Marketing Flashcards
Unsought Goods
good that has no demand
Promotion Objectives
to inform both intermediaries and end-users about new products, persuade buyers to buy the products, reminds buyers about the availability of very well-established products
Integrated Marketing Communications
refers to the concept of planning a comprehensive program that coordinates all promotional activities Who is the target market? What are the objectives? When should the promotions be run? Which media should be used?
Store’s Atmosphere
comprised of characteristics that contribute to consumers’ general impression of the store, includes the exterior appearance, interior design, product display, and store layout
Wheel of Retailing
an evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of leaner, low-price competitors
Marketing Concept
a customer-oriented business philosophy that stresses customer satisfaction as the key to achieving organizational goals
Direct Marketing
direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Promotion Mix
elements that contribute to the firm’s overall communications program, includes advertising, personal selling, publicity, public relations, and sales promotions
Independent Stores
Single retail units that are not affiliated with a corporate chain or cooperative. They tend to have higher prices than affiliated stores, less market power, and rely more heavily on customer services for a competitive edge.
Retail Store Location
function of target market, location of competitors and site costs. Location options include planned shopping centers, unplanned business/shopping districts and isolated store locators
Franchise System
a specific type of VMS where the parent company provides franchisees with the legal right to use company trademarks, the franchisor may also provide franchisees with assistance in site selection, personnel training, inventory management, and promotional strategy.
Non-store Retailing
retail transactions that occur outside of traditional store setting, techniques include direct selling, direct marketing, and vending sales
Product Development
the stage at which viable ideas are first produced in tangible form and the initial marketing strategy is created
Product Adoption Process
describes the stages that consumers go through in learning about new products
Product Adoption
takes place when the buyer decides to continue using the product regularly
Diffusion Process
the typical rate of adoption exhibited by consumers in response to new products
Innovators
the first to buy a new product, 3% of the relevant market, younger, more affluent
Early Adopters
the next to buy behind innovators, 13% of the relevant market, locally oriented, well respected within their communities, opinion leaders who influence others’ buying patterns
Early Majority
34% of the target market, slightly above average in both social and economic standing, influenced by advertising and sales people as well as early adopters
Late Majority
34% of the market, more resistant to change and risk taking than previous groups, middle aged or older and somewhat less well of than average socioeconomic terms
Ideal Points
consumers’ perception of the perfect bundle or combination of attributes
Mix Expansion
provides the firm with new opportunities for growth
Contracting
reducing
Laggards
16% of the market and are the last to buy, tend to be price conscious, low income consumers, by the time this group purchases the product it has reached the maturity stage of the product life cycle
Wide Product Mix
a diversification strategy, enables the firm to meet several different types of customers need
Deep Product Mix
focuses the firm’s resources on a smaller number of product lines, enables the firm to target several segments within the same market
Product Life Cyle
describes a pattern of changes that is characteristic of most products from their inception to the their eventual departure from the market (introduction, growth, maturity, and decline)
Introduction (Product Life Cycle)
stage of the PLC that corresponds to the commercialization of a new product, the rate of new product failures during this stage remain high, sales increase steadily throughout but profits remain negative, innovators are the initial buyers of the product, very little direct competition
Growth (Product Life Cycle)
stage of the PLC that is marked by the point at which profitability becomes positive, sales growth continues at an increasing rate, new firms enter the market
Maturity (Product Life Cycle)
stage of the PLC that is characterized by slowing sales, industry sales level off as the market becomes saturated, consumer demand peaks, price competition is greater, total industry profits decrease
Decline (Product Life Cycle)
stage of the PLC where industry sales decline, many firms leave the market, industry profits continue to decline, remaining firm exit the market
Brand Insistence
when consumers are absolutely brand loyal and will accept no substitutes
Brand Recognition
when consumers remember the brand name
Brand Preference
target consumers will usually choose one specific brand over others
Brand Rejection
when consumers recognize, but refuse to buy, specific brands
Individual Brand
when there is significant variation in product type and quality
Family Brand
used when the same brand is applied to several products, most appropriate when all of the products are of comparable type and quality
Brand Non-Recognition
consumers do not recall the brand name
Trademarks
brand names, marks, or characters used to identify products
Licensed Brand
a well-established brand name that other sellers pay to use
Primary Functions of Product Packaging
Protection, Promotion, and Information
Inseparability
the fact that the service cannot be separated from the person providing it.
Perishable
cannot be inventoried, returned, or resold
Accumulation
the process of assembling and pooling relatively small individual shipments so that they can be transported more economically
Sorting
the process of separating goods by quality, color, or size
Assorting
the process of acquiring a wide variety of merchandise to meet the diverse preferences of consumers
Direct Channels
the movement of goods from the producer to the final consumer without using independent intermediaries or “middlemen”
Indirect Channels
the movement of goods with the cooperation and assistance of independent intermediaries
Channel Width
the number of independent members at on e level of the distribution channel (e.g., producer, wholesaler, retailer, final consumer)
Channel length
the number of levels used to create a distribution channel
Intensive Distribution Strategy
when a firm sells through every potential outlet that will reach its target market
Selective Distribution Strategy
when a firm will sell through many, but not all, potential wholesalers and retailers
Exclusive Distribution Strategy
when a firm limits the number of outlets employed to one or two intermediaries within each market
Contractual Arrangements
written mutual agreements, enforceable by law, between two or more parties that something shall be done by one or both
Vertical Integration
the process of acquiring firms that operate at different channel levels
Horizontal Integration
the process of acquiring firms that operate at the same channel level
Multiple Channels
when a firm develops two or more separate and distinct distribution channels
Dealer Brands
created by intermediaries (e.g., retailers), also called “Private Brands”
Manufacturer Brands
created by product manufacturers, also called “National Brands”
Brand
a name or symbol that is used to identify the products of a specific firm
Characteristics of Good Brand Names
suggests something about the product’s benefits
short and simple
easy to spell, read, and pronounce
pleasant sounding
distinctive and memorable
appropriate to new products that may be added to the line at a later date
legally available for use
Channel Conflict
when disagreements arise between members over channel practices and policies
Channel Control
the ability to influence the actions of other channel members
Pushing Strategy examples
Sales Promotions, Personal Selling, and Advertising of the Product
Pulling Strategy
generates consumer demand for the product as a means of securing support within the channel, initially directed toward the final consumer, most appropriate for new products seeking to gain access to an existing channel
Brainstorming
a small group technique that encourages participants to voice creatives ideas on a specified topic
New Product Opportunities
stem from modification of existing products or the development of wholly new product innovations
Idea Generation
the process of searching for new product opportunities
Product Screening
the phase in which potential products are sorted relative to their strengths and weaknesses
Concept Testing
potential customers for the new product are asked to evaluate the concept
Business Analysis
a detailed evaluation of the concept’s commercial feasibility, criteria examined at this stage include product costs, competitors’ strengths in relevant markets, projected market demand, needed investment, and potential profitability
Unit Loading
the grouping of boxes on a pallet or skid
Materials Handling
the physical handling of goods in both warehouse and transportation functions
Warehousing
the process of designing and operating facilities for both storing, sorting, and dispatching goods
Containerization
the process of consolidating many items into one container
Types of Warehouses
Private and Public Warehouses
Distribution Centers
Bonded Storage
Marketing Myopia
short sighted views of the needs of the company
Distribution Center
a type of warehouse planned in relation to specific markets
Total-Cost Concept
minimizing costs and satisfying customer demands can represent conflicting objectives
Reorder Point
the inventory level at which new orders need to be placed to avoid a stockout
Stockout
a shortage of product resulting from carrying too few in inventory
Order Leadtime
the average length of time between the customer placing an order and receiving it
Short-term forecasts
typically predict sales for the next month or quarter and are used for production scheduling and evaluating the impact of short-term promotions
Geographic Demographics
the identifiable characteristics of towns, cities, states, regions, and countries
Personal Demographics
the identifiable characteristics of individuals and groups of people
Long-term forecasts
typically done for a five-year period and play a significant role in strategic planning
Medium-term forecasts
typically done annually and provide input to annual marketing plan review and revision
Electronic Data Interchange (EDI)
allows a company to integrate order processing, production, inventory planning, and transportation into a single system
Order Processing
the receipt and transmission of sales order information
Customer Service Standard
different customers requiring different levels of service
Five Levels of Brand Familiarity
Brand Insistence Brand Preference Brand Recognition Brand Non-Recognition Brand Rejection
Megacarriers
freight transport companies that provide several shipment modes
Transportation Modes
the means of moving goods from one location to another
Intermodal Transportation
two or more transportation modes used in combination
Freight Forwarders
specialized agencies that provide alternate forms of transportation coordination
Wholesaling
all of the activities related to the resale of products to organizational buyers, other wholesalers, retailers
Usage Rate
the rate at which inventory is sold per time period
Just-In-Time (JIT)
making products and materials available just as needed for production or resale
Safety Stock
the amount of extra inventory kept on hand to avoid stockouts
Economic Order Quantity (EOQ)
the order size that minimizes the total cost of ordering and carrying inventory
Behavior Dimensions
include purchase occasion, user status, and brand loyalty
Psychographics
refer to factors that influence consumers’ patterns of living or lifestyle