Final Exam Review Ch 1-11 Flashcards
What are the three main points of “A Market”?
Point, Place, Sphere
A geographic market area
Point
A body or organization of buyers and sellers
Place
What are the two categories of Sphere?
1) Economic Market
2) Potential Demand
A combination of forces which determine price and exchange opportunity
Economic market
Segments of demand for a product or service
Potential Demand
Achieving organizational goals depends on determining the needs and wants of the target markets and delivering desired satisfactions more efficiently
Marketing Concept
What are the objectives of the marketing concept?
1) You must know the customers wants and orientations
2) The whole company must take part in that effort
3) Satisfaction is key to the company
Relevant factors of an organization’s resources. These companies have attributes that others don’t have and cannot replicate
Distinctive Capabilities
What are three distinctive capabilities?
1) Architecture
2) Reputation
3) Innovation
Based on the degree of immediate consumer satisfaction and long-run consumer benefit
Societal Classification of Offerings
What are four offering types of Societal Classification of Offerings?
1) Deficient
2) Salutary
3) Pleasing
4) Desirable
Have neither immediate appeal nor long-run benefits (low
immediate satisfaction and low long-run consumer benefit)
Deficient Offerings
Have low appeal but benefit the consumer (low immediate
satisfaction and high long-run consumer benefit)
Salutary Offerings
Give high immediate satisfaction but may hurt consumers in
the long run (high immediate satisfaction and low long-run consumer benefit)
Pleasing Offerings
Give both immediate satisfaction and high long-run benefits
high immediate satisfaction and high long-run consumer benefit
Desirable Offerings
Company growth based on markets/products
Product/Market Expansion Grid
Existing market, existing product
Market penetration
New market, existing product
Market development
Existing market, new product
Product development
New market, new product
Diversification
The sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
Dumping
All or part of the payment for goods or services is in the form of other goods or services
Countertrade
What are the five forms of trade restrictions?
1) Tariff
2) Quota
3) Embargo
4) Exchange control
5) Discrimination
Revenue and protective trade restriction
Tariff
A limit of trade
Quota
A ban of trade
Embargo
Amount and rate trade restriction
Exchange control
Bids and standards trade restriction
Discrimination
What are the five global marketing management forms?
1) Exporting
2) Licensing
3) Contract manufacturing
4) Joint venture
5) Direct investment
Selling domestically produced products to buyers in other countries
Exporting
The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
Licensing
Contract manufacturing
Private label manufacturing by a foreign company
When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
Joint venture
What are the four forms of global marketing mix strategies?
1) Product decisions
2) Promotion adaptation
3) Place (distribution)
4) Pricing
A nation should export those items which it produces most efficiently and import those items it produces less efficiently
Theory of Comparative Advantage
What are the three US comparative advantages?
1) Advanced technology
2) Agriculture
3) Large domestic market
A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
portfolio matrix (Boston Consulting Group Grid)
What are the four categories of strategic business units (SBU)?
1) Star
2) Cash cow
3) Problem child (question mark)
4) Dog
Fast growing market leader. Large profits but require lots of cash to finance
Star
Generates more cash flow than it needs to maintain market share. Low-growth market, but it has a dominant market share
Cash cow
Rapid growth, but poor profit margins. Low market share in a high-growth industry
Problem child (question mark)
Low growth potential and a small market share
Dog
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Market segmentation
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Targeting
arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers (developing a specific marketing mix to influence
potential customers’ overall perception of a brand, product line, or organization in general)
Positioning
What are the two Qualifying dimensions?
1) Geographic
2) Demographic
What are the two Determining dimensions?
1) Psychographic
2) Behavioral
What are the two forms of migration?
1) Immigration
2) Emigration
Act in an unified manner to eliminate the Middleman and Agent system for the sales and marketing of products and services in order to enhance profitability.
Vertical Marketing System (VMS)
Source and distribute the later’s agarbatis
Horizontal Marketing System (HMS)
Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
SWOT analysis
Dividing a market into different groups based on social class, lifestyle, or personality characteristics
Psychographic segmentation
Dividing a market into different groups based on consumer knowledge, attitude, use, or response to a product
Behavioral segmentation
How spending power is proportionally used. As income went up, food and basic necessities went down. Housing and household operations remained the same.
Engel’s Law
- 5%, first to adopt
- Guided by respect
- Young demographic
- Rely on factual information
- Tend to be impersonal and scientific
Innovators
- 13.5%, opinion leaders
- Guided by respect
- Young demographic
- Creative
- Greatest contact with salespeople for the product
Early Adopters
- 34%, first wave of mass market
- Pragmatic and tend to be deliberate
- Rich demographic
Most contact with the mass media
Earl majority
- 34%, late mass market
Late majority
- 16%, last to adopt
Laggards
What are three motivation theories?
1) Herzberg’s
2) Freud’s
3) A.H Maslow
Certain factors in the workplace that cause job satisfaction while a different set of factors cause dissatisfaction
Herzberg’s
Hierarchy of needs
A.H Maslow
All those people in an organization who become involved in the purchase decision
Buying center
What are the five roles in a buying center?
1) Initiator
2) Influencers/evaluators
3) Gatekeepers
4) Decider
5) Purchaser
6) User
Person who first suggests making a purchase
Initiator
People who influence buying decisions
Influencers
Group members who regulate the flow of information
Gate keepers
The person who has the formal or informal power to choose or approve the selection of the supplier or brand
Decider
The person who actually negotiates the purchase
Purchaser
Members of the organization who will actually use the product
Users
What are three buying situations?
1) New buy
2) Modified buy
3) Straight rebuy
A situation requiring the purchase of a product for the first time
New buy
A situation in which the purchaser wants some change in the original good or service
Modified buy
A situation in which the purchasers reorder the same goods or services without looking for new information or investigating other suppliers
Straight rebuy
Systematic design, collection, analysis, and reporting of data relevant to specific marketing situations facing an organization
Marketing Research
Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Product
A specific version of a product that can be designated as a distinct offering among an organization’s products
product item
A group of closely related product items
Product line
All product that an organization sells
Product mix
Any activity or benefit one party can offer another that is essentially intangible and does not result in ownership of anything
Service
A product and all peripheral factors that contribute to a consumers satisfaction
Expanded product
What are the three levels of products and services?
1) Core
2) Actual
3) Augmented
Identifier of a seller’s goods and services (a name, term, symbol, design, or
combination thereof that identifies a seller’s products and differentiates them from competitors’ products)
Brand
Utterable brand
Brand name
Nonutterbale brand
Brand mark
The positive differential effect.. knowing the brand name has on customer response to the product or service
Brand equity
Legally protected brand
Trademark
A concept that provides a way to trace the stages of a product’s acceptance, from its introduction to its decline
Produt Life Cycle (PLC)
A product new to the world, the market, the producer, the seller, or some combination of these
New product
Products create an entirely new market
New-to-the-world products
Products, which the firm has not previously offered, allow it to enter an established market
New product lines
New products that supplement a firm’s established line
Additions to existing product lines
Product targeted at new marketers or market segments
Repositioned products
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
New-product strategy
Items usually purchased frequently, immediately, and with a minimum of comparison and buying effort
Convenience
Items whose selection may entail visits to several stores and the expenditure of considerable time and effort from the consumer
Shopping
Items with unique characteristics and/or brand identification fro which a significant group of buyers is willing to make a special effort to purchase
Specialty
Items the consumer either does not know about or does not normally think about
Unsought
