes from 20% of your customers

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16
Q

What is the family life cycle?

A

A family’s progression from its formulation to retirement or dissolution

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17
Q

How is ones social class determined?

A

OCCUPATION NOT INCOME

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18
Q

What are the three largest U.S. Ethnic Subcultures today? and % of each?

A
  • Hispanic = 17%
  • African-American = 13%
  • Asain = 4%
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19
Q

Four major categories of Business and Organizational customers, Which is the largest?

A
  • Producers
  • Governments
  • Nonprofits
  • Intermediary
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20
Q

Producers

A

Gonzaga, Manufacturers, Farms, Mines, Financial Institutions

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21
Q

Governments

A

Federal, State, and Local

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22
Q

Non-Profit Organizations

A

Act in the public interest or to serve a cause and do not seek financial profits

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23
Q

Intermediary

A

Someone who specializes in trade rather than productions

EX: Wholesalers and Retailers

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24
Q

What is brand equity?

A

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself

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25
Q

How do industry sales and profits behave over the product life cycle?

A

Industry profits decline while industry sales are still growing.

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26
Q

What are the three main ways that a producer can extend a product’s life cycle?

A
  1. Increasing A product’s Use
  2. Finding New Uses
  3. Changing Package Size, Labels, or Product Quality
27
Q

What are the advantages to a company of using an IMC strategy?

A
  • There is more consistency
  • There is interactivity with customers
  • Can leverage a firm’s promotion expenditures in a way that improves the brand image.
28
Q

What are the 3 overall objectives of promotion?

A
  • Informing
  • Persuading
  • Reminding
29
Q

Definition of Advertising

A

1) Must be paid for
2) Non-personal or directed at a mass audience
3) Identify the sponsor of the communication

EX: Billboards, commercials, posters, radio, etc.

30
Q

Definition of Sales Promotion

A

Involves paid marketing communication activities that are intended to stimulate consumer purchases and dealer effectiveness in the SHORT RUN

31
Q

Definition of Publicity

A

Form of public relations that entails non-personal communication passed on via media by NOT paid for and no identified sponsor

EX: News stories, talk shows, consumer comments online

**IT’S FREE

32
Q

Definition of Personal Selling

A

Involves oral communication with buyers for the purpose of making sales

33
Q

What does mass selling mean?

A

A market strategy in which a firm decides to ignore market segment differences and appeal to the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible

34
Q

What is a message channel or medium?

A

Where/how the customer receives the firms message

35
Q

What are the 5 categories of purchases in the consumer adoption curve and size of each?

A 
Innovators = 3-5%, 
Early Adopters = 10-15%
Early Majority = 34% 
Late Majority = 34%
Laggards = 5-16%
36
Q

What are encoding and decoding within the communication process?

A

Encoding - the process of the message source deciding what it wants to say and translating it into words/symbols that are meaningful to the receiver

Decoding - receiver analyzing and interpreting the message from the firm

37
Q

What is a pushing strategy?

A

Directs the promotional mix to the channel members to gain their cooperation in ordering and stocking a product. In this approach, personal selling and sales promotion are most often used.

38
Q

What is a pulling strategy?

A

Directs the promotional mix at the final consumers, encouraging them to seek the product from the retailer. Sometimes this involves customers asking their favorite retailers to stock an item that is not currently carried at that store.

39
Q

What might be examples of “non-price competition”?

A

-Better customer service
Warranties
Packaging
Added features

40
Q

In what industries does the U.S. Government regulate or oversee pricing?

A
  • Utilities, insurance, state school
41
Q

Why might the promotional expense percent for industries vary greatly?

A

Because every industry is different

42
Q

What is Institutional Advertising?

A

Meant to build goodwill, or an image for an organization rather than promote a specific product or service

43
Q

What is Cooperative Advertising?

A

The practice of producers sharing the ad costs with wholesalers or retailers

44
Q

Which promo tools might be best are different stages of the consumer decision-making process? (see powerpoint)

A
  • Product Advertising
  • Pioneering Advertising
  • Reminder Advertising
  • Cooperative Advertising
45
Q

How might a company determine its pricing objectives?

A
  • Consumers Perceptions
  • The Costs to produce & distribute the product
  • Competition
  • Channel Members
  • Government
46
Q

Give an example of a multichannel distribution system.

A
  • Having online purchasing as well as specialty stores and convenience stores
47
Q

Provide an example of inelastic demand and elastic demand.

A
  • Elastic- motor vehicles, furniture (many substitutes)

Inelastic- water, gas, tobacco (not much substitute)

48
Q

What is meant by “licensing” a product?

A
  • Licensing: selling the right to use a process, patent, trademark, brand name, etc. to another country
    Management Contracting: seller provides only mgmt. and marketing skills; does not own production/distrib.
49
Q

What is price fixing?

A
  • Coming to an agreement with competitors to immensely raise prices so everyone profits
50
Q

What is the definition of a “markup”? What is a “markup chain?

A

-Markup is the dollar amount added to the cost of a product to get the selling price.
MU chain is mfr cost + mfr MU = Retailer cost + Retailer MU = Customers Price

51
Q

Pros and Cons of everyday low pricing (EDLP)

A

Some advantages of EDLP include:
• Daily prices that are usually lower than major competitors= faster turnover
• Convenience—a more transparent pricing policy, saves customers from having to competitive shop for the best prices on a given item
• Consistency of prices reduces the company’s expenses—eliminating the cost of labor and advertising that are incurred when prices fluctuate due to sale events and specials

Some disadvantages of EDLP include:
• Customers have been conditioned to expect frequent sales and price reductions and EDLP does not allow for additional markdowns on EDLP prices
• The low markups on EDLP merchandise may produce lower bottom line profit
• Low prices may cause customers to question the quality of the merchandise offered at EDLP stores

52
Q

Bundle pricing

A

bundling products together for a low price to make it efficient for customers. Great for increasing customer satisfaction.

53
Q

Bait pricing

A

Lure customers with unrealistically low prices to bring them into the store and try to sell them items at a higher price on the pretext that the advertised bargains have sold out

54
Q

Odd-Even Pricing

A

Psychological strategy of ending prices with a .99 or .00 to trick a customer

  • Odd = .99 to imply there was a sale
  • Even = .00 to imply regular or list prices
55
Q

Price-lining

A

Set several price points for a product line so a few prices cover the field

EX: A mens tie section has prices of $28, $38, and $50 for good, better, best items

56
Q

Leader pricing

A

The practice of pricing a product extremely low in order to attract customers into the retail store anticipating that they will likely also buy other (more profitable) items while shopping

57
Q

Prestige Pricing

A

The practice of pricing goods at a high level in order to give the appearance of quality

58
Q

What is the meaning of break even point?

A

Where total revenue from the quantity of product sold exactly equals the firms total costs

**Total Revenue = Total Costs

59
Q

What are the biggest benefits of a distribution/channel system? (i.e. what does it do for a company?)

A
  • It makes the process of getting products wanted easier and less expensive. Rather than buying straight from manufacturer they get products from an intermediary that assorts the products for different retailers.
60
Q

What are the two best practices of successful companies known for their superior customer service?

A
  • Taking customer comments and suggestions

- Identifying cause and effect of problems

61
Q

What are the benefits to a firm of “branding” its products and/or its company?

A
  • Authenticity, consistency, differentiation
  • More relevance in the market
  • Higher prices/ markups
  • Brand name loyalty
  • Brand extensions (new products under the same brand)
  • Can insulate a brand from competition and price limitations
62
Q

What are national brands vs. private-label brands? What are the benefits of the latter?

A 
- National Brands- levis, coke, Quaker
Private label- Kirkland, signature select
Advantages to private label- 
•	Profitable for store, eliminate middlemen
•	Quality control
•	Price
•	Lower retail prices
•	Uniqueness
63
Q

What factors might be on a “vendor analysis” when one organization buys from another? (See slides)

A 
- Product Quality
Price
Delivery Requirements
Service Support
Sales Staff Training
Advertising Allowances
Seasonal Price Breaks
Innovation
Partnership
64
Q

What are some consumer behavior trends in our society

A
  • Healthfulness, environmentalism, charity, status symbols

Principles of Marketing (7 decks)

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